N.Z. PARLIAMENT

Hokitika Guardian, 26 October 1932, Page 5

N.Z. PARLIAMENT

SUPERANNUATION BILL READ A FIRST TIME. (Per Press Association — Copyright.) WELLINGTON, Oct. 26. ' In the House of representatives yesterday, the Government Superannuation Funds Rill was introduced by Governor-General’s iK message. Explaining the measure, Hon G. W. Forbes said it followed the lines of the report pf the National Expenditure Commission with two exceptions. One of these was the period of service taken into consideration for the purpose of assessment of superannuation. The Commission had recommended that payments should be computed on the average salary of seven years prior to retirement, but the Bill proposed that payment should be based on the average salary over 10 years prior to retirement. The other exception was that no provision had been made in the Bill for setting up a Hardship Tribunal. It was proposed to leave it to a committee (which would be appointed) to decide whether this tribunal would be necessary. It was proposed to refer the Bill to a Committee to hear evidence from all persons concerned. ' . ; : v ..' Mr McCombs said a .more aappropvlate title for the Bill would be the wholesale repudiation bill, or Government deftulting bill. It, was a sad state of affairs when the Government proposed to break ) a contract into which the State had definitely entered. If a private insurance company were to propose to default in .the same manner as the Government now suggested the matter would betaken before the Supreme Court, and he was confident any judge would describe the action * as fraudulent.

Mr Forbes said the public service recognised it was t° their advantage to_have the funds strengthened. As had been pointed out, the position of the funds 'was due to. the omissions of ,the previous governments..

Mr Semple—“Afnd now you are going to punish the civil servants.”

Mr Forbes said if the Government had allowed tHe matter to drift, the time would have arrived when the funds would have broken down. That fear would have been constantly in the minds of civil servants, and he believed the service welcomed the fact that steps.-were . being‘takeD to place the funds on a sound basis once more.

Mr Savage said the Government had ruined the fund by failing to-honour its obligations, arid wfiis now going -to mako the contributors shoulder the whole burden of rCcmv h'Uctioil, The Bill was read a first •iitoe. Mr Forbes moved the second read* ing of the Bill pro forma, to enable it to be referred to a Select Committee, consisting of Messrs Abseil, Bodkin, Dickio, Hargdst|,,Ravage, McCombs, J. A. Nash, Ngata, W. Nash, Veitch, Wilkinson and Forbes. The motion was adopted. The Financial Debate was still unfinished when the House rosq at 11.30 p.m. .I'.