THE SECURITY ACT

Manawatu Standard, Volume LIX, Issue 68, 17 February 1939, Page 8

THE SECURITY ACT

ASPECT OF FINANCE.

BIG ESTIMATED SHORTAGE.

Per Press Association. AUCKLAND, Feb. 16,

A shortage of about £2,000,000 in financing the Social Security Act, taking the estimated cost of the scheme in full operation as £17,850,000, was mentioned by the Minister of Finance (Hon. W. Nash)'in addressing members of the New Zealand Institute of Business Executives. “It will cost a fair amount of money,” Mr Nash said, after outlining the benefits of the Act. He said the tax of Is in the pound would bring in about £8,500,000, and be thought the total cost of the scheme l_ull operation was estimated at £17,850,000. The shortage, taking into account the Is in the pound and present pensions, would be about £2,000,000. “We will have to find a way of getting it somehow,” the Minister continued. “I think we will get it all right, with the least hardship.” Mr Nash said he knew' that some of the business men present would want to argue with him concerning the payment of the social security contribution by companies. He would like to ask those of his listeners who were in business, in partnership or on their own account, whether it was fair that they should pay on their whole income while company shareholders paid only on the proportion paid out in dividends.

“In effect, payment by companies is payment on account of shareholders, who are the companies,” Mr Nash said. “Any dividend distributed by a company which pays the contribution will be exempt from contribution in the hands of the shareholder. “Finally, I know perfectly will that many of you will pay more by way of contribution that you will receive by way of benefits. That is essential in order that’ 'many whose misfortunes are great and whose incomes are small may receive more than they pay for. As in other fields of insurance, it is on a purely business basis, cheaper to pay all the premiums and let other fellows have all the fires. On the broad base of common humanity, however, 1 am satisfied that you are content to pay according to your means so long as you are sure that we spend the money in the way that will do most good. That is up to us, and we are content to hear your judgment when we present our accounts.”

OPERATION OF ACT,

Aspects of the Social Security Act were reviewed by the Minister in a luncheon address

“Monetary benefits will begin on April I,” the Minister said. He quoted in detail the increases in pensions, and said existing pensioners would not need to make application for the increases, as the Social Security Department would automatically make the adjustment on April 1. Organisation of the department was well under way. and the machinery would be ready on the due date.

“Though we have had several conferences with the groups concerned with the health benefits we have not yet reached finality,” Mr Nash added. “The health section is entirely new, and a vast amount of preparation is necessary to ensure that the scheme will work efficiently and that all legitimate interests are adequately safeguarded. “We are determined that nothing shall be allowed to hinder the essential personal relationship between doctor and patient, the free choice of a doctor for all contributors, and the right of every doctor to participate if be wishes. We recognise that every person who renders service is entitled to adequate payment for -his services, and we have in mind that the remuneration of doctors should at least not be less than they are receiving at present. The same principles apply in the case of all chemists, midwives and nurses who participate.” The Government was anxious to safeguard the position of friendly societies, medical institutes and all similar bodies that had rendered wonderful service in the past. Consultations with them must be finalised before detailed plans were brought into operation. The Government would make the medical sections of the Act available as soon as possible after April 1, added the Minister.