MARRIED RESERVISTS.

Press, Volume LIV, Issue 16145, 25 February 1918, Page 7

MARRIED RESERVISTS.

QUESTION OF FINANCIAL AID,

MINISTER'S REPLY TO SECOND

DIVISION LEAGUE

WILLING TO GIVE GUARANTEES

Following is the full text of a letter sent by Sir James Allen (Minister of Defence} on Saturday to Mr 11. A. Armstrong (president of tho Second Division League) in reply to representations made to the -Minister regarding the administration of tho Soldiers' Special Financal Assistance Regulations by a deputation from the League at W'ellngton on Thursday:— GRANTS ALREADY TOTAL £160,000 ANNUALLY. February 22nd, 1918. Dear Sir,—The several cases which the deputation from the executive of tho Second Division League placed before me yesterday in connexion with the administration of the Soldiers' Financial Assistance Board havo been investigated, and I now desire not only to place the Board's explanation before tho public, but to reply more fully than was possible when you waited on me to the general representations then made. It has been said that the financial assistance regulations havo been drawn up with the idea of bluff and to enable the Government to shirk its responsibilities to the dependants of our soldiers, but tho public will be able to judge tho worth of that statement when they read the last report, of the Financial Assistance Board upon the extent of assistance already given. Iho report, which is dated February 4th, 1918, states: — "Tho Board met on twenty occasions during the month of January, and dealt with 800 applications, including B<3 reconsidered cases. Of this number 3U7 wero withdrawn or decliued, 27 were deferred for further information from the applicants, and 37ti grants were made. Seven hundred applications were received during the month, and all were submitted to the Board with tho exception of those not properly filled in by tho applicants. The Board has hold 198 meetings to dato, and has considered 7486 applications. This number includes 963 reconsidered cases, the actual number of new cases submitted being 6523. Grants have been approved of in 302 cases during tlio month, representing an annual expenditure of £7074 3s 2d, including 24 additional grants amounting to £314 3s 9d annually, or a gross total to dato of 4256 cases, at an annual expenditure of £141,355 3s lOd." "DOES NOT BEAR SEMBLANCE OF BLUFF." Of the cases now under action, 365 grants havo been approved and are awaiting final decision. These, _ when authorised, as they will be within the course of the next few days, will swell the £141,355 total assistance already given to over £160,000. Fresh applications aro being dealt with every day. Considering that no draft of the Second Division will go into camp until the end of May next the total assistance already given may safely be said to be no small sum, and certainly does not bear the semblance of "bluff." Fairminded critics will appreciate this the more so when they realise that this represents special Assistance granted over and above pay and separation allowances and the saving to each household affected of the cost of the man's keep. It will be noted that many cases have been reconsidered,, but your executive should clearly understand that in the majority of these cases the reconsidera- j tion is the result of change of circumstances requiring an entirely fresn grant. In most of the other cases the amended grant has been made because further enquiry has shown that tho whole of the circumstances of the applicant were not clearly 6et forth in the original application. INTENTION OF THE REGULATIONS. Most of the dissatisfaction. that exists, I find upon enquiry of the Financial Assistance Board, is largely due to a misunderstanding of the intention of the regulations. Many people appear to be under the impression tnat they can receive payment in full for any item provided under the regulations irrespective of their financial circumstances. As a matter of fact the intention in all cases is to prevent undue hardship to the soldier and his dependants by reason of his service >n the Now Zealand Expeditionary Force, and the Board is not called on to make a grant where the income of the soldier or his dependants while ho is on service is sufficient to meet all obligations and to provide a reasonable amount for the maintenance of tho dependants. There seems to be quite a mistaken idea abroad that so long as the amounts applied for do «not cxceed £156 per annum, the maximum amount payable Tinder the regulations, tho Board will undertake the whole liability. If such a policy were adopted, it is obvious that glaring anomalies would be created, as the Board would be granting assistance to remove undue | hardship which did not exist, owing to 1 the soldier or his dependants being in possession of private means which aro bringing in a substantial income. The State, indeed* cannot afford to help in such cases, and the Government does not propose to do so. INCREASED COST OF LIVING CONSIDERED. The Board lias faow boen in existonco for nearly twelve months., and it assures me that £or some time past it has taken into consideration the increased cost of living, and in a good moiuy cases grants that would have removed undue hardship twelve months ago have now beon increased in spite of the fact that tho ' income of the dependents alone might l exceed tho total civil earnings of the soldier before enlistment. Needless to say, the Board takes no steps whatever to publish particulars of grants as evidence of the treatment it extends to applicants, but a few cases taken at random will indicate tho liberal manner in which the Board has endeavoured to interpret the regulations. In some of these cases it will be scefn that tho Board lias ignored the civil income of the soldier before enlistment, and has granted the wife an adequate amount to enable her to maintain herself ornd children in comfort during the soldier's absence, in spite of the fact that the military income of the wife alone plus the Board's grant fnow exceeds the total civil earnings of her husband, out or j which the latter had to be fed and clothed; now the State provides his j food and clothing. ATTITUDE ON NEW 7 INSURANCE POLICIES. j The question of the Board's attitude in the matter of new insurance policies lias been given considerable prominence, and notwithstanding various announcements that have been made throughout New Zealand and tho definite statement made in my recejat letter to yd.ir League,, there still seems to me misapprehension as to whether a reservist is entitled to assistance to meet insuranoo premiums and war loading on a now policy. j 1 wish again definitely to state that 1 the Board's rolicy in respect to now life j insurance policies is as follows: — , "In the case of new life or long- ! term (30 years or over) endowment | policies up to £200 only, the Board is j prepared to consider payment of th» ordinary premiums and the war loading, whero there is no existing policy, and where the circumstances warrant a grant of financial assistance." The B.oajtf, howeyox, cannot take out l

tlio policy, but it can be taken for granted tfiat the Board will pay the premium and anv war loading if the soldier, lias no other Insurance, and is unable to meet the nremiums out of his military pay and allowances and other incomes, if any. I have no hesitation in giving this undertaking, because I am adviseu that the Soldiers' Financial Assistance Board has already agreed to pay tlio premiums and war loading on a rery considerable number of new policies. It. is estimated that grants have beeta made to meet premiums on new policies to tho number of over 200. It is not possible to give the exact number without searching each file in tho office. Regarding the letter quoted by vou yesterday, and to which you apparentIv attached irrent importance as indicating that the Board's practice was at variance with the policy just outlined. I find on investigation that it was Gent out in error and should be in ro wav regarded as an expression of the Board's policy. So far as the Board is aware, it is an isolated instance, and arose from the ease in question being handled bv a new clerk in the office. The letter was unfortunately sent to the addressee without the mistake being noticed. If the latter had written to tho Board asking for an explanation the matter would have ct once been put right. I desire further to say that if it should happen that a similar intimation has been sent out to any other applicant this also must have been in error, and he should iit once communicate with tho Board. NECESSITY FOR REVIEWING 1917 GRANTS. Your deputation passed a good deal of criticism 011 the action of the Financial Assistance Board in reviewing 1917 grants owing to the introduction of tho increased separation .allowance. I am informed bv the Board that this is being done only in cases where it is found that ay. anomaly has arisen taking the whole circumstances, including the soldier's pre-service income, into consideration. The Board was obliged to review these cases because with these grants existing it could not reconcile decisions in recent cases of men in exactly the same financial position. Take for instance the cases of Private Smith, who has been already serving, and of Private Jones, who has just entered camp. Both, before joining the Expeditionary Force, were in a corresponding financial position. Private Smith was granted financial assistance under the eld allowances. Bv the introduction of the new separation allowances he ?nd his. dependants are thereby placed m a better position than the* were in before Private Smith joined tho Expeditionary Force. In the case of Private Jones, the same grant cannot bo givan because the Board must consider his military income at the 1918 rate and grant such assistance as is felt necessary in addition; whereas, in Smith's case, the military income was considered at the lower (1917) rate and augmented by a larger grant. It will be seen then that the former would have cause for complaint because of the better treatment extended by the Board to Private Smith. The Board, as a result, is obliged to review the case of Private Smith, tho principle upon which it acts being that it cannot fairly differentiate between the two. These are the sort of cases that aro being revised, and I am informed that in no case has the reduction made been equal to tho increased separation allowances. In fact, a substantial portion of the original grant in many cases has been allowed to stand in view of the increased cost of living. lam glad to have the opportunity of explaining this, because misconception has arisen. DEFINITE EXAMPLES QUOTED. "With a view to quoting more definite examples of what hus been done, I have taken a number of cases at random that have been reviewed. ' Case 1 (wife only,).—Soldier's pre-ser-vice income of £103, paying £Lt> rent. Wife's military income, 191/ rates (3s 6d allotment, Is separation allowance), £82 Us tid per annum; Board grunted full payment of rent, £;&. Wife's 1918 military income (33 lid allotment, 3s separation allowance), £118 12s Gel; Board rescinded rent grant of £215, leaving the wife (after payment by lierself of rent) £92 12s 6d per annum for herself alone to live upon. In addition, soldier .himself is receiving Is tid pef day pocket money. This gives combined monetary receipts of £I4G, plus soldier' 6 free keep, or only £17 lesa than soldier's pre-service income. Class 2 (wife only).—Soldier's pre-ser-vice income, £156. "Wife's total military income, 1917 rates, £82 2s tid; wife's private income from property, etc., more than sufficient to meet recurring financial obligations; Board ' granted life insurance, £15 14s 9d. Wife's 1918 military income, £118 12s 6d; Board rescinded grant, leaving wile net military income of £102 17s 3d, plus private income, making a net total of £132 12s 6d. Wife lives rent free on farm. Case 3 (wife and three children). — Soldier's pre-service income £loti. Wife's 191/ military income, £Xl.'3 3s 9d; Board granted for interest-, rates, and fire insurance £19 7s Id. Wife's 1918 military income, £173 7s (3d; Board rescinded 1917 grant, leaving her, after payment of interest, rates, end insurance, £154: 0s sd, with 110 man to keep. In addition, soldier drawing 'Is tid a day, making combined income £200 15s, plus free keep and pension benefits. Now these are eases merely taken at random 3 and may not perhaps be a fair guide, out if regarded as nocossary, I am quite willing to make a more exhaustive investigation.

I attach hereto schedules (a) presenting the Board's side in reply to tho specific cases quoted by tho deputation; and (b) cases taken at random, to show recent grants made by the Board. It will lie noticed that the net income varies in certain cases. Although this may appear to be an anomaly, it is quite unavoidable by reason of tho fact that the Board cannot pay a portion only of such obligations as interest, lates, life insurance premiums, etc. Consequently, by authorising tho payment of the full amount of certain obligations, one applicant may bo left with a net income of a few pounds morn than another applicant. 1 am not yet in a position to reply to che representations of the deputation regarding home sen-ice allowances in lespoot of the specific cases quoted. These are being investigated, and I will ndviso you of the result in due course. ' PREPARED' TO GIVE EVERY POSSIBLE GUARANTEE." In conclusion, let me repeat that I wclcomo the fullest discussion of tho administration of the financial Assistance Board. 1 do so for two reasons— firstly, because I am satisfied that tho Board has honestly tried to give effect to the spirit of the regulations which have been framed solely to meet the needs 01 soldiers and their dependants; and, secondly, because if, in the investigation, it is found that any case lias not been adequately met, wo shall be able to increase the grant forthwith. It is not my desire, nor is it the desire of the National Government, that the financial assistance regulations should bo administered in a niggardly spirit, and I am .-sure that my colleagues with me arc prepared to give every possible guarantee that this principle will be fully carried out. Our desire, equally with that of your league, is to sec that full justice is dono tc soldiers and their dependants. We, nevertheless, have a difficult task to perform, and it would be strange indeed if wc performed it without arousing some cause of complaint. But let it be clearly understood that anyone dissatisfied with tho financial assistance given may at any time apply for a rehearing, and I guaranteo that their cases will receive th« consideration they deserve.— Yours faithfully, yfgaed) JAMES ALLEN, Minister of Defence.