COST OF LIVING HAS INCREASED SINCE SUBSIDIES REMOVED

Wanganui Chronicle, 7 October 1950, Page 6

COST OF LIVING HAS INCREASED SINCE SUBSIDIES REMOVED

WELLINGTON, Yesterday (PA).— The Government had allowed and [caused unconscionable increases in | the cost of living and had a clear duty to help superannuitants meet the burden of the higher living costs, said Mr McCombs (Opp., Lyttelton), speaking to the Treasury vote when the House of Representatives resumed discussion of the Estimates today. Mr McCombs said the increases had Ixf'n heaviest, in fuel, light and food, the items which were most important in the budget of aged persons. Mr McCombs said the majority ol people had had some compensation for increased living costs in the 7s a week granted by the Arbitration Court as an interim measure, but already the cost of living had risen by 5.2 per cent since subsidies were removed, and it appeared that the Court's estimate of 6 per cent would be so far exceeded that the Court would have to grant a further wage increase. Yet nothing had been done until now for superannuitants. Launching the discussion, Mr Nash (Opp., Hutt) said the latest Abstract of Statistics showed that in Ashburton the cost of fuel and light had risen by 66 per cent since March, 1949. in Gisborne the increase was 56 per cent. Mr Nash said that in past years a bonus had been paid to State superannuitants on the lower income levels, but there appeared to be no such provision this year. He had” received a number of letl.ers from superannuitants expressing concern as to what was to happen. Mr McCombs said there should be a larger vote for the National Provident Fund to enable it to give a cost of living bonus to retired local body officials and others who drew their superannuation through the fund. The seriousness of the position was shown by the fact that in Tauranga the cost of foodstuffs had increased by 23 per cent since last election. Mr Connolly said he understood from the secretary of the organisation of superannuitants that the Government had made certain promises to them. He did not know what the promises were, but if they were made they should be honoured without de lay. Mr Connolly said the Secreatry tc the Treasury, who last year received a salary of £2075, plus an allowance of £365 for his services to the Reserve Bank, had now been placed oa a salary of £2500. His net increase In income was £6O a year, but he would pay an extra £6O a year in superannuation for the next four years until his retirement. The £365 was not subject to superannuation contributions, thus by contributing an additional £240 to superannuation over the next four years he would be entitled to draw an additional £l4O a year for the rest of his life. This gave him a great advantage over superannuitants on lower levels of income who had received no relief from high living costs.