FRIENDLY SOCIETIES

Dominion, Volume 12, Issue 198, 16 May 1919, Page 8

FRIENDLY SOCIETIES

THE BURDENS OF WAR EMBARRASSED FINANCES APPEAL TO THE GOVERNMENT A fow questions of supreme, importance to friendly societies were discussed by a deputation representing friendly societies from i all over New Zealand which waited on Ministers of the Crown yesterday. The Ministers' present were Sir James Allen, Acting-Prime Minister, the Hon. A. M. Myers, Acting-Minister of Finance, and the Hon. J. A. Hanau, Minister in Charge of Friendly Societies. •The most important question had reference to the financial position of friendly societies on account of the war. . It was represented that numbers of their mem-, bers were coming back from the war in such a condition that they would suffer indifferent health for many years to come, and would be to a very large extent on the funds of the lodges to winch they belonged. These men had had to bo fit 'men to bo accepted by the societies, and fit men to.be accepted for military service. In the ordinary course of tilings they would have been of little cost to tho benefit funds of the societies, for it was always calculated that young members were a source of profit, in the earlier years of their membership; becoming ft charge on the funds only when they reached advancing years. It was urgei! that the responsibility for these young men's reduced health ought to be borne by the Government,, and the societies asked for assistance from the Government in respect of this extra charge,, of an amount still unknown, to he made on their revenues. It was pointed out also that all societies had kept going soldiers contributions, and that some had pam sick benefits to soldiers in' hospital while they were in the AVmy. Another request was that the maternity bonus conditions should be altered. It 'was pointed out that the amount allowed by way of bonus to members of friendly'societies was £1. whereas contributors to the National Provident Fund received £fi. It was asked that tho amount allowed to 'friendly societies should be increased to that allowed to the National Provident Fund contributors. 'A- further request was that the limit of incomo should be increased. Thn point made was that the income limit of ,£2OO was at the time that it was imposed sufficiently high to make the bonus available to most workers, but. that owing to the increased cost oMiving wage.s had been increased to such an.extent that the limit was now so low as to. cut out from the benefit n largo number ot people who ought to -receive it. The Riiegestion 'was that the wage limit of .£2OO should be increased considerably. A proposal was made that the societies, should he -allowed to operate their acoonnts in the. Post Office Savings Batik by cheque. -In siiphort of the'-'request it was pointed out that this concession was given to friendly societips in Npw South Wales, nnd that, the scheme worked quite well in that State. The other matter mentioned was tn Tβpird to nuinriuennial valuations made by tho Registrar's Department. The complaint about these valuations in years past hiis been that they have been unduly delayed, and the deputation hncV intended to ask for greater expedition in future. But in the meantime the demi-fation-had had somo conference with the Registrar and had' been satisfied that there had been good reasons for deHy in. the pnst. 'and that,matters would be m,ore satisfactory in the future. A.Friendly Government. ' Sir James Allen said lie wished to thank representatives of friendly societies for the kindness they had shown to soldier members of their organisations while they had'been absent at the war. The chief point alluded to by the deputation, had been the responsibility of tho societies for the after-war' "sickness , of members who had been on active service. He wished*to assure them,.as'he. hoped they-understood, already,-that .the''; Government was sympathetic , with the very vahiablo work done by friendly societies, and'that every member. of the Govern- , ment-was • anxious to keep the-societies on a sound basis. The points raised were all matters to be considered , by the Government as a whole. Members of the deputation would be aware that the Government had already subsidised to tho extent of one-half the payments made on behalf of soldiers on active service to the benefit funds of lodges. He understood also that the Financial Assistance Board had. granted financial assistance to men in respect of these dues. This statement was contradicted. It was stated that although financial assistance, had been, granted in some few cases', the number had been inconsiderable by. comparison with the total number' oi members of societies who had been on service. The Minister said that the Defence Department recognised responsibility for a man while he was sick when his sickness was the result of his servico with the Forces. A man was given free medical service, and full pension while ho was in hospital, unless there was some reason why he should not receive this consideration. If a man were disabled ho was provided, with, a pension according to his disability,.regardless of his earning capacity. He mentioned these matters to ehow that the Defence Department was meeting fairly its responsibility for the men returning unfit. The pension scale was the highest in the world. So far as the societies were concerned he was unable to say whethei their payments overlapped the payments ■of the . Defence Department. One Proposal. He understood that someone had submitted to the Government a- scheme by which- all members of societies who had been on active service should be put into a separate class, that from limo to time the sickness rate of theso men should be compared with that of other members of the lodges, and that if it we're found that tho benefits that had to be paid in respect of returned soldier members were-higher, the Government 'should bear half the cost of the difference, tho societies bearing the other half. This proposal had heen before Cabinet, but no final conclusion had been come to upon it. Ho assured the deputation that Cabinet would give earnest consideration to any proposal financially sound, which would keen the societies 'financially sound, provided tho Government was not asked to pay an undue amount of money. The Minister pointed out in ward to the request for an increase of tho maternity bonus and of the wa«e limit in respect of it, that both of these things -were mutters for new legislation. This being the case nothing could be done about. these, matters until next session of Parliament. Cheques on Post Office. ■ With Respect to the matter of allowing friendly societies to operate their savings bank accounts by cheque, this was no new request, and they had had a reply from the Acting-Postmaster-Gen-eral in 1917 on the-subject. The reply of the Minister on that occasion was that the request could not be grant ed. Mr. Mac Donald had pointed out that the purposo of the' Post Office Savings Bank was the encouragement of thrift, and not to deal with ordinary banking business. The Post Office was not an ordinary trading bank. Also the withdrawal of largo amounts from current accounts for investment on 'mortgage would he o source of embarrassment to the Post Offico Savings Bank if they Agreed to tako the accounts of friendly societies in tho manner suggested This was what the Acting-Postmnster-Genernl had said on the matter, and he, as a Minister, coiild not go back on what tho head of tho Department had Paid. Al! ho could sny was that the mailer would be brought before the Postmaster'--Genoral and the Government for consideration. Mr. Aftkon, Auckland, said thai tho objection against the withdrawal of largo Bums In go on mortgage or oilier investment did not hold, becoiixe Hiis condition obtained at present All tho funds to credit of societies, except those amounts kept free to deal wilh current expenditure,;.were. Itppt in tl'n Post Office, and as; opportunity offered they were withdrawn in large amounts to bo 'placed on permanent investment. Mr. Kershaw said that tho present arrangements, for the payment of moneys, into the Post Ofice were, quite satiefac-i

Tory, but the procedure' for tho withdrawal was clumsy, making it impossible for the societies to use the Post Office for tho payment of ordinary expenditure. Sir James Allen eaitl that ho could say no more on tho subject, except that what had been said would be represented to tho Postmaster-General. As to the question of contributions paid on behalf of soldiers on active service, the policy followed by the societies was very much to bo commended, end it was because of this that the Government had already done something-to assist tho societies. The source from which the societies paid theso benefits at first soon became exhausted, and the Government had. in consequence, given some assistance. Lust year the amount voted was .£IO,OOO. He did not suppose the Government would hack down .on that policy. This was a matter ho would place b'efore his colleagues ill « meeting of Cabinet. ' Mr. Fathers said that the Minister had spoken of a scheme by which the Government would pay half the extra cost of after-war sickness benefits of soldier members of societies. Sir James Allen: Understand that I did not commit the Government to anything. What I said was that the. Government had a scheme submitted to it." Mr. Fathers said that the view of the societies was that if there was any excess in the benefits to be paid in respect of returned soldiers in societies, the whole excess should be paid by the Government. The societies should not be asked to bear any portion of the burden.... Promise of Consideration, The Hon. A, M. Myers said he wished to support all that the Acting-Prime Minister had said in regard to the practical manner in which the Government had already shown sympathy with the good'work done by friendly societies. It was quite evident that the conditions under which the contribution Tatc of the members of societies had been fixed would not suit tho present, conditions, when a lot of the members were coming Ixick with their health affected by war service, and although the Government had gone some, distance to assist tho societies, tho representations niado had shown that the case was one for careful review. But, os tlfe Acting-Prime Ministed had said, it would bo necessary to go into things carefully before Ministers could commit themselves. As Minister in chnrga of the National Provident I'und he was specially interested in tho references that had been mad? to the National Provident Fund and the maternity benefits. His Department: was fully alive *to the altered circumstances, and a recommendation was being prepared for submission to Cabinet, This recommendation would lie duly considered at the next sitting of thn Cabinet. In regard to the Post Office he might .say as Minister of. Finance for the time' being that the question raised by the demitation opened up the question of whether the present system of banking in vogue in New Zealand afforded the people sufficient facilities This was a very big question, and one that was being considered very carefully, and on the return of tho leaders of the Government thiiT aspect of the mnlter would be very carefully considered by them and by Cabinet. Questions of Difficulty, The Hon. J. A; 'Italian said that the 'questions'raised by'the deputation were not new to him. He was aware fully of the change in conditions, and aware, also, that .some of the societies found themselves in an embarrassd financial position because of them. The most serious question was ihat regarding afterwar sickness. This matter had been be. fore. Cabinet. A scheme had been submitted by him to' Cabinet, and he was now to furnish a further statement with a view to influencing the Government towards the acceptance of the scheme But the question was one of extreme difficulty. The proposal regarding tho savings bank.had appealed to him to such an extent that he intended to write to New South Wales to ascertain exactly what was lieing done there. He . was strongly with Mr. Myers in his proposals rilßiirding the maternity bonus, lie could inform the deputation that he had always iound members of tho Government very favourably disposed to any proposal for the benefit of friendly societies. ..J[r. Haiiiui also assured .the'deputation tint' the delays in the preparation of the quinquennial valuations had been unavoidable, and that they would not obtain in future. ■ Mr. Kcrshaw pointed out to the Ministor of Defence that it was the policy of the societies not to reduce sick benefits because a returned soldier was in receipt of a pension. •Mr. Fathers thanked the Ministers for having yiven the deputation a hearing.