PRIVATE SUPERANNUATION

New Zealand Herald, Volume LXXV, Issue 23025, 30 April 1938, Page 14

PRIVATE SUPERANNUATION

Possible effects of the Government's social security plan are causing concern to those who are contributing to private superannuation and provident funds. This is being increasingly shown by evidence given before the Parliamentary committee. Contributors feel that the very provision they are making for their own old age is bound to disqualify them for any benefit under the Government plan. They have good ground for so believing, since that very certainty is stamped plainly on the State scheme. Consequently, applications to be exempted from at least part of the special direct taxation are being made. The Government faces a difficult problem here. The Prime Minister gave a direct promise early in the day that nobody would be in a worse position as a result of his social security plan. A number of people are showing that they are to be called on to pay, without receiving anything in return. This, according to the standards of the ordinary man, would put them in a worse position. Logically, therefore, their claim to relief from the tax is' good. But once the Goveimment admits the principle of exemption, its difficulties will be multiplied many times. Whatever is granted to those belonging to superannuation schemes supported by private firms cannot equitably be denied all who contribute to the existing State superannuation funds. If the public service, the railway staffs, and the teaching profession were exempted, the finances of the scheme would be torpedoed. Besides, all who were making individual provision fdr their own old age would have an equal claim to be considered. These difficulties are of the Government's own making. They show that good intentions are not a sufficient foundation for so ambitious a policy as the one that has been offered to the country.