FUTURE OF -SCHEME

Evening Post, Volume CXXVI, Issue 50, 27 August 1938, Page 10

FUTURE OF -SCHEME

MINISTER'S ASSURANCE

POSITION NEXT YEAR

In view of the proposals contained in the Social Security Bill more than usual interest centred on .the vote for the National Provident and Friendly Societies Department when it came up for discussion in the House of Representatives yesterday afternoon. The Minister in charge of the Department (the Hon. W. Lee Martin) stated that the National Provident Fund would not go out of existence when the social security proposals became operative next April, and it was a matter for the contributors to the fund to decide whether they would continue with their payments. Mr. H. S. S. Kyle (National, Riccarton) said he was wondering whether "this wonderfully useful Department" was going to get its running shoes when the social security proposals came into force. His own view was that the Department had done wonderful work; in particular, it had provided against old age at a minimum cost. Did the Government intend to carry on with the National Provident Fund? Most people could not afford to pay into that fund as well as the Social Security Fund. The Leader of the Opposition (the Hon. A. Hamilton) also described the National Provident Fund as a veryattractive scheme. • The Minister: It has its limitation!, though. Mr. Hamilton said that the scheme could perhaps be extended with advantage. The Minister of Finance (the Hon. W. Nash) pointed out that the National Provident Fund had more than enough money to meet its liabilities. INCREASE IN BUSINESS. Mr. Martin said that there had been .a slight increase in the business of the Department, but the limitation of £300 maximum salary necessarily limited the number of new contributors to the fund. There was also the competition of friendly societies and insurance companies, but nevertheless the fund was doing fairly well. A large number of local bodies and private companies were associated with the fund, ; but latterly there had been some hesitancy on the part of such concerns to join up because of the social security proposals. Mr. Hamilton: Will the fund go out of existence like the pensions scheme? Mr. Martin: No. It will remain. Mr. Kyle asked what redress people would have who could not afford to pay into both schemes. Would they have to forfeit what they had paid into the National Provident Fund? Mr. Martin: That is a matter that will have to wait until the Sjocial Security Bill comes up in Committee. Mr. R. A. Wright (Independent, Wellington Suburbs) suggested that many people would capitalise their payments to the National Provident Fund and withdraw from it because they would be better oft! under the Social Security Bill. Mr. Martin said he did not think the Bill would affect the National Provident Fund or the friendly societies. :