SUPERANNUATION

Evening Post, Volume CXX, Issue 96, 19 October 1935, Page 10

SUPERANNUATION

POSITION OF FUNDS

SUBSIDY PAYMENTS

THE FINANCE BILL

The Finance Bill was passed by the Legislative Council yesterday afternoon. Moving the second reading the Leader of the Council (the Hon. R. Masters) said that the Bill reflected the improved financial conditions of the country, and the provisions of the Bill were justified. He pointed out that provision was made for a contribution of £200,000 to the Government superannuation funds. The Rt. Hon. Sir Francis Bell: Do you approve of that? Mr. Masters replied in the affirmative. Sir Francis: It is a waste of money. Mr. Masters said that some persons held the view.that as long as the funds were guaranteed it was just as safe as if the money had been paid in. Up to the present it had not been possible to j deal in a comprehensive manner with the funds, though it had been intended to do so this year. The subsidy was to. maintain the position till next year, when it was intended to give the matter the serious consideration that it deserved. Sir Francis: Hear, hear. NOTE OP WARNING. The Hon. J. A. Hanan sounded a note of warning, and said that it was the duty of a responsible Government to husband its financial resources as far as possible and not to give the people the idea that those resources were such that they could stand unlimited strain. The country still had an anxious time ahead, and a free-spending and easy-going policy should not be encouraged. While considering the needs of the day they must not forget the needs of the future. The Hon.. Sir James Allen thought that heed should be paid to what Mr. Hanan had said. The country should not forget the lessons of the depression. He expressed the opinion that unemployment- revenue should be used for works of a permanent productive nature. He was glad to see that the was providing a subsidy to the superannuation funds. The Hon. W. Perry welcomed the Bill for its provisions relating particularly to pension restorations. Replying, Mr. Masters supported Mr. Hanan in his remarks regarding conservation of finances! He said that there was an impression that New Zealand had reached the stage when she could spend a tremendous amount of money in social services. It had been suggested that millions could be thrown back in taxation. At the moment £7,000,000 was being spent in social services. By the internal conversion £1,000,000 a year was saved, and the external conversion had resulted in a saving of £300,000 per annum. HELP TO INDUSTRIES. Referring to the point raised by Sir James Allen, he said that the Unemployment Board was using the funds in. productive works much more now than was done in the early stages of the depression. He stressed the assistance being accorded to the citrus fruit industry, and the flax industry, and, if necessary, the board would enable the fishing industry to increase the export of fish to Australia. A conference of those interested in the industry was to be held shortly. In the Committee stage Sir Francis Bell again raised the question of the subsidy to the superannuation funds, and said that the payment of the subsidy was ludicrous. The actuarial shortage in the fund must now be about £24,000,000. In England a similar method was tried, and a position similar to that in New Zealand was arrived at. The Civil Service in England relied on the contract of the Crown, and a similar course should be taken in New Zealand. Setting aside the money gave no security to the Civil Service, because when the Government broke its contract it would seize the funds. Mr. Masters said in case it might be thought that the superannuation funds were bankrupt to the extent of £24,000,000 he would like to say that they might be bankrupt if all the people who were to be superannuitants were to call at once for their superannuation. The subsidy was to meet the full obligations of the funds in regard to payments/and the money was not lying idle. Sir Francis Bell also criticised the taking of highways revenue for the relief of farmers' rates. Mr. Masters pointed out that the motorists were not objecting. The Hon. W. Hayward: They are a long-suffering crowd. Mr. Masters: They may be, but they are wise in their generation. He pointed out that the motorists were using roads to which they did not contribute. They contributed to the cost of the main highways and a certain amount was contributed to the secondary highways. The Bill was passed.

Flight-Lieutenant A. W. Nisbet, staff officer, N.Z.A.F., who has been attending a refresher course at the Royal N.Z. Air Force Station, Wigram, returned to Wellington this morning.