SOCIAL SECURITY

Evening Post, Volume CXXVI, Issue 73, 23 September 1938, Page 6

SOCIAL SECURITY

PUBLIC DISTURBED

SHOCKS FOR TAXPAYERS

Mr. W. Appleton, the National candidate for Wellington Central, spoke to a full audience at the Oddfellows' Hall, Clyde Quay, last night, every seat being occupied and a good number standing at the back of the hall. The chair was taken by Mr. W. Duncan, who spoke of Mr. Appleton's long service in the interests of the public as a member of the City Council, the Wellington Hospital Board, and other bodies. Mr. Appleton, he said, was a liberally minded man who had learned tolerance and the other man's point of view from experience in working his way to the top. The meeting was a very enthusiastic one and at the conclusion a motion of thanks and confidence, moved by Mr. F. G. Williamson and seconded by Mr. W. J. Gaudin, was carried with musical honours.

Notwithstanding the months of preparation and the claim that the Labour Party had a social security scheme all worked out before they assumed office, no measure introduced to Parliament was so hacked about with alterations and amendments as the Social Security Bill, said Mr. Appleton. The Labour Party had emphasised the "benefits" side, but they had soffcpedalled and side-stepped the financial side. People, however, would not readily forget the Prime Minister's promise that taxation would not be increased and the carefully-fostered impression that Mr. Nash had some wonderful plan or formula to find all that was needed. The first shock came when the public realised that no provision had been made for real superannuation at all, and the second when it was announced that there would be a tax of Is in the £ on all wages and income— men, women, domestics, and children alike-^-although in August Mr. Nash had announced that ordinary natural income would so expand as to enable the money to be found without any increase in taxation. No one could have confidence in proposals which were reshuffled practically every time they came up for discussion.

Mr. Appleton referred to the estimate, stated by Mr. Maddox, of £17,850,000 for the first year, and said that as Mr. Nash had since announced further benefits, to cost £550,000, and as not less than £3,600,000 had to be provided for' unemployment, the total for the first year rose to the colossal figure of £22,000,000, for which there was available only £7,000,000 from present pensions provision and £5,000,000 from unemployment tax, leaving at least £10,000.000 to be found. Taxation in the 1938 Budget was set down at £31,715,000; the extra social security taxation would be £10,000,000, so that the total f0r'1939-40 would be approximately £41,715,000 —an increase of over £20,000,000 over the figure for 1935-36.

No wonder Labour was looking about for new classes of taxpayers— £200,000 per annum from persons under 20 years of age; £75,000 from domestic workers; £225,000 from "other incomes of women"; half a million a year from pensions. As though industry had not already been sufficiently crippled by restrictions and taxation, every company, small and large, was to pay Is in the £ on profits, without getting any return whatever, and the tax in fact would work out at more like 2s in the £.

The Minister of Finance, said Mr. Appleton, had stated his intention to exempt pensioners from the taxation, but in the Bill as it passed through the House there was no mention of exemption—it was left to the dictation of the Minister.

"When we become the Government," he said, "we will not operate the provisions of this BilL We will introduce a scheme which will be more beneficial in its results and more equitable in its incidence. It will provide real superannuation and there will be no means test. Those who are provided for under existing schemes will be exempted altogether unless they wish to come in voluntarily. The effect of this will be that there will be no increase in the wage tax; women will not register, 16-year-olds will not pay wage tax, and domestics will be exempt from wage tax. We will provide increased family allowances and pensions for orphans. To encourage family life and to protect the motherhood of the nation we will provide free maternity treatment and a complete health scheme for those who are unable to make provision for such service out of their own resources."