HIGHER PENSIONS

Wairarapa Times-Age, 4 May 1938, Page 8

HIGHER PENSIONS

IN PLACE OF NATIONAL SUPERANNUATION. CRITICISM BY FARMERS’ UNION. (By- Telegraph—Press Association.) WELLINGTON, May 3. “The Farmers’ Union is profoundly disappointed at the Government’s proposals for national superannuation,” said the Dominion President (Mr M. W. Mulholland) in a statement to the Parliamentary Committee today. “The proposals are not for superannuation at all, but are proposals to provide finance to pay pensions on a considerably increased scale and on a much wider basis to various members of the community, including the relief of unemployment by the payment of sustenance. A number of these proposals will have the effect of keeping in idleness people who are well able to provide for themselves. If this were done at the expense of their own earlier savings there could be no objection, but the proposals are that it be done, at the direct expense of the earning section of the community. The proposal that a large share of the finance shall be provided by the Consolidated Fund (estimated by Mr Maddex at nearly £10,000,000 out of approximately £18,000,000 for the first year for the combined Health and Pension Scheme) means that the main burden of the scheme is going to fall upon those sections of the community already suffering from the increased cost of living—namely, those breadwinners with a number of dependents. If the Arbitration Court takes the cost of living as its guide in making Awards some of these will, it is true, be able to pass these increased costs on by obtaining increases in wages. Industry in turn will pass them on in increased costs of products and services until they reach the producer for export. He is unable to pass them any further, and will consequently have to shoulder the burden.”

Mr Mulholland developed his financial criticism of the proposals in considerable detail, emphasising in particular the unwisdom of effecting a tremendous increase in the national income to continue.