The Waikato Times. FRIDAY, DECEMBER 1, 1933. STATE SUPERANNUATION.

Waikato Times, Volume 114, Issue 19118, 1 December 1933, Page 4

The Waikato Times. FRIDAY, DECEMBER 1, 1933. STATE SUPERANNUATION.

Some plain speaking has been indulged in by the Minister of Finance in addressing a conference of superannuitants and contributors to the State superannuation fund. The position represented by Mr Coates is serious, more particularly for those who have ceased to contribute and are now entirely dependent upon the continuation of their superannuation benefits. The position as summarised by the Minister, is that the fund is at present in an actuarially unsound position, that the State is incapable of making the contributions necessary to place it in a sound position, and that sacrifices are required' of superannuitants and contributors. The position might conceivably be worse, but it might also have been considerably better. The State had a very definite contractual obligation to its employees, and that obligation has not been honoured. No amount of argument, of “plain-speaking” or of emphasising the need for sacrifices can alter the fact that there has been a decided breach of faith. As Mr Coates has claimed, the responsibility cannot be laid entirely upon the present or any particular previous administration. Nevertheless a definite obligation existed and has not been earned out. If the present Government is to be absolved completely from the shortcomings and omissions of its predecessors, there is an end to Parliamentary responsibility and continuity. Upon the continuance of responsibility from each Government to its successor depends the strongest guarantee of safe administration. Any other interpretation of the theory of parliamentary responsibility could result only in uncertainty and lack of confidence, and eventual chaos. Mr Coates has- stated that the Government cannot now place the fund in a sound position, and it is be assumed that reparation cannot be made complete without additional taxation. Even so it may be argued with some degree of reason that the people must bear responsibility for the omissions of its agent, the, Government. The abnormal conditions of the past three years provide the Government with a convenient excuse for suggesting that some sacrifice should be requested from the beneficiaries under the scheme. Had there been a continuance of normally prosperous conditions, however, no amount of argument could have altered the fact that the obligation of rehabilitating the fund lies entijely with the Government. In the case of superannuitants especially, their contributions were meticulously made in the past, and they are entitled to expect the return promised. For the present, however, action is essential if the fund is to be reconstructed and enabled to continue in operation. It rests with the superannuitants to make the best of a “bad job.” There is no doubt that they will accept the sacrifices forced upon them, for they have no alternative. In future, it is to be hoped that the Government and subsequent Governments will be more deeply conscious of the sanctity of contractual obligations and will keep a close watch on the state of the fund from year to yeai*.