RELIEF FOR FAMILIES

Wairarapa Times-Age, 1 May 1942, Page 3

RELIEF FOR FAMILIES

“To alleviate any hardship on the family man with a low income it is proposed,” Mr Fraser said, “to grant a bonus of 2s a child on the existing family allowance otherwise payable. The result of this would be that a man receiving £5 a week with two dependent children would receive an additional bonus of 4s and at the same time be subject to an additional tax of 2s 6d a week. I may add that in order not to cancel out the cost-of-living bonus payable to those receiving family allowances it is proposed to increase the maximum allowable income from £5 to £5 ss. The extra cost of these proposals is estimated at £370,000 per annum.” SOCIAL SECURITY BENEFITS For the Social Security Fund the revenue is estimated to be much the same as for last financial year, in total about £14,500,000, including for each year a transfer of £3,600,000 from the Consolidated Fund. Expenditure, on the other hand, is estimated to show an increase of £2,400,000, mainly on account of hospital and medical services and provision for a 5 pei’ cent cost of living bonus on age, widows’, invalids’, orphans’, and Maori war benefits, and also on war veterans’ allowances. An equivalent bonus will 'be given to economic pensioners. The estimated cost, of these bonuses which will date from May 1, is £550,000 per annum. The balance in the account at March 31 last was approximately £3,000,000, so this additional expenditure can be met out of the present reserves of the account. As a cost of living bonus it is also proposed to increase the domestic allowance payable to wives of all men in the arpied forces with one or more children.' This allowance at the rate of Is a day was granted last year to wives who, owing to their domestic responsibilities, were unable to take advantage of present opportunities for remunerative employment. The allowance will be increased as from May 1 to Is fid a day, the increase of 3s 6d a week representing approximately 5 per cent on the income of the wife of a private soldier with two children. In cases where no children are involved the wife’s present allowance of £1 Is a week will be increased by Is 9d a week. The cost will be about £400,000 per annum. RELIEF FOR FARMERS These bonuses, and also that granted to public servants, follow the 5 per cent cost of living allowance granted by the Court of Arbitration. To offset the reactions from this award on labour costs it has been decided to increase the basic fixed price for next season’s wheat by 2d a bushel. The. Government has under consideration the question of granting a war costs’ allowance to the dairy industry to offset the increased labour costs arising out of the war. The Minister of Marketing is at present discussing the matter with representatives of the industry and should be in a position to make a statement shortly.