£2,000,000 SHORT

New Zealand Herald, Volume LXXVI, Issue 23274, 17 February 1939, Page 10

£2,000,000 SHORT

SOCIAL SECURITY COST FINANCE FOR SCHEME FINDING THE BALANCE STATEMENT BY MR. NASH A shortage of about £2,000,000 in financing the social security scheme, taking the estimated cost in full operation as £17,850,000, was mentioned by the Minister of Finance, the Hon. W. Nash, in addressing members of the New Zealand Institute of Business Executives yesterday.

"It will cost a fair amount of money," Mr. Nash said, after outlining the benefits of the Act. Ho said that the tax of Is in the pound would bring in about £8,500,000. and he thought that the total cost of the scheme in full operation was estimated at £17,850,000. The shortage, taking into account the Is in the pound and the present pensions, would be about £2,000,000. "Will Get It All Right"

"We will have to find a way of getting it somehow," the Minister continued. "I think we will g;et it all right with tho least hardship."

Mr. Nash said he knew that some businessmen would want to argue \Vith him concerning the payment of the social security contribution by companies. He would like to ask those of liis listeners who were in business, in partnership or on their own account, whether it was fair that they should pay on their whole income, "while company shareholders paid only on the proportion paid out of dividends. "In effect the payment by the companies is payment on account of the shareholders who are the companies," ho said. "Any dividend distributed by a company which pays the contribution will be exempt from contribution in the hands of the shareholder. - Business and Humanity

"Finally, 1 know perfectly well that many of you will pay more by way of contribution than you will receive by way of benefits. That is essential in order that many whose misfortunes are great and whose incomes are small may receive more than they pay for. As in other fields of insurance, it is, on a purely business basis, cheaper to pay all the premiums and let the other fellows have ail the fires. "On the broad base of common humanity, however, I am satisfied that you are content to pay according to your means so long as you are sure that we spend the money in the way that will do the most good. That is up to us, and we are content to hear your judgment when we present our accounts."