WAR PENSIONS

Wairarapa Times-Age, 25 February 1943, Page 3

WAR PENSIONS

QUESTION OF ADEQUACY GOVERNMENT’S POLICY. STATEMENT BY PRIME MINISTER. (By Telegraph—Press Association.) WELLINGTON, This Day. The Government’s intention to review the present method of providing pensions for disabled servicemen and the question of their total adequacy was mentioned by the Prime Minister, Mr Fraser, in the HoUse yesterday, when replying to an urgent question by Mr Wilkinson (Independent, Egmont). He asked whether the House would be advised of the Government’s policy in respect of soldiers who were boarded class 2 and class 3, and others whose services were no longer required by the Defence Department, but who were not formally discharged from the Army. The Prime Minister said that some of the points raised by the question had been causing concern. When the previous arrangements were made it was not foreseen that they would have the resultant consequences. Steps had now been taken to ensure that grades 2 and 3 men returning from active service would either remain in the Army or receive their proper discharge. Some men might prefer to remain in the Army, but otherwise they would get their discharge. If discharge was granted they would be entitled to rehabilitation allowances, and it had been now arranged that there would be no period between the time of discharge and the time a man was taken back into industry. The Leader of the Opposition, Mr Holland, asked whether grades 2 and 3 men in the Army would have an opportunity of taking their discharge. The Prime Minister replied that was a question which was now before the Government in the form of certain proposals. The Government would go as far as the House was prepared to go, but one of the difficulties would be in reabsorbing men. Men in hospital and not discharged had been previously on social security, but the position had been altered, and these men in future would remain on military pay while in hospital. One of the problems was that of men who had to step back into civil life on lower incomes than received in the Army, said the Prime Minister. There was also the deeper question of the basic rate of pension. No one would claim that the basic rate fixed in 1914 to 1918 should remain, and be considered adequate for today, as there had been many changes since then. He could not say whether the basic pension plus the economic pension and allowances compared well with the system of pensions in Australia. Australia had given a 20 pei’ cent increase in pensions, and it was for the Dominion to keep abreast of her neighbours in such matters.