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Salient. Victoria University Student Newspaper. Vol. 37 No. 3. March 20, 1974

What is the Alternative?

What is the Alternative?

Given the will, Labour could bring in a much better scheme. This would not rely on individual accounts, but would pay a decent retirement pension, derived from the money coming into the scheme from people now employed. That is, the 8% paid by the working population would meet the outgoings in the pensions. This has been just about what has happened for public servants in their scheme over recent years. This scheme could be brought into full effect in a year of two.

From the Labour Government's point of view such a scheme would not give $250 million a year for them to use in whatever way they intend. But it would bring in a decent standard of living for pensioners quickly and would enable pensions to be based on real wages at the time people retire.

As proposed, the scheme is concealed taxation of the work force, for some immediate benefit of someone unspecified, but not for the pensioner of today or of 20 or 30 years hence. It is a sad distortion of Labour principles to deprive the old because you are afraid to come out in the open and tax those who have plenty now.