DETAILS SOUGHT

New Zealand Herald, Volume LXXV, Issue 23009, 9 April 1938, Page 17

DETAILS SOUGHT

COSTS AND TAXES LONG LIST OF QUESTIONS REPLY BY MR. SAVAGE [BY TELEGRAPH —PRESS ASSOCIATION'] WELLINGTON, Friday A request for the elucidation of many points connected with the Government's proposals for a national health and State superannuation scheme was made by Mr. A. 0 Heany, secretary of the Associated Chambers of Commerce, with which is incorporated the New Zealand Taxpayers' Association, when the Special Parliamentary Committco met to-dav.

Mr. Heany said that his organisation had anticipated that certain aspects of tho plan would have been explained in detail, but in this it had been disappointed. Consequently, a 113- evidence it was ablo to give must necessarily be in the nature of a statement of points on which it needed to have elucidation before it was ablo to submit any proper evidence. Financing Schemes A large number of questions were submitted by Mr. Heany, including: What was to be the cost of the scheme; what was tho estimated revenue from Is in the pound tax; what was the amount of subsidy tho State would have to find; would the proposed Is in the pound contributions be increased as time went on; did the Government propose to provide the initial £ for £ subsidy by transferring to the social insurance account the existing Consolidated Fund votes for health, pensions, and mental hospitals services, or by extra taxation, by borrowing, or by any two or by all these methods; would increased subsidies, if required from the State in succeeding years, be .raised by extra taxation, or by borrowing; what was the estimated cost of administration.

Other questions were what were the terms of the report submitted to the Government by Mr. G. H. Maddex as to the provision of a suitable scheme; and what were the terms of any other actuarial reports to tho Government on the subject. Means Test Questioned

Mr. Heany asked on what grounds tlje Government considered it fair and just to compel all persons to contribute to the pensions scheme without regard to their means, and then make a means test (in relation to national pensions) a barrier agaiust their having a share in that to which they had contributed. Mr. Heany said that in Britain only those below a certain income were compulsory contributors, and both contributions and benefits were on a flat rate. The same principles were followed in a scheme proposed for Australia, while in America there was a limit on the income taxable. The tax was a percentage one, and the pensions were graduated. Referring to health insurance, Mr. Heany asked whether free hospital or sanatorium treatment for all meant: — That patients' fees would bo paid to hospital boards from the social insurance fund; that local rating for hospital and charitable aid would be abolished; or would tho proposed State taxation be an addition to the existing rates? Comment by Mr. Savage When the chairman, Mr. A. H. Nordmever (Government—-Oamaru), asked if there were any questions, the Prime Minister, Mr. Savage, said: I think I should congratulate Mr. Heany 011 his excellent political manifesto and leave it at that.

Mr. Heany: It was never intended as such.

The Minister of Finance, the Hon. W. Nash, asked Mr. Heany if he agreed that people in ill-health who could not help themselves should be helped by the community. Mr. Heany: Yes. Mr. Nash: Then where is the money to come from? Mr. Heany said the commercial community was at one with the Government in a desire to see social services provided.' It was in favour of superannuation, but believed that a noncontributory scheme would break down under its own weight, while a contributory scheme would encourage thrift. Whatever scheme was brought forward, the whole matter would turn 011 finance. " Still in the Dark " Before Mr. Heany retired Mr. Savage made a brief statement. " The Government has submitted definite proposals over the air, and through the press," ho said, "and unless the committee can be convinced that those proposals are wrong they are going to be written into the laws of the country." Upon Mr. Heany again saying that tho general public was still "in tho dark" regarding particulars of the Government's scheme, Mr. Savage replied: "We have set out our objective. We have also set out in A.B.C. -language that wo are going to finance it by a tax of Is in the pound, plus whatever mav be needed from the Consolidated Fund, and everybody knows what the Consolidated Fund is. This Government will make it up in one way, another Government may make it up in another way, but it has got to _ be made up in tho name of Christianity in order to help the poor. If we have got to_ go down in trying to reach our objective, we will go down in. a good cause. And, Mr. Heany, I hope you will be with 11s."

EXEMPTION ADVOCATED SCHEMES NOW IN EXISTENCE [BY TELEGRAPH —PBESS ASSOCIATION] WELLINGTON, Friday Evidence on behalf of contributors to superannuation schemes arranged by the Australian Mutual Provident Society was given before the Special Parliamentary Committee by Messrs. J. TV. Carr and H. S. Beaumont, They asked that contributors to such schemes should be exempt from contributions to the Government scheme.