PARLIAMENT.

Hawera Star, Volume XLVIII, 3 October 1924, Page 4

PARLIAMENT.

PUBLIC SERVANTS. SUPERANNUATION ANOMALIES. IBV TBUKGHAPRr—PREPS 4SKjCJAT»ON.‘ WELLINGTON, Oct. 2. The House of Representatives met at 2.30 p.m. to-day. -Leave was given the Hon. W. Nosworthy to introduce the Meat Export Control Amendment Bill and the Dairy Produce Export Control Amendment merit Bill, which were read a first time. The Minister for Railways (Hon. J. G. Coates) laid on the table the annual on the railway superannuation fund. Mr W. A. Veiteh (Wanganui) asked the Minister to state what the effect, had been upon the fund by virtue of the recent change in policy, under which the cost of administration was to be borne by the fund and not by the Railway Department; and, secondly, what the extra demands had been upon the fund by virtue of the fact that every railway servant who reached 60 years of age or 40 years’ service was now compelled to retire. _The Leader of the Labour Party (Mr H. E. Holland) thought the time had arrived when there should he a readjustment of the superannuation system. The position was that some men were retiring with allowances varying from £sflo to £9OO per . year, while others were being pushed out without sufficient to live Upon. It should not be the purpose of superannuation that those in receipt of it should be able to save money out of it. Mr L. M. Isitt (Christchurch) declared that Mr Holland’s scheme meant repudiation, but Mr .Holland denied that it meant anything of the kind. Mr S. G. Smith (Taranaki) said he did, not think Mr Holland meant repudiation, but the time had certainly arrived when revision' was necessary, because the original scheme was based on the old value of the sovereign and not on the present day value. The Hon. J. G. Coates, in reply, said the reason that some men were retiring on what appeared large sums was because before 1909 the plan was that superannuation was based on the salary •earned and whatever contract was made in that connection .must be honoured. Since 1909 the maximum retiring allowance was limited to £3OO. There vas no doubt the fund was not stable, and it would have_to be supported, but. the prevailing opinion was that it should be paid out of railway earnings and not out of ’ the Consolidated Fund. The Minister added that the amount paid jn the past year was £156,186, .or £44,500 short of what was required. It might be a debatable point whether men should he retired at 60 years of age or after 40 years’ service! That was a matter of Government policy, and it was being carried out- at present because he believed it was sometimes a good thing to rejuvenate departments by the promotion of vounger men On the motion of'the Hon. C. J. Parr, the amendments made by the Legislative Council in the Crime Prevention Bill were agreed to. LEGISLATIVE COUNCIL. BILLS PASSED. The Legislative Council met at 2.30 p.m. to-day. The Prevention of Crime (Borstal Institution Establishment) Bill and the Post and Telegraph Amendment Bill were read a third time and passed. The House rose at 1.30 a.m. till 2.30 ; p.m. ,