THE FINANCIAL ASPECT

Waikato Times, Volume 123, Issue 20576, 13 August 1938, Page 6

THE FINANCIAL ASPECT

The Minister of Finance should issue something in the nature of a White Paper on the financial aspects of the schemes covered by the Social Security Bill. It can confidently be expected that he will, when moving the second reading, make much information available to the people, but it is difficult do retain details heard over the air, and in any case it would be too extensive for inclusion in a speech in the House. What is wanted is a statement along the lines of that prepared by Mr Maddex, the British actuary. For instance, it is proposed to make an annual levy, a registration fee, of 5s per annum on all women and on young people between the ages of 10 and 20 years. When they reach 20 years the young -men will be liable for a fee of 5s quarterly. What sum does the Minister estimate fhis widening of the net will produce ? Apparently it is intended to abolish the existing exemptions to the wages tax. The British actuary did not know the exact intentions of the Government in this resjpect. Evidently the Bill is based on the expert’s basic figure of £2OB per annum for the married couple, the pension being £3 and the allowable income £l. That will, of course, cause those who had regarded the later announcement, that the basis had been changed and that people with up to £(3 per week would not be excluded from benefits, to ask further questions. The position is that the Government has brought down its proposals, and time has been allowed for them to be studied. For that service it should be thanked. But there is a missing page and it contains the official estimates of costs. The British expert set his estimates out in a table giving in one column the expenditure, under various headings, of existing committnents and in the next column the estimated expenditure of the Government’s proposals. The former was £8,995,000 and the latter £17,850,000. He then went on to show how the required amount might be met, and that involved a contribution from the Consolidated Fund of £9,550,000 in the first year. Until particulars along those lines have been made available it will be impossible to grasp fully the import of this ambitious plan. But the Government must go much further than the British expert felt it necessary to proceed. His duty was only to provide the data. In reply to a question before the Parliamentary Committee Mr Maddex said: “All I am competent to say is that the cost of some of the items is certain to go from one figure to another over a period.” His estimates gave- that movement. The Government must decide whether the country can carry, in good times as in bad, the additional expense that must be incurred, and even then its task is only commenced for it must convince both Parliament and people that the revenue can be obtained, and disclose the method to be adopted. It can be assumed that the Cabinet lias reached a conclusion regarding the first issue, otherwise it would not have sponsored the proposals. It clearly believes that the finances of the Dominion will allow of the added cost to be carried, so that it must now explain exactly in what manner the funds are to be provided. It should assist the people by having published—for it must have had the particulars prepared for its own guidance the estimates for each section of the plan. A very large sum is involved and people want to know not only what the estimated upper limit is but also how the money is to be obtained. It is not an unreasonable request, and if the Minister of Finance could see 1 his way to have the information published before he moves the second reading of the Bill people would be able to follow liim more closely. A‘ big departure such as this cannot be accepted on faith. The people mpst be convinced that it is practicable, that it will not be too heavy a burden, that there is no sound alternative.