Bay of Plenty Beacon Published Mondays, Wednesdays and Fridays. MONDAY, SEPT. 8, 1947 SOCIAL SECURITY COSTS

Bay of Plenty Beacon, Volume 11, Issue 77, 8 September 1947, Page 4

Bay of Plenty Beacon Published Mondays, Wednesdays and Fridays. MONDAY, SEPT. 8, 1947 SOCIAL SECURITY COSTS

THE recent increase in the Social Security benefits authorised under the Budget must further add to the staggering burden of ’the already huge total carried by a country of New Zealand’s population. As disclosed by the Statement of Accounts produced on March 31 last, monetary benefits and pensions paid out amounted to £34,819,105 compared with £20,935,481 for the previous year, the increase of £13,883,624 being mainly accounted for by family benefits totaling £12,680,777. What this means is better appreciated when it is realised that social security payments alone today aggregate almost the total national expenditure on all services in 1935-36. Illustrating, however, that the State gives away nothing that it does not first take, the total benefits paid out to the people last year were £1,000,000 less than was collected by way of social security taxation, the difference being swallowed up in- administrative costs. It is illustrative to follow the growth of the scheme since its inception and to note that even yet, for all its vast dimensions, it is far from satisfactory. Originally estimated in the Maddex report to cost £17,850,000, the scheme was pared to the dimensions of £15,000,000 by the Minister of Finance, who budgeted for it by the levy of a shilling in the pound on all income (producing £8,000,000), the social security levy (yielding £500,000), and the provision of the balance of £6,500,000 from the Consolidated Fund. Last year Mr Nash cancelled the levy on earnings, but increased the social security charge on all incomes to Is 6d in the £ by transferring to it 6d of the special wartime national security tax. But with all these mounting costs and payments, the people have not received the benefits originally envisaged—pensions as of right without a means test, wholly free medical and specialist services, and wholly free medicine. Save for the annual increment in universal superannuation, a beginning has not been made in eliminating the means test from age, sickness and unemployment benefits. The most thrifty and selfreliant people are still deprived of the full benefits for which they pay. Sick people still have to go on paying part of the medical fees, part of hospital costs (through rates), and even with medicines must return to the doctor for a fresh prescription when the permitted supply is finished. For those things .for which no doctor’s prescription is needed—and there are many such—full payment must be made. On the basis of the present dimensions of the social security accounts, the “free everything” stage may well be beyond attainment. It will be interesting to see next year’s figures!