Social Security Finances

Manawatu Times, Volume 64, Issue 40, 17 February 1939, Page 6

Social Security Finances

Shortage of £2,000,000 “WILL GET IT SOMEHOW” Per Press Association. AUCKLAND, Last Night. A shortage of about £2,000,000 in the financing of 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 tho New Zealand Institute of Business Executives. “It will cost a fair amount of money,” Mr. Nash said, after outlining the benefits of the Act. 11c said the tax of Is »n the pound would bring in about £8,500,000, and he thought the total cost of the scheme in full operation was estimated at £17,850,000. The shortage, taking into account the Is in the pound and tFe present pensions • would be about £2,000,000. “Wc 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 businessmen present would want to argue with him concerning the payment of the social security contribution by companies. He would like to ask those of nis listeners who were in business, iu 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 of dividends. “In effect the payment by companies is payment on account of the shareholders who are the companies,” he said. “Any dividend distributed by a company which pays a contribution will be exempt from a contribution in the hands of the shareholder. <«Finally, I know perfectly well that many of ypu iyill pay more by way of contribution than 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 the other fellow's have all the fires. “On the broad base of common humanity, however, I 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 the most good. That it is up to us, and we are content to hear your judgment when we present our accounts.”