FEDERAL CRISIS

Hokitika Guardian, 28 October 1933, Page 6

FEDERAL CRISIS

GOVERNMENT'S FIRM STAND SYDNEY October 26. Towards the end of last week it appeared .as thugli a crisis would develop in the Federal Parliament which would cause the Government to go to the electors almost 'immediately. The position arose through : : proposal by a leader of the Counrty party (Dr Earle Page) that the property provisions of the Pen* sibns Act should be '.liberalised. It was estimated that the cost of tlie concession would be £500,000, and ; in view of the sacrifices of revenue already decided upon the Govern- ; ment could not see its way to aci cede to the request that had been j made. The Federal Labour party, : anxious for an early election in the ; hope that there .would he the cus* j tomary swing of. the pendulum, was j quick to size up the position and | threw rts weight behind the leader 1 of' the Country party. It was ) claimed that if the issue went to ! a vote the Government would he : iu a minority of six. j However, the Cabinet was not to ; be stampeded, and as soon as this ; became apparent there was talk of i a compromise. Now the possibility !of even a compromise is vanishing ; for there are very few members of ; the House, of Hep resen tatives anxious for an election. In view of what has happened it is interesting to study the way in which the pension bill has grown in recent years. In 1924-25 the Commonwealth revenue was £68,000,000. Tlie old age and invalid pensions bill was £7,000,000, or 10.3 per cent, The present budget provides for a total Commonwealth revenue of £66,500,000 and for pension payments amounting to £11,250,000, or 17 per cent. Therefore, while the revenue has declined by .£1,500,000 the cost of pensions has increased by more than 50 per cent. Lining costs are now well below the 1921 level, and 1 after making allowance for increased population, the effective pension to-day is higher than it was, say, 10 years ago. .At present the property of a decreased pensioner more than £SO in value is liable for the amount of | pens'.'on paid during the pensioner’s j lifetime. This provision has caused .many thousands of pensioners in comfortable circumstances to surrender (heir pensions rather . than encumber their property. Above 42,000 pensions ihaive been /surrendered in such circumstances and an unknown number of persons owning property have refrained from applying ' for -pensions. Now Dr Page proposes tq jnbrease the etfeKption to £6OO. It it felt that if he succeeded he, would add greatly to the number !of pensioners in Australia.