MR LANG’S CLEVERNESS

Hokitika Guardian, 31 March 1931, Page 2

MR LANG’S CLEVERNESS

NEWSPAPER COMMENT. (Sydney Telegraph) In bis speeches -Mr Lang lias stressed the enormity, the wickedness, the unchristian charity of attempting to reduce pensions and social services. Ho has painted with tears in his eyes and a- choke in his throat the pitiful fate of flip widow and the orphan, of the army of pensioners, which the Commonwealth supports to the tune of £20,000,000 per annum, approximately onethird of the Commonwealth’s revenue. "With trie preceding or following breath Mr Lang belabored the bloodsucking bondholder, battening upon the evil days which, largely through the political apathy of its inhabitants, have fallen upon Australia. To even matters up, the bondholder is to lie mulct in interest to “larn” him not to be so foolish as to lend his money to Australia. The very clever Air Lang, and lie is, fails to see, or if lie sees refuses to admit, that the pensioner and the bondholder are in exactly the same position. Both are bondholders. The bondholder proper receives scrip representing capital lent, promising repayment in full aiid interest at a fixed rate uiitii repayment. That interest I‘ftte was fixed bv the price level of the period at which the loan was mad o . Tlie pensioner docs not hold scrip representing capital, hut he does hold some form of acknowledgment by the Government entitling him to receive a pension, and the rate of pension was fixed according to the price levels ruling at the time. Further, the pensioner has distinctly benefited more than the bondholder, i because when prices have risen the Government has from - time; to time increased tlie rate of pension to temper the wind to the aged man or wo mam. The bondholder received no such consideration. He was held to his bargain. The price level lias now fallen drastically. Living is substantially cheaper, and as compared with the costs of living when hoed interest and pension rates were established bondholder and pensioner arc receiving an unearned increment of from 10 to 12£ per cent. 'Mr Lang regards this as right for the pensioner and wrong for the bondholder. Air -Scullin s'ands with Air Lang upon this question. But there is a third witness well worth hearing—the Federal Auditor-General. In his annual report, tabled recently in the House of Representatives. Mr Conitty points out that the increasing burden of pensions cannot continue. He recommends th?R» they be adjusted according to- the cost of living, and that the age limits be revised. Also lie suggests that a system o? compulsory contribution be considered. The administration of military pensions nbeds immediate revision, (is the pensions being paid far exceed the contempii! tions of Parliament. A distinguished financial authority, the paid adviser of the Federal Government, tells All' Lang and Air Scullin that tneir arguments are absolutely unsound and frivolous.