SUPERANNUATION SCHEME

Grey River Argus, 12 February 1938, Page 4

SUPERANNUATION SCHEME

Government Plans Forecast UNEMPLOYMENT TAX MAY BE ABOLISHED. MINIMUM INSURANCE OF £3 WEEKLY SUGGESTED. WELLINGTON, February 9. Easily one of the most important items which the Labour caucus will be called on to discuss when' it meets to-morrow will be the Government plans for the national superannuation and health insurance scheme. It appears at the moment that national superannuation' will take pride of place and that the proposals for the health scheme are far from ready for discussion. In fact, it is quite safe to assume that the caucus might not reach the health section of the plan at all. However, quite sufficient importance is attached to the superannuation proposals, and a last-minute meeting of the Cabinet was called this evening to discuss ' the final phases of this big project. The utmost secrecy is being observed about all these plans, but from what can be gathered in parliamentary circles two facts emerge as being within the bounds of certainty—they are, first, that the Government in its plans for national superannuation aims at a minimum superannuation figure of £3 a week and, second, that the scheme involves the abolition of the unemployment tax as it exists at present. AGE OF RETIRING. It is argued that the compulsory retiring age for the insurance scheme will be 50, but even if it is set at 55 years the adoption of the scheme would mean that a very big proportion of the men at present relying on the unemployment funds would be automatically removed from those lists, and thus would no longer be a charge on the funds. Thus there would be such a big decrease in the total call on the funds that the tax could be abolished and unemployment charges met out of the Consolidated Fund. This point seems certain—that the superannuation scheme will involve the abolition of the tax. It is also stated on very good authority that, though the minimum insurance provided under the proposals will be £3, there will be virtually no limit to the total weekly amount available, which will, of course, depend on the contributions the insured person is willing to pay. The weekly contribution ' which might be decided on is, of course i the major point at issue and the item over which the greatest secrecy is being observed, but it seems from all the accounts available that, though those contributions will vary according to the ultimate amount of superannuation to be paid, the highest call on superannuitants will be Is 3d a week. This suggestion is based -on an outline of the scheme submitted by Sir Walter Kinnear to the Australian authorities, and, it is rumoured, it is also suggested as the basis for. the New Zealand scheme. HEALTH SCHEME. This total of Is 3d, of course, is the suggested contribution to be asked for to cover the charges for both the national insurance and the health scheme. However, it does seem that for the time being there will be a long delay in the comple tion of the health section of the scheme. The Government is concentrating all its attention on the insurance proposals, and apparently the caucus will not be called on this week to deal seriously with the health proposals. It is certain that when Parliament assembles on March 1 it will be asked almost immediately to consider the national superannuation proposals. Another reported provision embodied in the health scheme is worth noting. It is reported on the best authority that the scheme will embody plans for the standardisation of prices for medicines. The health scheme proposed for Tasmania, which may very well become the model for New Zealand, includes a proposal for a flat rate of payment for all medicines at 2s a bottle, and from the most authoritative sources it is gathered that the New Zealand scheme will embody similar provision.