SOCIAL SECURITY

Evening Post, Volume CXXVI, Issue 83, 5 October 1938, Page 23

SOCIAL SECURITY

ACT DEFENDED

ADDRESS BY MR. SAVAGE

(By Telegraph—Press Association.)

INVERCARGILL, October 4.

The Prime Minister (the Rt. Hon. M. J. Savage) was given an enthusiastic reception by 3000 people when he gave an address in Invercargill tonight. After a complete rest during the weekend, he said he was now feeling very fit.

Mr. Savage devoted most of his address to the Social Security Act and the development of the pensions scheme. In 1898, he said, after a long and difficult fight, the Liberal Party established old-age pensions of 7s a week and it had taken more than 20 years to bring the amount to 17s 6d a week but the Labour Party had taken less than 40 weeks to raise the amount to £1 2s 6d a week. Under the Social Security Act it would be increased to £1 10s a week.

Mr. S. G. Smith, in a broadcast speech, had said pensioners would not get £1 10s a week; they would only get £1 8s 6d because the Government would deduct Is 6d in tax. This was incorrect. Pensioners would receive £1 10s a week clear and Mr. Smith knew this. ' . •:

"The hearts of the National Party bleed for women, particularly girls from 16 to 20 years of age, and they are going to exempt them from taxation," Mi*. Savage said. "They do not tell them, however, that they are going to exempt them also from the benefits of the Social Security Act."

The Social Security Act would insure- the individual almost from the cradle to the grave. Mr, Savage traced the benefits to be obtained by girls and women under the Act, covering sickness, invalidity, unemployment, maternity and family payments. TAXATION INCREASES. Figures to show that New Zealand had been developed under the Labour Gover/iment were quoted. Since March. 1936, there had been an increase of £11,000,000 in taxation, but since then the national income' had increased by £45,000,000, leaving the taxpayer with a credit of £34,000,000. There had been slight increases in the income tax rate and in the graduated land tax, but nothing like the increase shown by the figure he had quoted.

"I"m not going to split straws about the figure," Mr. Savage said, "but I'll take anyone out of the audience, walk him along the street, and he won't see one long face."

People were happy because of what the Government was doing for them and the speaker was receiving rousing receptions because he was the leader of the Government, not because of any personal attractions. At the election the people could decide whether they would have another depression or go on as in the past three years, making progress all the time.

Discussing the sales tax. Mr. Savage said this was one of the election pledges he was said to have broken. The people who said that were the people who had been responsible for putting the sales tax legislation on the Statute Book. However, there had. been an increase of £454.000 in sales tax. That was because business had incx-eased and because more things were being sold.

"Why has business increased?" Mr. Savage asked. "Because wages are higher, that's why. Excuse me talking in this ABC language, but I am trying to educate the^Nationialiiits."* i

The meeting passed a vote of thanks ,and confidence in Mr. Savage and the Labour Party and in Mr. Denham, Labour candidate for InvercargilL