A BIG QUESTION

Dominion, Volume 3, Issue 852, 25 June 1910, Page 3

A BIG QUESTION

ACCIDENT INSURANCE. STATE MONOPOLY SUCCESTED. MINISTER SAYS RESPONSIBILITY WOULD BE ENORMOUS. At a deputation to the Minister for Labour (tho Hon. J. A. Millar) yesterday, representing tho Slaughtermen's Union, the secretary of tho union (Mr. M. J. Reardon) suggested that the Government should undertake tho whole of the accident iusuranco business in the Dominion. MY. Reardon went on to deal with the position taken up by some of the big firms in regard to compensation for accidents, and remarked that tho Slaughtermen's Union's experience of the .working of the Act was that those companies which had been reaping enurinous advantages through the Act were more disposed to spend money in law costs than, to pay fair and equitable compensation. There wero difficulties at the present time, said Mr. Reardon, but tho union thought tho Government would bo justified in making tho insurance compulsory and a State monopoly, viz., that employers should bo required to take but all their policies in tho State office. As things stood few settlements wero made except through the law. If tho companies spent one-half tho amount spent at law in tho settlement of the claims made under the Act, tho Workers' Compensation Act -would be much more satisfactory than it was at tho present time. If the profits of tho companies were taken since the Act camo into forco, those profits would, ho believed, bo found to be enormous. He ha(l found in doing business with tho Government Insurance Department that there was loss disposition to fight over trifles than was the case with private companies. In the Government office there was rather a disposition to do what was a right and fair thing. In the past workmen had contracted out of their rights under tho Workers' Compensation Act, and accordingly it was urged that thoy should bo given that measure of protection to which they wore entitled, and that compensation should bo based on tho average earnings of a man over a period of twelve mpntlis. In the case of slaughtermen it was admitted that thoy wero members of a migrator) calling, so to' speak, and that'a man starting, say, in Auckland, might work right through Now Zealand and then find his way to Australia for tho season there. For these reasons tho union urged that the man might ho given the benefit of his annual average earnings, not in Now Zealand alono, but "over all," and that he might at all times be secure in tho knowledge that lie would be entitled to full privileges under the Compensation in caso of injury. 'In reply, Mr. Millar said the suggestion was one he alone could not deal with. He would have to submit it to his colleagues. Under such a scheme however, tho State would have to assume an enormous responsibility in taking tho wliolo of the Tisk of accident insurance of the country. "I doubt very much," he said to'the deputation, "if the State would tako over tho whole affair. Tho responsibilities would be very great indeed. Take tho case of a mino employing 250 men. 11l rcspcct of every one of those men there was a liability of £550 in tho event of fatal accident. I know myself that many companies have found the burden so great that they liavo taken upon themselves their own insurance. If any explosion occurred they know that it would bo ,tho end of the fnen and tho end of the mine." The question of compulsory insurance was a very big one, said "Mr. Millar. It was also a very big question to suggest that the whole of the business of accident insuranco should be concentrated in the 'State Department.