A FORWARD POLICY.

New Zealand Times, Volume XXVII, Issue 5737, 4 November 1905, Page 4

A FORWARD POLICY.

Leaving what has been called “the wretched past” to bury its more or loss discredited dead, it is pleasing to turn, to the Ministerial policy of the future. At the groat electoral gathering yesterday evening the Premier outlined some of the leading proposals which it is the intention of the Government, if in office, to lay before the now Parliament when it assembles for its first session. The first of these is the reduction of Customs duties on the necessaries of life—a step which this journal has advocated for years past. This idea will be received with "warm approval all over the colony, as the reform will confer a benefit on all classes in the community. It is to be hoped that a liberal interpretation will be given to tiro phrase “necessaries of life,” so that it may .include not only tobacco, as specifically promised by the Premier, but various other articles of utility not embraced in the requirements of a free breakfast-table. At the same time, Ministers will do well to undertake a general readjustment of the Customs tariff, that shall place higher duties on articles of luxury as well as on manufactured goods that compote with those produced in the colony. An increase of the graduated land tax is put forward as a means of making up for loss of revenue, and this proposal will bo received with delight by the land reformers.

An intention to introduce legislation dealing with trusts and combines may he inferred from the Premier’s statement regarding the tentative and temporary character of the law recently passed to counteract the operations of the Harvester Trust. In this connection, careful consideration must be given to the probable effect that a reduction of the duty on tobacco would have in the way of attempts on the part of importers to “collar” a larger profit, and deprive the consumers of the full benefit of the remission of duty. Other points in tho Government programme were indicated by Sir Joseph Ward, who said it was the intention of Ministers to continue their progressive policy with regard to land settlement, the fostering of the producing industries, and the completion of the scheme of Civil Service Supera nn nation. By far the most important policy measure foreshadowed was that relating to National Pensions or annuities. The Premier’s proposals under this head appear at first blush to he somewhat revolutionary; but a little reflection will show them to ho quite moderate and practical., and calculated to prove of great benefit. The basic idea is voluntary provision for old age, aided and encouraged by State subsidy. It is, virtually, a scheme for' inducing every member of the community to lay by money for a rainy day; and, if the inducement offered be sufficiently substantial, it is conceivable that in course of time tho National Pensions would to a large extent supersede the Old Age Pensions. Under this plan all reproach against the State that it is encouraging thriftlessness would be taken away, for the State would be inciting everyone to thrift. It has to be borne in mind that the German scheme of compulsory insurance has not been a success, whereas voluntary systems have yielded admirable results. In some cases it has been found that a small subsidy has sufficed to induce people to take advantage of the scheme. Belgium supplies the test example of

tho working of a voluntary system of national insurance, subsidised by the State. In that country, a scheme was founded in 1871, based upon voluntary contributions, supplemented by a “State bounty.” ■ The people have largely availed themselves of the organisation provided by tho Government, and tho growth of the scheme has been marked. In 18S0, tho contributions amounted to 2,720,358 francs; ten years later they were 7,971,732 francs; and in 1899, the last year for which we have statistics, they reached a total of 25,73G,C2S francs. The amount of Government subsidy in Belgium has varied, but in general it . has been high. A contribution of one (franc entitles tho person paying it to a bounty of CO centimes, while tho contributor of fifteen francs has nine francs added by tho State. Sixty per cent, is a heavy subsidy ; but as the people have in any case to find tho means of maintaining the aged and helpless, it is doubtless felt that a largo measure, of State aid is justified if it induces the masses to cultivate a spirit of thrift and providence. Tho details of the New Zealand scheme are not yet disclosed; but tho success of the Belgian experiment is encouraging, and tho material conditions here being much easier than they are on tho Continent of Europe, it will bo found that a much lower subsidy will suffice to make the project acceptable to the public. Meanwhile tho Premier and his colleagues aro deserving of tho highest praise for turning their attention to subjects of suoh great importance as those outlined at hint night’s meeting, tho consideration of which should do much to lift our politics out of tho somewhat miry ruls into which they havo of late fallen.