MEMBERS’ PENSIONS

Otago Daily Times, Issue 26632, 1 December 1947, Page 6

MEMBERS’ PENSIONS

UTTLE COST TO STATE CLAIM BY MR NORDMEYER RECENT LEGISLATION REVIEWED A spirited defence of the Government’s superannuation scheme for members of Parliament was made by the Minister of Industries and Commerce and Acting Minister of Finance, Mr A. H. Nordmeyer, in a postsessional address at Port Chalmers on Saturday night. The Minister alleged that certain daily and weekly newspapers had “published garbled reports ” of the Bill, and he thought that his constituents “are entitled to know the facts.” There was a fairly large attendance in the Pioneer Hall, over which the Mayor, Mr T. Anderson, presided. Mr Nordmeyer was given an attentive hearing, and at the conclusion of his address was accorded a vote of thanks by acclamation. Mr Nordmeyer explained that members received £SOO a year, plus £2OO for expenses, the latter amount being free of tax. “Any member living out of Wellington,” he said, “knows that his expenses will be well above the amom-i allowed him. It is a costly business running around his electorate, and then having to keep’ two homes going, and his expenses will run to at least £250 a year.” Early History

The speaker contended that “no member can save anything, and a democracy should see that a member was reasonably well paid, and that he should have no worries about what will happen to him if he is defeated.”. In order to meet the position, the Government and the Opposition some years ago set up a committee, and a report was made as the result of its deliberations. He claimed that both parties had been agreeable to a superannuation scheme. No details of the scheme had been made public at the time, but there was no doubt that it was understood to be a contributing scheme. ' . '“ It was not something that just came out of the blue, and in point of fact the proposal was shouted from the housetops by both political parties during the last general election campaign,” Mr Nordmeyer said. He explained that a committee consisting of four members from the Government and four from the Opposition held a number of meetings, and, after discussions, approval was given to a scheme. ,At that time there was no hint from the Opposition that it would refuse to support it, and the Government went ahead in good faith, but when the measure came before the House “it was obvious that a certain number of the Opposition members were not prepared to support it.” Mr Nordmeyer alleged that the reason for such action on the part of the Opposition was because “the executive outside the House told them that the scheme was not to be gone on with. We had the farcical spectacle of merrtbers who had expressed themselves in favour of the measure voting agdinst it.” >

"High Contribution” Mr Nordmeyer added that they might have dropped the scheme altogether, “ but it was obvious that a superannuation scheme had to come. The scheme provided that members should pay £SO a year, or 10 per cent, of their salary, which was a relatively high contribution. It was decided that it should only apply to those members who had been in three Parliaments. At the end of nine years the superannuation would amount to £250 a year, and at the end of 15 years, £4OO a year. However, each member would pay, and continue to pay, long after nine years or even 15 years, and if he remained in Parliament for 30 years he would still go on paying. If a man were in Parliament for 2Q years he would be entitled tp £4OO a year superannuation, but he would only get that sum on retiring.” Mr Nordmeyer expressed the opinion that the scheme would not cost the State more than £2OOO a l 3 ?? was also important to remember that there would be a saving to the State because an ex-member receiving superannuation would not be entitled to social security. Other Bills Reviewed The Minister also passed in review a number of other Bills that had been dealt with by the House, including an amendment to the Customs Act relating to beer duty. He said that in 1942. with an idea of conserving, sugar, a measure had been passed increasing the duty on beer above a certain strength. One brewery discovered that It could add considerably to its profits by brewing beer well below the Government standard, and some people were inclined to blame the ment for the weaker beer that they were compelled to drink. The amendment sought to meet the position created by the brewery concerned. Discussing the tax on tobacco and cigarettes, Mr Nordmeyer said that many people expected an increase when the Budget was presented. There had been an increase in tobacco when the Government withdrew its subsidy They were later faced with the necessity of conserving dollars, and it had been decided to increase the duty on tobacco and cigarettes in order to diminish the demand. But a good deal of this extra revenue had been given back to the people because of the decision to abolish sales tax on all items ot foodstuffs, such as tea, sauces, pickles, biscuits and other lines which formerlyhad to pay a tax of from 10 to 20 per cent. He thought that most people would agree ttiat the abolition of the sales tax on foodstuffs would result in a considerable benefit to the community. '' . “In order to prevent heart-burnings and the criticism that was heard after the last war,” the Minister continued, “a Bill dealing with patriotic and canteen funds was brought down during the session and passed. “Although they are to be treated separately, the measure will ensure both funds being placed on a permanent and eminently satisfactory basis.” Dairy Industry

Another measure had for its aim the placing of the dairy industry on a better footing. This dealt with market-, ing and the fixing of prices, and the speaker claimed that the “ new ar- ■ rangement is working satisfactorily” and has had the effect of eliminating certain grievances. The Fair > Rents Amendment Bui would give local authorities power to take over empty houses. At the last census, he said, it had been shown that there were no fewer than 7000 empty houses on the .night that the census was taken. The effect of such a measure when adopted elsewhere was that “ people took the hint and let their vacant houses themselves” without the intervention of any outside body. Discussing the measure dealing with the control of prices, Mr Nordmeyer 6aid it was significant that in America, where price 'controls had been removed, President Truman has requested Congress to reimpose controls Price control did not always work fairly, but he did not think that there was any doubt that “ prices have been kept down here more than in most other countries.”