8.—6

VIII

money collected from the people has inflicted no hardship, while the saving of interest upon the use of the money reaches astonishing proportions, as I shall proceed to show you by means of a table I have had prepared. Supposing, then, we had borrowed in the London market an amount of money equivalent to the sums transferred to the Public Works Fund, totalling, as I have stated, £3,755,000, and were paying interest on these loans at the rates current at the time, our interest charges would have been increased by the very large sum of £119,800 annually; but this sum has been saved in our expenditure, and at the same time many miles of railways and roads have been constructed, and other important works carried out, by means of these contributions.

Statement showing the Money transferred yearly from the Consolidated Fund to the Public Works Fund, and the Amount of Interest saved by such Transfers.

OLD-AGE PENSIONS. As a result of the introduction of the new system of investigation referred to by me last year, which has been made to apply to all pensioners already on the books in addition to new claimants, there has been a decided drop in the number of new pensions granted, as well as a marked decrease in the total number of pensions on the rolls, and consequently in the expenditure under the Act. The new grants totalled 1,063, as against 1,386 in the previous year. The number of pensions cancelled during the year was 690, which, with 928 deaths, reduced the total number of pensions to 11,926, or a decrease of 555. The actual amount paid in pensions was £203,164, or £6,976 less than last year. Deducting recoveries paid to the credit of the Act, totalling £2,320, the net expenditure for the year was £200,844, representing a saving of close upon £10,000. The cost of administration was £3,655, as against £3,805 in the previous pear. It is estimated that a sum equal to that provided last year —namely, £215,000 —will be sufficient to meet all claims this year. A sum exceeding £10,000 was paid during the year to the various hospitals nd charitable homes in the colony for the maintenance of pensioners who prefer to reside in these institutions. In the various homes visited the pensioners were found to be well cared for, and had no grievances. By reason of the careful inquiries now made by Stipendiary Magistrates, Deputy Eegistrars, and others concerned in the administration of the old-age pensions scheme, I am satisfied that the present system results in greater care being exercised in the granting of pensions, and has reduced fraud to a minimum. It may interest honourable members to have some comparison with the oldage pensions scheme introduced into New South Wales in 1901, which I am enabled to make by perusal of the initial report on the working of their Act. On

Year. Amount. £ 30,000 200,000 250,000 250,000 150,000 150,000 300,000 425,000 450,000 500,000 500,000 200,000 350,000 £ 1891-1892 1892-1893 1893-1894 1894-1895 1895-1896 1896-1897 1897-1898 1898-1899 1899-1900 1900-1901 1901-1902 1902-1903 1903-1904 At 3i per cent. ... 25,550 At 3 per cent. ... 80,250 At 4 per cent. ... 14,000 3,755,000 Saving per annum... £119,800