SOCIAL INSURANCE

Nelson Evening Mail, Volume LXXI, 10 September 1937, Page 8

SOCIAL INSURANCE

SOUNDNESS OF SCHEME ESSENTIAL The Prime Minister has reiterated his determination to give the Government’s national health and superannuation proposals legislative form during the session about to begin (comments the “N.Z. Herald”). He believes the result will be a system superior to anything on earth. That need not be an empty boast. New Zealand has proved in the past a suitable laboratory for social experiment, and there is no reason why it should not l)e again. A small homogenous population,, which has often shown itself very patient of official control and direction, should be the ideal medium for a system such as has been indicated. At the same time, admirable though his intentions may be, and excellent though his objectives certainly are, Mr Savage should be careful of committing himself too definitely to'a timetable for a project such as he contemplates. He says himself that the subject necessarily involves a great deal of preparation if -uch a plan as the Government has in mind is to be produced. That is easily understood, especially with the superannuation scheme. It is naturally the more complex of the two. To have it actuarially sound from the outset, when many thousands of people near the age of benefits have to be provided for, is no small undertaking. Yet, on the example of the pension schemes in various branches of the Government service, failure to cover this vital prerequisite can produce a legacy of accumulating difficulty. The upshot of it is not that the task should not be attempted, but that soundness, answering every test, rather than time, should be tthe essence of the contract. Nobody could reasonably hold the Government blameworthy if, finding that more time was necessary to do the work thoroughly, it asked the country to wait a little longer for results.