PARLIAMENTARY NEWS.

Globe, Volume VI, Issue 654, 24 July 1876, Page 3

PARLIAMENTARY NEWS.

{From a correspondent of the Press!) Wellington, July 22. The Nelson and West Coast members held a caucus this morning, and, it is understood, decided to support the Government. Of the proceedings of the Wellington members, the Argvs reports—“ The opinion of those present was unanimous that Mr Whitaker’s and Mr Wakefield’s resolutions should be opposed, one or two members strongly characterising them as a violation of good faith and of the principle agreed upon on the passing of the Abolition Act last year. The unity of the colony would be endangered if any serious attempt were made to deprive the South of its land fund, by making it consolidated revenue, and the meeting, on these considerations, agreed that the resolution ought to be opposed. General confidence was expressed in the Government measures and policy. The members present were Messrs Pearce, Hunter, Brandon, Ballance, Bryce, and Johnston. Mr Andrew was absent at Nelson, Mr Bunney, it may be stated, was opposed to Mr Whitaker’s motion and moved the resolution to support the Government. Mr Fitzherbert refused, in his position, to attend the meeting. The private opinion of nearly all present was that the interests of Wellington required the rejection of the resolution, the support of the Government, and the unity of the colony, Mr Brandon agreed to the first and last propositions. Mr Andrew is said to have declared his intention of supporting _ Mr Whitaker, but until his opinion is definitely known it perhaps ought to be assumed that be will unite on the question with the other Wellington members. The annual report on the goldfields has has been laid upon the table. The value of gold exported during 1875 was £1,407,77), and during the quarter ending March, 1876, £330,523. The total revenue derived from the goldfields of the colony in 1875 was £88,516, and during the quarter ending March, 1876, £20,164. There has been decrease in gold returns for 1875, as compared with two previous years, yet returns show increase in revenue of £4973, as compared with 1874, and of £990 for the quarter ending March !last, upon that collected during same period last year. The increase has not been uniform upon all sources of revenue. There has been a decrease upon business licenses, gold [duty, &c, while gold mining leases, miners’ rights, depasturing leases, &c, have considerably increased, The Eeport by Mr Arthur H. Bailey and Mr W. P. Patteson, London actuaries, appointed to make a detailed investigation into the financial condition of the Government insurance department, hss been presented to Parliament. During the five years of its existence the income from the ordinary branch of the department, consisting of premiums, annuities purchased, money, interest, fines, and fees, was £171,345 5s Bd, while “the out go” during the same period was as follows ; Claims, £22,750 ; surrenders, £293 7s lid ; annuities, £2950 3s 4d ; commissions, £7061 3s 5d ; expenses, £38,322 18s lid, showing a total "out go” of £61,370 lls7d; this left a fund at 30th June, 1875, of £109,967 12s Id. The department was liable at the same date f0r'4958 assurances for £1,833,819 2s Id, immediate annuities of £1249, and ten annuities of other descriptions of £935. The premiums payable under these several contracts amounting to £57,510 per annum. The actuaries state that in order to determine the sufficiency of the fund to meet these liabilities they had to consider upon what basis the valuation should be made. On this point they remark “ No sufficient experience has yet been acquired of the mortality among assured lives in New Zealand or in any of the Australian colonies; but having regard to the climate and character of the people, there is reason to believe that it will not differ materially from the corresponding mortality in England, We consider, therefore, that the most suitable table of mortality for the present investigation is that known as the Institute of Actuaries, H. M., and we have adopted it accordingly. For the assurance risks the annuities have been, valued by the Carlisle table, the H. M,

table not being suitable for this class of liabilities, many annuities being granted upon female lives,” Having estimated the rate of interest of moneys received under the Act, and invested at per cent, the actuaries proceed to remark—“To make provision for future expenses, profits, and contingencies, the value of what is called the ‘loading,’ has been computed and reserved; that is, a special calculation has been made for each policy of the bare premium which would be sufficient for the risk, according to the table of mortality, and rate of interest assumed for the valuation, and the difference between the premiums actually payable, and the premiums thus computed has been capitalised and reserved. Provision is thus made among other things for the heavier mortality expected among those lives on which extra premiums have been charged for health or occupation. The additional annual premiums form in this manner a special fund available to meet the increased annual mortality. The summary and valuation of the ordinary branch made on those principles will be found in the schedule. The general result is as follows : Fund, £109,957 ; estimated liability, £97,776 ; surplus, £12,191.” But the surplus is more apparent than real. The actuaries on this point remark :—“ Having regard to the rates of premium charged, we think that this result is satisfactory. But we wish to add that in our opinion this surplus would not be properly divisable. As no division is to be made until another five years have elapsed the question does not now arise, but when that time shall come we think that a further reserve will have to be made for the future bonuses on those policies on which a limited number of premiums only is payable, and which constitutes about eleven per cent of the number. If the loading on this class of assurances had been distributed equally over the whole term of life, and a corresponding reserve made on the present occasion, we believe, from some calculations we have made, that the surplus would have been materially reduced. The amount of commission and expenses connected with the working of the department have been very high, amounting to £35,384 2s 4d during the five years—in fact, commissions and expenses have absorbed 24 per cent of the premiums, In the leading Australian insurance societies, and notably in the case of the Mutual Provident Society, the rate on premiums for commission and expenses for the last five years has been 15,67.” It has to be said on behalf of the Government branch that the rate of expense last year had fallen to 19-2 per cent. The actuaries think the rates of premium too low, and recommend the discontinuance of Industrial Branch of the Insurance Department, on the ground that it has been carried on at a positive loss. This suggestion has since been adopted. The Auckland.members also had a caucus to day, and arranged further terms for separation, which, as now sketched, will leave that province £IOO,OOO to spend on reproductive works, after paying its share of the North Island loan charges and contributions to federal government. The Canterbury members command the situation, and if they throw in their support with Auckland and Otago the coalition must triumph. They reckon on support of twenty Otago members, but seventeen are all they can fairly expect, as Mr Pyke, Mr Reynolds, Mr Tairoa, and Mr Manders are sure to support the Government.