SECONDARY TEACHER.

Evening Post, Volume CXIV, Issue 103, 28 October 1932, Page 3

SECONDARY TEACHER.

On the same subject "&c P. and T." writes:—"Although you pointed out that an actuarial deficiency does not mean a present cash deficiency of equal amount, it is not generally understood that the £23,000,000 assessment is to cover all possible future liabilities in respect of present annuitants and present contributors, and that the present cash deficiency is ap-

proximately £3,250,000, ; caused through successive Governments' failures to pay the subsidies recommended by actuaries from time to time. "You apportion blame to the Service organisations for not having compelled the Government to face the facts as this mounting deficiency was revealed, but it is obvious that you do not know of the sustained, efforts that have been made in this connection and how those efforts have been sidetracked. The unstable position and the need for various amendments to conserve the funds were stressed time and again, and\jn July, 1927, the Coates Government set up a special Committee to investigate the funds and all representations concerning them. Although Service organisations were never allowed to tender evidence direct to that Committee—in fact it can be said truthfully that the Committee never functioned —all further representations to Governmental and Administrative authorities were met with assurances that they v would be referred to the Committee. Then in 1929 came the Ward Government's pronouncement concerning the drift in stabilising the funds, and another Committee was set up, of which nothing further has been heard beyond its supposed deliberations upon the points the Service organisations represented to the Government. "No, Sir, the Service organisations are not blameworthy for the position that has arisen, excepting that they have been bluffed and have not, to use your term, 'compelled the Government "to face the facts.' Considering the restrictions that are imposed on public servants, both as regards publicity measures and political action, it is a question how they could have compelled the Government to face the facts. The Government is not doing that now. Instead, it is accepting an exaggerated report and, under the shelter of prejudiced public opinion, it is seeking to avoid its own liability, and as the stronger party to a contract it will force the weaker party—the compulsory contributors—to accept far-reaching xatiations at their own expense." [Other correspondence has been received, but the above letters set out the principal points raised. We are aware of no authoritative* statement that the present cash deficiency is £3,250,000 and, without such 'evidence, we cannot accept this, present valuation of what the Commission has plainly stated to be an actuarial deficiency of £23,000,000. Our references to the apportionment of blame included both members of Parliament and the Service organisations. . It is admitted that requests were made by resolution and deputation for investigation. Whether they were determined efforts is a matter of opinion. There is some reason to conclude they, were not sufficiently determined since remedial action has had to wait till this year. Nor should it be forgotten that there was little if any determined protest against courses of action (apart from failure to pay subsidies) which have contributed to the insolvency of-the funds.—Ed.]