WAR PENSIONS

Dominion, Volume 9, Issue 2698, 18 February 1916, Page 6

WAR PENSIONS

PROBABLE EXPENDITURE MINISTER'S ESTIMATE A QUESTION FOR THE PATRIOTIC SOCIETIES. In the course of his address at t!;<.Patriotic Societies' Conference yesterday the Minister of Internal All'airs, the lion. G. \Y. Russell, said it would he interesting to give some idea of what demands are likely, to be made upon the Pensions Fund. Perhaps, he added, we may thus make a lair calculation as to what- the necessities of the Patriotic Funds will be. "The wastage of war experienced by the New Zealand Forces," he continued, "has far. exceded the expectation of those, qualified -to make an estimate base<l on pre-vious-wars. Mr. Watson, F.1.A., Actuary of- the National Health Insurance Committee,, estimated . that the wastage of British troops, in this war would amount to 10 per cent, deaths and 12 per cent.' disablements. . During one year of war our New . Zealand Forces have .experienced -12.2 deaths and 25.6 disablements, or a casualty rate of 38 per cent. Up to January, 1916, a total of 31.023 soldiers had left New Zealand, but many or tbese were not for twelve months under war risk, and a large number had not entered tho zone of war. Careful calculation shows that the actual, number of our men exposed to war risk for one completo year was 21,401.

"The pensions granted during the nineteen weeks ended on January 31, 1916, amounted to £24,137, and temporary allowances were also granted for £3359. . Adjusting these amounts to those which at the same rate would be issued during the whole year, we get £66,060 of pensions and £9193 allowances as the annual chargo entailed by pensions and allowances for the total body of 21,461 men actually engaged and under war risk, representing an annual chargo "of £3 Is. 7d. for each soldier engaged at the war for a complete year. The capital value required to provide the pensions already granted, on a 4 per cent, basis, would be £300,505, or at the rate of £38 65., per soldier, representing £821,956 capital to provide the total amount of pensions that may be allowed as an outcome of one year of war on a basis of 21,461 men. As I have already said, the .income from this sum would; on a 4 per cent, basis, provide £3 Is. 7d. per soldier engaged. . Besides the pensions there are other liabilities. 1 understand temporary allowances are granted on the average for a period of ibout three months, and . may be fairly estimated to require £10,000 for eica year ot war; They would probably cease sis months after . the termination >of tne war. Gratuities also may bo granted by the Pensions Board to widows or soldiers on remarrying, and these r.iay fairly be estimated .as one. year's pension, or on the average £7000. "Taking the percentage of males of military age in- each area group as obtained from Table 1 of the National Register,, and applying .that percentage to the, 21,461 soldiers at. war risk for one. year, we arrive at the proportion belonging to any military iistricfc or group area, as shown in *tho f'.'lowiuK table:—

. Per- . Number • Group centage belonging to Military area of each each district. No. total area, district. Auckland ... ] II.G 2,159 2 , 4.5 9(iG 3 • 4.7 1,009 4 6.3 1,352 ■it, i,- i 5 >816 Wellington ... 5 9.1 3,017 G 0.8 1,450 7 0.0 1,288 7a 4.7 1,009 5 6.5 1,395 n i i „ ■ 7 ' 168 Canterbury 9 7.6 1,631 10 4.9 1,051 11 3.7 791 11a 3.4 730 12 3.5 751 1.957 Otago 13 5.2 1,116 . 14 4.7 1,009 15 3.7 794 .16 2.8 601 3,520 Totals 100.0 ... 21,' Mil _ "It may bo assumed' that the proportions stated in the preceding table will remain throughout the war. Multiplying any group by the factor 3.078 we obtain the amount of pension likely to be payable yearly in each district, an<l using the factor 38.3 wc arrive at tho capital sum necessary to provide that pension, tho.total of such capital sum being £821,956. It must be -, always borne in mind that the figures given throughout are for one year's war experience only, and are .on, a basis of 21,461 men. ■ Assuming these bases to . bo correct, the annual payments to provide pensions for each military district would be as follows:— "Estimate of pensions 'payable in each military district on a total forcc of 2-1,461 men;— £ • Auckland 17,901 Wellington 22,063 Canterbury 15,257 Otago ] 0,834 £66,055 "Assuming therefore that our total forces for the assistance of the Empire finally reach 64,383 men, on our present experience the pension domandls will amount to £198,156 per annum. To supplement this sum by 50 per cent, from the patriotic societies would require an annual payment of £99,073, made up as follows: — . £ Auckland Military District .... 26,850 Wellington Military District ... 33,09-1 Canterbury Military Dis-trict ... 22,884 Otago Military District 16,250 ■. £99,078 "In addition to the above there would be the supplementation of allowances. "The sum may seem a large one, but in a country eo richly endowed as New Zealand is, and in which production is so rapidly increasing, there should he no difficulty in the State paying its share and the patriotic societies averaging an expenditure, which would represent a supplementation of fO per cent, of the pensions and allowances granted by tho State. Each case will, of course, be considered on its merits, and it must not bo supposed that I am seeking to suggest- an all-round supplementation of pensions by 50 per cent. That is a matter, entirely for the societies to determine. I think, however, that the suggestion that the societies should arrange their finances on some such basis, and work within it, is easily practicable, seeing the largo sums that liavo already been raised and are in hand. It will, of course, bo desirable for the societies to endeavour to secure accretions to their fluids, but it must not be forgotten the capital they hold was raised for tho soldiers and their dependents. "1 therefore desire with all respect to emphasise that the funds hold by the societies have been «übs?ribed by the people for the benefit of the soldiers, i do not advocate any wild scramble or 'reckless expenditure. The funds must be reasonably safeguarded in order to provide for the future as well as the present.. On tho other hand, I feel sure that the societies generally will repudiate any such idea as hoarding the funds and endeavouring to carry out their responsibilities from the income, .•a/*, mis haDe there \rill coatiuuc to be.

a steady stream of money coming into the colters of the socroties; but the necessities of tho soldiers and l their dependents to-day must be met to-day in a generous spirit. The patriotism and gratitude of Now Zealand have not been expended in the efforts already made. Further assistance will, 1 am sure, lie forthcoming for the beneiit of those who deserve so much at our hands; and ii' in any district the funds become exhausted while responsibilities still remain, no Government or Parliament will dare to resist an appeal for assistance in supplementation of_ pensions given by the' State to soldiers and their dependents."