Lively Argument in Papua
p. 10 · Read in the full issue
Pensions Or Water?
Port Moresby, Aug. 28.
it was announced, in August, that the Government proposed to set aside £lO,OOO, from its now healthy funds, as a special reserve to assist the Public Service Superannuation Fund, there was a shout of protest from the non-official Europeans.
“If there is money to spare,” said the critics, “it surely is time that some greater public utilities were provided.
Why not a water-supply system for Port Moresby, for example—a thing most ur gently needed?
“Why should men in the sheltered public service, who bore none of the troubles and burdens of the bad years, be allowed to have first bite at the first funds made available by the good years?
Papuan public servants already have a liberal system of leave and pensions, and retire after only 20 years’ service. What about something for the planters and traders, who have lived in the country, and suffered in health and pocket, in order to keep its industries going; and who have no government to provide for their declining years?”
The criticism was led by Mr. E. James, in the Papuan Courier, and he received hearty support from the non-official classes.
The Lieutenant-Governor’s sympathies apparently were divided. He appreciated the civilian point of view; but, as Ad ministrator, he was obliged to “tidy up” the superannuation funds, which has been for years in an unsatisfactory con dition.
It is a fundamental of good govern ment in a tropical country that there shall be an effective pensions scheme, so that competent men may be attracted to the service, and held there. Almost al ways, pensions funds are created by pay ments from employer and employee, usually in the proportion of 50-50, The Papuan Fund was established on May 1, 1918; and, up to June 30, 1937, officers have paid into it, out of their salaries, £66,946. Interest earned has brought their actual contributions to £92,712i By 1928, it was found that in come was not sufficient to take care of pensions payable; and, from January 1, 1929, the Government provided for de ficits by irregular payments out of public revenue. Government payments to June 30 last, totalled £27,593.
This is a Government obligation, which it cannot escape. The Government, at the beginning, guaranteed the pension fund, on condition that officers contributed five per cent of their salaries.
The Government calculates that, if this £lO,OOO is put into a reserve to support the pension fund, the latter will there after be self-supporting; and the Govern ment thus will be freed from the em barrassing necessity of having to call upon the public revenue to make good the deficit.