When the debate on this motion was adjourned, I was discussing the conditions under which old age pensions are payable in various countries, and endeavouring to draw attention to the difficulties which will arise here if the provision we make for old people falls substantially short of the provision made in other countries. I do not think it is necessary to cover any portion of that ground again. Although the Minister is absent, I am sure the Parliamentary Secretary is familiar with the discussion which has taken place, and I will not weary the House by recalling any portion of the matter we discussed on the last occasion.
I want rather to draw attention to a question which is frequently asked in such debates as these: how much must we provide in order to maintain an old person? Frankly, I cannot answer that question, and I do not think there is anybody in the House has any data available which would enable a conclusion to be reached as to what is the minimum sum which should be provided for an old age pensioner. Neither do I think it reasonable that we should debate the matter on that basis. Surely we have not reached a point at which we say: find out what is the lowest possible standard of living which will keep an old person alive; what is the least sum we must give in order that an old person may live? That is what it amounts to, and I personally am not willing that we should debate the matter on that basis. We should look around instead and see what is expended in their old age by different sections of the community.
I draw attention to the fact that, without any means test, we provide a fairly reasonable sum for a judge, for a police officer and for the professional people in the employment of local authorities, who retire, to enable them to live in a reasonable state of comfort during the declining years of their lives. We do not apply any means test in their case. We do not ask a county surveyor who goes out on pension whether he has a private income or not, and we do not ask a judge whether he has profitable investments, or whether he owns his house or not. In more recent years, we have taken the precaution of providing pensions for Ministers, and we do not in their case apply any means test. I suggest that this idea that a person who applies for a pension at the age of 70 must not have an income over 16/- a week is antiquated, unreasonable and inhuman.
I have endeavoured to ascertain the sums expended by certain institutions on the upkeep of persons no more meritorious than old age pensioners and I find that, in Portlaoighise Prison, the cost of food alone is 11/- per week, and, as I pointed out on the last occasion, that food is bought in bulk and a certain proportion of it is produced under prison conditions and by prison labour, and therefore at a lower cost than the figure at which the same quantity and same class of food can be produced outside the prison. I have compiled a copy of the dietary scale provided by the Dublin Union, and, on 10th July last, the cost of purchasing that dietary as supplied to an inmate of the Dublin Union worked out at 17/- per week. That is for food alone; yet we allow an old age pensioner 10/- per week as a maximum.
Senator Hawkins shakes his head; he is evidently thinking of the supplemental allowances. I will come to them in a moment. What we provide is a pension of 10/- per week to buy food, pay rent, buy clothes and to provide some amenities, always assuming that the person who has reached the age of 70 is still entitled to amenities—a pipe of tobacco, and I claim, too, without apology to anybody, that he is entitled to a "pint" if he wants it. I am glad that Senator Hearne accepts that view. I think we should not regard the old person who has reached 70, as being compelled by economic conditions to break with his past, with his traditions, and to forfeit all claim to the amenities which perhaps in his youthful days he enjoyed.
I can give a copy of this dietary scale to any Senator who is interested, but I am not going to weary the House by referring to the items, or the quantities of food supplied in these institutions. Some Senators seemed to dissent from the view that an old age pensioner was given only 10/- weekly to live on. There are supplements no doubt but these are subject to certain tests. In the urban areas the supplement consists of a food voucher, and in rural areas, of a cash allowance. I think the cash allowance is limited to 2/6 per week. The food vouchers are valued at varying sums, dependent on the cost of bread, milk and butter, but it may be assumed that their equivalent in cash does not exceed 2/6 per week. Let us remember this, that, in allocating these supplements, new tests are applied in the case of applicants. In the case of the rural old age pensioner two tests are applied. In the first place, the home assistance officer has to be satisfied that the person who is an applicant for the 2/6 supplement is in necessitous circumstances and in the second place he must be satisfied that the money is available to permit the payment of the supplement. If it is not, there is no supplement.
I have evidence of that which I picked up during the last week. I have here a copy of the Tipperary Star for July 20th. The report opens like this:—
"We get a certain amount of money and we split that as best we can. If we give it to one, we must take it from another."
That statement was made to Tipperary County Council by the county manager and, after an argument which lasted for some time, as to whether certain people merited an allowance, the manager concluded the discussion by saying:—
"Because you have only a certain amount of money to give out, there are more people with 10/- a week than the money you have."
So that if there are 50 people in an area getting a pension of 10/- a week, and if the 50 can satisfy the home assistance officer that they are entitled to a supplement of 2/6, the officer must then make a selection from amongst them, because he has probably only sufficient cash to provide £6 10s. Od. yearly for ten, and the other 40 must go without. It may be that he has sufficient money to provide the supplement for 40, but for no reason other than shortage of money, ten are excluded. Actually, in some parts of the country, I am told, there is more anxiety amongst old age pensioners, as to when some of the recipients of the supplementary allowances are going to die than anything else, because when one person who is getting 2/6 weekly dies, someone else steps into his shoes.
That is the manner in which we provide the addition to the 10/-. So far as I know, no old age pensioner is entitled to any supplement unless he is entitled to the full 10/- per week. If he is entitled only to 9/-per week, if he has an income from any other source of 7/-, including the value of his garden or house, he gets an old age pension of 9/- and there he stops. He gets no supplement.
One other matter might be taken into account by the House when considering this motion. Members might consider that the pension which is given to an old person is not a free gift created from outside—something that comes from the Government as such. The claim I want to make on behalf of the old people is that every person, with possibly a few rare exceptions, who is a claimant for an old age pension has been an industrious worker for 50 or 60 years. He may have been a small farmer, an agricultural worker, a road worker, a factory worker, or a docker employed from day to day and getting from three to five days' work a week. There is no chance of a man in that position having anything saved. If he saves anything which gives him an income of more than 6/- a week, his pension is docked. In the main, the persons who are recipients of old age pensions have been producing wealth for the country over a long period. Most of them commenced to work at from 12 to 14 years of age. Is it not reasonable to take the value of their work at £100 a year? The value of our production in the last pre-war year—I am speaking of production in industry—was £213 per head or over £4 5s. 0d. per week.
The value of production in agriculture would be lower although, with all respects to Senator Baxter, I suggest that we never got a true analysis of the value of our agricultural production per head of population. There is no means of measuring the value of agricultural production in the same way as we measure the value of production of a transport company which keeps its accounts in such a way that one knows exactly what it earns and what it pays. However, I shall not go into those details. I want to make the simple suggestion that, of the 147,000 people who are now receiving old age pensions, it would not be unfair to say that, on the average, the value to the country of their production has been £100 per annum for 50 or 60 years. In other words, the capital value of their production is from £5,500 to £7,000 during a lifetime of toil. If we take this figure as representing the capital value of the service given to the community by each of those persons and assess their pension at 1 per cent. of the value of their production, we arrive at a pension of about 30/- per week.
I ask members of the House to look at the matter squarely, to ask themselves if it is too much to request the community who have derived advantage from the toil and industry of our fathers and grandfathers to provide them with a retiring allowance from the age of 70 equivalent to 1 per cent. on the capital value of their contribution to the nation's wealth. That is a very much smaller sum than the rate of pension provided for those who enter any form of employment in which there is a superannuation scheme. The rate of pension in most industries is considerably higher. The rate of pension in the public service is considerably higher. If we are to do justice to ourselves, we cannot offer the old age pensioner a sum which is less than a return of 1 per cent. on the value of his contribution to the nation's wealth.
So far, I have been speaking, in the main, of people of 70 years of age— old age pensioners—but I want to be understood that anything I have said in relation to the old person is equally applicable to the claimant who is blind. No distinction has been made in these discussions between the old age pensioner of 70 and the blind pensioner who is under 70. A pension is provided for a blind person at 30 years of age on the same conditions as to means test and destitution test as apply in the case of the old age pensioner. Therefore, I want to emphasise here that the claim I am making and the arguments I am putting forward, with the possible exception of my reference to the return on the capital value of the pensioner's activity, apply with equal force in the case of the blind person and in the case of the aged person.
The operation of the means test has had the effect, which I think every sensible person in this House will regret, of penalising the most meritorious section of the old people, those who have made provision, in some shape or form, for their old age. Senator Campbell is more familiar, probably, with some of the aspects of this case than I am. He and I have discussed this on previous occasions. It is the case of the person who belongs, let us say, to a trade union having a superannuation fund. Such person pays a contribution which is considerably higher than he need have paid were he a member of a trade union that had not a provident fund. In some cases the contribution is as high as 2/-, 3/-and even 5/- a week.
I do not speak with authority on this but I do know that the cost of the contribution in the case of unions with a provident fund is very substantial. A printer, a baker, a mechanic of any kind who has been a member of a society for 40 or 50 years—I notice that some have been given gold medals in celebration of their 50th year of membership of a trade union—have been paying for all that period into a superannuation fund which enables them on retirement to get a pension of 30/- a week or £1 a week and in some cases only 10/- a week. In the case of the Dublin Typographical Provident Society I think the pension is 30/- a week. Let us say that Pat Murphy retires from Dollard's Printing Works at the age of 65. Perhaps he has gone blind or lost the power of his hands or some of his faculties are impaired. He is no longer able to do the job of typographical operator. He retires on a pension of 30/—not from the employer—but from the society into whose funds he has been paying for a lifetime in order that he might be entitled to that pension. But, when Pat Murphy reaches the age of 70, he gets no old age pension unless the typographical society reduce his superannuation to 6/- a week. I do not know in fact what would happen in that case, but I assume that the society would say: "No; we will make a gift of 10/- a week to the State and continue to pay Pat Murphy his 30/- a week." What happens in the case of a private firm? I know a number of private firms in whose case there is a voluntary superannuation scheme for the employees. When one of the workers retires through ill-health at 60 or 65, he gets £1 or 25/- a week but the firm says: "We are under no obligation to provide this fund. It is purely an act of generosity on our part because this man has not contributed 1d. to the fund out of which the pension is payable." In that case I do know that when the person who is in receipt of this £1 a week pension reaches the age of 70 the firm reduces his pension to 6/- so that he may be entitled to 10/- from the State, but his total income decreases from 20/- to 16/-a week and he becomes a charge on State funds.
The Parliamentary Secretary is a sensible person with his roots deep in the country and he has close personal knowledge of the conditions to which I refer. He knows them as well as I do. Nothing I have said here is unfamiliar to the Parliamentary Secretary. I want to put this to him: One of the worst things that can be said about our old age pension code is that it has the effect, not of improving the position of those who reach 70 but of damaging them to the extent that their incomes are reduced in the circumstances I have referred to. The shopkeeper who has been paying a pension of £1 a week to a vanman for five or six years discovers that that man has now reached the age of 70 and that if he continues to provide the £1 a week the State will go free. He therefore says: "No. I have to pay rates and taxes. I have to pay incometax. I have to pay duty on goods. I will not let the State away with it," and in order that the State may be obliged to pay the 10/-, the shopkeeper reduces his payment to 6/-.