ALLOWANCES AND PENSIONS

Dominion, Volume 11, Issue 6, 2 October 1917, Page 8

ALLOWANCES AND PENSIONS

/, THE GOVERNMENT'S NEW SCALE COST OF LEAGUE'S PROPOSALS R. A. Armstrong, president of tin New Zealand Federated Seoond Divisioi . - "Leagues, has made an investigation o; ; , the Spares quoted by the Minister 01 Defence on the second reading of thf - -War Pensions Amendment Bill, and has ; . Worked out tho tablw given belcv as a i.-; guide to tho actual position. Speaking i to a.DojiiNioN representative on the matI . tor, Mr. Armstrong said that in view of • tho baldness of the figures available, and -, a lack of knowledge of Government mregarding the strength of fu- . trure. reinforcements, it was with great ; trepidation that he approached the ques r- tion . of # critical examination of estimates brought forward by the Defence Department. So, far as; separation al-t,-v lowancea were concerned, however, there •;v. \were two sets of figures that could bt , worked on. Ono was the last sta.temoni ' regarding. New Zealand's quota, whieii Ijiywaa. apparently'intended to be 1921 men. -.; -• per month, and tho other an amount-of '.£2,037,691, stated by the' Minister of ' Defonoe to be the estimated liability for ; allowances at September SO, 1918. With, regard to'the estimates of State,liability for pensions, this matter was so governed by tho actuaL happenings at the : . front that it would be. practically, impossible "for: anyone; to forecast* the cost. '.■ Based- on the ■ past three years' cxperif O:ence, . the liability up to September 30 1 next for death pensions for dependants of married soldiers would, not'be a; large ;.. . amouiit, especially in. view of the fact t v ,J that the first Second Division draft could v hardly be .'ill the, real danger zone before June of next year. He did not propose to go into the question at this stage further than to say that the total increase ■■ proposed of about 25 per cent. over, all r • •• olasses was, as already stated, quite inadequate. It must; be remembered that ?: on the death of a soldier all pay allot-, 1 ' ments and financial assistance automatically ceased, aid dependants were thrown entirely upon the actual pension provid- [>?; ed.' Under the Government's proposed [v.-- 1 .? increase of sb. per week the widow witlijl; . out children-was .expected to,, be able to ; : live; house, - feed,', and clothe herself on &X 30s. per week, with a possibility of gettin# a further proportion of a sum of ; 10s. per week provided'she can convince pr.'the.iPensioiis Board-that her pro-war. ■" . standard of..living 'justified, it., 'The league's proposal for a -widow without !? ; was a pension ,by right of £2:'2a.--, per., week. . The Government's pro-. a widow with children wias'£2 ; . . per-week,' with 7s. 6d. per week for each f. "'child.... The league..asks for £2 , 12s. for tho widow and 10s. Gd. for ■ each child, and it is held f;::.-that in these times anything less is f . not enough. The widow's pension (civil). Suoted.by the Minister was really a chilren's pension, and was not available .widow, without children, and did : apply to those.;with . children , oyer fourteen, years. It ..was a. question of. . - providing, actual decent living"conditions 1 lor'the dependants of .those who .foil in : '-the cause, of . Empire. country, was .. -■ quito able to 'do the right' thing,- and, j-. v.the league members. feltf sure 'that - the' people of the Dominion were only wait- ; -ving for the financial call, if the Government would givo the lead. ' v. . Coming to the. question; of separation ? vyaUdwances,; Mr. Armstrong went on to *?; r.'sayp that' the oost, of ' these could • be arrived at?with, more, confidence.- At,.the outset,, however, it was necessary to realise that the total of allowances tlitm- , -. selves could not-be stated as an annual • liability. The; amount involved must be oapitalised, arid only the interest on S.- •, 1 that' amount could be characterised as an annual liability. • Allowances wonla b ; :inorease .with the. duration of- the- war . nnd the continued sending forward of ; drafts, but would 'decrease, with the discharge.of the ; soldiers from time .to time, and cease with their-. final discharge i - when- tho war ' came to an end. . 'i'he :...'-Defence Minister, however, had quoted an amount of ,£2,037,691 as the estimated - liability at September 30, 1918, and, as .- it was to be presumed that this amount ■ r was provided -for, it would be - interesting r 'to.-see bo done with it. -llrj ~ .Armstrong then; proceeded to deal with pointing i to- the , , fact that vthey-.were-frariied on a liberal . ."scale as compared:- with the .- figures >' : brought down - in. Parliament. This is indicated by the total number of .wives ! ■ .and children-estimated■ as. at: September f. 30. The Departmental .figures show, them to bo 25,842 wives and 33,268 . children,'i.'Fhereas.'the tables here given, show an estimate of 26,556, wives and:39,338 ch.'il-. 5 ;., -, dren ; -, Sir.- Armstrong's figures therofore ; , . provide' the/cost' 0f'714 more; wives' and 1 0070 more children; A rather remarkable comparison is.made between! the cctual If ; total\cost .as ; at September -SO, 1918,- of - : - -61,131,655, on the Government's proposed jfatc; -and -the Departmental estimate ot : - . liability, "at i that date of , It .• out .that the estimated ■: » cost :on the higher scale- advocated by the Second; Division . League, viz.,' 6s. .per day for the wife, 6s. per day for the - : 'Tvidowo<l mother if dependent, ;.-\end'- : ls, CJ. pßr day .for each child, only amounts; on the larger figures of the / tables to i£16,462 more, than tlie Govern-rNf,-?>®nt;:estimatej von a lesser niimber at, « : the .smaller, rate-of 35., 15...6 d„ - and Is.' respectively ■' The principal tables' pre-' pared are;as follow:— .. i;j:iTablo showinir cost to 6tato . of .Govern'"v.". ment s new scale of separation allow- . anccs to wivc6 and children of Second 1;..,. Dniaion , men.; (allowing, that first. : . draft enters, camp in January, 1918,' . ;.as stated-by : Minister of Defence, and Lj v,:- . each draft consists of. 1921-men) . ,' • , ' Actual Actual /• •: ffloiitlily, ..inoiitlily - "pay- - ' pay-'' -ment. Child- . ,ment, : W wife's ren childI-. ,;Total allow- per Totalren'salon ance, sol- child- lowance,' Ijlo. servicc, 3s. day. dier. ren, Is. day. ;v - ' ' - £ - S. £ s, K; --Jan. ; 1,921 8,644 10 0 . 0 — : ' Feb. .:. 3,842 17.289 0 0 o — i:-;. Mar- -'•••. 5,763 25,933 10 0 1,921 2,881 10 i: v: April. ...,' 7,684 34,578 0, 1 3,842 5,763 0 (■; v Ma-y 1 9,605 43.222 10 2 7,634 11,526 0 ; Juno ... 11,526 61,667 0 2 11,526 17 289 0 July. ...13,447 60,511 10 3 17,289 25,933 10 -.Aug. 69,156 0 3 23,052 . 34,578 0 V 6ept. ... 17,289 77.8C0 10 3 28,815 <13,25210 Total cost for nino months',' ; ■' -j -. , . 1 - from date of mobilisation, - - : Jan., 1918, to , : Sept. 30, .1.918, . at -new rate . proposed by Government, 389,002 10 ' 141,193 10 'Allowances in respect of widowed mothers ' : ■ : of Second- Division Men (Minister's . - figures rindicate estimated to be 81 . 1 - up to September 30, 1918). At' proposed rate of 10s. 6d. per week, for ; nine months to September 30, 1918— , £ s. d. 84. -If all fell due in January . 1587 12 0 Allowing for graduation, say I half ..; 793 16 0 Table showings actual cost to State of Government's proposals for • year ending Sept. 30,-1918, of' separation allowances : for married soldiers already/serving: nnd Second Division men on estimate of monthly draft of 1921' men. . | . Men. already serving— £ . b. d. Wives, 9267,. at present, rate Is. per day (12. months) ...' 166,806 0 0 Wives, 9267, at' increased. rate 2s. per day. from Jan., 9 months 250,209 0 0 .£417,015 0 • 0 ' Children, 10,523, at present rate 9d per day (12 » . months) 142,060 10 0 Children. 10,523, at increased rate 3d. per : day from Jan., 9 months ; 35,515 2 6 ! % ' "■ : i .£177,575 12 G Widowed mothers, 250, at . present rates Is. per day I (12 months) 4,500 0 0 1 Widowed, mothers,. 250, at increased rate 3s. Gd. per . week from Jan;, 9 months 1,575 0 0 . : 6,075 0 0 Grand total .£600,655 12 6

Second Division Men— £ s. d. Actual cost of separation allowances to wives to Sept. 30, 1918 .. 389,002 10 0 Actual cost of children's allowances to Sept. 30, 1918 141,193 10 0 Actual cost of estimate widowed mothers 794 0 0 .£530,990 0 0 Total actual cost to State on. increased scale as proposed by Government for 12 months ending Sept. 30, 1918 : .£1,131,655 12 6 Government's estimate of liability at September 30, 1918, as quoted by Minister of Defence, £2,037,691. Table showing total actual cost to Statefor 12 months ending: September 30, 1918, on scale of separation .advances proposed by Second Division. ■ League.. For the wife, Cs. per day; widowed mother if wholly dependent,. 6s. per day; each child, Is. (kl. per day.) ' First Division Soldiers — £' 6. d. ,Wives, 9207,, at present rate Is. per day for 12 months 166,806 0 0 I Wives, increase on' present rate ss. per day for 9 ' '"mouths 625,522 10 0 j ,£792,328 10 0 : Children, 10,523, at present rate 9d. per day for 12 •months 142,060 10 0 Children, increase on present rate 9d. per day for i 9 months 106,545 7 6 ,£248,005 17 6 Widowed mothers, 250, at present rate Is. per day for 12 months ...... 4,500 0 0 Widowed mothers, assum- . ing wholly dependent,'increase ss. per day for 9 months ... 15,750 0 0. ,£20,250 0 0 Grand total >£1,061,184 7 6 Second Division Men— £ s. d. Actual cost "of separation allowanco .to wives ...... 778,005 0 0 Actual cost of separation allowances to children ... 211,790 5 0 Actual cost of separationallowances. to widowed mothers ■ 3|174 4 0 ,£992,969 9 0 ! Total cost-for 12 months ■ .' t ending Sept. 80, 1918, on scale of allowances proposed by the Second Division League : £%,054,153 16 6 . Departmental estimate of liability at September 30, 1918, on Government pro. posals of wives 3s. per day, children Is. per day, widowed mothers Is. fid. per day, .£2,037,691. Actual cost to September 30, 1918, on Government proposals, <£1,131,655 12s. (id. Table showing increased cost of allowances to wives, children, and widowed mothers of soldiers already serv- , ing. ■ (Based on figures quoted by ■ ' Minister of Defence.) Increased cost for nine months from date when new scale applies, viz., Janu- > ary, 1918; to September 30, 1918. ' £ s. d. Number of wives—9267 at 2s. per day increase (say, .£3 per month), per month ' ■ ' .£27,801. Tor nine months . to„ September 30, 1918 ....... 250,209 0 0 Number of children —10,523 at - 3d. .per day increase (say, . ' . 7s. 6d. per month), per ; month .£3,946 2s. 6d. -for • nine months to September 30, 1918 35,51 a 3 6 1 Number of widowed moth- , ers—2so at 3s. 6d. per week : increase (say, '14s. per month), per month ,£175. ' Tor nine months to S'eptein- • ber. 30,-1918 1.575 0 0 .(Total 2 6 Table showing total increased cost to September 30, 1918, of allowances to drives, children, find widowed mothers of soldiers already serving and . • actual cost of those of Second Division (nine months'from January,, First Division men as per above table,' increase • si»nx Wives of Second Division .. 389,00. Children of Second Division.....-.- l«,iJd Widowed mothers of Second Dm- . ■ sion ' ....» IJI Total new cost ,on scale pro- - . i posed by Government to Sep- „• timber. 80,-1918 ? Departmental estimate of liability at ■ .September 30, 1918, quoted by Minister of Defence, JE2,037,091. ■ '