Wararapa Times-Age SATURDAY, OCTOBER 1, 1938. POLITICS AND SOCIAL SECURITY.

Wairarapa Times-Age, 1 October 1938, Page 6

Wararapa Times-Age SATURDAY, OCTOBER 1, 1938. POLITICS AND SOCIAL SECURITY.

> TJSING what may be called the art of political selection, the Hon P. Fraser made merry play, in his speech in Masterton on Thursday night, with an observation by the Hon Adam Hamilton, Leader of the National, Party, that he and his colleagues had found the Social Security Bill, now passed into law, an awkward measure to oppose. Why was it awkward? Air Fraser demanded, in terms of virtuous indignation, to be informed. Ide went on to answer his own rhetorical question by denouncing the wickedness of attempting to “filch from the old people” and other beneficiaries the benefits they were promised under the Social Security Act. If that were the whole story there would be nothing else to do than agree with the Minister of Education. Anyone, however, who makes a reasonably complete examination of the facts will have no difficulty in perceiving that Mr Fraser concentrated on one aspect of the position—the aspect that happened to suit his purpose—and ignored other aspects that are just as important and indeed are bound to force themselves on attention in spite of any efforts that may be made during an election campaign to pretend that they do not exist. Paying regard to the total interests of the people of this country, as distinct from those of a political party, it is not difficult to understand why Mr Hamilton and his colleagues found the Social Security Bill an awkward measure to oppose. The reason is simply that, while it is easy enough to gain a certain amount of popularity by promising liberal pension benefits to all and sundry, honest efforts to establish schemes of this kind on a safe financial footing are, apt. to be misunderstood, and also to be misrepresented as they were by Mr Fraser on Thursday evening. No one worth considering would contend that the pension and other'.benefits promised in the Social Security Act are in themselves unduly liberal to old people and other deserving beneficiaries. A scheme of this kind is liable to serve anything but its intended purpose, however, if it is not fairly within the national means and resources. If it makes such demands as to strain and disorganise the economic organisation of the community, it will do much more harm than good. This is the all-important aspect of the position that was side-stepped by Mr Fraser, and is being side-stepped consistently by the Labour Government and its supporters in their electioneering use of the Social Security Act. People, irrespective of their political sympathies, who have looked fairly at all ’the essential facts cannot but be aware that the social security scheme rests upon an exceedingly uncertain financial, foundation. Mr Fraser spoke of the scheme as one of compulsory thrift in which people would provide for their own old age and for needs at other times. In fact, however, much more than half of the promised benefits will from the outset have to be provided out of general taxation and there is every indication that the call on general taxation will increase heavily year by year. Taking account of social security depiands plus unemployment liabilities, Mr Hamilton has computed that an additional ten millions (on top of existing pension costs) will have to he found by the Consolidated Fund—that is to say from the pockets of the people—in the first year of the operation of the social security scheme. Even if that estimate be scaled down somewhat, the prospect opened is not reassuring when account is taken of the tremendous load of taxation already imposed on the Dominion —a load that would at once become crushing and intolerable in the event of any appreciable contraction of total national resources, such as undoubtedly would be occasioned by a period of adverse trade. It is not inconsistent with an entirely genuine desire for the most liberal extension that is possible of social services to regard with serious concern the financial and economic problems that must be involved in attempting to carry the Government’s legislation into effect. The country as matters stand is taxed almost to the limits of endurance. With revenue at a record level, the Government has retained even the indefensible sales tax, which its members and supporters condemned and denounced before taking office. How are the additional millions that wil] be needed for social security and for unemployment relief to be raised, and on whom is the burden to fall? These are questions that need to be faced and answered in the interest of all the people of New Zealand. If Mr Fraser and other Labour spokesmen are of opinion that the social security scheme rests upon a firm foundation, it is open to them to give an exposition of the conditions in which it is to be financed, paying due regard to the effects of increasingly burdensome taxation on production and trade and therefore on the welfare of all sections of the population. The unanimity with which Labour spokesmen evade these all-important aspects of the position suggests that they are by no means as confident as they profess to be of the stability of the social security scheme. APPEASEMENT IN EUROPE. ALL the world is grateful that the war clouds have lifted in Europe, and even those who by no means approve unreservedly the lines on which British foreign policy has been directed by Air Neville Chamberlain will agree that he has striven mightily to preserve peace and will rejoice in the success that appears meantime to have crowned his efforts. Time must show how far the settlement that now seems to be assured is likely to be stable and lasting. It is visibly possible that the settlement reached may in some measure put a premium on aggression and may encourage that use of war, or of the threat of war, “as an instrument of national policy,” which is abjured by the signatories of the Kellogg Fact. There is a definite possibility, also, of injustice to Czechoslovakia which may establish a new source of unrest and future conflict in Europe. The situation has some potentially more hopeful features, however. If democracies and dictatorships unite in giving genuinely firm and honest guarantees to Czechoslovakia of security within her contracted frontiers, that brave little nation may be better off than she has been in her brief but troubled modern career. As its terms are outlined, the settlement agreed upon seems to embody in definite if limited measure the doctrine of collective security which Nazi Germany and Fascist Italy thus far have scorned. The final verdict upon the critical negotiations which have centred of late on Czechoslovakia may be that the spirit of justice ami enlightenment which is slowly permeating the world has asserted itself in some degree with practical effect. Should that verdict prove to be warranted, a beginning will have been made on which much may yet be built for the good of mankind.