SUPERANNUATION FUND

New Zealand Herald, Volume LXIX, Issue 21315, 17 October 1932, Page 11

SUPERANNUATION FUND

RAILWAY SERVICE OFFICERS MR. R. W. McVILLY'S FEARS REPLY BY BOARD CHAIRMAN [HV TELEGRAPH —PRESS ASSOCIATION] WELLINGTON. Sunday "Until the deed becomes an accomplished fact I will refuse to believe the Government is either economically or morally bankrupt," said Mr. H. H. Sterling. chairman of tho Railways Board, in replying to a charge by Mr. R. W. McVilly, formerly general manager of railways, that the Government might take the railway and Public Service superannuation funds. Speaking at the Railway Officers Institute smoke concert last evening, when responding to the toast "Past. Officers and Superannuated Members," Mr. McVilly intimated that he was going to say something about the superannuation fund. "My own view is that, from the outset, the fund was introduced by the Government itself. Tho scheme was supposed to he based on the London and North-western scheme, where tho company subsidised the fund and paid an amount equal to that contributed by the men. Our fund had no contribution from the State, but a definite assurance was given, and so no contribution was necessary. It seems to me the talk is from a rather different angle to-day." Mr. McVilly denied that those who were on superannuation were getting benefits they did not pay for. "You do not hear John Bull talking repudiation," continued Mr. McVilly. "If the State repudiates its obligations to the contributors to these funds, then it is doing a dishonest thing. It will probably do it," he added, amid laughter, "and we shall be told necessity knows no law." In the original Act there was also a clause which provided that the contract should be kept, notwithstanding a repeal of tho Act. "The superannuation fund is being loaded with charges it was never intended to bear," Mr. McVilly concluded. "Tho fund is being used to relieve the Consolidated Fund of obligations it ought to bear." Joining issue with Mr. McVilly, whom he acknowledged as his mentor, Mr. Sterling said he had not intended to say anything about superannuation, but he could not let Mr. Mc-Villy's charges go unanswered. Nevertheless, he did not think he meant all he had said. "Until the deed becomes an accomplished fact, I shall refuse to believe the Government is economically or morally bankrupt to tho extent that it would be by such an act." Mr. Sterling declared. "It would be bankrupt economically and would be so morally bankrupt that it would write a page on New Zealand's history that would have an eternal smudge." Mr. V. R. J. Stanley, president of the New Zealand Railways Officers' Institute, said he would be very surprised if the Government did take the money when the Act came into force. Quite a large number of men had cancelled their life insurance policies in order to join the superannuation fund.