FRIENDLY SOCIETIES.

Dominion, Volume 3, Issue 832, 30 July 1910, Page 6

FRIENDLY SOCIETIES.

TO SAFECUARD FINANCES,

LEGISLATION REQUIRED.

A large deputation of members of Friendly Societies waited on the Hon. J. A. Millar last evening tp ask for certain legislation. The deputation had arranged to wait on tho Prime Minister, but Sir Joseph Ward was unable to leave the House. Mr. R. A.' Wright, member for Wellington South, introduced the deputation. Mr. Leigh Hunt said that he spoke on behalf of 46,392 members, as against 17,963 who were not represented by the deputation. Of the minority, amounting to only one-quarter of the whole, 15,000 were opposed to the requests, and 2500 were indifferent. The deputation asked that certain clauses which were struck out of the Act of last year should bo reinserted, some of. them m a slightly modified forin, and. that a clause should be adopted embodying a resolution passed by the Friendly Societies' Conference of 1906. Clause 15, which was struck out of tho Bill last. year, provided that no society should -be registered until its rates' of contribution were' certified to • as adequate.by an actuary. The deputation -wanted' this clause to apply not only to. new societies, but to new branches of existing societies. There would bo very few new societies enter"ing into business in New Zealand,, as practically all tho British societies were already represented. The deputation particularly, asked for the insertion of a clause winch -was carried by a great majority at tho representative Friendly Societies' Conference of 1906, to tho. effect that, no society should be allowed to carry on business without an adequate scale of contributions commensurate with "the benefits proposed and approved by an actuary. Tho clause was not to _ disturb tho contributions of existing members, hut should apply to all members joining after-tho passing of the 'Act. They recognised that a contract had been entered into with present members which should not be violated in any way. To show the necessity for the provision they had only to turn to tho reports of the Registrar of Friendly Societies for the past three years, in respect of insolvent societies. They asked that provisions ' should be put into the Act .to make all tho societies toe the mark alike. It was almost'impossible for some societies to compete with others charging lower rates. They also asked for a clause • preventing equal levy death benefits. Contributors to any. scheme of this kind must, be on an adequate basis. The Registrar of Friendly Societies in his last.report referred to the "pernicious system" of. offering large death benefits without adequate provision. Tho actuary who gave evidence before the Parliamentary Committee, stated that" no equal levy society going on without accumulating a fund had over lasted, or was ever likely to last a single human lifetime. They would like to ensure that any friendly society licensed in New Zealand should have tho hallmark of solvency given to it by virtue of its registration by tho State. They were not actuated by any spirit of envy or jealousy towards other societies. If the' equal levy death benefits scheme was left alone and tho societies which Used' it came to grief,. a great injury, would be. caused to tho friendly societies' movement in this country. They had tho. benefit of the experience in America and other lauds, whero equal levy systems had completely failed, as woll as expert advice. Tho matter should bo dealt with at an early date, ■ since the longer it was loft the harder it would bo to remedy. ■

. Mr. Kershaw said that when the Friendly Societies .Bill was. before the House last year tho Prime l Minister suggested that two clauses which wore 'deleted should be considered by the societies with a view to a pnssiole/luturo amendment. That had been done, and the demand was now made for tho reinsertion of the' two clauses. All the. societies having branches hi /Wellington■'■. were represented, with one or two exceptions. Many of the societies ■ were in a .worse financial position than they wore. fiVo or six years ago, -and • they were not getting the same interest for their investments. Thero was a difficulty in investing the funds owing to competition by the new Government Departments. The societies represented by the deputation were not those that were in the worst financial position. If tho societies''were to be registered, it should bo conditional on a proper rate of contribution. ,

■_ Mr. Robin (Otago) also spoko briefly in support of the requests. The Hon. J. A. Millar, in replying, said it was a, very fine sign to.see a body of men taking such keen interest in the affairs of the societies. - He could not conceive how the executive of any order could refuse to have.its contributors put on a thoroughly sound basis. The liabilities were enormous, and when a man entered .a friondly society he naturally assumed from the-fact, of its registration that it was able, to carry out its obligations. The knowledge that the contributions of some orders were not sufficiently high to enable theni to carry ' out their obligations necessarily--broughti prominently before the Government the question whether they should not have to assist in the matter. The clauses were not put through last year because.the Bill was dealt with late in the session, and the Government desired to'ensure the passing of- other provisions, which had been recommended for years by the friendly societies. He could see tlio reason for making the clause in regard to contributions apply to new branches. That was the only way.to canv it out effectively, if it was going to he done at all. If the deficiencies in contributions had .increased from £20,000 to £100,000 in one year, that was a phenomenal increase, and be would like to know if tho deputation thought that any of the equal revenue societies were responsible for it.

Mr. Leigh Hunt said he-believed that £33,000 of the deficiency was caused by a society which bad been endeavouring to imitate the equal-levy, system. The Minister- said that if that was 'so the matter should be looked into at once., He.would lay the recommendations 'of the deputation before the Prime Minister, and tell him that in his opinion they had made out a case that demanded the attention of Parliament during the session.