STATE INQUIRY

Manawatu Standard, Volume LVIII, Issue 95, 21 March 1938, Page 2

STATE INQUIRY

NATIONAL SUPERANNUATION. SITTINGS BEGIN SOON. AVELLINGTON, March 21. It is - expected that within the next few days the Prime Minister (Rt. Hon. M. J. Savage) will be able to announce the date of the commencement of the sittings of the committee recently set up to examine the proposals of the Government for a national health insurance and superannuation scheme. Mr Savage stated in an interview on Saturday that the work of the committee would start as soon as the Ministers on ' the committee had been able to dispose of outstanding routine work arising from the session.

The importance which the Prime Minister attaches to the work to be done by the committee may be gauged from the fact that he himself intends to keep closely in touch with its deliberations and will hear all the most important evidence given. To enable him to do this Mr Savage does not intend at the moment to leave AVellington, as the committee will be sitting almost continuously during the recess. In fact, the committee has authority from Parliament to sit, if necessary, up to a month after the commencement of the next session, but it is not thought that this will be necessary, particularly since the report must be presented within a month after the session begins. The decision to make the deliberations of the committee open to the Press will mean that for the first time the'public will hear definite details of the Government’s proposals. As was indicated in the motion authorising the setting up of the committee, its work will not be directed to the formulation of a plan, but will simply he an examination of the specific proposals of the Government. Naturallytho results of the committee’s investigations will play a large part in the drafting of the Government’s final scheme, and the very wide order of reference which it has been given will ensure that every aspect of the plan will be critically examined. OBSTACLES OF FINANCE. It is expected that the committee will have its most difficult task in dealing with the financial details of the proposals. It is realiably reported that the Government, in the preparation of its scheme, found its greatest obstacle when it came to deal with methods of financing, and no secret was made of the fact that when tho proposals rvere considered by caucus there was a good deal of controversy on the fundamental issue whether the scheme should bo on a contributory basis or financed by the State. It still appears that pressure is being brought to bear on the Government, from quarters within the Labour Party movement, to make the scheme noncontributory, but from what can be learned it seems certain that the Prime Minister and Cabinet have no intention of financing the scheme by any other means than by direct contributions at a rate in proportion to income. • A superannuation scheme of the kind contemplated —the committee s order of reference refers to one that will embrace all people living in New Zealand—is hardly expected to be actuarily round, and in the initial stages at least it will be necessary for substantial contributions to be liacie by tho State. .Oil this point also there was a sharp cleavage of opinion in caucus, and it is reported that a considerable section of the members of the Parliamentary Labour Party favoured the launching of the scheme by the use of “the public credit. These details will certainly be well argued by the committee.