PENSION REDUCTIONS.

Otago Daily Times, Issue 21627, 23 April 1932, Page 10

PENSION REDUCTIONS.

In the material for discussion with which it has provided Parliament, the National Expenditure Adjustment Bill has not belied the description of it by the Prime Minister as one of the most far-reaching measure?' ever placed before the Legislature of this country. The process of financial adjustment is unavoidably painful, and the legislative proposals incidental to the process cannot but be unpalatable. A most regrettable feature of the Bill is undoubtedly that relating to the reduction* of the pensions which constitute a charge upon the Consolidated Fund, Nobody can derive the slightest satisfaction from seeing the pruning-knife applied to the pensions of old people, soldiers, miners, widows and others whose circumstances the ~ State has recognised as deserving of special consideration. But at least discrimination has been avoided in that it is an all-round reduction that is to be made, and this has been decided on, of course, only because of the exigencies of the financial situation. Necessity is a hard master, and it is dire necessity that is over-riding at the present time all phases of the financial, problem and compelling the Government to take steps of which otherwise it would never dream. The adjustment of the national expenditure must be effected., In bringing it about the Government is observing as closely as possible the principle of equality of sacrifice. If it were possible for it to secure, by some means which have not yet been explored, the revenue which would enable it to maintain pensions and allowances at their present figure, the general feeling would be that it should act accordingly and avoid these particular “ cuts.” But no sound alternative plan that would permit of this has presented itself. The criticism of the economy programme has. been purely of a destructive character. Not a single practicable suggestion has been offered by the opponents of the Government in Parliament as to. how the saving that will be effected by a reduction of pensions could be avoided. The Government must save money wherever it can, and in the discharge of this unpleasant duty it is distributing the sacrifice on the part of the public as widely as possible. In this respect it is doing what has already been done in Australia. As Mr Forbes pointed out in the House, unless the utmost economy and prudence were exercised, it would not be possible to

make even the reduced' pension payments, or to meet the salaries of public servants at all. ’ Not wholly to be ignored, moreover, is the j consideration that for the reduction which is being made in pensions the recipients are afforded a compensation in the increased value of rnonhy"to-day in Comparison with its valfie when the pen-' sions were granted.