PROVIDENT FUND

Wairarapa Times-Age, 27 August 1938, Page 5

PROVIDENT FUND

DEPARTMENT TO CONTINUE STATEMENT BY MINISTER (By Telegraph—Press Association.) WELLINGTON, This Day. The intention of the Government to retain the National Provident and Friendly Societies’ Department was mentioned by the Minister in charge of •the department, the Hon W. Lee Martin, during consideration of the Estimates in the House of Representatives yesterday. Members of the Opposition had sought information as to whether the department was to disappear with the introduction of the Government’s social security scheme. The work of the department was commended by Mr H. S. S. Kyle (Opposition, Riccarton), and by the Leader of the Opposition, the Hon Adam Hamilton. The National Provident Fund, said Mr Hamilton, was a wonderfully attractive scheme. The Minister said the national provident scheme had its limitations. Entrance to the scheme was limited to people receiving £3OO a year and less. There was therefore a definite restriction on the number which could be brought into the fund. There was also the competition of friendly societies. However, the fund was doing quite well, and last year there had been a substantial increase in the number of new entrants. No doubt if the income limitation were removed there would be many more. There were 124 local bodies as well as a number of private companies associated with the fund. As a result of the social security proposals there had been some hesitancy on the part of private companies joining up. Mr Hamilton: “Will the national provident scheme go out like the pensions scheme?” The Minister: “The department will remain in existence.” Mr R. A. Wright (Independent, Wellington Suburbs) suggested that a number of contributors to the fund would capitalise their contributions and withdraw from the fund because they would be better off under the social security scheme. The Minister: “That will be a matter for those people to decide. I do not think that either the friendly societies or the 'National Provident Fund will be affected by the social security scheme."