SOCIAL LEGISLATION.

Hawera Star, Volume XLV, 20 May 1925, Page 7

SOCIAL LEGISLATION.

BRITISH PENSIONS SCHEME.

COST TO THE TAXPAYERS

BY CABLE— PRESS ASSOCIATION—uOPYRIGHI LONDON, May 18. In the House of Commons the second reading of the Widows, Orphans and Old Age Contributory Pensions Bill, which gives effect to the scheme announced by Mr Winston Churchill (Chancellor of the Exchequer) m Ins Budget speech, was moved by Mr Neville Chamberlain (Minister for Health), who declared that the cost of putting the Government scheme on a non-contributory basis, as urged in some quarters, would be £31,000,000 instead of £7,500,000 for five years. . The Minister expressed the opinion that despite the cost to the employers, which was estimated at £10,250,000 annually during the first decade, the latter must admit that the scheme would increase output because of the psychological effect upon contented worker®. The scheme would reduce unemployment by enabling 400,000 workers over 65 years of age to retire. The Government estimated another effect would be the immediate relief from rates to the extent of £3,000,000 annually, as foreshadowed by the poor laws reform scheme, which would develop the Government policy of helping those willing to help themselves. Mr John Wheatley (Minister for Health in the Labour Cabinet) moved the rejection of the Bill in a resolution which approved the principle of the measure, but condemning it on the ground that the workers’ contributory provisions imposed additional burdens on industry, and the inadequacy of the allowances where a father was incapacitated. Mr Lloyd George (the Liberal leader) ridiculed the Labour view, and supported the scheme. He favoured the contributory basis in view of the demands on the public purse for other social reforms. He made various suggestions for amendments, comparing the position of a man of 40, broken down in health, and a vigorous man 'of 65. He urged that the real test was not age, but disablement. He advocated compulsory insurance and £lO for funeral expenses, which would replace the present voluntary payments' of £25.000,000 annually, ,of which over half disappeared in administration expenses. ' The debate was adjourned.