Minister upset by attack

Press, 5 October 1977, Page 29

Minister upset by attack

Wellington reporter The Opposition has been attacked over its campaign against the National Superannuation scheme by the Minister of Social Welfare (Mr Walker) for “placing fears in the minds of senior citizens." He was very disturbed at the way the Opposition was attacking National Superannuation and creating fears where there should be no doubts or worries, Mr Walker said. “Over a year ago I accused the Labour Party of cruel deception which was causing considerable anguish to a number of elderly citizens,” Mr Walker said. “Now the Labour Party is stepping up its campaign of fear and sowing the seeds of doubt where none should exist.” He said that one recent assertion had been that New Zealand could not afford the superannuation scheme because by the year 2026 there would be one person over 60 for every two workers. This was an extravagant assertion because it was ridiculous to try to estimate population growth and trends

50 years hence. Changes in the birth or death rates over this period could change the position, while immigration policy could be used to correct any drop in the number of workers. Because there was no income test, National Suerannuation did encourage people to carry on working beyond the age of 60, Mr Walker said.

National Superannuation was taxable and was thus not paid for in full by those under 60. In particular, those who continued working after 60 made a very significant contribution through taxation on their National Superannuation and eamings.

If the situation did arise where there was one person over 60 for every two workers, future governments would no doubt forsee the danger and take remedial action, such as by relaxing immigration policies.. “When people start talking about long-range projections, I wonder how the socalled experts of 1927 saw 1977,” Mr Walker said. “Were they able to forecast that we would have social security as it works today?”