PENSIONS PROBLEM

Evening Post, Volume CXVIII, Issue 31, 6 August 1934, Page 16

PENSIONS PROBLEM

NO RECIPROCITY

BRITAIN AND DOMINION

PETITION TO MINISTEK

For somo .time the Scottish Societies o£ Bunedin have been discussing tho pension problem which faces a very considerable number of people who have within recent years loft Great Britain to reside in New Zealand, so losing their right to tho British old ago pension, and learning, to their consternation, that they cannot receive old-ago pension benefits in New Zealand. Following a further discussion the Dunedin societies last month drew tip a petition to the Minister of Pensions (tho Hon. J. G. Cobbe), and forwarded it to Mr. R. 11. Nimino, president of the Wellington Burns Club, With the request that ho should placo it, and also the viows of his club, before the Minister. 'In the course of their petition tho Dunedin Scottish Societies state that in Dunedin there aro several cases of old people who havo been toil to twelve years in New Zealand^ unable to work and depending on, charity—depending on support from relief workers who are hot earning-.-sufficient .to assist. These old people came put to this Dominion with a, view to giving their families a fresh start in life; somo came out on the false representations made to them by interested .agents and now find themselves penalised for so doing. VIEW OP WELLINGTON CLUB. Mi-. Nimmo said that the "Wellington Burns Club was heartily-in accord with the aims of the Dunedin Scottish Societies in the question of pensions for all who came to New Zealand from the United Kingdom. Tl^ Scottish Societies were not, of course! regarding this as a problem of Scots —it faced English, Scots, and Irish alike. It was not a new problem, for occasional cases of disappointment had occurred from -time to time for a good many years past, but. at present the cases woro many, for a considerable number of those who came out to New Zealand during tho post-war period, when immigration was encouraged by tho British and New Zealand Governments, had sineo been joined by their parents. Had times continued prosperous the blow which fell when they learned of tho cancellation of their pension rights would have '■ been less severe, but as it was the future was very bleak. For such people to claim today that they <3id not know that they wero giving up their rights to a pension in their1 old ago was, of course, of no legal avail and no cousolation x to them either, but a great deal of regret and real hardship could, havo been avoided had the High Commissioner's oJice, which, presumably, was consulted in a number of cases, made known that there is no general reciprocal pensions aTrangcjnent between Great Britain and New Zealand. Regret that that had not been done could not help past cases, but might ensure that people did not como to New Zealand in ignorance of the position in future. As the position is at present, said Mr. Nimmo, the'cost of maintaining _a considerable number of older immigrants who in their old ago find themselves without moans must fall directly upon tho New Zealand Government. It was evident on a moment's thought that thero wero great difficulties in tho way of reciprocity, for tho bargain would be heavily on one side, bat as those concerned had spent the greater jiart of thciv useful lives in the social or.industrial spheres in Great Britain could not some plan bo evolved whereby Britain subscribed pro rata to a pension paid in the Dominion? The old people would still have to be provided for in some way, he concluded, but there was a very great difference between.the receipt of a pension looked forward to with certainty and accepted as a pension provided for those in need of somo assistance in their old age, and in assistance given in one form, or other of charity. ' STATEMENT BY MINISTER. The Minister lias replied to the Scottish Societies, through Mr. Nimmo, explaining the present position and the difficulties of instituting a reciprocal pension system. Tho. persons mentioned in the petition as now in receipt of pensions payable from tho Old Country, states the Minister, aro recipients under the Widows' Orphans and Old Ago Contributory Pensions Act, 1925----1929, of Great Britain. "In tho Mother Country," the Minister continues, "thero are in operation two distinct pension schemes, one a compulsory contributory scheme and, tho other a non-contributory, or free, pension scheme. The former provides for old age pension of 10s a week at the ago of 65 to contributors irrespec* tive of means, and until 1929: tho pension was payable only to contributors resident in Great Britain. By tho Act of 1929 new provisions were • made whereby persons who emigrated to the British Dominions may, as from January 2, 1930, -continue to receive their pensions anywhere in such. Dominions or may voluntarily continue their contributions and become entitled to the benefits as they fail due. "The non-contributory, or freo, old age pension ■ payable in terms of the provisions of the Old Age Pensions Acts, 1909-1924, at the ago of 70, at tho rate of 10s a week, is confined to persons actually resident in Great Britain, and is subject to a 'means' test as to income and property. WHERE DIFFICULTY ARISES. "In New Zealand there is no contributory pension scheme comparable with that of Great Britain, the only approach thereto being the National Provident Fund, which is on a purely voluntary basis. It will thus be seen that tho question of reciprocity so far as contributory pensions are concerned can hardly bo raised until there is in this Dominion a sehemo equivalent to that operating in Great Britain. "Tho free or non-contributory old ago pension of New Zealand payable under tho Pensions Act, 1926, is at the rato of 15s 9d a week, and is subject to a. 'means' test as to income and property, and tho ago at which persons become qualified is Co years for males and 60 for females. '' The several cases of old people who havo been ten to twelve years in Now Zealand quoted in the letter of the Scottish Societies are, of course, ineligible for the-Now Zealand old ago pension on account of not having the statutory residential qualification of #3 years iu this Dominion. MENTIONED AT IMPERIAL CONFERENCES. "In an endeavour to meet such cases tho Governments of tho various British countries with old age pension schemes in . operation have for some years been negotiating with one another to arrive at a suitable reciprocal pension arrangement, ,tho meeting of the representatives of the Governments at tho various Imperial Conferences being availed of to discuss this matter. At those conferences, notably thoso in 1926 and 1930, committees to deal with the question were set up, but after dotailed and careful investigation it was found that owing to the manifold divercences of the various systems in operation, no standard reciprocal scheme for general application could bo devised, and it was loft to the individual Governments to negotiate with

one another. Thero have been no later developments. "Tho quostion of reciprocity in old age pensions with Australia was originated as long ago as 1913, whon an Old Ago Pensions Reciprocity Act was passed by tho Parliament of Now Zealand, subject to ratification by the Australian Commonwealth Parliament of the agreement embodied therein, but such ratification lias not been made by Australia to date. "The question of the revision of tho old ago and widows' pension scheme now in operation to bring it into lino with tho British Government scheme has boon raised by petitions from the British Immigrants Club and tho Empiro Settlement League of Duuedin," •the Minister concludes, "and the matvcr will be fully investigated by a Parliamentary Committeo this session and reported on to tho House of Representatives."