CHILD ENDOWMENT

Evening Post, Volume CXXXI, Issue 39, 15 February 1941, Page 12

CHILD ENDOWMENT

FEDERAL MOVE

ON LIBERAL BASIS

DETAILS IN HAND

(By Trans-Tasman Air Mall, from "The Post's" Representative.)

SYDNEY, January 18.

A child endowment scheme is to be established in Australia by the Federal Government, providing a payment of 5s a week for each child after the first in families to be covered.

The Government's move has a political significance, in that Commonwealth endowment was an item of the official Labour pre-election policy. Endowment was also marked in discussions while the abortive negotiations for a National Government were in progress' last October. In effect, by agreeing to introduce a scheme on a more liberal basis than that proposed by Labour, the Government has given evidence of the bona fides of its previous offers to make modified concessions which would bring about \the political unity which observers consider essential to the war effort.

Announcing the Government's decision, the Prime Minister, Mr. Menzies, said: "The Cabinet has decided to accept the principle of child endowment. It will propound a scheme at the earliest opportunity. The preparation of details has been* remitted to a Cabinet committee. At the present stage, the following features of the Commonwealth scheme will be designed to cover the payment of an allowance at the rate of 5s a week to each child after the first. So that the scheme will benefit as many incomeearners as possible, the scheme will not be confined to those who are basicwage earners, but will have a much wider scope,. REMOVAL OF DIFFICULTY. "It is felt that, in the circumstances'now existing in Australia, the introduction of this much-desired measure of reform will do a great deal to remove what many wageearners have felt to be a real difficulty, and that this result will be achieved without placing an undue additional burden on industry."

The Commonwealth scheme will not involve contributions from incomeearners who benefit under it. Possibly it will benefit salary-earners in the middle-income class. The plan may not be in operation until October or even later.

The New South Wales Government's child endowment scheme, which has been in operation since 1927, and benefits basic wage earners only, will be superseded. The New South Wales Premier, Mr. Mair, said the Federal scheme would permit the State Government to reduce taxation to the extent of the cost to New South Walesestimated for this financial year at £1,300,000.

Generally, the scheme was approved by Labour members, although they desired more details before commenting. -