HIGHER TAXES FEARED

Poverty Bay Herald, Volume LXV, Issue 19623, 5 May 1938, Page 16

HIGHER TAXES FEARED

SOCIAL SECURITY PLAN COSTS QUESTIONED CHAMBERS OF COMMERCE (TVr Press Association.) WELLINGTON, this day. Agreement on the necessity for providing social insurance, and on the form it will lake in New Zealand, was expressed by Mr. A. O. Heany yesterday afternoon when submitting a statement to the Parliamentary committee investigating the . National health insurance and superannuation scheme, on behalf of the associated Chambers of Commerce.

The statement, however expressed strong disagreement with the Government's proposals for the national application of social insurance. "The increases in the cost of the joint scheme, as outlined by the .actuary, would have to be met by increases in taxation and the Associated Chambers of Commerce view them with the utmost concern." Mr. Heany said it would be reckless to place any reliance on Mr. Savage's and Mr. Nash's hypothesis that the maintenance of the same ration of increase in New Zealand's exports for the next 40 years, as in the last 40 years, would enable the growing cost of the scheme to be met.

Referring to the health scheme, the statement recommended something more modest and embracing those unable to make adequate provision for themselves. The scheme, from the point of view of cost, was on too lavish a scale for a start. In conclusion, the committee was urged to recommend to the Government as follows: "That the Government draw up a substitute scheme confined to lower income wage-earn-ers to be financed by employer, employee and State, and providing for flat* rate contributions, and flat benefits, irrespective of means, those participating in existing schemes to be exempt, and those who are not compulsorily covered by the national scheme' to join voluntarily."