STATE FIRE PAYMENTS

Hokitika Guardian, 6 March 1931, Page 4

STATE FIRE PAYMENTS

’ A MISREPRESENTATION. PURELY EX GRATIA. WELLINGTON, March 5. The Prime Minister stated, in air interview, that his attention lias been drawn to certain statements which are being widely circulated that the State Eire Insurance Office was hound under the terms of its policies to compensate policy holders for losses suffered by fire resulting from the Hawkes Bay earthquake. It has been suggested that the Government, in undertaking to make ex-graetia payments, was influenced by this.' The Prime Minister desired to make clear that no such consideration had influenced the Government’s decision. In fact, the Government was advised that no such Lability existed. The Government’s action was,entirely prompted by the unprecedented circumstances which arose in the Hawkes Bay. The Prime Minister further stated that the whole position had been subject to review ITy the Crown Lands Office. The opinion which lias been given by the Solicitor-General completely confirms the view that the State Eire Office is not legally liable under the conditions of its ordinary fire policy for the losses by tiro caused by earthquake. It would only bo fair that the same prominence should be given to this statement regarding the legal position as has been given, to the suggestions regarding the Government's motives and the terms of the State fire policy.