WILL THEY BREAK DOWN?

Dominion, Volume 3, Issue 908, 30 August 1910, Page 6

WILL THEY BREAK DOWN?

THE SUPERANNUATION SCHEMES. PLAIN TALK BY THE PREMIER. PRECAUTIONS TO BE TAKEN. Replying to a deputation from the governing authorities nod {professorial boards in connection with the various university colleges, which requested that university professors should be allowed to join the teachers' superannuation fund, the Prime Minister. lundn a number of important remarks yesterday which 1 will be read with considerable interest, in view of the many discussions in and out of Parliament during recent years as.to the stability uf tin: various superannuation: funds. , It was stated by - Professor Haslam, of Canterbury College, that in America and Australia, the university professors and lecturers got pensions. A similar, scheme was being adopted throughout England. Hβ instanced the fact that in Sydney the professors received .£9OO a year, and were entitled to a pension of £100 per annum after twenty years without contributions. Under ' the scheme formulated by .the professors at Canterbury College there would be no professor on pension until. 1913, and there would never be more than two on the fund until 1933, except for two intervals of two years each. . * . ' Why Professors Should Have Pensions. :Mr. Von Haast, who represented the Victoria CJnljego Council, expressed his sympathy with the . proposal. If. Nefl Zealand was to keep abreast of othei ports of the Empire she must offer inducements as high as were offered in other portions. The salaries paid to professors-ill" Now Zealand wero not higher than those paid in other countries, whilst they, came under no pension scheme as was the case elsewhere. Under the present .scheme a governing, body felt reluctance ■in retiring a professor on account of old ago or on account ol being out of date. If there were such a scheme as was proposed, professors could 1)6 retired upon reaching a stated age. Professor von Zedlitz was present' on behalf of the Auckland University Professorial Board, aud Professor Hunter, who represented tho professorial board in connection with Otago University; also supported tho proposal, whilst apologies for unavoidable aDsenco . were ; received from-the Chief Justice (Sir Robert Stout) and Mr. Jaines Alien, M.P. -. Professor Hunter, who represented tho professorial board in connection withOfago University, also supported the proposal, ' whilst' apologies for' unavoidable absence were received, from the Chief Justice (Sir Bobert Stout)-mid Mr. J as. Allen, M.P., . : . V . ' .'.. . Premier on the Broad Question. The, Prime Minister said that the Government would be glad to accede to tho request if it wore possible,- but suoh was not the case, as niany .difficulties present-! Ed themselves. It was intended this ses-sion-to ' ask ■ the House to limit all pen6ioris: to ,-a comparatively Muall amount, for experience had shown that there was not a .tendency but very great movement, towards allowing the superannuation sys-' terns to' run away with tho country. Every Minister had already found thnt there was a considerable effort being made by-employees, who were, likely to go on the fuud to bring pressure -,tb bear to have their salaries increased, particularly during the last three years,' so as lo give them' greater- superannuation. The tendency was in the direction of providing, a salary after leaving the service and not, as was.originally intended, simply a pension. The 'Government therefore had to keep the country' on its guard against the possibility.of the whole scheme breaking down through extra . impositions- or have to supplement the fund from one of two sources. If they were to nllow the additional burdens the Government would have either to ask future entrants to pay higher rates or ask the country to pay some thousands'more .into the fund than was ever contemplated. The Government was not prepared to do the latter, because it thought it had already dono its duty by the public service, of this country in that regard. '.■■■• What New Zealand Has Done. In connection with the teachers' supoiannuatiofi fund they had petitions from inany teachers which if granted would, altogether apart from the request of tho professors to be included, compel the Gov- . eminent to increase the rates for teachers' superannuation in'-the future. As. a matter of fact the Government was compelled to'refuse tho bulk of these requests to which he had just alluded. Tho tendency was really- to put burdens on the system which it was not contemplated they would-be called upon',to bear. He would admit tho cogency ol the ai guments used, by the deputation concerning the systems in force in Australia, America, and India,'but there was this' important reservation: the New Zealanders were not-favourable to a pensions scheme. Long ago the people of New Zealand showed their hostility to it by calling for the repeal'of the Act which allowed the pensions system to go on. In Australia they had never provided superannuation for the State employees'; they had never accepted the enormous responsibilities which New Zealand had. It was quite true that they were continuing a portion of tho old pensions scheme, and that tho 'professors were included, but that scheme would not be allowed to be brought into operation here. As regards tho Indian system, it would not be tolerated'in New, Zealand for 2-t hours. The, Old Countr-y , hid • nothing which would .compare with l.h« -wide system thai was in vogue here.. AVhon making comparisons, it was necessary to get back to the circumstances within ' our own country. With.the co-operation of its employees and a State.contribution the Government had created a general system of its own that ■ no' other country had provided in connection with its employees. The Stern Realities. : It was. not what our hearts- would dictate, to us,'but what the stern realities of. the position.' had brought before the Government'-. in connection with the system as .a whole. On several occasions, and particularly last year, the uf.ces.sity was impressed on the Government .of legislating in tho direction of getting the average amount on the system in future at a; much-lower rate thnn now, particularly in relation to. what ho called thn larger salaries—.£2so, or possibly. .£2OO a year.. The scheme formulated by. tho professors ,at Canterbury College was based on' an annual contribution from the Government of .£375 per annum. He did not think, however, that the Government could accept the responsibility... of. creating a separate fund or scheme for iiriy branch of the service.. If a system embracing ..university, professors, etc., were to be created, it would have to form part aud parcel of tho general system "on the educational side in this country. One's sympathy was with the men who, had borne tho heat of tho burden of tho day educationally, but the State had already in orio branch of the public servico declined to allow an extra amount to bo put-on the fund without alarce sum for back years' being contributed. lii view of the general position of these fuuds--,£7OOO had to be contributed to thn education fund alone, and no ono could say that it would not to be increased largely in the matter had to be ' very carefully considered whether any old public servants on comparatively high salaries should bo allowed to go on the fund without- strengthening it considerably. He know of several professors who, under any scheme, might come , under it without payment of back years in twelve months or so, and the result would be that tho fund would immediately have to be strengthened. Having considered the matter, Cabinet could not comply with the request, for reasons most of which ho had given that morning. Only Basis of Proposed Scheme. The Hon. G. Powlds, who was also present, said that, supposing a scliemo was considered on the basis of ono hundred twentieths for back salary, would the college councils make up the balance? For himself, ho would like to see the professors provided for if possible. In conclusion, Sir Joseph statal that the only way tho Government could approach tho matter was on tho basis of one hundred and twentieths. If the deputation would submit an easier system so far as tho,State was concerned, the Government would , be glad to reconsider the Question.