THE ECONOMY REPORT.

Press, Volume LXVIII, Issue 20495, 14 March 1932, Page 15

THE ECONOMY REPORT.

EFFECT OF PROPOSALS. RESULTS WHICH MAY FOLLOW. Information regarding the probable effect of some of the economies suggested by the National Expenditure Commission in its interim report was obtained from different authorities in Christchurch yesterday. In hardly any instance was it considered that the result of adopting the commission's suggestions would be other than to hamper seriously the service concerned, or prove detrimental to those whose pensions or allowances it is proposed to reduce or discontinue. OLD AGE AND OTHER PENSIONS. CHARGES ON HOSPITAL BOARDS' FUNDS. Mr H. J. Otley, chairman of the North Canterbury Hospital Board, said that ho anticipated, in tho event of the Commission's idea of saving £599,925 on pensions being put into effect, that there would be that amount less to be spent by those who were receiving pensions. If the cost of living were brought down to a corresponding amount tho pensioners would bo as well off as before, though it might be difficult to mako them realise it. The effect of the suggestion to discontinue subsidies on voluntary bequests to hospitals was obvious. In the past such subsidies had been very useful to hospital boards, In the case of the North Canterbury Board most of such bequests had been spent on necessary buildings and ho did not doubt that the knowledge that the bequest would carry subsidy had been a determining factor in many instances in the decision to make the tjequcst. Effect of Reduced Pensions. Reductions in old age pensions, widows' pensions, maternity, and other pensions would have the effect of increasing the demands on the Board's charitable aid work as long as the cost of living remained at its present level. Under existing conditions an old age pensioner, living alone, and drawing 17s 6d per week, had to have that amount supplemented by the Board, as tho pensioner could not get along otherwise. Now it was possible that the pensioner would receive loss in pension and the amount supplemented by the Board might have to be increased. Undoubtedly rents had fallen, the cost of food had droppecT, and, in fact, everything had made a Blight fall, and pensioners had been better off than previously, but it looked as though the cost of living would have to come down further. The effect of reducing widows' pensions would be that a further drain would be made on hospital boards, particularly in the ease of a woman with a large family. It was obvious that a woman with, say, eight children and £3 to pay for rent, food, and firewood, would require additional assistance. The abolition of the epidemic pensions, Mr Otley thought Was a logical step. Maternity Pensions and Family Allowances. The effect of the discontinuance of maternity allowances would be ft big r blow to friendly societies. Under the National Provident Fund the maternity allowances Were one of the inducements held out to those who were asked to join the fund. The effect of discontinuing family allowances would be to create a very real problem. The number of children was one of the first questions asked of an Applicant for relief. In the case of five children it meant 10s a week and the Board would have to make Up for the loss of that amount. As to the principle of reviewing all permanent war pensions yearly Mr Otley did not think that objection could be taken to it, but the cost' of tho process would have to be looked into very carefully as it was quite possible for the expense incurred to be as much as the savings made.