HEALTH SERVICE

Manawatu Standard, Volume LVIII, Issue 50, 27 January 1938, Page 10

HEALTH SERVICE

COMPULSORY SUPERANNUATION. SOCIETIES IN THE DARK. (By Telegraph.—Special to Standard.) WELLINGTON, Jan. 27. Although members of the Government are in possession of large masses of information regarding benefits which could be given the community under a national health service and universal compulsory superannuation scheme, some of those most closely concerned, such as the friendly society leaders, are still in the dark over what is proposed. “Wo have absolutely no information,” stat ed a member of the Friendly Societies* Council to the “Standard’s” correspondent. “The scheme has serious possibilities for societies, but we are ‘in the ‘air’ over it at the moment, though wo are somewhat reassured by tlie Government’s promise that when its proposals are formulated, we will be consulted.” . .

This opinion puts the position exactly, for so immense a plan cannot be reduced to measurable proportions without a great deal of eons. deration of many alternatives, and particularly the cost of each of them. The subcommittee of Cabinet, headed by the Minister of Finance, is spending much time on the problem, and tho Prime Minister informed the “Standard’s’ correspondent that, when the members of the party meet for a caucus discussion early in February, they will get a general idea of the scheme. 11ns corroborates the view that the matter is not sufficiently advanced to submit to friendly societies or any other interests which may actively co-operate in the administration the national health side of the programme. Suggestions have been made on liehalf of the New Zealand branch of the British Medical Association, but in the opinion of some of the rank and file qf the Government supporters in Parliament these are not adequate to the purpose. There is, it is reported, a different outlook on the national health scheme among different sections of the medical profession. Those in the larger centres, with well established and lucrative practices, are prone to be more critical of State services than the younger men who would welcome well-paid State positions in connection with a national health service. They are not the people who reach executive positions in their professional organisation, therefore, it is argued, their more friendly view is not officially made public.

A COSTLY PLAN. That the whole programme is going to be immensely costly is genarally admitted in Parliamentary circles. If this had not been the case, the former Government would have made a start with this social service. But its preliminary investigations in 1935 caused it to completely drop the subject. An official committee appointed to report on a national compulsory contributory pensions scheme, and a national compulsory health insurance scheme, estimated that reasonably complete hospital and medical benefit could be provided for those coming within the scope of the scheme at an annual cost of about £2 10s per head. It was considered advisable to maintain private medical practice, giving medical men the right to participate in the scheme on a part-time basis, with freedom of choice as between doctor and patient. This committee, which includes several officials who have been advising the present Cabinet on the same question, presented a report giving several alternative schemes of universal superannuation on a contributory basis. In every case it was shown that the State would need to subsidise, heavily. A flat-rate scale of contribution of 3s 6d weekly by all contributors was ruled out owing to the heavy deficiency which would have been created, but in another scheme the report showed that, if weekly contributions were graduated, rising from 3s 6d at the age of 16 to a maximum of 9s at and after thirty-five years (the contributions being shared equally between the employer, the employee, and the State), the capital cost would be as follows:

Contributor, including employer. State. Ages 17-35 £36,000,000 £18,000,000 „ 36-45 £24,000,000 £25,000,000 Totals ... £60,000,000 £43,000,000 In addition, it was estimated that there would have to he an annual subsidy paid by the State in perpetuity of £1,752,000. The principal'benefit under this scheme would have been a pension after sixty-five of £2 per week, and a sickness or invalidity allowance of £1 7s 6d per week. It was thus demonstrated that over a hundred millions of annual contributions was involved in this one phase of social security.