The Feilding Star. SATURDAY, DEO. 15, 1888. Government Fire Insurance

Feilding Star, Volume X, Issue 72, 15 December 1888, Page 2

The Feilding Star. SATURDAY, DEO. 15, 1888. Government Fire Insurance

Oxja contemporary, the Maaawatu Times, endorses our views in regard to Government undertaking the busi ness of fire insurance, aud only differs vith us in a few pnrtieulars, of which we will now take a brief notice. While we would allow the present Fire Insurance Cotupuuies to exist, the Times would " improve theru off the face of the earth altogether " as follows: — " \Ve do uot say that their business should be at once checked, but reasonable time for winding; up should bo given, or possibly the business might be takeu over by the State." If our contemporary had reflected more on the subject possibly the difficulties and risks necessarily attendant upon any attempt by tbe Government of the day to carry out proposals of such a nature, would have presented themselves to hiui Should a Minister of tbe Crown pro pose that the existing Fire lusurauce Compauies be wouud up, or takeu over by the State compulsorily, the whole country would protest against such an act of tyranuy. Not only that, the State would have to pay such au enormous price in compensation that the measure would carry with it its own ruin. Another thing is this—. Although the Insurance companies have been badly managed as well as unfoitunate, and therefore are finan cially weak ; yet our contemporary must remember they are widely influential, because theii' ramifications are extended into every village hamlet iv the colony. Taking an average there is hardly a business man in New Zealand, who is not an agent for a Fire Insurance Company, and we are perfectly safe in assuming that each is possessed of a quota of local influence which would be exercised in self preservation should a deadly attack be made on the companies. Then, as to tbe suggestion that " the premiums can be collected by the local bodies in just the same way as ordinary rates," we do not think that would unawer in tbe slightest degree. It is notorious that local bodies are not " a brilliant success" as collectors, and while we have the highest admiration fur the gentleman who compose the said " local bodies," yet we question whether their knowledge on underwriting is very extensive. We still maintain an opinion that the State should enter this competition, and that should it do bo a great public benefit will be achieved by relieving the insured of what is no«v a grievous burden, without in any way increasing the general taxation. Should a new department have to be created, at the worst it would always be self supporting, and even a source of revenue.