Earlier payout ‘not possible’

Press, Volume CXI, Issue 32778, 1 December 1971, Page 18

Earlier payout ‘not possible’

(New Zealand Press Association)

WELLINGTON, November 30.

The claim by the Leader of the Opposition (Mr Kirk) that it would be a simple matter administratively to pay an increase in social security benefits before Christmas was very wide of the mark, the Minister of Social Security (Mr McKay) said today.

The work involved in reviewing and processing the increases which affected more than 300,000 benefits and pensions—was more than could be completed in a few weeks, he said. The last increase, paid in October, included for most beneficiaries arrears from June and advance payments to the expiry of their order books.

“On every occasion there has been an increase, payment has been made to beneficiaries just as soon as it has been possible to do so,” Mr McKay said. “The volume of work involved in identifying the 300,000 benefits and pensions and ensuring correct payment should not be underestimated.”

By announcing increases to social security benefits now, the Government was seeking to short-change pensioners, the president of the Public Service Association (Mr S. J. Rodger) said today. Pensions were last adjusted in June, and before that in September, 1970. The 8 per cent increase in June had been less than the increase wage and salary earners had received between September and the end of 1970. Justice, even under the Stabilisation of Remuneration Act, demanded that

those on pensions receive in addition the 4.8 per cent July cost-of-living increase, followed by a further adjustment, probably of similar proportion, in January, 1972, Mr Rodger said.