PAVING FOR BENEFITS

Evening Post, Volume CXXV, Issue 7, 10 January 1938, Page 8

PAVING FOR BENEFITS

'Writing last week of the introduction of contributory pensions and health insurance in New Zealand, we stated that one of the difficulties confronting the Government would be to persuade people to contribute heavily for benefits not greatly exceeding those now received without direct cost (though at great expense to ratepayers and taxpayers). Our reason for anticipating this difficulty was the fact that British experts, in advice given to Australia, had recommended schemes on British national insurance lines with benefits actually less than those now given in New Zealand without contribution. A summary of the report furnished to Australia by the British expert, Sir Walter Kinnear, appears in our news columns today and it confirms the point we have made. Contributions (on a flat rate, not the percen-J tage system of our unemployment taxation) would be finally 3s 6d a week for men (the employer paying Is 6d) and 2s 6d for women (employer Is 3d). The State would give subsidies rising to £10,000,000 a year. For this there would not be universal insurance, as non-manual workers earning over £365 a year would be excluded. For the insured persons there would be medical and sickness benefits and pensions of £1 a week for men at 65 years and 15s for women at 60. Already New Zealand pays a non-contributory old age pension of 22s 6d a week. What will be the cost of a scheme which is to offer more for the contributions?