Labour Pensions Policy

Press, Volume CIX, Issue 31986, 13 May 1969, Page 32

Labour Pensions Policy

(N.Z. Press Association)

HAMILTON, May 12.

Labour’s policy was to give an immediate interim increase in old-age pensions and set up a commission to assess the expenditure that would be necessary to give means-test beneficiaries a standard of living relative to that of the rest of the community, the Leader of the Opposition (Mr Kirk) said in Hamilton today. The Social Security Commission would adjust benefits accordingly twice a year, Mr Kirk said.

The commission of inquiry

would draw up a cost index based on a family budget and changes would be made in the Social Security Act to enable the social security authority to adjust benefits in June and December of each year, according to movements in the index. The recent increase in pensions was well short of the 82 a week increase which the Labour Party regarded as a necessary immediate payment, pending a decision from the commission. Asked how the increase would be financed, Mr Kirk said Labour had been criticised by the Government, which held that no money was available. But Mr Muldoon had found sl4m almost overnight for the recent pension increases.

“We expect a large part of

the money needed for the increased benefits to come from a rapidly growing national income, and from the normal increase in public revenue that is reflected in the national income growth,” he said.

The total amount of revenue cleared by the Government in the form of taxation last year showed an increase of 823 m, and this was in a year in which the economy was deliberately depressed by Government policy.

Mr Kirk said the immediate interim increase in means-test benefits was still regarded as essential, in spite of the 50c increase, and he would certainly expect further increases as a result of the commission’s recommendations.