REMEDYING A MUDDLE

Rotorua Morning Post, Volume 2, Issue 364, 27 October 1932, Page 4

REMEDYING A MUDDLE

Until the measure has been considered and amended by the special committee to which it has been referred, it is impossible to assess how far the preliminary criticisms levellea at the Public Service Amendment Billare justified. Prima facie, however, they appear to be well grounded. A preliminary survey of the measure indicates that

"drastic r'eductions" will probably be effected in the allowances of a very large number of superannuitants, and if this is the case, an injustice will be perpetrated. As the Prime Minister pointed out, the present Government cannot, in fairness, he held responsible for the deplorable condition of the Public Service superannuation funds, but it can and will be held responsible for the remedial measures adopted. The sins of past administrations will inevitably be visited upon the present administration and in this respect, the Government is entitled to i sympathy and credit for facing | a long overdue and difficult task. j At the same time, however, it j will be remembered that very | many of the honourable gentle- | men who now dissociate themi selves from responsibility for the jposition, were, or should have been, cognisant of the financial morass into which the fund was j slipping. There are, on both Govj erament and Opposition benches J to-day, a large number of members who have had this matter brought under their notice on previous occasions and have ; either heen parties to shelving , the day of reckoning, or have re- ' mained indifferent. The Public i Service superannuation fund is ! supplied by the contributions of 1 members of various branches of the service, subsidised by the Government according to an agreed scale. It is admitted by the Government and in fact has been apparent for a number of years, that the fund is in an extremely serious position. Without entering into actuarial technicalities, it is sufiicient to say that the State has fallen gravely in arrears in its subsidies and has thus directly precipitated the trouble. The fact that this was done during a period when eonditions were much less

strmgent tharv they are at present, makes the default all the more inexeusable. The present position of the fund is the fault of the State, or rather of its administrators, and the State must accept the responsibility. The fault does not lie at the door of the contributors and it is not only wrong but entirely inequitable, to penalise them for the muddle created by political methods. The State's responsibility and its liability to the contributors was recognised by the Economy Commission in reporting upon the position of the funds, "We believe unless thd State is able to make good its obligations to the funds, some radical alteration ^ must be made in the cailculation of retiring allowances, if the interests of the present contributors are to be conserved," stated the report. "We also draw attention to the huge potential liability of the State in regard to the funds, a liability from which the State cannot honourably escape." If the effect of the new measure is to place the burden of this. escape upon the contributors, it cannot be considered honourable. At a time like the present, it is particularly unfortunate that the State should be called upon to remedy the position, but-in spite of that, we feel sure that the taxpayers in general will not countenance any escape from just liabilities at the expense of the civil service. It was pointed out by members of the Labour Party that the special committee set up to consider the bill was unduly weighted in f avour of the Govern ment. On paper, this is correct as eight members of the com-

mittee are members of the Coalition, three are Labour members and oue is an Independent. The Labour contention, however, presupposes a desire on the part of the Government to evade its responsibilities, and is hardly fair criticism at the present stage. It will be time to make allegations of this nature when the facts support them, but in the meantime in the Prime Minister's words, the committee should be "trusted to do its duty | to the country and the service.".