TWO MILLIONS SHORT

Wanganui Chronicle, Volume 83, Issue 40, 17 February 1939, Page 8

TWO MILLIONS SHORT

FINANCING OF SOCIAL SECURITY

MINISTER SAYS MONEY WILL BE FOUND I Per Pre”* Association.l AUCKLAND, Feb. 16. A shortage of about £3,000,000 in financing the Social Security Act, taking the estimated cost of the scheme in full operation as £17,850,000. was mentioned by the Minister of Finance, Hon. M. Nash, in addressing members of the New Zealand Institute of Business Executives. “It will cost a fair amount of money,” Mr. Nash said, after outlining the benefits of the Act. He said that the tax of Is in the pound would bring in about £8,500.000 and he thought the total cost of the scheme in full operation was estimated at £17.850,000. The shortage, taking into account the Is in the pound and the present pensions, would be about £2,000,000. “We will have to find a way of getting it somehow," the Minister continued. “I think we will get it ah right with the least hardship.' Mr. Nash said he knew that some of the businessmen present would want to argue with him concerning the payment of the social security contribution by companies. He would like to ask those of his listeners who were in business in partnership or on their own account, whether it was fair that they should pay on their whole income while company shareholders paid onlv on the proportion paid out of dividends.” In effect, payment by companies is payment on account of shsveholders who are companies.” said. “Any dividend distributed by a company which pays the contribution will be exempt from contribution in the hands of the shareholder.

“Finally. I know perfectly well that many of you will pay more by way of contribution than you will receive by’ way of benefits. That is essential in order that many whose misfortunes are great and whose incomes are small may receive more than they pay for. As in other fields of Insurance it is. on a purely business basis, cheaper to pay all premiums and let the other fellows have all the fires. On the broad base of common humanity, however, I am satisfied that you are content to pay according to your means so long as you are sure that we spend money in a way that will do the most good. That Is up to us an<; •we are content to hear your judgment when we present our accounts.”

SOCIAL SECURITY BENEFITS

PENSIONERS NEED NOT Al’i’LY AUTOM ATIC a LLY K ECEIV E INCREASE ( Per Piew Association. I AUCKLAND. Feb. 16. Aspects of the Social Security Act were reviewed by the Minister of Finance, the Hon. . Nash, in a luncheon address. "The monetary benefits "ill commence on April I.” the Minister said. He quoted in detail 11 • increases m pensions and said tha. the existing pensioners Avould not need to make application for increases as the Social Security Department would automatically make adjustment on Z *il 1. Organisation of the department was well under way and the machinery would be ready’ on due date. “Although we have had several conferences with the groups concerned with the health benefits "e have not yet reached a finality, he added. "The health section is entirely new and a vast amount of preparation is necessary to ensure that the scheme will work efficiently and that all legitimate interests are adequately safeguarded." We are determined that nothing shall be allowed to hinder the essential personal relationship between the doctor and patient, the free choice of a doctor for all contributors and the right of every doctor to participate if he wishes. We recognise that every person who renders service is entitled o adequate payment for his services and we have in mind that the remuneration of doctors should at least not be less than they are receiving a’ the present. The same principles apply in the case of all chemists, midwives and nurses who participate. The Government was anxious to safeguard the position of friendly societies, medical institutes and all wonderful service in the past. Ml. Nash added. Consultations witn them must be finalised before detailed plans were brought into operation. The Government would make the medical sections of the Act available as soon as possible after April 1.