THE SESSION

Manawatu Standard, Volume LII, Issue 244, 14 September 1932, Page 7

THE SESSION

LEGISLATION AHEAD.

CORRECTING ANOMALIES.

It was inevitable that legislation ■would be required to adjust the anomalies which were bound to arise from the operation of some of the sections of the National Expenditure Adjustment Act of last session, writes the “Standard’s” Parliamentary correspondent in his review of the legislation likely to come before the next session of Parliament, which will be opened on September- 22. One amendment has already been listed. This will declare that the word “chattels" as used in the Act does not includOj and never did include, a life insurance policy. The amendment arises out of the interpretation placed on the section by certain insurance companies, who have treated life insurance policies as chattels and declined to reduce the rate of interest payable on loans secured on policies below 6J per cent, which is the net rate fixed for a mortgage of chattels. In the case of other mortgages the Act stipulated that the net rate payable should not be reduced below 6 per cent. The intentions of the Government were that mortgages of life insurance policies should not be treated as chattels, but as mortgages under the Act. The higher minimum of chattel mortgages was intended to apply only to mortgages of such items as stock, furniture and other tangible articles. SUPERANNUATION FUNDS.

A measure of considerable interest is the anticipated amendment to the pubfic Service Act, arising out of the precarious position of the State superannuation funds. It is reliably loreshadowed that the principal provisions will seek to extend the term of compulsory service to 40 years, or 60 years of age, and effect a substantial reduction, probably of 20 per cent, in all retiring allowances. The reversion to tlie 40 years’ service is a complete reversal of the policy pursued in 1931, when legislation was enacted, as an economy measure, enabling public- servants to, voluntarily retire on completion of 35 years’ service. This provision, which was virtually an alternative to dismissal, and a means of reducing the cost of government, was extensively availed ot, and the result lias been that the superannuation fund has suffered considerably, since allowances have become payable earlier and the fund has been deprived of contributions and investment money. It has long been recognised that the fund lacks financial stability. Pointed attention to its unsatisfactory position was drawn by the late Sir Joseph Ward in 1929 —a position due to the failure of successive Governments to pay the subsidies which would make the fund actuarially sound. It was noted by the then Finance Minister that the shortage on account of current pensions alone, which should have been covered by State subsidies in the past, was over £2,000,000. The pensions had been paid (and have been sinoe), but out of the contributions of officers still in the service.

What the present liability of the State with respect to its subsidy is can only be guessed at, but much light will be shed on the whole complicated problem when the final report of the National Expenditure Commission is presented to Parliament next week. COMMISSION’S FINDINGS.

Such ivas the concern of Sir Joseph Ward that he appointed a special committee to investigate the position of the funds. This was in March, 1930. The committee had not been reported by the end of the last session of Parliament, and it is not now expected that it will report independently of the National Expenditure Commission, to which the question was subsequently referred. AVhat information the committee had collated was no doubt submitted to the commission, and it is taken for granted that the latter body will make the recommendations. Taxpayers, as well as public servants, will await with interest the findings of the commission, which will, with recommendations covering other aspects of State activity, be available for Parliament’s consideration during the opening week of the session.

Speaking at the annual conference of the New Zealand Public Service Association in July, Mr P. D. N. Verschaeffelt, Public Service Commissioner, stated that whatever might be the nature of the commission’s report, it was apparent to all who had given any study to the question that some drastic alteration must be made in the conditions of retirement. THE SCHOOL AGE.

An amendment will be made to the Finance Act of last session authorising education boards to admit children to primary schools at the conclusion of tlic term during which they reach the age of six years, on the understanding that the children are not placed on the roll until they turn six. While the alteration will sqjiewhat ease the position created by the raising of the permissive entrance age last session, it tails short of the ideas of opponents of the original measure, and the issue is again likely to be the subject of sharp differences on the floor of the House. Although there will be no legislative peg on which to hang discussion, spirited debate may be expected also on the text-book contract question. It has been intimated that Parliament will receive another petition on the matter. It is understood that representations have been made to the Government, to further amend the Industrial Conciliation and Arbitration Act to bring within the scope of its new scheme the variation and renewal of agreements negotiated under the Labour Disputes Investigation Act. Whether the Government is prepared to allow the whole industrial question to be reopened, as would bo the case if amendments were presented, remains to be seen. Members on all sides ot the House will await with interest the results of the Government’s review of the position of miners’ widows’ pensions. Such allowances are new restricted to a term of two years after the death of the husband, instead of for the period of widowhood, and Those granted 18 months before the passage of the legislation are to expiro on September 30. The Ministerial undertaking given last session has been interpreted to moan that amending legislation will be placed before the House”next month. LAND VALUATIONS.

Local bodies will welcome the projected amendments to tlio Valuation of Land Act. The apparent disabilities of sections 45 and 50 are fully recognised bv the Government, according to a recent pronouncement, and the clauses will be altered. The sections concerned refer to the rights of property holders who are dissatisfied with the value fixed by the Assessment Court to give notice to the Valuer-General to reduce the capital value or acquire the land, and to apply for new valuations. The operation of tlic sections is claimed by local bodies affected to have prejudicially influenced borough finances and at the same time penalised ratepayers who wero conscious- of their responsibilities. Under tlio present system, it is argued, a property-holder can bring down the valuation to any figure he chooses, well

knowing that the State will not exercise i-ts option to buy, and by this means the individual practically fixes his own valuation, to the detriment of value uniformity and the creation of unjust rating liability. Proposals advanced to remedy the position include one for the decisions of the Assessment Court to be final in those circumstances where rating is on the unimproved value; another that the public should be given the same opportunity as 1 the Government to buy the property at its valuation fixed by the owner. Although the nature of the amendments has not been disclosed, it has been indicated by the Prime Minister that the alterations will aim to place the position on a fair basis and afford local bodies a greater measure of protection than at present. There is another side to the story, and this will no doubt be ventilated during tho progress of the amending legislation. Property-holders and mortgagees in a substantial way view the mooted changes with considerable alarm, contending that the sections aro “all the mortgagee now has left.” They argue that the offering of a property to the Crown at the owner’s valuation is the owner’s only remedy against fictitious values, and say that cancellation of that right may mean wholesale abandonments. They have, however, no objection to the boroughs being given the same right as the Crown to purchase at the owner’s price. OTHER MEASURES.

Other measures contemplated include legislation defining the constitution of the new Auckland Metropolitan Eire Board and putting into proper form the terms of tho agreement reached at the recent conference. There will bo the long overdue consolidation and amendment of the Companies Act, and a measure for the registration of poultry-keepers. Also on the stocks aro an amendment to the Hospitals Act, and a measure concerning the practice of dentistry. There will lie no legislation affecting wheat duties. It is possiblo that an attempt may be mado to tighten up tho law relating to the traffic in gold.

A NEW MEMBER. The newly-elected member for Southern Maori, Mr E. Iv. Tirikatene (Hatana). will be sworn in. Interest will attach to his attitude, since the Labour Party expect to gain his vote on ’a want of confidence motion if one of its grounds covers pensions reductions. 1