WAR PENSIONS.

New Zealand Herald, Volume LXIX, Issue 21165, 23 April 1932, Page 13

WAR PENSIONS.

ALL REDUCTIONS PASSED. FORMER PROMISES RECALLED. DEMANDS OF NATIONAL FUNDS. [BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON. Friday. Without adjourning for lunch, the House of Representatives continued this afternoon to deal with the National Expenditure Adjustment Rill in Committee. The closure was applied at 2 p.m. to tho discussion on the clause reducing South African war pensions, and the clause was passed by 40 votes to 31. Mr. J. McCoinbs (Labour —Lyttelton) thereupon moved to report progress to obtain tho Speaker's ruling whether reasonable time had been allowed for discussion before the use of the closure. The Prime Minister, the Rt. Hon. G. W. Forbes ( stated that the bill had been fully discussed during the second reading debate and on the short title. The Leader of the Opposition, Mr. H. E. Holland, said only half an hour had been allowed for the clause affecting South African War veterans. It was impossible for members to discuss all features of the bill during the earlier stages. He asserted the rights of the minority had not been safeguarded. The motion was rejected by 44 votes to 26. Definition ol " Income." Discussing clause 21 of the bill, which defines tho term "income" amended for the purposes of the Pensions Act, Mr. W. E. Barnard (Labour —Napier) said the clause really constituted an amendment in tho general pensions system. At present certain moneys were exempted from defined income under the Pensions Act. These included moneys from friendly societies, sick allowance and compensation. The Hon. E. A. Ransom, Minister of Lands, said even with tho reductions contemplated, tho pensions allowable would exceed £3,000.000 and no pensions would bo reduced below £79 17s. Tho clauso was carried by 43 votes to 32. The next clause dealt with the restriction of the right to receive two or more pensions. Mr. J. A. Lee (Labour —Grey Lynn) considered tho clauso especially singled out returned soldiers' widows. The Rt. Hon. J. G. Coates, Minister in Charge of Unemployment, intimated he did not know definitely how many people the clause would affect, but he was aware that it would affect very few. Mr. Barnard contended that under the clause if a widow was in receipt of a war widow's pension and also an ordinary widow's pension, she would have to relinquish the ordinary widow's pension as being the lesser of tho two. Mr. Coates: A war widow gets a pension of £2 for herself and 10s for each child, which is a very adequate pension. National Provident Fund. The clauso was carried by 43 votes to 31.

Tho next clause making consequential amendments to the National Provident Fund was passed on a division by 44 votes to 31.

No adjournment was mado for tea, the House continuing with the clause to reduco tho rate of certain war pensions. Mr. W. J. Jordan (Labour —Manukau) strongly criticised the policy of tho Government reducing War pensions, in view of the promises to the men when they left tho Dominion for overseas.

Tho Minister of Pensions, tho Hon. J. G. Cobbe, said tile pension for men who had been permanently disabled was fixed at the rate of £9l in 1916, but subsequently had been increased to £lO4 a year. In 1918, the economic pension was iixed at 21s a week, but had been increased to 30s in 1923. An English Pensions Department officer whom he had interviewed some time ago informed him that England had no economic pension from 1918 to 1923. There had also been increases in other classes of war pensions. He assured the House that there would have been no alteration in pensions had it not been for tho country's financial position. Mr. Barnard declared tho people of the country would much prefer that tho contracts mado with soldiers and their dependants should be adhered to. Mr. Cobbe: They have been adhered to. Tho £lO4 has not been touched. Promises to Returned Men.

Mr. J. Hargest (Government-Invereargill) also opposed tho reductions in pensions and reminded the House of members' promises to returned men at various times. He appealed to them to remember these promises, stating that at present partially disabled soldiers wero practically helpless in view of tho depression. Mr. 11. M. Rush worth (Country—Bay of Islands) suggested that members who supported the clause and who were taking part in Anzac Day celebrations on Monday should make this section of tho bill the subject of their addresses. Mr. A. M. Samuel (Government — Thames) said ho had been instructed by returned soldiers' organisations in his district strongly to oppose the cut. Tho clause was carried by 38 votes to 34.

Tho last clause, in part two of the bill, providing for a reduction in family allowances, was quickly dealt with. In answer to Labour opposition, Mr. Coates said the estimated cost of family allowances this year was £121,000, and it was necessary to make, a reduction in this amount. 110 denied tho suggestion that tho allowances had been fixed on tho basis of tho new basic wago.

The clause was carried by 39 votes to 31.

At this juncture progress was reported and tho TTouso adjourned until 2.30 p.m. on Wednesday. The Primo Minister in answer to a Labour inquiry, said tho House would proceed with part three of tho bill on resuming next week.