TOO AMBITIOUS

Evening Post, Volume CXXVI, Issue 6, 7 July 1938, Page 6

TOO AMBITIOUS

SECURITY SCHEME

MR. FORBES CRITICAL

The Rt. Hon. G. W. Forbes (National, Hurunui) vigorously criticised the Government's social security proposals. Mr. Forbes condemned the scheme on all points, warning the country that its adoption would add £10,000,000 per annum to the already high taxation" charges and would end in confusion and disappointment. Mr. Forbes said that the ,country was being asked to accept the scheme on the word of super-optimists, whose hope was that it could be financed and supported by doubling the production of the country. No account had been taken of the possibility of a fall in | the value of the nation's production, and, added Mr. Forbes, in all his experience of legislation in New Zealand he had never known any scheme to be placed before the public which had for its basis the same degree of speculation as the social security plan. "ON THE GRIPIRON." The people of New/Zealand had»become greatly concerned as to where the money was to come from to finance the costly scheme which the Government was about to place before them, said Mr. Forbes. He considered that the actuary who had been consulted by the Parliamentary Committee which had dealt with the proposals had not been treated as well as he might have been. "The reports indicated that he had been put on the gridiron by the Prime Minister," declared Mr. Forbes. Mr. W. J. Poison (National, Stratford) : And by the Minister of Finance, too. . The Prime Minister (the Rt. Hon. M. J. Savage): How\did I put him on the gridiron? Mr. Forbes replied that the reports of the proceedings showed that the actuary had been pressed into making statements that he was not in a sound position to make. In his position as an actuary he should not have been required to make speculations concernIng the future of production in the Dominion. IF VALUES FALL. "Every member of the House of Representatives would like to see a scheme brought in that would provide greater security in old age and provide •better facilities for maintaining the health of the people," continued Mr. Forbes. "But practical men must decide'whether it is in the capacity of the country to support such an ambitious scheme as that which the Government proposes to introduce. Money can only be found to finance it through the value of the production of the country in terms of the market prices. If this falls, what then? With a scheme requiring such an enormous burden of extra taxation as this tone there is bound to be a crash. It fol-

lows as surely as night follows day that if the income of the country cannot carry the extra taxation the crash will come, bringing confusion and disappointment, and throwing the country into a position much worse than that existing before the introduction of the scheme." The Prime Minister has based the scheme on the possible expansion of primary and secondary industries, and in effect was speculating- on the success of his plan. Never before in the history .ot New Zealand had a scheme been placed before the country which had for its basis the same degree of speculation as the proposed social security plan. ' - "In my opinion this plan is too I ambitious for the country to.support/ concluded Mr. Forbes. "The Government has not paid sufficient attention to costs, and it would be a\ sad day for the people of New Zealand to find after making their contribution to the scheme that the whole thing was impossible. It is wrong for the Prime Minister and the Government to try and mislead the people into believing that the scheme will be permanent. Founded on speculation, it can have no permanency and is destined to lead to bitter disappointment."