A FINE RECORD

Dominion, Volume 12, Issue 141, 10 March 1919, Page 6

A FINE RECORD

FRIENDLY SOCIETY BENEFITS GOVERNMENT'S ASSISTANCE. A good idea of the extent of friendly society operations in New Zealand, as well as a fair indication of how far the Government has assisted the Dominion ■ societies through the hard years of war, was given by the Minister in charge of that work (the Hon. J. A. Hnnan) at the Druids' banquet in Christchurch last week. Mr. Hanan submitted some figures which he had taken out to illustrate the extent of the work. In a period of 31 years, up to 1917, the friendly societies of New "Zealand had paid out J81,450.!)79 l'or sick pay. ,£332,140 for funeral benefits, and <£1,309,241 for medical attendance and medicines. In 1917 the total society funds in the Dominion amounted to •C' 2,352,753, an average per member of J29 175., which was the highest of any State oh record. That was a striking demonstration of the thrift of the working man, as those large sums for benefits had been the accumulation of the small contributions of members judiciously invested and protected/ During the past four years the friendly societies had had to meet the greatest crisis in their existence; but, although it was feared by some that the war experience would seriously affect their stability, it was satisfactory to record officially that the far-seeing work earned out by the friendly society leaders many years ago, in establishing sound financial methods, had enabled the organisations to weather the crisis. With tho steady flov; of men to the front it had early become apparent that the friendly society membership was going to be radically'affected, and that risks would be placed on their funds which were never contemplated when their bases were laid. In the first month or two of the war the Government realised the losses likely to accrue from war mortality in friendly society membership, and established forthwith a subsidy system bearing half the cost of this extra liability. That mode of meeting tho losses constituted a very interesting experiment in co-operation. A reinsurance fund was established into which the societies paid half the premiums, the Government subsidising the fund' by a similar amount with the premiums fixed at a war rate calculated by the actuary. In the event of any surplus, the ajiount was to be distributed pro rata amongst the participants in the scheme, any loss to be made up by further levies. To date the Government subsidy in this way was estimated at =£31,50 D, and it was satisfactory to know that although the mortality rates at times had been high, tlie premium rate fixed at the outset of the scheme had proved to be quite adequate to meet the risks. "I wish," said tho Minister, "to place on record my appreciation of the co-operation of the societies in carrying out this scheme, which affords an excellent illustration of what can be done by co-operation. Without exception, all the societies in the Dominion have been working together in this system." Another serious problem which had faced tho societies was the lass ot •'soldier contributions whilst the men were on active service. Tn the earlier days of the war it had been possible to meet those losses by means of special levies, but tho prolongation of the struggle and the _ largely increasing number joining the "Army had soon exhausted the levying power ol' 'many societies.' He had recognised that the societies' funds in that direction should be assisted, and from a vote taken last session claims for the refund of the amount actuarially due on that account were now being paid by the Department, the Government liability under that head being estimated at .£28,000. Another matter was the serious effect of "after discharge" sickness of soldiers. That question was now before the Government for consideration with a view to evolving some method that would meet with the difficulties surrounding the question. He had no doubt that if tho societies co-operatcd asi heartily as during the war years, this problem would also be successfully met. I'lic Government had al6o recognised the societies ill regard to maternity benefits, and through the National Provident Fund the Department had up to date received claims on account of 655-1 births, on which the Government had paid ',£26,216.

The total sum provided 'by the Government in the last few years, therefore, in regard to the known liabilities to which he had referred was £89,016. Tho societies had been met by the New Zealand Government on terms that compared most favourably with the friendly societies' war experience elsewhere. (Applause.)