SECURITY SCHEME

Wairarapa Times-Age, 27 August 1938, Page 5

SECURITY SCHEME

POSITION OF FRIENDLY SOCIETIES VOLUNTARY SYSTEM LIKELY TO COLLAPSE SOME OBJECTIONS TO STATE PROPOSALS (By Telegraph—Press Association.) WELLINGTON, This Day. There are several features of the Government’s social security proposals to which, it is understood, objection is taken by friendly societies. One of the principal grounds of objection is believed to be failure of the Bill to carry out a promise said to have been made by the Minister of Finance, that friendly societies would be fully protected. It is stated that when a deputation from the friendly societies waited on the Minister of Finance, the Prime Minister and the Minister of Health some time ago this promise was made and the deputation was told that the New Zealand legislation would follow the lines of the English Act, whereas the two schemes had nothing in common at all.

In a letter received by the annual conference of the Dominion Council of Friendly Societies this week, the Minister of Finance pointed out that the Bill provides for friendly society members to receive both the society’s sick benefits and the benefits under the State scheme, but it is held that this will be to a large extent ineffective because a large section of friendly society members will be unable to afford to contribute to both schemes and, as’ contribution to the State scheme will be compulsory, membership of the friendly society will have to go.

It is also contended that the Minister’s promise that the suggestion that the machinery now available through friendly societies might be utilised for the payment of persons in the household of friendly society members will be accepted “if practicable” is simply “side-stepping” the matter. With reference to the promise that friendly societies will be given representation on committees appointed to deal with health benefits it is argued that if the friendly societies’ representatives are always to be in the minority then they will be valueless as far as the societies are concerned. The fear is also felt that when the State scheme comes into operation the whole voluntary system embodied in the friendly society movement will be jeopardised because voluntary workers will no longer be prepared to carry on services for which Government inspectors working alongside them will be paid. It is expected that the operation of the scheme will involve considerable increase in costs both to the friendly societies’ dispensaries and to private chemists because of the great deal of clerical work likely to be involved. It is expected that the Government will require all prescriptions to be costed and that will involve additional labour. When it no longer becomes necessary for friendly society members to obtain tneir free medicines from the societies’ dispensaries, then it is expected that many of them will go to their local chemist. Similar’ action may also be taken Dy other persons requiring medicines and again the amount of clerical work involved in costing will make n necessary for chemists to employ additional assistants.

As an indication of the failure of the New Zealand scheme to safeguard the interests of the friendly societies it was pointed out that the English insurance card bears the words, “It is to your advantage to join an approved friendly society,” but. no similar encouragement was to be given in this country.