THE DUNEDIN CENTRAL CONTEST.

Otago Daily Times, Issue 14359, 31 October 1908, Page 8

THE DUNEDIN CENTRAL CONTEST.

It would be rasli to assume that Mr Arnold is one of the numerous aspirants to the place in the Government which will he. rendered vacant, shortly through the retirement of Mr Hall-Jones. For, though he promptly retorted to f sarcastic interjection last night that he might yet ho Minister of Labour, it will not so soon have been forgotten that, within a fe.w days of Mi< Seddon's death, Mr Arnold was predicting that t ho Parliament which is shortly to bo elected would include a Labour party of some, twelve to twenty members with their own leader. We have not noticed many signs during the. present contest throughout the country to lead us to suppose that this prediction will be verified, but it is not unreasonable to suppose that Mr Arnold's ambition to occupy the office now held by Millar is expected by himself to> ha realised when the Independent Lato.i? party comes into power. Mr Arnold' lias had a .somewhat serious difference lately with the executive of the organised workers in Diuicdiu, but he. now assures the pnhlio that there, is 110 split between the Labour party and himself. And, assuredly, it will not be through any failure on his part to hid strongly enough for its support if he does not secure, ou the day of the election, as be says he will ssciircj a solid Labour

Vote. Tho sum and substalic-o of hisSpeech last night was that it will he for the material benefit of the workers if they return him once more, to Parliament, He did not hint, even vaguely, «t the direction in which progress, .is ho terms it, js to he effected, except in one particular wherein he was quite explicit. lie asserted, in effect, that the people of New Zealand had a perfect right, not merely to ask, hut. to demand, that tho country in which tlicy have lived should maintain them in comfort in their old age. This is tlieir right-, he suggests, because they are heavily taxed during the period for which they are struggling to keep themselves and to bring up their families. Hut Mr Arnold forgets that the Government which he supports is basing its claim to tho support- of the workers at- tho present time upon the ground that ithas practically relieved them of all taxation —that there is no taxation now through tho Customs except upon luxuries, and that all the revenue that is provided by taxation, other than through the Customs, is wrung out. of land-owners and of persons in receipt of comfortable incomes. And, even if the workers are. being grievously taxed, as Mr Arnold asserts and as the liovernmcnt denies, they are surely I"eceiviiMf, liko other members of the community, their value fc-r it. In the c-ircumstances the validity of the claim that any workers have a. right to demand that the State shall maintain them in absolute comfort in their declining years is not apparent. Mr Arnold himself must- he somewhat doubtful about its soundness when lie supports quite reasonably the adoption of a scheme cf national annuities upon a contributory-ha-is. It is the institution of a national provident fund, as tile Government's Bill proposes, rather than tho extension of tho old-age pension system that will commend itself ■to self-reliant workers. Indeed, such a propcca-l as that loudly advocated by Mr Arnold, to increase the amount of the old-age pension to 12s Gd a wc.ak and to reduce the pension age, is of the' kind that is distinctly calculated to weaken the stability of the pension system. The total amount paid in old-age pensions last year was A.'3!?s,oS(j, and in live years' time, if the proportion cf pensioners to tho total population should remain at present, the cost will, according to the estimate of the Minister of Finance, be increased to £368,18(5. To raise the amount of the pension by 25 per cent., as Mr Arnold proposes, would increase the annual ccst in 1912—four years from now—to £-100,000, to which must be added the extra, ccst that- wotikf he the outcome of reducing the pension age. The State is committed, moreover, to the support of various superannuation schemes, involving it in a liability which Mr Arnold himself seems to view with seme uneasiness. Already tlm country-has undertaken to pay £30,000 a year to maintain tho Public Service, Teachers', and Police Superannuation Funds on a sound footing, mid the Government actuary informed tho Public Accounts Committee or the Lower House a few weeks ago that- this contribution will in every probability bo an increasing one for the next fiftec-n or twenty, years until it may exceed £60,000. And this is irrespective altogether of the Railway Superannuation Fund, which Mr Arnold rightly judges to be established on a distinctly unsound footing—so much so that, it will inevitably be insolvent within a. comparatively few years, necessitating the payment- of a heavy State contribution. In view of t-licso considerations, which sljow that, as it is, a very heavy burden in a few years' time bo imposed upon the Consolidated Fund in respcct of the pension and superannuation schemes that are now in existence, the taxpayers will be justified in viewing with disquietude any proposal for increasing their liability under tho old-age pensions system. While advocating an increase in expenditure in this direction; however, Mr Arnold suggests that tho country should " ca.' canny" in regard to borrowing, although if this view should prevail—and wo do not deprecate it—it would seem to follow that, unless the prosecution of public works is to be checkedj the ordinary revenue fund must- be made to bear an increased .proportion of the cost- of the construction of these undertakings. It w really difficult to harmonise, one with the" other, Mr Arnold's views on these points. A weak feature in his spcecli, als'o, was his reference "to tho treatment of public works in Otago, TIo was

virtuously indignant over the neglect of tile Otago Central railway, and ho is

going to insist upon tho line being batter treated in the future. But lie did not utter a word in the debate on the Public Works Statement in protest against tho miserable allocation for the railway, which, the Prime Minister noiv proposes, as he inform?! ns this morning, to extend by means of a light lino from Clyde. We. ivotihl suggest, further, that Mr Arnold's expressions of gratification' respecting tile recognition by the GovemTjient, tluougli increased appropriations, of the importance of tho Catlins and 1 evict lines and respecting the prevision for irrigation in Central Otago should l>3 reserved until it is seen whether or not any real attempt is to he made to expend tho votes that have been allocated for tlic.se various objects.