PENSIONS AND ALLOWANCES.

Taranaki Daily News, 11 October 1917, Page 7

PENSIONS AND ALLOWANCES.

TOLL BEFORE PARLIAMENT EXPLAINED. BY SECOND DIVISION LEAGUE. There was a good attendance of members of the Second Dvlsion League at the Soldiers' Club on Tuesday night, when the provisions of the Bill now before ■Parliament were explained by delegates to the Dominion conference.

In the absence of the president (Mr. J. S. S. Medley), Mr. Jas. Clarke was voted to the chair. Mr. Jas. McLeod stated that delegates left for Wellington with rather 'definite ideas, but he was pleased to say that they had no need to do anything of a stand and deliver nature. They were fortunate in ho'lding the conference when they did, as the Bill was being considered by Parliament and had actually passed its second reading when they arrived in Wellington. He had an idea that if it wero not for the Second Division conference it would have passed its third reading on the Thursday. At the secret session the members of the Cabinet had placed the position before members as to what the Government was able to do, and members were prepared to accept this without enquiring whether the pensions were equitable to the Second Division or not. It was not long before the conference found holes in the Bill. It was a momentous question to decide, whether they should take the Bill as recast ov demand what they wanted. The State had to reconsider the question of taxation. Cabinet was at present up against a dead end. If the Government said that the country could not stand going as far as the {Second Division League asked, then as reasonable men they would not force it. There were three points that the Second Division League had taken up:—(1) The separation allowance, while the soldier is alive and fighting; (2) pensions to disabled or partially dißabled soldiers; (3) widow's pensions. The present separation allowance was Is per day for the wife (the League asked ,6s), and 9d per day for each child (the League asked Is <>d). The Government was prepared to raise the separation allowance to 3s and to Is for each child. The ence still adhered to its demands. The new regulation provided that a sok'ker must leave his wife 3s out of his pay, whilst a .member of the First Division left 3s either in trust for himself or to anyone else. Tho State proposed to add 3a per day to this, making the wife's allowance £2 2s. The Government had laid down the principle that the wife's allowance should be £2 2s, and the Government should find this, allowing the married men to invest or dispose of their allotment as they wished, as in the case of single men.

At present the Financial Assistance j Board could grant assistance up to £2 iper week; it was proposed to increase this to £3. Many people had not obtained this assistance because they were unaware of the provision and had not asked for it, whilst in other cases they had not put their case too well. The conference preferred the Cs per day separation allowance, nnrl *'•" assistance given by the Financial Assistance Board remaining as at present, viz., £"2, on the principle of placing the money on the counter. He had subscribed to that principle himself, but he admitted that the Pensions Board and the Financial Assistance Board were administering their functions with the utmost liberal-

ity. and it was possible some reservists would be better off to have the lower Sxcd amount and the larger optional assistance. The fixing of the amount by regulation bad taken on a different aspect, as it was to be discussed by Parliament and would therefore have all the force of a legislative enactment. On the question of pensions for disabled soldiers, the League had advocated. pensions by right and by schedule, and also an alternative scheme based on the British scheme. They had converted the Minister of Defence, who at first considered the proposals undemocratic. The Bill! before the House provided for pensions bv right and by schedule, and, what was better than an alternative scheme, an additional pension. The League asked that the pension for the totallv disabled man, i.e., the 100 per cent inan. should be £2 Is 3d per week, that was 50 per cent, more than the English rate. The Government, however granted £2, and. in addition, a pension'of £1 to the wife and 7s (id to the child That generosity was somewhat alarming, until it was discovered that the Bill was badly drafted. Apparent y the wife 1 of an 100 per cent, man wild get £1 per week for life, but she could not The wife and child were only entitled to- pension in the case of the man's total inability to earn, which 100 per cent, disabilitv under the Act did not necessarily imply. He instanced the case of a man in a sedentary occupation who had lost both legs, i>.id tuerefore could continue earning Ins salary The man himself was entitled to £2 for life but his wife or children would not receive any pension. That was fair, and such eases must be left to the discrimination of a board. An additional pen•ion could be granted in order to maintain the pre-war standard 'of living, bringiiv- the total to a maximum ol to in the "case of a man with children, as against £5 12s fid which the League asked for. The conference accepted this as a reasonable compromise. ft here (he v differed was in respect to the Pensions Board, but he had ascertained that the Board \*as actuated by a lull sense of generosity and had given every widow the D maximum pension of 255. When the pronoßed increase was before, the House £sl2s 6d was defeated by 33 to 30, and every Taranrski member voted against it. They had, he considered, no reason to be■ dissatisfied with the result, for

wherea-, under the English system an injured man had to prove what his prewar earnings were, and what he did with the money, in Xew Zealand the pre-war standard "of comfort was taken. This represented a vast difference when the purchasing power of money us comyared with its powers before the var was considered. Regarding a widow's pension, the League asked that it should be fixed at £2 Ids for a widow- with children and £2 5s fid without children, and an additional 10s fid for each child. The Bill proposed £1 lus widow without children and £2 with children, and 7s fid for each child up to 17 years of age. When the husband was alive the (iov-

eminent laid down the principle that the wife should receive £2 2s, yet when her husband .was dead it asked she

should subsist on £1 10s. They were fighting in the House to-day on this and i the children's allowance.

Mr. McLeod stressed the point that allowances were not paid out (>f revenue but out of war loans on which the country had to pay the interest. Pensions, however, had to be found out of revenue each year. He thought the League should

stand firm on the question of widows' pensions, which should be £2 for widows without children and £-2 12s with children and 10s fid for each child. Even if the Government increased the pension for each child to T0 S (id, he thought 30s was not sufficient for any widow to keep herself in that degree of comfort to which her husband had kept her. On the whole the manner in which the Gjjs- - had met the Second Division League, representing 100.000 members, had been fair and reasonable. The Government had originally provided one pensio7i scale for men and another for officers. He believed in paying an officer while, engaged in the forces, but as soon [is the officer was back into civil life he did not think that either the officer or his wife was entitled to more than the ' private or his wife. It was a question of principle which they had brought oefore the Minister of Defence, who stated he was under a contract with the officers, but the speaker did not think that any contract made with officers could be on as high a '"lie as was now provided for the men, so no contract would be broken. Adverting to pension for disablement, he mentioned that the period in which a man could marry and claim a pension on his wife's behalf had been extended to two years, whilst provision was made for a mother, dependent upon a, soldier, receiving a minimum of half that which a wife was entitled to. Mr. T. C. List also dealt with the Bill, expaining several of its minor provisions, and showing that the League's main principles had been recognised and adopted by the Government. They were: Pensions by right and by schedule; .alternative pensions; State responsibility for the care of a soldier from the date he paraded for camp; and three months' hotice to reservists to go into camp after passing the medical test. The, pensions features of the Bill were oft the whole quite satisfactory. -Several alterations had been made at the instance of delegates from the conference, the Minister for Defence meeting them fairly and sympathetically. The big question upon which they were at variance with the Government was that'of separation allowances, which the conference held to be inadequate. The Government proposed 3s; the conference asked for (Is. The Government offered an additional £1 a week under the Financial Assistance Board. The conference waß prepared to forego this and have it attached to the separation allowance, which was definite, whilst the other was not. He was sure Second Division reservists would prefer even 4s Od to a fixed 3s and an indefinite 5s or 10s. Both the Financial Assistance Board and the Pen-, sions Board were composed of men in whom they could place the utmost reliance, but they might change and their policy alter. Anyhow, a bird in the hand was always worth two in the bush. From the Financial Assistance Board a man who had his property paid for and without a life insurance policy could derive no benefit. But another with interest, etc., to meet could claim up to £3, This was scarcely equitable. The position might be got over by giving a person the right to claim by way of rent up to £1 a week, though the 6s a day separation allowance was much preferable. The allowance for children was insufficient, ten shillings being little enough. With these exceptions,' he •■ thought members of .the Second Division had every reason to feel satisfied with the Government's proposals. Mr. J. C- Morey asked whether any? thing had been done in connection with boy officers.

jNtr. List said the League did not object to being officered by men who had been to the front, no matter how young they were, but they objected to being officered by lads fresh from school The Minister, however, had met their wishes in this matter very, fairly.

Mr. Morey asked if the Government intended to make any provision to carry on the business or farms of men who were called up. -Were the men to sell at a sacrifice?

Mr. McLeod said it was a very difficult problem and he did not think the Government could undertake it. Mr. •List said that while organisation of the dominion's resources was possible two years ago, it was rather late now to do anything effective. ,- Mr. Eobinson ashed whether the League had suggested any means whereby taxation could be raised. He suggested that those who were left behind should contribute their quota, say I'll per cent, of their earnings. This would tend to bring about equality of sacrifice. There were a number of single men who had been turned down but who were earning good-money and could afford to contribute towards the maintenance of soldiers' wives and children.. Mr. Clarke considered that until the Government had taxed bachelors they should not say they epuldn't meet the Second Division's demands. He pointed out that nearly -50.000 single men had beeu turned down and £500,000 yearjy could be realised by taxing them. f

Mr. McLeod did not think they should suggest any avenues of taxation until the Minister of Finance said he could not find the money. He thought a tax would be placed on sugar. He did not think the time had yet arrived when there should be direct taxation on the man that escaped fighting. Mr. List said that many bachelors had dependents to support and were therefore in the position of married men. He noticed .that Italy was imposing special taxation on exempted men. Mr. Morey mid that many who had gone to the front had responsibilities far more than those who remained behind in luxury. Mr. 'Robinson favored payment of a definite flat rate of separation allowance in preference to a payment by the Financial Assistance Board, which lis thought would not favor the "under <lo£." Mr. McLeod pointed out that the assistance given by the Financial Assistance Board, whether in the nature of rent or of interest on mortgage,. was practically the same. Mr. List suggested that the League

might set up un Advisory Council which could give valuable assistance to reservists and their dependents. Mr. Downes favored rent being paid ,as a right. Mr. McLeod pointed out that this would not be necessary in the case of a wealthy man.

Mr. List said provision could be made exempting wealthy men from any rent benefit. An increased separation allowance, however, would obviate any difl'erentation in this respect. Mr. Duff 1 did Hot think the capital saved by a thrifty man should be taken

into consideration in assessing any assistance that might be given. It was not right that a man's capital should be eaten into while ho was away. He thought payments should be fixed by Act of Parliament. He also pointed out that one man could state his case better than another. Mr. McLeod «aid that 'his could not he altered. They j/o-lri +; cl; out for separation allov, auto, bu - Mey should [also favor the continual..!., w" tho Kin-

ancial Assistance Board. As a delegate ho considered the pensions were fixed fairly, and no man need fear that his dependents would want if he were killed at the front. If the pay and allowances were as generous they should ho satisfied. He was satisfied to Iftffc'c iis case before the Board provided his wife was left lis per day. Mr. ]List said that only a man blind to the real position would want the Financial Assistance Board abolished.

Mr. Downes moved that an advisory committee comprising Messrs J. Clarke, ■J. McLcod and T. C. List be set up to assist reservists in placing their cases •before the Financial Assistance Board.

Mr. Pearce seconded the motion, which wa? carried.

■ The question of appointing a solicitor was referred to the committee.