SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1945

Appendix to the Journals of the House of Representatives, 1945 Session I, H-09

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1945 NEW ZEALAND

SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1945

Presented to both Houses of the General Assembly pursuant to the Provisions of the Social Security Act, 1938

In so far as the Social Security Legislation is concerned, this report deals with Part II of the Act only. Reports on the operation of Part 111 and Part IV of the Act will be submitted by the Health and Land and Income Tax Departments respectively.

REPORT To the Hon. the Minister of Social Security. Sir, — Social Security Department, Wellington, 21st June, 1945. I have the honour to submit for the information of Parliament the fifth annual report of the Social Security Department, for the period Ist April, 1944, to 31st March, 1945. NEW LEGISLATION The only legislation affecting monetary benefits under the Social Security Act, 1938, which became operative during the year was contained in the Finance Act (No. 3), 1944, assented to on 15th December, 1944. Section 5 of this Act extended the provision of section 19 of the Social Security Act, under which an additional £13 13s. a year is payable to age beneficiaries who served with New Zealand contingents in the South African War, to those persons who, being domiciled in New Zealand at the commencement of the South African War, served in South Africa in connection with that war as a member of any of His Majesty's Forces other than a New Zealand contingent. By section 6, family benefits were increased from 7s. 6d. a week to 10s. a week for each child under the age of sixteen years and the income allowed before a reduction of benefit was effected was increased from £5 ss. a week to £5 10s. a week. Both the above amendments became operative from Ist October, 1944. BENEFITS UNEMPLOYMENT BENEFITS The following figures show the number of applications for unemployment benefits dealt with during the years ended 31st March, 1944, and 31st March, 1945, respectively.

1943-44. 1944-45. Males. Females. Totals. Males. Females. Totals. Persons granted benefit .. .. .. 1,524 177 1,701 1,151 99 1,250 Number of applications declined .. .. 325 597 922 316 642 958 Number of persons whose applications were 158 504 662 238 568 806 declined, but who were granted emergency benefits on grounds of hardship Totals .. 2,007 1,278 3,285 1,705 1,309 3,014

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SICKNESS BENEFITS The following figures show the number of applications for sickness benefits dealt with during the years ended 31st March, 1944, and 31st March, 1945, respectively:—

EMERGENCY BENEFITS Under the provisions of section 58 of the Social Security Act, 1938, the Social Security Commission may, in its discretion, grant a special benefit on grounds of hardship to any person who is not qualified for any other benefit under the Act, but who, by reason of age or of physical or mental disability, or for any other reason, is unable to earn a sufficient livelihood for himself and his dependants. Full and sympathetic use is made of this section, and emergency benefits granted during the year totalled 1,799. OTHER MONETARY BENEFITS Details with regard to other monetary benefits under the Act are included in the table on page 5. RECIPROCAL AGE AND INVALIDS' BENEFITS Under the Age-benefits and Invalids' Benefits (Reciprocity with Australia) Act, 1943, the Social Security Commission is empowered to make grants of age and invalids' benefits to persons living in the Dominion who have also had residence in Australia. The Act provides that for the purposes of New Zealand age and invalids' benefits, residence in Australia shall be counted as the equivalent of residence in the Dominion, while in respect of Australian old-age and invalids' pensions, residence in New Zealand shall be counted as the equivalent of residence in the Commonwealth. Similarly, total blindness or permanent incapacity arising in Australia shall be treated as if it had arisen in New Zealand, or if the applicant is residing in the Commonwealth, then total blindness or permanent incapacity which arose in New Zealand shall be treated as if it had arisen in Australia. To qualify for a reciprocal benefit the applicant is required to comply with the more restrictive conditions of the laws, whether as to residence or otherwise, of New Zealand and of Australia, and the rate of benefit must not exceed the maximum of the country which provides the lower maximum rate. The present maximum rate for reciprocal benefits is 275. a week, or £70 4s. a year. The number of applications received and dealt with during the period Ist April, 1944, to 31st March, 1945, was — Age Invalids' Benefits. Benefits. Applications received and those outstanding at beginning of year 64 18 Applications granted .. .. .. .. .. .. 35 9 Applications rejected .. .. .. .. .. 13 7 Outstanding at 31st March, 1945 .. .. .. 16 2 The number of reciprocal benefits in force as at 31st March, 1945, was— Age-benefits .. .. .. ... .. .. .. 70 Invalids' benefits .. .. .. .. .. .. 32 Total .. .. .. .. .. .. 102 This shows an increase of 31 (19 age-benefits and 12 invalids') over the figures as at 31st March, 1944

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1943-44. 1944-45. Males. Females. Totals. Males. Females. | Totals. Persons granted benefit .. .. .. 18,350 7,942 26,292 18,489 8,433 26,922 Number of applications declined .. .. 1,591 757 ' 2,348 1,455 895 | 2,350 Number of persons whose applications were 126 346 472 135 390 525 declined, but who were granted emergency benefits on grounds of hardship — — Totals .. .. .. 20,067 9,045 ! 29,112 20,079 9,718 29,797

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FINANCE Statement showing the Receipts and Payments op the Social Security Fund for the Year ended 31st March, 1945 Receipts £ Payments Balance .. .. .. .. .. 2,945,139 Monetary benefits — £ £ £ Universal superannuation .. .. 995,035 Social security registration fees .. 574,436 Age .. .. .. .. 8,492,015 Social security charge on wages and other Widows .. .. .. .. 985,452 income .. .. .. .. 13,663,858 Orphans .. .. .. .. 23,253 Penalties, fines, interest, and miscel- Family .. .. .. .. 1,405,113 laneous .. .. .. .. 38,112 Invalids .. .. .. .. 1,072,619 14,276,406 Miners .. .. .. .. 74,367 Grants from Consolidated Fund, vote "Social Maori War .. .. .. 78 Security " (Social Security Act, 1938, section 105 (c)) 4,500,000 Unemployment .. .. .. 27,822 Sickness .. .. .. .. 351,866 Emergency .. .. .. 105,843 13,533,463 Medical benefits, &c.— Medical benefits .. .. 1,287,023 Hospital benefits .. .. 2,266,688 Maternity benefits.. .. .. 530,733 Pharmaceutical benefits .. .. 980,237 Supplementary benefits .. .. 170,032 ——— 5,234,713 [ Administration expenses—• Land and Income Tax Department .. 120,000 Health Department .. .. 87,500 Social Security Department .. 356,167 563,667 Balance.. .. .. .. .. 2,389,702 £21,721,545 £21,721,545 WAR PENSIONS The general administration of the enactments providing for pensions and allowances in respect of service in the present and former wars and the carrying-out of decisions of the War Pensions Board and the War Pensions Appeal Board are functions of the Secretary for War Pensions. NEW LEGISLATION No amendments to the war-pensions legislation were made during the year. The War Pensions Emergency Regulations 1944 provides for the establishment of such number of additional War Pensions Boards and War Pensions Appeal Boards as the Minister in Charge of War Pensions thinks fit. Acting under the powers vested in him by this regulation, an additional War Pensions Board and an additional War Pensions Appeal Board were appointed with the objective of expediting the granting of war pensions and the hearing of appeals against the decisions of the War Pensions Boards.

Dissections of War Pensions current at 31st March, 1945

Economic Pensions payable at 31st March, 1945, in Supplementation of Statutory War Pensions

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War, 1914-18. Present War. Totals. Pension. Number Number Ammal Nu $ beI Number Annual Number Number Annua , Pensioners Children. Value. 8i g„"j g Children. Value - Pensioners Children. Value. Ex-members of Forces — £ £ £ Permanent .. .. 13,037 2 1,272,699 926 .. 102,057 13,963 2 1,374,786 Temporary .. .. 2,059 .. 226,795 15,897 .. 1,055,711 17,956 .. 1,282,506 Dependants of disabled ex- 2,903 2,434 215,622 892 900 67,664 3,795 3,334 283,286 members Widows .. .. .. 2,119 452 305,422 2,176 1,786 394,698 4,295 2,238 700,120 Other dependants of deceased 731 49 38,578 693 291 42,434 1,424 340 81,012 members Totals .. 20,849 2,937 2,059,116 20,584 2,977 1,662,564 41,433 5,914 3,721,680

I War, 1914-18. j Present War. Total. Class of Pension. Number. Annual Value. Number. Value 1 ' Number. Annual Value £ £ £ Ex-members with permanent 3,128 *251,097 45 4,095 3,173 255,192 pensions Ex-members with temporary 649 57,086 1,298 115,350 1,947 172,436 pensions Widows .. .. 1,064 56,795 1,085 66,345 2,149 123,140 Widowed mothers .. .. 42 2,043 147 6,303 189 8,346 Totals .. .. 4,883 I 367,021 2,575 192,093 7,458 559,114

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Pensions payable outside New Zealand at 31st March, 1945

Summary of War Pension Payments

War Pensions Appeal Board The following table summarizes the operations of the War Pensions Appeal Board during the year with respect to appeals under war pension and related legislation :—

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Class of Pension. War, 1914-18. Present War. Total. Ex-members of Forces — Permanent .. .. .. .. .. 826 .. 826 Temporary .. .. . . 19 132 151 Wives and parents of ex-members: Temporary .. 93 37 130 Dependants of deceased members — Widows .. •. • • • • • • 205 140 345 Other dependants .. .. .. .. 235 22 257 Totals .. .. .. .. •• 1,378 331 1,709

Payments made in Total. London. Australia. Canada. Africa CountrS ew ea ' atl(^j £ £ £ £ £ £ £ Total payments to 31st 1,442,315 1,001,050 60,590 11,854 15,956 37,074,286 39,606,051 March, 1944 Payments in 1944-45.. 68,945 53,521 4,433 1,012 431 3,326,351 3,454,693 Total payments to 31st 1,511,260 1,054,571 65,023 12,866 16,387 40,400,637 *43,060,744 March, 1945 * Includes £2,325,315 in respect of war pensions in connection with the present war and £2,632 to members of the Emergency Reserve Corps.

War Pensions and War, 1914-18. Present War. (MgroantHe ar Veterans. Totals. Marine) Act, 1940. Appeals outstanding at 31st March, 1944 85 691 1 1 778 Appeals lodged 1944-45 .. .. 276 2,372 6 7 2,661 Total to be dealt with .. 361 3,063 7 8 3,439 Appeals upheld, 1944-45 .. .. 73 733 .. 3 809 Appeals dismissed, 1944-45 .. .. 198 1,155 6 2 1,361 Appeals withdrawn and struck out, 1944-45 21 349 .. 1 371 Total disposed of, 1944-45 ..292 2,237 6 6 2,541 Appeals outstanding at 31st March, 1945 69 826 1 2 898 Percentage upheld .. .. 25 32-7 Nil 50 31-8

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Medical treatment of war pensioners during 1944-45 cost £42,946. (This item includes the cost of treatment of pensioners resident in overseas countries.) Railway concessions to ex-members of the Forces pensioned for total and permanent disablement and those with locomotor disabilities on permanent pensions in excess of 50 per cent, cost £3,233.

Benefits and Pensions in Force and Total Payments

COST OP ADMINISTRATION Excluding expenditure of £1,895 on capital items, administration costs for the year amounted to £426,94:8 including £'72,675 in respect of the administration of war pensions and allowances. This represents 2-42 per cent, on total payments. GENERAL Under the heading of rehabilitation allowances, which, by arrangement with the Rehabilitation Board, are made available to demobilized servicemen and servicewomen for periods up to thirteen weeks following the cessation of Service pay for the purpose of facilitating reabsorption into civil life, a total of 12,740 cases were reviewed during the year, representing 12,366 servicemen and 374 servicewomen. Grants were made in 4,029 cases, representing 3,865 servicemen and 164 servicewomen. Included in these grants were allowances in respect of 2,321 children. The large majority of the others had already been successful in returning to civil employment or had otherwise indicated that they did not require assistance. The total amount paid out-by way of rehabilitation allowances for the period Ist April, 1944, to 31st March, 1945, was £131,733. As at 31st March, 1945, there were 338 allowances current, representing a weekly expenditure of £1,240. The number of officers absent on military service as at 31st March, 1945, was 414, and 32 officers have made the supreme sacrifice. The volume of work flowing through the Department has shown no sign of slackening, and increases in the numbers of benefits of almost all classes have been recorded, particularly in respect of family benefits and war pensions. Staff shortages have accentuated the problem of finalizing and paying grants of all kinds, but in spite of great difficulties satisfactory service has been rendered to the community. In submitting this report I would like to express my appreciation of the members of the staff of the Department, who have assisted by their willingness and co-operation to bring a strenuous year's work to a successful conclusion. H. Digby Smith, Chairman, Social Security Commission.

Approximate Cost of Paper.—Preparation, not given ; printing (1070 copies), £12/10/-)

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Price 6 d.]

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As at 31st March, 1944. As at 31st March, 1945. Class. Force.Annual Value, "e.'" | Annual Value, tt * i £ £ £ £ Universal superannuation .. .. 49,289 862,558 778,758 53,679 1,073,580 995,035 •• 102,530 8,489,484 8,101,668 104,653 8,665,268 8,492!oi5 Widows 10,836 981,742 949,099 10,965 1,019,745 985,452 Orphans .. .. .. .. 412 21,939 22,442 421 22,080 23,253 I'amily .. .. .. .. 15,950 1,052,700 876,858 24,251 1,750,922 1,405,113 Invalids .. .. .. .. 12,126 1,076,789 1,067,409 12,205 1,083,804 1,072,619 Miners .. .. .. .. 795 74,983 76,652 783 73,093 74,367 Maori War 1 85 119 x 8g 78 Unemployment 292 .. 32,316 198 .. 27,822 Sickness .. .. .. 4,446 .. 376,878 4,233 .. 351,866 Emergency .. ... .. 1,915 .. 115,574 2,083 .. 105,843 War 1914-1918) 21,038 2,039,779 1,973,069 20,849 2,059,116 2,046,005 War (present war) 13,037 1,108,493 917,855 20,584 1,662,564 1,407,460 War Veterans allowances .. .. 1,791 230,038 224,705 1,892 242,962 242,501 Boer War (Defence Aot, 1909) .. 44 3,245 2,550 45 3,629 3 243 Mercantile Marine pensions .. .. 12 1,073 719 18 1,632 1 652 Emergency Reserve Corps .. .. 10 1,037 1,404 12 1,'427 l'228 Sundry pensions and annuities .. 150 18,505 15,462 151 18 574 17'512 Civil Service Act, 1908 .. .. 4 1,683 1,662 3 M00 l'471 War and other pensions paid on behalf 3,208 256,074 290,496 3,225 263,543 322'454 of the Governments of Great Britain, Australia, India, Canada, South Africa, and Crown colonies .. Totals 237,886 16,220,207 15,825,695 260,251 17,943,424 17,576,989