PENSION PLAN

New Zealand Herald, Volume LXXV, Issue 23150, 23 September 1938, Page 14

PENSION PLAN

RECIPROCAL SCHEME DOMINION AND AUSTRALIA COMMONWEALTH DECISION STATEMENT BY MINISTER "Advice that reciprocal old-age and invalid pensions between Australia and New Zealand are provided for in the Federal Budget will make heartening reading for many New Zealanders and Australians residing in both countries," said the Minister of Pensions, the Hon. \V. E. Parry, who arrived from Wellington yesterday morning. "For a long time efforts have been made to bring about reciprocity in tho pension system between the Commonwealth and New Zealand," tho Minister continued. "It was in 1913 that tho Dominion Legislature passed tho requisito legislation, but Australia, in tho long intervening period, has been unable legislatively to talco similar action. Tho Federal Government now proposes to come into line with New Zealand and the people of the Dominion will join with tho New Zealand Government in extending to Australians and tho Federal Government unstinted congratulation." Conference Recalled Tho Minister recalled the conference that he, with the Commissioner of Pensions, Mr. H. Digby Smith, had in Canberra last February with the Commonwealth Prime Minister, Mr. J. A. Lyons, the Federal Treasurer, Mr. It. G. Casey, and ono or two other members of tho Commonwealth Government, on tho question of tho reciprocity of pensions between tho two countries. He said that it was ono of tho most interesting conferences in which ho had had the pleasure of taking part. Quoting the proposals placed before the Commonwealth Government as a basis for the discussion, tho Minister said the principal part of the agreement com© to was as follows: — (a) In the case of "an applicant who is eligible otherwise than by residence on or before January 1, 1939, for a Commonwealth pension and who has been resident in the Commonwealth for 12 months immediately preceding his application, residence in New Zealand to count as residence in the Commonwealth. Agreement Clauses (b) In the case of an applicant who is eligible otherwise than by residence on or before January 1, 1939, for a Now Zealand pension and who has been resident in New Zealand for 12 months immediately preceding his application, residence in tho Commonwealth to count as residence in New Zealand. ,(c) Each country to accept financial liability in proportion to the respective period'of qualifying residence by the pensioner in each country as at date of first grant of pension. In the event of any person in receipt of a reciprocal pension becoming eligible by residence for a pension in the country in which lie is residing, full financial liability to be then taken by that country. 1 ho same undertaking is to apply to invalid pensions. Mr. Parry said the Government had received the following cablegram from tho Commonwealth Prime Minister: "Referring to recent conference Canberra reciprocity of New Zealand and Commonwealth invalid and old age pensions, draft agreement now being prepared on general lines of our discussions Canberra last February. You will be further advised earliest possible nioment."