GOVERNMENT POLICY REGARDING AGE BENEFICIARIES

Wanganui Chronicle, 1 September 1950, Page 6

GOVERNMENT POLICY REGARDING AGE BENEFICIARIES

Reason Why Election Policy Has Not Been Implemented

PARLIAMENT LfILDTNGS, Last Night (I’.A.j—"Many people would wonder why lite Government did not implement ;• proposal in its election programme to give an extra 2s 6d a week at the age of 65 for each year a person had deferred an application for lhe age benefit, said Mr. Hanan, continuing the debate on the Budget in the House of Representatives tonight.

He .said that when the Government found, on an examination of the detailed figures, that the increase in production by encouraging people to work between the age of 60 and 65 would be so small, another way to help that age group was sought.

The reason for not applying the scheme was shown on the analysis of the figures of various groups over 60 years receiving the benefit and those who d’d not. The total number of (those aged 65 and over on the age benefit was 100,000 and the to l al receiving the benefit between the ages of *0 and 65, including war veterans, was 20,000. The total population of 60 to 65-year-olds was 80,000, so that while 20,000 received the benefit more than 60,000 did not. That meant three out of every four people between 60 and 65 received no age benefit because they were working or were otherwise providing for themselves. It followed, if that was the case, that the promise of extra payment for working between 60 and 65 years would not increase the labour force by very much. It should be remembered that of the 20.000 already on the age benefit many were sick and incapable ot working. Great numbers of people might cease work to obtain an additional 12s 6d for himself and 12s 6d for his wife. In the course of years at least half the 70,000 people now on universal superannuation and working would cease to work and elect to take up the age benefit, and the extra cost would be nearly £4,000,000. It three of every four between 60 and 65 years did work, it followed that in the course of time three of every four age beneficiaries over 65 would be-* come entitled to the extra 12s 6d, which would represent a cost of ap* proximately £2,000,000, so that the extra 2s 6d might have an eventual cost to the State of £60,000,000 a year. Worse than that, said Mr Hanan,

; was the dangerous principle involved .of establishing the national level of | monetary benefits for older people above which ordinary men and woI men who were thrifty could never rise. Mr Hanan said that with a man | and his wife receiving £5 5s in ago benefits, plus an extra 12s 6d each in I the National Party’s election proI gramme, making £6 10s and the right ; to earn £1 10s in addition —a total of I £8 —who, apart from the limited and ! privileged class, would consider ac- | cumulating savings for their old age | only to beat themselves for £8 <a week. “Though many may b e disappointed the Government is honest in its ad-

mission that it cannot implement that portion of its programme,” said Mr Hanan. He had always been convinced that there was only one solution to the social security problem, and that was an eventual elimination of the means test for all citizens, at least from the ago of 65, if not 60 years. “The Budget proposals for certain I Increases in allowable earnings at the I age of 65 is in the right direction,” ‘said Mr Hanan. “I sincerely hope bei fore three years have passed that the | means test will be eliminated for all over 65 and then the social security system will provide a floor below which nobody can fall, but not a ceiling above which no one can rise.” He urged the Government to devise a means of making social security payments by warrants, so tha’t long queues “waiting patiently for what is theirs as of right” would be obviated j Discussing the Government’s I changed programme for aged persons (who deferred their applications for I the benefit. Mr Mathison (Opp., Avon) said that Labour had proclaimed before the election that the Govern[ment's promised scheme was unworkable. but it taken the Government ‘until the Budget night Yo make that 'admission. Not for the first time a I Tory Government had let the old people down.