PARLIAMENT R.S.A. Petition For War Pension Rises Rejected

Press, Volume CI, Issue 29903, 17 August 1962, Page 12

PARLIAMENT R.S.A. Petition For War Pension Rises Rejected

(New Zealand Press Association)

WELLINGTON, August 16.

A Parliamentary committee has rejected pleas for further increases of 10s in the basic war pension and 5s in the war widows’ pension.

The increases, which would have been in addition to recent pension rises granted in the Budget, were sought in a petition by the R.S.A.

The chairman of Parliament’s Defence Committee, Mr T. T. Murray (Government, Stratford), reported “no recommendation” to the House this afternoon.

He said: 'No satisfactory reason was given why there should be a second increase wi’.hin a few months.” Labour members of the committee opposed the rejection.

Mr P. G Connolly (Opposition. Dunedin Central) moved the matter be referred back to the committee for further consideration The motion was a iked out at the 5.30 p.m adj urnment The Defence Committee supported one of four requests by the R.S.A

It asked the Government to consider favourably “that automatic or discretionary increases be granted at the age of 65 to basic pensioners with disability of 40 per cent, or more.” It made no recommendation on other requests that: “(a) The basic pension be not treated as other income in assessing the age supplement of a war veteran." “(b) The War Pensions Board be empowered to grant up to 15s a week to persons under 65 in receipt of a war veterans allowance and who have no basic pension and no other income of any kind.” Mr Murray said the first

of these two was not supported because, in many cases, it would make the war veterans allowance more valuable than the main pension and encourage many to transfer from the main pension.

There was no support for the other suggestion because provisions already existed and some men without disability would get more than men who were disabled. He said all the requests of the R.S.A. would, if granted, cost an estimated £807.000. The suggestion which had been supported would cost £17.000. “AU the money in the world will never compensate some of these men for what they suffer today,” Mr Murray said. ‘The best we can do is make their life as comfortable as possible. Fringe benefits don’t go to all. They go to the greatest in need and cannot be discarded in any shape or form.”

Mr A. J. Faulkner (Opposition, Roskill) said the evidence before the committee had been overwhelmingly in favour of further pension increases. Even the Budget increases had not

restored the basic value that the pension had when it was first paid in 1917. “If we could afford it then, we should be able to now,” he said. Mr Faulkner said the basic war pension was never intended to be based on need, but as a compensation. “If we can find £1 million for land tax remissions and £ 1,500,000 for companies with a certain profit, we have no economic case against paying what is asked for,” he said. “We are quibbling about an additional £400,000 to restore to them what they had in purchasing power in 1918” Mr A. E. Allen (Government, Franklin) said a 10s increase in the basic pension was an 11.1 per cent. rise. 'A £1 increase would have been a 22 per cent. rise. Yet the consumers’ price index between June, 1961, and Marcch, 1962, had risen only 2 per cent Mr W. A. Hudson (Opposition, Mornington) said the purchasing power of the 1917 £1 was now only 6s lid. “The £2 basic pension in 1919 would need to be £6 now to compensate for the diminishing value of the £,” he said. “The R.S.A. is asking for a £5 10s basic pension, and they really proved their case. Their demands were justified.” Mr P. B. Allen (Government Bay of Plenty) said he believed most men would be satisfied with the Budget increase of 10s to £5 in the basic war pension. “With fringe benefits I feel we have done all we can for the seriously disabled man,” he said.

The “small pensioner” was a terrific charge on the country. “I wonder if we should adjust the basic pension, then ask the medicos not to be quite so lenient on many of our men," said Mr Allen.

Mr G. E. Spooner (Opposition, Wanganui) said the only argument put up by Government members of the committee against an increase was the cost.