FARMERS' VIEWPOINT

New Zealand Herald, Volume LXXV, Issue 23129, 30 August 1938, Page 10

FARMERS' VIEWPOINT

Coming from an organisation that stands outside politics and parties, the official statement of the New Zealand Farmers' Union on the Government's social security scheme merits study by those people who are in two minds about the whole business. They will probably agree with the union that most of the proposed benefits are laudable, but doubt the country's ability to pay them, a question which the union describes as the "most important consideration." It finds that in addition to the proposed higher wages tax and levy, the sum of £8,500,000 will have to be found annually in additional taxation. The total charge will be equal to 2s 8d in the pound on all wages and incomes, or 13s 4d a week on a wage of £5. The union disposes of the idea that the costs above Is in the pound can be met by taxing the rich, showing the limits of the revenue that can be collected from income tax. So it arrives at the conclusion that most of the benefits must be paid by the ordinary wageearners, small-salary men, small business people and the farmers. They must toil and deny themselves for the ease of others. Some of the taxation can be passed on, but, argues the union, the producer for export cannot do this and "we are gravely concerned about the effect of such huge additions to his costs, especially in view of the downward tendency of overseas markets." From that the union proceeds to an examination of some of the anomalies and inequalities that will arise under the scheme. It shows that some beneficiaries will be placed in a better position than many of those who will have to provide the benefits. The relative positions of the man on sustenance and of the farm labourer are contrasted, for instance, and it is questioned whether the superannuation of young widows or of hale and hearty men at the age of 60 can be justified, in view of the sacrifices others will be called on to make while such beneficiaries sit in comfort. Although the union takes such a critical view, it nevertheless favours a scheme of universal superannuation on a proper basis.