PAYMENT OF GRATUITY

Southland Times, Issue 25736, 28 July 1945, Page 4

PAYMENT OF GRATUITY

LUMP SUM METHOD ADVOCATED

The view that the Government was only raising a bogey when it announced its intention not to pay the gratuity to former servicemen in a lump sum because of the danger of inflation was expressed at the meeting of the District Council of the Invercargill R.S.A. yesterday. The council passed a motion urging that the gratuity should be paid to a man within 12 months of his discharge from the forces. This motion replaced a remit from the Tuatapere Sub-Association stating:— “That this branch of the R.S.A. considers that gratuity money should be made in one payment.” The president, Mr W. Bell, said that the Dominion conference of the R.S.A. had been informed that it would do no good for the conference to recommend that the gratuity be paid in one sum because the Government was opposed to this on tile ground that there was a danger of inflation. He had opposed this idea at the conference. In his opinion the men were entitled to get the gratuity in a lump sum. Some of the men would collect £2OO and the average would be about £9O.

The opinion that the alleged danger of inflation was not a sufficient reason for not paying the gratuity in a lump sum was expressed by Mr D. F. Leckie. Recently there had been a general increase in wages all round. The amount involved in that increase was much larger than the amount involved in the gratuity, yet he did not see any signs, of inflation. In his opinion the inflation bogey was not a reason at all for not paying the gratuity in a lump sum. It seemed that in this matter the Government was treating the returned men like children and the R.S.A. should not stand for that. If a man wished to spend his money in the Kelvin or on the Riccarton racecourse that was his business, but he thought that the majority of the men would make good use of the money. The money should be paid in a lump sum when it was due. HELP IN BUSINESSES Mr C. Grimwood (Winton) said he agreed that the talk of inflation was only a bogey. “These young men went overseas to do a job and they did it well and they are entitled to fair treatment,” he said. “The paying of the gratuity in a lump sum will help many of them to set up in business on their own account.” Mr Bell: I stated at the Dominion conference that this talk of inflation was only a bogey, but a namesake of mine, who is a lawyer, told me I was wrong. Mr S. A. Odell (Riverton) said that there was some advantage in spreading the. payment of the gratuity over a period. Several men who had returned to his district had already “blown” everything that they had received. Some men were inclined to be a little erratic and restless immediately after their return, and it might be as well to give them a little time to settle down before paying the gratuity. Mr Leckie: After the last war the gratuity was not paid immediately to the men when they were in a “blow the lot” mood. The money should be paid to the men to do with it what they like.