OVER £3,000,000 A YEAR

Dominion, Volume 28, Issue 230, 26 June 1935, Page 10

OVER £3,000,000 A YEAR

Cost of Pensions MARKED INCREASE IN RECIPIENTS Effect of Bad Times COMPREHENSIVE REVIEW BY MINISTER Pensions paid to all New Zealanders entitled to them under the various Parliamentary enactments now amount to well over £3,000,000 a year. Since 1931 there has been an increase of over 19,000 persons to the pensions pay-roll. The most noticeable increases have been in respect of old-age pensions and family allowances. The Minister of Pensions, Hon. J. G. Cobbe, stated in an interview with •‘The Dominion” yesterday that the swelling of the pensions bill could be attributed in a large measure to the unfortunate economic conditions •the Dominion had experienced. Classifying the pensioners in the toilowing return, Mr. Cobbe said that the figures he would quote were a significant answer to one or two critics who seemingly must state that the Government had not done enough for pensioners. At March 31. 1931, war pensions numbered 21,025, costing £1,245,499; at March 31, 1935, the figures were 21,678, costing Old-age—the figures in the same sequence as war pensions—--28,995 (£1,158,788), 40,141 (£1,519,889) ; widows 4566 (£325,998), 4505 (£296,565) ; Maori War 170 (£9102), 65 (£3607); miners’ 876 (£58,441), 783 (£58,740) ; epidemic 138 (£6322), 34 (£1983); blind 330 (£15,796), 474 (£21,227): Boer War 59 , (£2620), 53 (£2OS4) ; sundry pensions'and annuities 'TI4 (£10,624), 139 £12,120); Civil Ser- :* vice Act, 1908, 27 (£9251), 15 (£5211) ; family allowances 4617 (£63,608), 12,321 (£152,818). In 1931 there were G 0,917 pensioners; to-day there are 80.208—an. increase of 19,291.

The Minister said it was patent from the figures set out that expenditure on i pensions had greatly expanded, and that It would be perceived that the outstanding increases were in respect of the old--age and family allowance payments. A Colossal Undertaking. “The work of the Pensions Department,” remarked Mr. Cobbe, “is colossal and very ably done by the Cominissioner of Pensions, Mr. J. H. Boyes, and his staff of efficiently-trained officers. In addition to dealing with New Zealand pensions, the Pensions Department paid pensions running into thousands of pounds on behalf of other Goverments, notably the Governments of Great Britain, Australia, India, South Africa, Canada and the Crown Colonies. “Besides, there is included in the general administration of pensions certain special services to pensioners, embracing medical treatment of war pensioners (which includes both in-patient and out-patient hospital treatment), dental treatment, medical examinations, supply and repair of artificial limbs to amputees and of surgical boots and appliances, provision of shelters and fittings for tubercular war pensioners, funeral expenses, railways concessions to war pensioners (consisting of free rail passes to those on maximum permanent pensions and permits to travel first class at second-class rates to those on permanent pensions in excess of 50 per cent. , for locomotor disabilities) and payment of loading on life insurance policies in relation to war disabilities of pensioners.” Expenditure for these services is summarised as follows; —At March 31, 1931, medical treatment of pensioners cost £83,394; for the same period in 1935 the cost was £67,912; medical fees (in ■ the -same sequence), £6937 and £66i3 ; railway concessions, £1876 and £1684; loading on life insurance policies, £196 and £175. The cost per head of European population for pensions at March 31, 1931, was £2/0/3; to-day it is £2/5/-. Range of Pensions. To-dav a male or female old-age pensioner at age 65 draws £43 p.a.; a female at age 60, £3B p.a. (increased by £1 p.a. until age 65 is reached). In cases in which an applicant parent has two or more dependent children the pension age is reduced by five years and £l3 p.a. additional is payable. An ex-member of a New Zealand Boer War Contingent is entitled to an additional £l3 p.a. A widow and one child - draws £46/16/- p.a.; for each additional child £23/8/- p.a. until the maximum pension of £lB7/4/- is reached. Blind people (minimum age 20 years) receive £45/10/- p.a. and a 25 per cent, subsidy on earnings with aggregate receipts limited to £lBB/10/-. A miner’s pension is £5B/10/- p.a.; his wife, £23 8/- p.a.; each child, £23/8/-; maximum pension, £l9B/18/-; widow of miner, £4O/19/- for two years; Maori War pensions (New Zealand War medallists only) £49 p.a. Under the War Pensions Act the maximum rates of pension for a private soldier are: Statutory pension, I- £lO4 p.a.; economic pension, £54/12/-; attendance allowance up to £156 p.a.; wife. £42/18/- p.a.: child; £2l/9/- p.a.; . widowed mother wholly dependent, £42/18/-: widowed mother partially dependent, not less than £2l/9/- p.a. . according to extent of pre-enlistment assistance; deceased soldier’s widow (childless) £7B p.a.; mother of child- . ren, £lO4 p.a.; child (each) £26 p.a.; orphan child, £39 p.a.: widowed mother (wholly dependent). £7B p.a.; widowed mother (partially dependent), not less than £39 p.a.; other deceased soldiers’ dependants, according to extent of preenlistment assistance. Widows and widowed mothers of deceased soldiers may be granted economic pensions in addition. The pensions to disabled Boer War veterans are the same as war pensions: also police pensions. Pensions for ex-members of defence and naval forces (peace establishment) are the same as war pensions, but no economic pension is granted. Family allowances are'paid at the rate of 2/- a week for each child in excess of two. The influenza epidemic pensions are 22/6 a week for a widow with children—9/5 for each child. Considering Invalids. “Of course there arc many persons,” said Dlr. Cobbe, "who feel that there should be an all-round increase of the pensions, in spite of the huge bill the country has had to pay for them and pays to-day. Undoubtedly there are some classes of our pensions we would all like to see put up, but the question is could the country’s economic condition stand up sufficiently to increases..

I personally—and so would the Government —like to see invalid- pensions granted; it is a matter I have long had under consideration. lam bringing my investigations before tlie Cabinet again for review.

“Even in the crushing years of the depression—which we have not yet altogether side-stepped—the Government time and again reviewed tlie pensions laws to see whether any little concessions could be made with the finances at our disposal. And some were granted. By the Pensions Amendment Act, 1932, the residential qualification for miners’ pensions was widened by allowing for occasional absences not exceeding six months in the aggregate during the five years immediately preceding the date of application. Provision was made also for miners’ widows in receipt of pension at the date of passing of the National Expenditure Adjustment Act, 1932, to receive, on the termination of such pensions, special pensions of £35/19/- per annum, subject to tlie same income and property limits as old-age pensions. For blind pension purposes, privileges as regards absence from New Zealand ,on the part of pensioners and applicants for purpose of vocational training were extended to cover absences for purposes of medical treatment for eye disability.

“In 1933 section 23 of the Finance AH. 1932-33, amended the residential qualification for old-age pension by allowing absence in any capacity as a member of any of his Majesty’s naval, military or air forces, or in any war as a member of any organisation attached to any such force to be disregarded in determining tlie period of the applicant’s continuous residence in New Zealand.

“In 1934, provision was in; de in the Finance Act of that year for the following liberalisations of the old-age pension law: Maximum rate of pension increased from £4O/19/- to £43 per annum. At the same time die income exemption was increased from £39 to £4l. and the limiting amount foi married couples from £l2l to £127 per annum. Then, in regard to additional pensions'to South African War veteran.' in receipt of old-age pensions, die in come and pension limit was increased from £79/19/- to £34 " An Outstanding Achievement. The cost of administration of the Pensions Department was. touched on by Mr. Cobbe. “I think it will lie conceded,” said the Minister, “that the Government has not gone in for extravagant cost in the running of this large department of the State whose efficiency is very well known and very favourably commented nnon by those who are acquainted with the work and ramifications of the department. The principal items of expenditure in the cost of administration of the Pensions Department are salaries of officers, honoraria and other expenses of the War Pensions Board and the,War Pensions Appeal Board, payments to the Postal Department for paying out pensions and for postages and telegrams, printing and stationery, rent of offices and expenses of officers of the department travelling on official business. “At March 31. 1931, the cost of administration was £70,109, with _ a 2.24 percentage of cost of adininis (ration to the total payments made. At the same month this year the administration cost was £03.819. with a 1.79 percentage of cost of administration to the total payments made. That result I consider to be a fine achievement in efficient managament.”