PAYMENT OF PENSIONS

Evening Post, Volume CVIII, Issue 45, 21 August 1924, Page 9

PAYMENT OF PENSIONS

DIRECT SYSTEM TOO • ' EXPENSIVE.

«M?;' X;-.^ Ml 1 (Palmoi-Btonj * M l Jc d tlio Prime Minister in the House of Representatives yesterday ' whether he would consider the question ;of appoint-ing-a small committee to report on tlio payment of pensions to pensioners, with t'.w object of removing the present method, and Further saving a large'sum iv the cost of administration* Tlio estimated number of pensioners, he said was sixty thousand, necessitating tlio use of, say, two million documents, and approximately £10,000 could be saved per annum. ■ ■ . .

The Prime Minister (the Eight Hon • W.-F. Massey) replied that if it was thought that any benefit would accrue from setting up a.committee tho Government would be pleased to do so. but the method of payment of pensions' had already been exhaustively inquired into l.v departmental officers, who has explored every possible avenue for payment. A sy%tem of direct payment by postal note would necessitate double the staff now employed in the issue of the necessary documents, in addition to which the postasm bill of the Department, exceeding £3000 per annum, would be doubled' moreover, in the interests of the Consolidated Kund, it. would be necessary „in any case for the post office to" be visited to get the cash. I'aymenh through a hank was nut of the question, oh the score of expense.. An .Australian State, paying old age pensions before the' Commonwealth- scheme was introduced, paid £10,000 to n bank as commission on £503,000 paid by wav of pension. To pay a similar rate for"tho £2,400,000 paid in Kew Zealand laH 'year would have cost £48.000 'instead of the £15.900 ' actually paid. ' It" was not considered necessary to alter tho prcsunl system. Pensioners had thirty-' seven .days in wbicli lv collect each month's instalment, and in (he case, of Hilirinii.y no difficulty need be oxperi-■•hr-fil in -Siiivini nil flSiMil, iiJDiijitilo'it h. [ ttJk«t msluliuyuU.