Superannuation and Water Supply

in Port Moresby.

Letter to the Editor.

1 NOTICE, in your January issue, some critical comment regarding the action of the Papuan Government in allot ting the sum of £lO,OOO to the support of the Superannuation Fund, instead of, for instance, providing a water supply for Port Moresby.

There is also a criticism by Mr. G. A.

Loudon of the composition of the Exe cutive Council of Papua.

Taking this criticism first: He says that “these are the days of youth” and that a change should be made in the Executive Council because the present members ‘are all over the retiring age’”.

Well, while I have no intention of at tempting an answer to Mr. Loudon’s gen eral criticism, I must say that the stan dard of accuracy observed by him in this reference to the Council is hardly com plimentary to his other claims. The re tiring age is 65 years (Regulation 61), and of the seven members (oflicial)— the Council is limited to eight official members and one non-official—not one is at, or over, the retiring age. The Sen ior member is 57 years of age; the next (reported as retiring) is 64 years; the next is 51; the next is 62; the next is 53; the next is 58; and the last is 56.

So Mr. Loudon’s ALL is reduced to NONE.

Another point is that while in one place it is advocated that these senior men should be thrown into the discard —or really on to the Superannuation Fund, which Mr. Loudon objects to strengthen—in another it is complained that the highest administrative positions in the territories are NOT given to such men. Surely, if they are adjudged com petent to fill positions of ultimate re sponsibility in other territories, they are also fitted to operate in the territory about which, they obviously have the most knowledge?

Now, on this matter of allotting £lO,- 000 to the support of the Superannuation Fund. Would Mr. Loudon, and others, advocate that the Papuan Government should default in its obligations to the men who voluntarily surrendered posi tion and salary in th,e belief that the statutory obligations entered into by the Government would be duly honoured?

And surely it were better to adopt the ordinary business precaution of strength ening the Fund when revenue is buoy ant, than to risk a repetition of the 1933 incident? Then, through just this neg lect to strengthen the Fund during th,e earlier years of comparative plenty, the Government was forced to “warn” the retired men that their statutory allow ances (which they had paid for in full —just as if they had purchased an an nuity from an insurance company) might be reduced in the near future.

It is, of course, well known that the Superannuation Scheme was not, and is not, popular with some “outside” inter ests. but the fact remains, whatever its merits may be, that the Scheme has been enacted, and many of the old officers have retired under its provisions. They were given no option in the matter, and had nothing to do with the provisions of the Scheme, so I ask Mr. Loudon —Does he advocate that the contract made with these men be repudiated? If not, then how does he suggest that the Fund be strengthened against the possibilities— not to say probabilities—of the future?

Or does he band himself with a section of the Public Service Association which, in 1933, disclosed a willingness to sacri fice the interests of the retired men in the hope that their own salaries could be protected thereby from reduction?

The result of this betrayal of the re tired men was that they had to appeal to the Minister for protection, and they lost all confidence both in the integrity of the P.S.A. and in the stability of the Fund upon which they rely to keep them from want in their declining years. These are mostly the men who worked for a

mere pittance, and under extremely ad verse conditions in the early days—pay and conditions such as are quite un known in these days of service classifi cation and “soft” living.

On the matter of providing a local service from revenue: Surely Mr. Lou don, and any other person with in terests outside Port Moresby, would not advocate that the Territorial revenue should be used for such a purely local service as the proposed water supply for Port Moresby? Even the cost of wharf age accommodation (which is more “ter ritorial” in its nature, serving as it does the interests of practically the whole Territory) was not met from the local revenue, but from loan moneys.

Here it should be well known that even as early as the writer’s control of the Public Works Department, there existed a comprehensive scheme for an adequate

water supply for Port Moresby, and the fmancial provisions were duly approved by a secret vote of the residents. This scheme was based upon the principle of a loan from the Commonwealth to cover construction cost, and LOCAL taxation (of those who would directly benefit) to cover interest, redemption, and operating charges—leaving the interests outside Port Moresby free from any charge for a service from which they derived no direct benefit. Which would Mr. Loudon prefer: A general taxing of the whole of the Territory, or making the people who obtained the benefit pay for it?

Incidentally, it might be as well to mention, while on the subject of a water supply for Port Moresby, and in answer to the official statement that further “experts” were to be brought in to advise on this matter, that the local De-

partment already has evolved a satisfac tory scheme —it is the one mentioned above. It succeeded where the imported “experts” had failed, and further, it de monstrated how the scheme could be made an economic success—a thing that none of the “experts” had even attempt ed to do. Unless the local Department has lost all confidence in itself, that scheme is ready to be put into effect di rectly funds are made available, so why call in more “experts”? It would have been carried out when the writer was in control, only that the Commonwealth failed to grant the necessary funds.

I am, etc.,

J. T. Bensted,

Formerly Director of Public Works, and Member of the Legislative and Executive Councils of Papua.

Sydney, Feb. 16, 1938.