COST OF PENSIONS

New Zealand Herald, Volume LXXII, Issue 22145, 26 June 1935, Page 13

COST OF PENSIONS

OVER £3,000,000 A IYEAR INCREASE SINCE 193* SUMMARY BY MINISTER [bt telegraph—own correspondent! WELLINGTON, Tuesday Pensions paid to all New Zealanders entitled to them under various Parliamentary enactments now amount to well over £3,000,000 a year. Since 1931 there has been an increase of over 19,000 persons to the pensions payroll. The most noticeable increases were to old-age pensions and family allowances. The Minister of Pensions, the Hon. J. G. Cobbe, stated to-day that the swelling of the pensions' bill could be attributed in a large measure to the unfortunate economic conditions the Dominion had experienced. Classifying pensioners in the following return, Mr. Cobbe said the figures he would quote were a significant answer to one or two critics who seemingly must state that the Government had not done enough for pensioners. At March 31, 1931, war pensions numbered 21,025, costing £1,245,499. At March 31. 1935, the figures were 21,678, costing £1,264,110. Other pensions, with the figures in the same sequence, were: —Old age, March, 1931, 28,995 (£1,158,788), March, 1935, 40,141 (£1,519,889); widows, 4566 (£325,998) and 4505 565); Maori War, 170 (£9102) and 65 (£3607);. miners, 876 (£58,441) and 783 (£58,740); epidemic, 138 (£6322) and 34 (£1983); blind, 330 (£15,796) and 474 (£21,227); Boer War, 59 (£2620; and 53 (£2084); sundry pensions and annuities, 114 (£10,624) and 139 (£12,120); Civil Service Act, 1908, 27 (£9251) and 15 (£5211); family allowances, 4617 (£63,608) and 12,231 (£152,818). Increase in Numbers

In 1931 there were 60,917 pensioners. To-day there were 80,208, an increase of 19,291, the Minister said. It was patent from the figures set out that the expenditure on pensions had greatly expanded, and that it would be perceived that the outstanding increases were in respect of old-age and family allowance payments. Expenditure for other services to war pensioners is summarised as follows.—At March 31, 1931, the medical treatment of pensioners cost £83,394. For the same in 1935 the cost was £67,912. Other expenditure in the same sequence compares as follows: Medical fees, £693/ and £66<3; railway concessions, £1876 and £I6S4; loading on life insurance policies, £196 and £175. The cost a head of European population for pensions at March 31, 1931, was £2 0s 3d. To-day it is £2 os. Question of Invalid Pension "Of course, there are many persons," said Mr. Cobbe; "who feel that there should be an all-round increase of pensions, in spite of the huge bill the country has had to pay for them and pays to-day. Undoubtedly there are some classes of our pensions we would all like to see put up. but the question is, could the country s economic condition stand up sufficiently to the increases? "1 personally, and so would the Government, like to see invalid pensions granted. It is a matter I have lone had under consideration and I am bringing my investigations before Cabinet again for review. Even in the crashing years of depression, which we have not yet altogether side-stepped, the Government has time and again reviewed the pensions laws to see whether any little concessions could be made with the finances at its disposal and some were granted by the Pensions Amendment Act, 1932."