The Waikato Times SATURDAY, MAY 14, 1938 DIFFERENT ROADS

Waikato Times, Volume 122, Issue 20498, 14 May 1938, Page 6

The Waikato Times SATURDAY, MAY 14, 1938 DIFFERENT ROADS

It is interesting to find the Governments of Australia and New Zealand both dealing with questions of pensions and national health. The two countries, if the plans outlined by Mr Savage are incorporated in the measures to be introduced, will take different roads, and that will afford ample opportunity for comparisons. The New Zealand plans apparently have no precedent, at least, in British countries. Originally they were to be on a national basis, applying to all citizens alike, but that intention was abandoned, although it formed part of the election platform of the Labour Party. It is now proposed to apply a means test thus excluding a large section of the people from any benefits, although all will have to subscribe to the special funds. Those excluded will pay in two ways, by the direct impost on income, plus the £1 levy, and in the taxation necessary to provide the State's share of the annual expenditure. The health insurance plans apparently will be national in scope, but until the committee appointed by Parliament has reported, and the Bills have been introduced, it is impossible to say what the basis will be. In Australia they have decided to follow the British lead to a very large extent. They have had the expert advice of British authorities and recently the Federal Treasurer introduced the National Health and Pensions Insurance Bill. It provides for “insurance against certain contingencies affecting employees and the wives, children, widows and orphans of employees.” The Leader of the Opposition moved that the scope of the Bill should be extended to provide for insurance against unemployment, sickness or temporary invalidity and apply to all the people. The Treasurer said that the Government hoped, in due course, to extend the principles of national insurance to self-employed persons, but it would mean further delay. Any plan for self-employed people would have to be on a voluntary basis whereas the one for employed people was compulsory. In the neighbouring State they will establish first a scheme covering a section of the people. The funds will' be provided by contributions from employee, employer anc} the Federal Treasury. This is the Brif .*h system, which was strictly limited when first introduced but has sinc-j been extended, and a further extension is said to be under consideration at the present time. Assuming that the Dominion scheme is along the lines mentioned by the Prime Minister, in his statement to the Parliamentary Committee, there will be a marked difference in the approach made here from that favoured in Australia. Probably many people would prefer to see the New Zealand proposals introduced by stages, as the financial development of the country enabled the extensions to be made. That has been-the practice in the past, with the result that in these matters the Dominion has an excellent record. Mr Nash admitted that all that was covered by the Government's plans was in existence now, but that it was not on a sufficiently ambitious scale. If that is so then the machinery necessary for development was ready, but the extensions could not safely be based on an assumption that the national income would continue to grow as rapidly in the next forty years as it had done since 1898. It may be that the committee will report in favour of a gradual extension, although that would run counter to the election manifesto of the party, and a majority on the committee were elected to support that declaration of policy. Australia has preferred to advance stage by stage, whereas the authorities here want/ to complete the edifice at once. That is the chief difference in the two policies.