PARLIAMENT Opposition To Procedure On Pensions For M.P.'s

Greymouth Evening Star, 14 November 1947, Page 3

PARLIAMENT Opposition To Procedure On Pensions For M.P.'s

WELLINGTON, November 13. The passage of the clause in the Finance Bill providing for retiring allowances for members of Parliament is uncertain and it is possible that they may be deferred or abandoned. The Opposition, it is now khown, has the strongest objection to the legislation’s being introduced and put through the House of Representatives in the dying hours of the session. It is likely that when the Bill comes again before the House the National Party’s leader (Mr S. G. Holland) will , express uncompromising hostility to the introduction of the scheme as part of the last-minute rush.

This objection is in spite, of the Opposition’s approval in principle, as part of its policy, of a superannuation scheme. It contends that the measure, should have been introduced early in the session, so that both members of the Lower House and the Public could have had time to assess its merits. Separate Bill Wanted The Opposition also holds the view that the plan for retiring allowances for members should have been introduced as a separate measure and not as one small section of a Bill dealing with the various public service superannuation funds. Because of some outside criticism of the Bill, particularly of the dispayitv between the rate of retiring allowance payable at 50 years of age to former members of Parliament and the £2 5s a week which the old age beneficiary has to wait to 60 to achieve, certain members of the Labour Party are also unhappy about the legislation. • The opinion has been expressed thav unless the House is unanimous and uncritical, the superannuation provision may be shelved. It was not possible tonight to obtain definite information. It is not unlikely that a number of members unwilling to vote themselves out of superannuation may be absent from the House tomorrow. Comtnittse’s Report The original retiring allowance plan

was the subject of a report to the House last year by a special select committee of seven members. Its conclusions were: “That membership of the Legislature today in many cases means full-time duty and the giving up of other sources of income or employment, which cannot ibe resumed on retirement from the i Legislature; that membership of Par--1 liament should not be confined to per--1 sons of independent means but should Ibe open to all citizens; that public {servants generally throughout the (Dominion have superannuation [schemes providing on retirement for their adequate maintenance and that of their dependants; and .that the introduction of a contributory superannuation scheme for members of Parliament is necessary and desirable.” The committee recommended that legislation providing for such a scheme be introduced in the first session of the new Parliament. Some interesting problems are' posed by the legislation as introduced. For instance, if ’one of the younger members of the House were to be defeated at the next election and had achieved a total of nine years’ service, the question arises as to whether on his 50th birthday, after making his total contribution up to £250, he would be entitled to superannuation for the rest of his life. The general opinion is that he will be so entitled. Entitlement Clause The Bill says specifically in clause 77; “Where any person has ceased to be a member at any time after the passing of this Act, after having served as a member for not less than nine years (whether continuously or in two or more separate periods and whether before or after the passing of this Act) and has attained the age of 50 years he shall be entitled to an annual retiring allowance for the rest of his life, commencing on the day after the date on which he ceased to be a member or on the day on. which he attained the age of 50 years, whichever day is the later.” The question has also been raised of a man’s entering the House in 1938 and losing his seat in 1949. He would then have paid in for two years only, £lOO. By paying another £l5O to make his total contribution £250 he would be entitled under the Bill to £3OO a year for the rest of his life because of a total service of 11 years.