Pensions

Press, Volume CIX, Issue 31983, 9 May 1969, Page 10

Pensions

Increases in social security benefits announced by the Government this week more than match the increase in the cost of living since the previous increases in pensions last year. Effective from June 12, 1968—virtually the end of the second quarter—the present pensions have enabled most pensioners to maintain a reasonable standard of living. The cost of living, as measured by the Consumers Price Index, rose 4 per cent between the second quarter of last year and the first quarter of this year. The extra $1.50 for married couples represents a rise of 6 2-3 per cent on the rate fixed 11 months ago; and the extra $1 for single pensioners a rise of just under 8 per cent Weekly wage rates rose 5 per cent in the same three quarters. In the last 10 years prices have risen 35 per cent while pensions have risen 50 per cent for married persons, 47 per cent for single persons.

The higher limit for other earnings that do not diminish pensions will enlarge the incomes of many beneficiaries. It will not affect those whose means are smallest The increases announced by the Government show regard for the differing needs of the various classes of beneficiaries. In recent years increases in benefits have generally been equal for all classes of beneficiary. In May, 1966, there was a general increase of 90 cents; in January, 1967, an increase of 25 cents applied generally; the increase of 50 cents last June was applied to most benefits. Distinctions that have been made this year in revising the rates are a step in the right direction. The most effective advance in the social security system will be made when payments are more closely related to the means of individuals.

It is remarkable that the Leader of the Opposition, Mr Kirk, should connect the announcement of the increases with a newspaper attack on the National Development Conference. The newspaper to which Mr Kirk apparently referred was last Tuesday’s edition of “ Truth ”, which alleged that the conference implied an attack on the social security system. A more realistic interpretation of the results the conference hopes to achieve would be that greater efficiency and production in New Zealand will produce the wealth upon which a much more generous social security system might be founded. In fact, the social and cultural committee of the conference proposed a review of the system and specified a number of items for particular examination. These include a study of the cost of basic necessities, the payment of benefits to persons not in need, and the care of the aged. Far from being a spur-of-the-moment move to deny a newspaper’s criticism of the conference, the increases in pensions follow a fairly regular pattern of adjustment in recent years. The only striking aspect of the timing is that they will be effective the day before Parliament opens on May 15.