PENSIONS

Otago Daily Times, Issue 21300, 2 April 1931, Page 12

PENSIONS

AUSTRALIA’S LOAD. £212,077,474 TO DATE. (From Our Own Correspondent.) SYDNEY, March 19. The Federal Auditor-general recently was bold enough to direct special attention to the enormous cost of the pensions system in force in Australia. He suggested that the time had arrived when there should be a general review of pensions payments, more particularly because of the state of the country’s finances. Of course, there has followed a general attack on a man who would he so “ cruel ” as to attack “ the pensions of old people.” However, were it generally known that so-called “ social ” payments have so far totalled the huge sum of £212,077,474 it might be felt that after all there was some justification for the remarks of the Auditor-general. Included in the sum mentioned are the payments made in respect of the maternity allowance —£5 for each child born in the Commonwealth since 1913 irrespective of the financial position of the parents. Old age and invalid pensions became operative in 1910, and war pensions date from 1916. Payments under the three heads have been as follow: — Old age and invalid pensions £111,468,415 War pensions .. 88,862,420 Maternity allowances .. .. 11,740,633 /Total 212,077,474 In 1915 the average fortnightly payment to old age and invalid pensioners was 19s 4d. In 1916 there was an increase of ss. Successive further increases sent up the average fortnightly payments until at the end of the last financial year the average was 38s sd. The number receiving the allowances from the Commonwealth Government in each 10,000 of the entire population is 333. Since 1910 the number of pensions has increased from 65,492 to 218,500, and the amount per year from £1,493,430 to £10,635,200. ’When the pension scheme was operating two years the amount paid to benevolent asylums and hospitals was £7447. Now the payments to these institutions in respect of inmates is £157,379. The figures relating to the maternity allowance have remained fairly steady since 1914, the first full year after the bonus was payable. In that year the cost was £674,990 in respect of 134,998 babies. Last year bonuses paid numbered 128,598, costing £642,990. Fearing that the Government might he led to attack war pensions the Returned Soldiers’ League has begun a “Hands Off Pensions” campaign. The annual liability for war pensions in Australia has grown from £368,800 in 1916 to £7,762,508 in 1930. The number of recipients has increased from 8754 to 270,285.