Superann. spat in Govt ranks

Press, 23 September 1987, Page 9

Superann. spat in Govt ranks

Political staff The Government, which has been enjoying Opposition divisions over national superannuation, faced its own row on the future of the scheme yesterday. The Minister of Revenue, Mr de Cleene, appeared to suggest in a morning radio interview that national superannuation should be axed. He later denied that interpretation of his comments but said he believed private superannuation should play a much greater role. The State should have only a safety net for those who had not provided for themselves. Mr de Cleene apologised to his colleagues for causing embarrassment. But the man to whom the apology was particularly directed, the Minister of Social Welfare, Dr Cullen, earlier issued a curt statement denying aiw plans to “axe” national superannuation. He said there was merit

in Mr de Cleene’s idea of a bi-partisan approach to the future of the benefit, and suggested a Parliamentary select committee investigation. “However, it would have to be recognised that the Government cannot abdicate its responsibility to provide a reasonable level for income for the elderly,” Dr Cullen said. Mr de Cleene’s comments had included a call for a bi-partisan approach among politicians over the future of national superannuation. He repeated ah actuary’s calculation that people now in their 40s could not expect to receive the benefit. • “It’s a millstone round the nation’s neck,” said Mr de Cleene. What was needed was more reliance on private schemes which were both “portable” and “lockedin.” This meant they could be transferred between not be touched untib retirement age.

“But these are not within my portfolio. I make it clear, that is for someone else,” said the recanting Minister. He said he had embarrassed his colleagues with his radio interview comments, but said he had not advocated national superannuation be axed. But in making his explanation, Mr de Cleene outlined his own thoughts. "I am inclined to the view, as I have always said, that it is not the State’s duty to provide a non - means - and - assets tested benefit to people who are able of their own income to look after themselves.” He noted that the Prime Minister, Mr Lange, had said social welfare had to be targeted properly. Asked if he would further advocate such views, Mr de Cleene said that was for Dr Cullen to do. “But I will certainly be asking him if he would like to advance it”