SOCIAL SECURITY

Wairarapa Times-Age, 4 April 1938, Page 8

SOCIAL SECURITY

PRIME MINISTER OUTLINES PROPOSALS SUPERANNUATION AND PENSIONS UNIVERSAL HEALTH SCHEME CONTRIBUTION OF ONE SHILLING IN THE POUND The proposals of the Government for the establishment of a free health service for all members of the population and also for national superannuation for men and women who are 60 years of age and upwards, were outlined by the Prime Minister (the Rt. Hon. M. J. Savage) in a broadcast address on Saturday evening. “The plan further includes,” Mr Savage stated, “the provision of sickness and incapacity benefits, orphans’ pensions for the first time in New Zealand, increased pensions for invalids, miners, widows and deserted wives, and increases in the family allowance and war veterans’ allowances. These proposed benefits will provide a condition of social security unsurpassed anywhere in the world. The Government will place before the Parliamentary Committee next Tuesday (tomorrow) a complete social security scheme that will be comprehensive in its scope and ■ adequat e in its benefits.

“Perhaps it will be helpful,” the Prime Minister continued, “if I indicate the lines upon which the Government has moulded its order of reference for the committee, and with this end in view I propose to-night to show what is being done at present with particular benefits and how the Government proposes to extend those benefits.

MEDICAL AND OTHER SERVICES. “Let me deal first of all with Health. The Government proposes a universal general practitioner service free to all members of the community requiring medical attention. It also proposes free hospital or sanatorium treatment for all. It will also provide for free mental hospital care and treatment for the mentally afflicted. It will provide free medicines. It will provide free maternity treatment including the cost of maintenance in a mate’rnity home, and in addition a grant will be made through some suitable agency to assist mothers in special circumstances to provide an outfit for the baby. These are the proposals which we think- can be established at the outset, but in addition to these we will establish when practicable the following services; (1) Anaesthetics; (2) Laboratory and radiology; (3) Specialist and consultant; (4) Massage and physiotherapy; (5) Transport service to and from hospital; / (6) Dental benefit; (7) Optical benefit.

“In addition to these benefits it is proposed to provide home nursing and domestic help when the necessary staff has been trained to make such a proposal practicable. “The Government will also provide for an extended health education, this being a continuation of measures to educate the public in the promotion

of health and the prevention of disease. INVALIDITY BENEFITS. “Now, what about other benefits? It will be remembered thaot the Government instituted for the first time in New Zealand’s history in 1936 an invalidity pension of 20s per Week plus 10s for the wife, plus 10s for each child under 16 with a maximum pension of £4. We now find it possible to increase this pension to 30s per week. The maximum pension will remain at £4; there will be an allowable income ' in addition to pension of 20s in the case of a single person and 30s in the - case of a married invalid. The institution of the Invalidity Pension revealed the fact that there are numbers of people in the community who cannot qualify as permanent invalids but for whom some security should be provided. The Government’s proposal is to establish a sickness benefit, but the rates and conditions will be determined after the Parliamentary Committee has heard the evidence. The Government proposes to .co-operate with the Friendly Societies to utilise their services for paying this amount to their members. In addition to sick-

ness benefits it will be necessary to provide for those who are not sick and who are not invalids, but whom illness or injury has rendered incapable of earning a complete livelihood. It is impossible to fix any scale for such cases and' the Government will determine the rates in individual cases according to particular circumstances. INCREASED SUSTENANCE. ‘•For those who are unable to find work sustenance benefits will be provided at present rates except that the children’s allowance which is at present 4s per child will be increased to ss. WIDOWS’ PENSIONS. ‘'Now what about the widows. We have already increased the widows’ pension by 10s a week and we propose to increase it still further to 255. At the present time the pension is payable for children until they reach 15 years of age. It is now proposed to increase this age to 16 years and the pension may be continued in special cases to 18 years while the children remain at school. The allowable income in addition to pension will be 30s. But one of the disadvantages arising out of the legislation in the past has been that the widow lost her pension when her youngest child reached the age of 15 years. That anomaly will be rectified. We intend to make provision for her by providing a pension of 20s with an allowable income above the pension of 20s whatever her age might be when the youngest child attains the age of 16 years. Every widow who is otherwise eligible and who did once receive the pension which was discontinued because her children reached 15 years of age will be eligible to receive this pension. It will be realised that this does not cover the cases of a number of widows because of the fact that they have been childless. The position of these childless widows will be met by the institution of a pension of 20s per week with 20s allowable income, in addition, from the age of 50 years at whatever age they were widowed, provided that they had been married for 15 years, or if they were widowed after they had reached the age of 50 years, they will receive the pension provided that the marriage had lasted for not less than five years. The widows’ pension will of course cease when the widow remarries or when she attains the age at which she will qualify for State superannuation,

“The pension instituted in 1936 for deserted wives with children will, of course, be increased in conformity with the increase in widows’ pension rates. So also the wife of a mental hospital patient will receive a pension at widows’ pension rates so long as she is otherwise eligible and her husband remains in the institution.

. BENEFITS FOR ORPHANS. “Under the present legislation the children of a widow who received a widows’ pension continue to receive the children’s rate of pension after the mother dies. If, however, the mother died first and the father later, there is at present no provision for the payment of pensions to the children. We intend to see that all children irrespective of which parent died first, who are left orphaned under the age of 16 years, shall receive an adequate pension, and the amount is now being fixed at 15/-. This amount will be paid to the relatives or guardians of the children who are willing to give them the same care and attention as though they were in their- own homes. FAMILY ALLOWANCES. “Now, what about the man with the family? There has been a great deal of talk concerning the need for increased population and surely the best . nursery is the home. Recognising this the Government proposes to increase the family allowance appreciably. The present allowance is 2/- for each child from the third onwards, with a maximum income of £4 plus the allowiance. The Government proposes to increase the amount for the third and each subsequent child to 4/- per week; to continue it until the child reaches 16 years and to pay it in cases where the family income, not including allowance, does not exceed £5 per week. “The miners have not been forgotten. The miners’ pension will be increased to 30/- per week. WAR PENSIONS. “So far as war pensions are concerned, it is recognised by the soldiers themselves that the present rates of pension are reasonable and that the conditions under which the grants are made are extremely fair. “It is proposed to increase the war veterans’ allowance to the following scale, namely 25/- for the veteran, plus 15/- for his wife, plus 5/- for each child, with a maximum of £3/10/-, and’ an allowance income in addition to the pension of 20/-. SUPERANNUATION PROPOSALS. “Perhaps the class in the community who have ’looked forward with keenest anticipation to the Government’s action in establishing greater social security are the group who are approaching the age at which they are no longer able to earn a full livelihood. The needs of such people in the past have been partially met by the old age pension system. There is no need for me to emphasize the great social benefit that has accrued through the years from this pension. Our proposal is to go far beyond what was originally contemplated by those who instituted this pioneer movement and well beyond what we have attained today. Our proposal is, in the meantime, that at age 60, men and women will receive 30/- per week each for the remainder of their days, and in addition to this State Superannuation there will be allowed an income of 20/- from other sources either in the case of an individual or a married couple. Thus a single man will be able to receive up to £2/10/- including his superannuation and a married couple otherwise eligible may receive up to £4 including superannuation. “These proposals will give some idea of the scope of the benefits that will be provided. I want to emphasize that they are by no means the climax of the Government’s endeavours to establish complete social security, but it will be pretty generally admitted that they are a substantial instalment. PROPOSAL AND PROMISE. “There is no need for me to emphasize that at the present time these are the proposals of the Government. They will be put before the Parliamentary Committee which has been set up to hear evidence concerning the effect of these proposals on all phases of our national life. They may in some respects be amended, modified or extended, in accordance with the evidence that is produced before the Committee, but I, can promise the people of this country that before very long they will have reached a condition of social security unsurpassed in any other country in the world. COST AND CONTRIBUTIONS. “Now we come to the cost. I notice that some critics anticipate a very heavy increase in direct taxation to finance the Government’s proposals

and possibly many listening tonight will imagine that these substantial increases in social progress are going to icost an enormous amount. So they will—but perhaps I ought to remind listeners that a few years ago we were paying 1/- in the £ on wages and incomes (greatly below present standard rates), and, although the tax was high, the benefits—as many., of., my friends will remember —were appal-/ lingly inadequate. Well now, we are going back to 1/- in the £, but what will you receive for it this time?

Unemployment benefits far in. excess of 1933 level. Sickness benefits for the first time’ in our history. Incapacity benefits (also a new provision). A generous increase in invali- . dity pensions. A very substantial increase in the scope and benefits of widows’ pensions. The institution of orphans’ pensions. Increases for miners, war veterans, and Ithe recipients of family allowances. The institution of a universal health service for all classes .of the community. THE STATE SUBSIDY. “As a crown to these achievements there will be the institution of a State superannuation service that will remove once and for all the fear of want in the eventide of life. “You will realise that a contribution of 1/- in the £ cannot pay for all these services and it was never intended that it should. The State willsubsidise the contributions £ for £ creating a load on the Exchaquer that’ could only be borne by a country made increasingly prosperous by the deliberate policy of the Government. After all, the production of a country is the only source from which benefits can derive. The Government’s policy of utilising our wonderful resources and expanding production—primary and secondary—will enable us to give this social security for all, along the lines that I have mentioned, and to extend from time to time the scope of the benefits according to the urgency of the community’s needs.

START IN APRIL NEXT. “The Parliamentary Committee will begin consideration of these proposals next week. After they have heard the evidence they will report to the Government, when the necessary legislation will be drafted for submission to Parliament during the next session. When the Bill becomes law the Government will immediately prepare the necessary machinery to inaugurate the new Social Security Department and the benefits I have mentioned will be pair as from April 1 of next year, when the Social Security contributions commence. I am sure you appreciate that the organisation of the new department required to administer a scheme of such dimensions is a huge task. The preparation of this .departmental machinery and the negotiations with the institutions affected by the scheme will take several months of heavy work. We intend to see that every detail of organisation is thoroughly worked out so that, once the scheme has commenced, there shall be no hitch in giving to the people the security which we intend they shall have.

UNEMPLOYMENT TAX TO 'GO. “The Emergency Unemployment Charge will be abolished, I hope, for ever, and in its stead come the Social Security contribution, which provide, may I reiterate, the following bene? fits: All necessary Health Attention. Sickness and Incapacity Benefits. Invalidity Pensions, Widows’ Pensions on a better scale than ever before. Provision for orphans. Better treatment for War Veterans. Family Allowances on higher scales and the Best State Superannuation System that has yet been, recorded anywhere.