APPREHENSIVE

Evening Star, Issue 21569, 15 November 1933, Page 9

APPREHENSIVE

CIVIL SERVICE SUPERANNUATION CONDITION OF FUNDS [From Our Parliamentary Reporter.] WELLINGTON, November 14. It is definitely not the intention of the Government this session to promote legislation dealing with the condition of the State superannuation funds, according to an announcement by the Prime Minister (Mr Forbes). He intimated that the conference on the subject between the Minister of Finance and the heads of the different organisations affected was still in progress, and expressed the hope that the outcome would be the submission to the Government of concrete proposals, which would place the Government in better position to judge what action should be taken.

“ Meantime,” he stated, “ We are carrying on; that is all that can be said. The men are getting their superannuation at the present time, and there is no intention on the part of the Government to bring down legislation this session dealing with the question, because it is one of great importance, requiring a good deal of investigation.”

It was possible, said the Prim© Minister, that, as the result of the negotiations between the Minister and the representatives of the organisations, the matter could be arranged in such a way as would be mutually satisfactory. There was no desii'e on the part of the Government to penalise contributors to the funds. There had been a desire to assist men retiring from the service, and consequently additional weight had been placed on the fund in that regard. Requests that provision should be made had come from members of Parliament, among others. There had been no advantage to the Government’s responsibility whatever.

Mr Forbes pointed out, also, that the superannuation boards had been up against the reduction in the rate of interest on their investments. Interest had not been paid in some cases, and with the resultant adjustments there had been a lowering of normal income. All the funds had suffered to some degrce. This announcement of the Prime Minister was provoked by a sharp attack from the Leader of the Opposition, Mr Savage, who, at the risk of being branded an inquisitive customer, asked the Government to disclose what really was happening over the superannuation funds. He recalled the investigation of last session, the voluminous evidence taken by the special select committee, and the fact that the committee had not been summoned for the current session. In the case of railwaymen, lie could say that they owed the fund nothing, but apparently they were being called upon to shoulder some of the State’s responsibility for the weak condition of the funds. That situation could not be defended on any grounds. The men had been compelled to join the fund, but they had carried out their contract in every respect. All that notwithstanding, the funds were going in the wrong direction. Had the Minister, for instance, considered the basis of the Railway Superannuation Fund? Special legislation had been passed to protect the so-called superannuation rights, and over the statutory limit of £3OO, £26,000 a year was being paid out. What does the Minister propose to do? ” asked the Leader of the Opposition. “Is he getting the representatives of the organisations together in order to load some of the Government’s responsibility on to the rank and file of the service—responsibility that rightly belongs to the Crown? ” “ Hoes it really? ” asked Mr Coates, Minister of Finance.

Mr Savage: “ You know that as well as I do.” He added that the Government must remember that the rank and file of the service met all their requirements, whereas the Government had not fulfilled its. Mr O’Brien (Westland) asked for an assurance that the superannuation of men drawing between £2 and £4 a week would not be interfered with. The Prime Minister: The matter is under discussion at present. Mr O’Brien (turning to Mr Coates) : Will the Minister of Finance give me an assurance? Mr Coates: I am not going to answer.

“ The contributors are extremely apprehensive about the future of funds,” said Mr Langstone. The Prime Minister: There will be no alteration this year.

Mr Stallworthy reminded the House that the honour of the State was at stake on the Government’s action in connection with the superannuation funds, because the reason for the weakness was the failure of the Government to pay in its guarantees. It was pointed out by Mr Parry that in the years during which it had not paid in its guarantees, the Government had declared a surplus. Mr Lee; Falsifying the accounts. Mr Parry: Yes, falsifying the accounts. There is no question about that. Mr Speaker: Order, order. You should withdraw the word “ falsifying.” Mr Parry: I will do so reluctantly.