NATIONAL INSURANCE DROPPED

Waikato Times, Volume 124, Issue 20743, 1 March 1939, Page 6

NATIONAL INSURANCE DROPPED

Although the Australian Prime Minister, Mr J. A. Lyons, in December emphatically denied that the Government had any intention of abandoning the national insurance scheme, it is now announced that the scheme has been dropped and that legislation will be introduced to repeal the Act after a cost of about £1,000,000 has been incurred. In view of the fact that the scheme contained many features similar to those in the New Zealand Social Security Act, the Dominion is keenly interested in the Australian decision. Reasons given for the abandonment of the scheme are the imof securing Parliament’s acceptance of the mass of regulations under the Act, the Country Party’s hostility and the general lukewarmness of the Labour Party and the general public. The Federal Cabinet is not unanimous, but supporters of the scheme have adopted the ruling of the majority, and since they are willing to

scrap the framework of the scheme that has cost £1,000,000, it is not likely that national insurance will be revived in the near future. If Australia in its wisdom has decided to cut the lirst cost and be rid of the scheme, it is at least indicated that New Zealand should feel its way cautiously. The Dominion’s scheme is far more comprehensive than that proposed in Australia, and the responsibility is proportionately greater.

Many in New Zealand would have preferred to see “social security” introduced in modified form, for it is unlikely that the country can hope to escape ill the difficulties foreseen in Australia. There is unquestionably a d< maud for superannuation and improved provision for medical treatment, but there is a strong body of objection to compelling everybody to take part in the plan whether it means duplicating their own individual efforts or not. Just as in Australia, the Government is meeting serious difficulties with the medical provisions of the scheme, and a solution of the problem seems to be no nearer than when the Minister announced that the operation of that section of the Act had been postponed.