SUPERANNUATION.

Dominion, Volume 6, Issue 1790, 1 July 1913, Page 5

SUPERANNUATION.

FOR LOCAL BODY EMPLOYEES

SOME DIFFICULTIES,

A MINISTER INTERVIEWED.

A compulsory system of superannuation for local body employees iras advocated" 1 by a deputation headed by Mr. J. I>. Luke (Jliiyor of Wellington), and inehiding* representatives of the liislituite of Local Bodies' ]siigineer.s ( whic-h interview-

Ed (ho Hon. It. iJ. 801 l (Minister for Internal Affairs) yesterday. Mr. T. F. Martin, solicitor to tlio Nciv Zealand Municipal Association, aittendsd. 11l introducing the subject Mr Luko contended that local bodies should provide a superannuation scheme for tho vholo ol only cmplo >' ccs ' au<l for a s:ctior . Chief Difficulty—Financc. Tlio chief difficulty for the local bodies was one of finance. The deputation asked !!}' 11? . e 9"°l' ,!ra tion of t.ha Government in

establishing such a scheme. There wore limits under the National Provident J.'mid. It might so happen that the executive olhctrs of a local body would not desire to bo brought within tho scopo of/ such a fund, but would prefer to rclv on a j> cl ' e ™ 6 o{ their own. Mr... Luke suggostod (Jio establishing of a commission ot inquiry, which could elaborate -a scheme for submission to local authorities for it'heir consideration, and, would give tho engineers what they had every right to expect. At tho same time the schoine would tako ill a number of employees associated with local bodies. There were difficulties in ,tho way, especially iu tho matter of finance, but tney were' not insurmountable. Ho thought tho local bodies should contribute to their iudi. vidua! funds, and .that these funds should, be supplemented by Government co-opcra/-

.Sir. Martin explained a point witlr reg&rd to the transfer or Gxclmiipo- of nien. Irom one body ix> another. Wlmt was aimed at was provision for continuity of service. The present Act, lie said, • was merely; an enabling Act—there was nothing; m it to compel an employee to join the fund. It was desired that the Act should make it compulsory for employee* to com© under the schcme. ~ Tho Minister's Reply. • The Minister, in replying, said:'"As you knots', the essential difference' between tho staff.of sen-ants of the govern-, nl g authority of tho Government and tho ? J OWl ' Iwdies, is this: Tluut the stall of the governing authority is clcri- ™ and professional, and not manual, j tho local authority is iu a

lUJiior degree clerical, and, in a'larger'degree, manual labour. You do not intend *1 that your scheme should Tje limited to tho to clerical and professional employees, If is tko General Government; propounded a h, pifl.il it could not fos. confined, bo for AS** it local authorities were concerned, to cleriS-. cal nnd professional employees. That must bo considered. A series of funds c- opiating all over the country—town •y boards, road boards, citc. —would break

down under its own weight. Tho machinery would bo more expensive than tho production. Again, they must consider whether they would permit sucli a body as tho Wellingtons Harbour Board to stand out and have its own fund. Tho suggestion that « commission of inquiry should Ijo set up offered very great room for/consideration. The Minister confesscd Hint lie was'not at , present competent t>J draft a Bill which would -give effect to tho. proposal, and satisfaction to'.the local bodies," Ait this stage Mr. Martin rnado insnlion of a echemo providing for supernnnuation for th» clerical and professional staffs of all local bodies in Now Zealand. -

no liad. tho details'of that scheme Uiill, and suggested forwarding them to ilia Minister for his guidance. Generally the • proposals provided for superannuation bawd on the contributions actually wade. The Minister interjoctcd that ho would not havo anything to do with a schema like that, lit was amply a substitution for the Savings Bnnk. Mr. Martin Raid that it was proposed that tho individual bodies should mako contributions to such funds,.

Mr. jjeu inougnt iincy woum una wiat no 'fund was satisfactory which was noh superannuation upon average. • ing, ho said that any scliemo should emanate from the local authorities themselves. Ho asked for that mentioned by Mr. Martin, but made it clear that any proposition put forward must liavo tho omlorsemout of all tho local authorities— fiomothinjj that would not leave him open to criticism nud attack from any of thorn. .