SECURITY COSTS

Wairarapa Times-Age, 1 September 1938, Page 7

SECURITY COSTS

UNDER THE GOVERNMENT’S PROPOSALS MR NASH’S CONTENTIONS ASSURANCE OF ADEQUATE PRODUCTION (By Telegraph —Press Association.) WELLINGTON, This Day. Full confidence in the productive capacity of New Zealand to meet all the costs arising from the Government’s proposed health and superannuation services was expressed by the Minister of Finance, the Hon W. Nash, in replying to the second reading debate on the Social Security Bill in the House of, Representatives yesterday. The main criticism of the Bill, said Mr Nash, had been directed against the possibility of meeting the annual costs. There had also been a statement that the Opposition, if returned to power, would not in any way interfere with the Government’s proposals. The argument of the Opposition had been, in effect, “We can’t afford it, but if we’re elected, we’ll do it.” ‘ “The Opposition has been emphasising that it will not cut pensions, that it will not cut wages, and that it will not interfere with benefits, but there has always been a ‘but’,” Mr Nash continued. “They affirm that they agree with the principles in the Bill and then with one accord attempt to make excuses. There has been no criticism of the Bill other than .that we cannot afford the benefits. Members on this side of the House say that we 5 can afford them, and that the Bill itself makes provision for them.” The evidence of the years, said Mr

Nash, was as clear as possible that the production of the country over the last 40 years was a justifiable measure of what could be done in the future. Opposition members suggested that the figures of the British actuary, Mr G. H. Maddex, had in some way been changed, but that was not so. Mr Maddex had not claimed to be competent to determine the production of the country. All that he said was that a figure of £150,000,000 had been supplied to him, and, basing his estimates on that figure, he was able to determine the possible cost. Mr W. J. Polson (Opposition, Stratford) : “I suppose the Government gave him that figure.” PRODUCTION AND NEEDS “There should not be any need in this country for many long years to dream of any lack of production of the things which are necessary in life,” Mr Nash said. “There is more to be considered than just the production of goods. Our standard of living is not entirely conditioned or determined by the raw materials which we produce.” The Rt Hon G. W. Forbes (Opposition, Hurunui): “The price we get for them has something to do with it.” “That is not a determining factor,” said Mr Nash. “The job of a Government is to ensure that there is no need for anyone to worry about material things. Knowing that there is no fear of starvation or of the deprivation of a home, the people can go to anotner type of life altogether. We are saying to all who are in need ‘there is no cause for you to worry about food, shelter and clothing. They are being provided for you.”

Mr Maddex had determined his figures according to the evidence of the past, the Minister continued, and having obtained that evidence arrived at his estimate of the cost of the Government’s proposals. That was obviously the only method of approach. If Mr Maddex was to be given the right to examine the past in order to estimate future costs, surely the Government had the right to examine the past as a measure of production for the present and the future. “Over the years,” Mr Nash added, “it is inevitable, with the knowledge we have of the amazing resources of this country, that there will be a further increase in production. We cannot attempt to measure that increase with accuracy, but there is more than enough inside the productive capabilities of this country to provide the necessary backing for everything which the Government proposes. We can only anticipate the future by measuring the past.” THE ACTUARY'S FIGURES The Minister added that not one of Mr Maddex’s figures had been challenged. The figure of £150,000,000 as an estimate of the value of production of 1939-40 had been supplied to him. Mr K. J. Holyoake (Opposition, Motueka): “Why was he supplied with the wrong figure?” Mr Nash: “That is the sort of thing one expects from the member for Motueka.” Mr Holyoake: “You say now that it is £174,000,000.” Mr Polson: “Who supplied the original figure?” “The report shows that Mr Maddex took £150,000,000 as an arbitrary figure for the value of production in 1939-40,” said Mr Nash. “Mr Maddex did not say that the sum was his estimate. The figure was supplied to him through a Government department and he based his calculations on it.” The Rt Hon J. G. Coates (Opposition. Kaipara): “That is not my reading of the report.” “You will find it is correct,” said Mr Nash. “The £150,000,000 was purely an arbitrary figure, and we say that the production of the Dominion can support the Government’s scheme.” There had been a suggestion, said Mr Nash, that the Dominion could not hope to increase production from the land. During the decade ended 1934 primary production had doubled and still the limit had not been reached. Mr Polson: “Why has there been a drop in the production of butter?” Mr Nash: “There has been a drop of 7 per cent in butter and 3 per cent in cheese, but there was a reason foi that.” Mr H. S. S. Kyle (Opposition, Riccarton): “What about wool?” “The returns from wool fell because we did not sell the wool,” said Mr Nash. “Opposition members admit that we have not reached saturation point, and if that is so must continue to increase.” Mr Polson: “If the hon gentleman overloads us with taxation, production must fall.”