OLD-AGE PENSIONS

New Zealand Herald, Volume LXXI, Issue 21916, 27 September 1934, Page 10

OLD-AGE PENSIONS

OPERATION OF INCSEASI EARLIER DATE EXPECTEb RETROSPECTIVE TO APRIL 1 9 [BY TELEGRAPH —SPECIAL RSPOBTES} WELLINGTON, Wednesdty 1 A pleasant surprise is believed to fa in prospect for old-age pensioners whej the Finance Bill is introduced in House of Representatives by the Miwfo- |p ter of Finance, Mr. Coates, to-morrow; night. The Budget announced that old-age * pensions would be increased by 5 per . cent as from October 1. Some comment was made at the time that civil aws, vice salaries were to be increased by jr • per cent from April 1, and represent*, tions were made that the increased pen. sion payments should also be retrospe©. tive to that date. When replying to that point in the Budget debate, Mr. Coates indicated hit sympathy with the request, but said he was not then in a position to accede to';-®/ it. However, there were some who reSlll fused to interpret his remark as a finite refusal, and there are excel JenlSf. grounds for fupposine now that th|fff|i Finance Bill will reveal that Mr. Coate» has found it possible to make the old-: age pension? increase retrospective to ADHI 1. The Budget estimated that the ijll§| urease from October 1 to the end of th*. financial year would require an addi. tional £34,000, so that the retrospective., payment, believed to be definitely i£. - view, will absorb approximately £68,000 for the financial year. As the Budget ; anticipated a surplus of only £BOOO afc the end of March next, the additional pensions payment will technically convert that surplus into a deficit of about £26,000. However, fairly considerable vagaries in the estimates are bound to happen, and it seems improbable, in the light of the more buoyant tendency in revenue, that a deficit will occur. When speaking in the Budget debate, Mr. Coates refen-ed to the difficulty of accurate forecasting in connection witk the national revenues, and mentioned that since' the Budget was compiled, * substantial and totally unexpected windfall had accrued to the Budget. It is understood this windfall amounted to about £25,000, which, on the figure* officially forecasted, would allow the extra pensions payments to be made, and leave the Budget approximately "sauared."