SOCIAL SECURITY

Waikato Times, Volume 124, Issue 20733, 17 February 1939, Page 9

SOCIAL SECURITY

TWO MILLION DEFICIT MINISTER’S EXPECTATION “WILL FIND IT SOMEHOW** (By Telegraph—Press Association) WELLINGTON, Thursday “It will cost a fair amount of money,” stated the Minister of Finance, the Hon. W. Nash, addressing the New Zealand Institute of Business Executives on the social security scheme yesterday. He said that the tax of is in the £ would brine in about £8.500.000. and he thought that the total cost of the scheme in full operation was estimated at £17.850.000. The shortage, taking into account the Is in the £ 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 all right with the least hardship.” Taxation on Companies Mr Nash said he knew that some businessmen 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 only on the proportion paid out of dividends. “In effect the payment by the companies is payment on account of the shareholders who are the companies.” he said. “Any dividend distributed by a company which pays the contribution will be exempt from contribution in the hands of the shareholder. Pay Without Benefits ‘‘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 the 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 the money in the way that will do most good. That is up »o us, and we are content to hear your judgment when we present our accounts.”