8.—6.

Tlie second problem the Government lias in mind is the desirability of a national superannuation and health-insurance scheme to provide against the risk of destitution in old age and the hazards of sickness, invalidity, orphanhood, and widowhood. A number of other countries have schemes of this nature in operation, although the scope of the schemes varies considerably from country to country. A departmental committee has been at work for some time past collecting data and working out costs. The crux of the problem is how such a scheme can be financed. It is, of course, intended that persons covered by the scheme should pay in weekly contributions, but if anything like adequate benefits are to be provided it is evident that these contributions must be supplemented by subsidies from the State and the employers. The big hurdle is the initial cost in respect of those who join at the higher ages. This initial deficiency could, of course, be avoided by restricting entry to those under a certain age, say, twenty-five, but that would mean that the payment of superannuation under .the scheme would not commence for about forty years. There are some who say that every person should have the right to obtain a superannuation allowance and protection from sickness, invalidity, &c., from the State without any contribution on his part, but to provide for a universal pension after the age of sixty-five of £2 a week, and other allied benefits, would cost the State not less than £12,000,000 per annum, equal to 60 per cent, of the present revenue from taxation. Such a proposition is impracticable, but it should be possible to devise a contributory scheme that will bring the cost to the State down to a reasonable amount per annum. As we are still faced with a serious unemployment problem, and the Dominion is just emerging from a prolonged depression, the present is hardly an appropriate time for launching such a far-reaching proposal. However, the Government intends as a matter of policy to pursue the subject with the idea of promoting a suitable scheme as soon as financial conditions permit of it being done without imposing any undue increase in the burden of taxation. In order that honourable members and the people generally may have some idea of the cost of a suitable scheme, I propose at a later date to table the preliminary report of the departmental committee on the matter. Another important proposal which is receiving the attention of the Government is the encouragement of increased consumption of milk amongst children. A scheme with this object in view has already been prepared, and it is proposed to make funds available for the purpose. It is anticipated that other interested organizations and institutions will co-operate in making effective a scheme that will be of great benefit to the health of the rising generation and, incidentally, increase the local consumption of milk and thereby benefit the dairy industry, PUBLIC ACCOUNTS. Honourable members will recollect that last year's Budget was based upon an expectation that improving economic conditions would be reflected in a revenue increase of £2,460,000 compared with receipts (apart from reserves used) for 1933-34. This expectation, rather doubted in some quarters at the time, was more than realized, with the result that the year closed with a surplus of £1,626,000. As will be seen from comparative tables attached to this Statement, the total revenue for the year amounted to £26,126,094 and exceeded the Budget estimate by £1,874,094. Taxation receipts amounted to £20,177,607 and exceeded the Budget estimate by £872,607. Stamp and death duties contributed £790,723 towards this excess, the cause being abnormal receipts from death duties. The latter is an item that from its nature cannot be estimated in advance apart from averages, and the extra amount received last year must be regarded as largely fortuitous. Apart from death duties, the taxation estimates proved fairly accurate, the net difference being an excess of £81,884 only. Customs revenue fell short of the estimate by £176,403, but this is little more than 2 per cent, of the estimate and the shortage was more than offset by the fact that practically every other item exceeded, the estimate, the principal amounts in excess being income-tax (£146,477), highways revenue (£50,452), beer duty (£46,008), and sales tax (£20,504), Interest receipts in the aggregate showed a net excess of £45,245 over the estimate. The net- receipts from the railways exceeded anticipations by £138,050, but this excess was partly offset by the fact that interest on Post Office capital

National superannuation and health insurance.

Milk for children.

Public accounts.

Revenue.

Taxation,

Interest receipts.

6