SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1948

Appendix to the Journals of the House of Representatives, 1948 Session I, H-09

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1948 NEW ZEALAND

SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1948

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

This report deals with Part II of the Social Security Act only. Reports on the operation of Part 111 and Part IY 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, 16th June, 1948. We have the honour to submit for the information of Parliament the ninth annual report of the Social Security Department for the period Ist April, 1947, to 31st March, 1948. SECTION I.—SOCIAL SECURITY BENEFITS NEW LEGISLATION The only new legislation affecting monetary benefits under the Social Security Act, 1938, was the Social Security Amendment Act, 1947, which came into force on Ist October, 1947. The following is a summary of the legislation : ADMINISTRATION Provision was made for the Social Security Commission, with the written consent of the Minister of Social Security, to delegate to any Registrar or other officer of the Department any of its powers under Part II of the principal Act. Preliminary arrangements were made during the year to enable Registrars of the Department to make and give decisions on behalf of the Commission in connection with applications for benefits. .. ......

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INCREASED BASIC RATES OF BENEFIT The maximum rate of universal superannuation and the basic rate of age, widows', invalids', and miners' benefits was increased from £lO4 to £ll7 a year. The rate of invalids' benefit for an unmarried person under twenty years of age, and the rate of benefit paid to the widow of a miner who died while in receipt of a miner's benefit, was increased from £7B to £9l a year. The basic rate of unemployment and sickness benefits was increased from 40s. to 455. a week, and the rate for an unmarried person xmder twenty years of age was increased from 20s. to 255. a week. The rate of orphan's benefit was increased from £4O 19s. to £52 a year. EXTENSION OF WIDOW'S BENEFITS Previously a widow's benefit was paid to the wife of a man either subject to a reception order or detained in an institution as a voluntary boarder under Part V of the Mental Defectives Act, 1911. From Ist October, 1947, provision was made to pay a widow's benefit to the wife of a man subject to a reception order, or detained in an institution under the above Act whether as a voluntary boarder or otherwise. FAMILY BENEFITS Provision was made to pay family benefit from Ist April, 1946, in respect of a child, or children of a member of any of His Majesty's Naval, Military, or Air Forces. Previously family benefit was not paid to any child in respect of whom an allowance was paid by the Armed Forces. RENEWAL OF BENEFITS The Social Security Amendment Act, 1947, provided that payment of superannuation, family, and miners' benefits should be continued for such period as the Commission might determine, and that the Commission might from time to time renew such benefits for any further period. This amendment gives the Commission power to continue the above benefits without review for a period longer than the twelve months to which it was previously restricted. All other benefits which are subject to a means test may not be granted or renewed for a period exceeding twelve months without further investigation as to change in circumstances. RESIDENCE Provision was made for any person absent from New Zealand on Government business and liable for payment of social security charge to be regarded as resident in New Zealand for the purposes of Part II of the Social Security Act. This also applies to the wife and children of such a person. QUARTERLY BENEFITS SUPERANNUATION BENEFITS Superannuation benefits, payable at the age of sixty-five years, came into operation from Ist April, 1940, at the rate of £lO a year. This rate is increased by £2 10s. each year and will reach the maximum of £ll7 a year in 1983. For the year ended 31st March, 1948, the rate was £27 10s., a year, and the sum of £1,593,757 was paid out during the year, an increase of £244,068 over the figure for the previous year. There were 61,612 benefits in force at the 31st March, 1948, an increase of 3,620 over the number for the previous year.

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MONTHLY BENEFITS AGE-BENEFITS During the year 10,728 new benefits were granted and 1,015 applications were declined, also 109,605 existing benefits were renewed for a further year after individual investigation. At the 31st March, 1948, there were 117,161 benefits in force, an increase of 1,874 over the figure for the previous year. The expenditure increased from £11,881,119 for the year ended 31st March, 1947, to £12,976,286 for the year ended 31st March, 1948, an increase of £1,095,167. WIDOWS' BENEFITS During the year 2,075 new benefits were granted, 577 applications were declined, ■and 12,012 existing benefits were reviewed and renewed for a further year. The number of women receiving widows' benefit increased from 13,133 at 31st March, 1947, to 11.145 at the 31st March, 1948, an increase of 1,012. Included in the above figures are benefits paid in respect of women who have been deserted by their husbands and who have taken proceedings for maintenance orders under the Destitute Persons' Act, 1910. These women must satisfy the main provisions of the Social Security Act, 1938, applicable to widows. At the 31st March, 1948, there were 1,096 such benefits in force, a decrease of 6 from the figure for last year, and there were maintenance orders in operation against 899 defaulting husbands, representing an annual amount of £114,786. On the granting of a benefit the Department undertakes the enforcement of maintenance orders. During the year £60,996 was collected by way of maintenance, representing 53 per cent, of the amount of the orders in force. The number of widows receiving mother's allowance of £65 decreased from 5,006 as at the 31st March, 1947, to 4,863 as at the 31st March, 1948. The expenditure for the year for all widows' benefits amounted to £1,770,622, an increase for the year of £241,612. This expenditure included £170,444 in respect of women deserted by their husbands. It was realized by the Department that some widows are in a difficult financial position in the period immediately following the husband's death, and in order to help such widows the Department now takes the initiative in approaching women whose husbands have just died unless it is known that the widows do not require assistance. If immediate financial assistance is required, an emergency benefit is granted pending "finalization of an application for widow's benefit. OBPHANS' BENEFITS During the year 58 new benefits were granted. The number of benefits in force decreased from 397 (in respect of 595 children) as at 31st March, 1947, to 370 (in respect of 557 children) as at 31st March, 1948. The expenditure increased from £22,905 for the year ended 31st March, 1947, to £24,187 for the year ended 31st March, 1948. The increase in the rate of benefit from Ist October, 1947, is responsible for the increased expenditure, notwithstanding a decrease in the number of benefits in force. FAMILY BENEFITS During the year under review 24,442 new benefits were granted and 369 applications declined. The number of benefits in force increased by 13,118 from 230,021 at 31st March, 1947, to 243,137 at 31st March, 1948, and represented payments in respect of 521,394 children, as against 490,260 children for the previous year. The expenditure increased from £12,680,778 for the year ended 31st March, 1947, to £13,798,648 for the year ended 31st March, 1948. As would be expected, the majority of new grants were in respect of applications on account of the birth of a first child, but ■for this year also included benefits granted in respect of children of members of the Aimed Forces who were not previously entitled to family benefit.

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The special concession granted to mothers whereby the monthly instalments of family benefit may be credited to Post Office Savings-bank accounts continued in popularity, and the number of benefits dealt with in this manner increased from 58,960 last year to 65,975 at the 31st March, 1948. The total amounts lodged to Post Office Savings-bank accounts through this medium totalled £3,379,675 for the year, as against £3,073,406 for the previous year. i With the authority of a beneficiary the whole or portion of a benefit may be diverted to the Commissioner of Taxes for the purpose of meeting the income-tax payments of the beneficiary or her husband. At the 31st March, 1948, 5,520 benefits were wholly or partially being diverted in this manner, as against 6,602 for the previous year. The amount paid to the Commissioner of Taxes for the year was £227,535, compared with £248,072 for the year ended 31st March, 1947. At 31st March, 1948, 10,179 of the benefits in force provided for continuation of benefit for a child beyond the age of sixteen years to assist in its further education.

Number of Family Benefits according to Size of Families

The change in family groups resulting from the births of additional children and the cessation of benefit through children attaining the age beyond which benefit is not payable necessitated the handling of 86,400 reviews of benefit during the year. In addition, 7,100 reviews of benefit were necessary in respect of children attaining sixteen years of age and continuing at school as full-time day pupils. A surprising feature revealed in the payment of this class of benefit is the large number of families who have changed their residence during the year. This is illustrated by the fact that 37,840 requests for change of paying-office were received up to 31st March, 1948, involving in approximately 92 per cent, of the cases a permanent change of residence. INVALIDS' BENEFITS During the year 2,110 persons applied for benefit on the grounds of permanent incapacity for work or total blindness. Grants were made in 1,249 cases, 982 applications were declined, mainly because of medical evidence not indicating permanent incapacity, and 9,637 existing benefits were reviewed and renewed for a further year. The number of benefits in force decreased by 1,784 from 12,466 as at 31st March, 1947, to 10,682. as at 31st March, 1948. The expenditure for the year increased by £38,815 from £1,328,485 for the year ended 31st March, 1947, to £1,367,300 for the year ended 31st March, 1948. The increase in the rate of benefit from Ist October, 1947, is responsible for the increased expenditure, notwithstanding a decrease in the number of benefits in force.

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Number of Children in Family. 1. 2 - ; 3. 4. 5. 6. Number of families, 31st March, 1947 Number of families, 31st, March, 1948 94,163 101,325 68,292 68,883 36,171 38,871 I 17,722 18,552 7,252 8,048 3,430 3,737 Number of Children in Family-—ctd. Total Number of Benefits. Total 1 Number of | Children. ' 8. 9. 10 or more. Number of families, 31st March, 1947 Number of families, 31st March, 1948 1,576 1,984 797 988 401 462 217 287 230,021 243,137 490,260 521,394..

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MINERS' BENEFITS During the year 29 new grants were made. The number of benefits in force decreased by 33 from 718 as at 31st March, 1947, to 685 as at 31st March, 1948. This include? 81 benefits paid to widows whose husbands died while in receipt of miner's benefit. The expenditure for the year increased by £4,690 from £105,416 for the year ended 31st March, 1947, to £110,106 for the year ended 31st March, 1948. The increase in the rate of benefit from Ist October, 1947, is responsible for the increased expenditure, notwithstanding a decrease in the number of benefits in force. The Social Security Act provides that on the death of any person in receipt of a miner's benefit there shall be payable an amount fixed by the Commission to cover reasonable expenses of the funeral. During the year the sum of £442 Avas expended on funeral grants in respect of 26 miners' beneficiaries. MAORI WAR BENEFITS As at 31st March, 1948, there was only one person receiving this benefit of £ll7 a year. RECIPROCAL AGE AND INVALIDS' BENEFITS Under the Age and Invalids' Benefits (Reciprocity with Australia) Act, 1943, the Social Security Commission has power to grant age and invalids' benefits to persons living in the Dominion not eligible for benefits under the Social Security Act, 1938, but who immediately before taking up residence in New Zealand were resident in Australia. The rate of reciprocal benefit must not exceed the rate payable in the country with the lower maximum benefit. The basic rate of Australian age and invalids' pensions was increased from £B4los. to £97 10s. a year from the 3rd July, 1947. The position regarding applications for reciprocal benefits and benefits in force is shown in the following table

WEEKLY BENEFITS UNEMPLOYMENT BENEFITS The following figures show the number of applications for unemployment benefits dealt with during the years ended 31st March, 1947, and 31st March, 1948, respectively:—

As at 31st March, 1948, there were 36 persons in receipt of unemployment- benefit, as-against 35 as at 31st March, 1947. The total expenditure for the year amounted to £8,358, as against £24,332 for the previous year, a decrease of £15,974.

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1946-47. 3947-48. Age. Invalids. Total. Age. Invalids. Total. Applications received and those outstanding 15830 188 172 22 194 at the beginning of the year Applications granted 94 15 109 134 15 149 Applications rejected 31 10 41 15 4 19 Applications outstanding as at 31st March 33 5 38 23 3 26 Benefits in force at 31st March .. 158 53 1 211 216 55 271

1946-47. 1947-48. Males. 1 | Females. Totals. Males. Females. j Totals. Persons granted benefit Number of applications declined Number of persons whose applications were declined, but who were granted emergency benefits on grounds of hardship 790 503 313 51 840 503 841 1,343 816 368 296 411 12 851 792 380 1,147 1,203 Totals 1,600 ! 1,394 ! 3,000 | 1,075 ' 1,655 ! 2,730

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Statement showing for the Year ended 31st March, 1948, Duration of Unemployment for Males and Females according to Age-groups

The above schedule discloses that approximately 49 per cent, of the male beneficiaries were unemployed for less than four weeks, while approximately 41 per centwere unemployed for periods varying from four to thirteen weeks. Of the female beneficiaries approximately 54 per cent, were unemployed for less than four weeks, while approximately 39 per cent, were unemployed for periods varying from four to thirteen weeks. The largest number of males is found in the age group 50-59 years (31 per cent.), while the largest number of female beneficiaries is evenly distributed between the 16-19 years and 20-29 years groups, which together account for 61 per cent, of the females. SICKNESS BENEFITS The following figures show the number of sickness benefits dealt with during the years ended 31st March, 1947, and 31st March, 1948, respectively :

The number of sickness benefits granted during the year totalled 31,355, a decrease of 5,356, or approximately 14 per cent., from the previous year. There were 4,561 benefits current at 31st March, 1948, and expenditure for the year amounted to £897,093,. an increase of £43,765 over'the figure for the previous year. The increase in the rate of benefit from Ist October, 1947, is responsible for the increased expenditure, notwithstanding a decrease in the number of benefits.

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Period of Unemployment. Years 16 to 19. Years 20 to 29. l Years 30 to 39. Years 40 to 49. M. 1 F ' M. F. r m. 1 r. M. 1 j F. Less than 4 weeks 4 weeks but less than 13 weeks 13 weeks but less than 26 weeks 26 weeks to 52 weeks (inclusive) 2 2 1 2 2 25 92 2 1 3 1 40 1 2 •• 60 j 44 11 1 1 1 Totals 5 4 50 4 j 78 2 116 1 Period of Unemployment. Years 50 to 59. Years 60 and over. Totals. Grand Total. M. F. M. y. M. I F. Less than 4 weeks 4 weeks but less than 13 weeks 13 weeks but less than 26 weeks 26 weeks to 52 weeks (inclusive) 57 51 11 1 2 rf*- 05 188 158 34 3 7 5 1 195 16S 35 3 Totals 120 1 2 14 1 .. 1 383 1 is! 396

— 1946-47. 1947-48. Males. Females. Totals. Males. Females. I Totals. Persons granted benefit Number of applications declined Number of persons whose applications were declined, but who were granted emergency benefits on grounds of hardship Totals .. .. 28,232 3,646 246 8,479 1,449 ' 434 36,711 5,095 680 24,073 2,683 | 458 ! 7,282 1,195 j 614 j 31,355 3,878 1,072 32,124 10,362 1 42,486 ! 27,214 9,091 ! 36,305

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Statement showing for the Year ended 31st March, 1948, Duration of Sickness for Males and Females, according to Age-groups

Tlie above schedule discloses that the largest group of beneficiaries was included in the 1-4 weeks group, which included 39 per cent, of the male and 32 per cent, of the female beneficiaries. The corresponding percentages for the previous year were 42 per cent, and 36 per cent. The average duration of sickness for all groups was 9-5 weeks for males and 114 weeks for females, compared with 9-6 weeks and 9*9 weeks respectively for the previous year. Of the male beneficiaries, 24*8 per cent, were in the 20-29 years age-group and 23 per cent, in the 30-39 years age-group. Of the female beneficiaries, 42 per cent, were in the 20-29 years age-group and 26 per cent, in the 16-19 years age-group. The sickness beneficiaries who received benefit during the whole of the year were persons with continuing incapacity but not qualified to receive invalids' benefit.

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Period, of Sickness. Years 16 to 19. Years 20 to 29. Years Years 30 to 39. | 40 to 49. 1 M. r. M. F. M. F. 1 M. j F. 1- 4 weeks both inclusive 5- 8 weeks both inclusive 9-12 weeks both inclusive 13-16 weeks both inclusive 17-20 weeks both inclusive 21-24 weeks both inclusive 25-28 weeks both inclusive 29-32 weeks both inclusive 33-36 weeks both inclusive 37-40 weeks both inclusive 41—44 weeks both inclusive 45-48 weeks both inclusive 49-52 weeks both inclusive Totals 845 572 240 103 47 28 28 25 11 11 6 2 17 786 605 268 132 80 49 41 21 15 15 11 10 20 3,077 1,766 791 338 211 130 114 52 44 32 37 19 79 1,141 820 436 252 163 139 109 63 41 36 28 24 98 2,757 1,568 733 381 242 143 87 84 66 37 23 19 84 1 283 264 152 86 55 46 31 26 18 20 12 9 43 2,140 1,494 746 412 221 158 120 92 70 54 36 34 86 184 185 135 82 48 29 35 28 13 10 6 11 20 1,935 2,053 6,690 3,350 6,224 1,045 5,663 786 Period of Sickness. Years 50 to 59. Years 60 and over. Totals. Grand Total. M. F. M. IT. M. F. 1- 4 weeks both inclusive 5- 8 weeks both inclusive .. .. 9-12 weeks both inclusive 13-16 weeks both inclusive 17-20 weeks both inclusive 21-24 weeks both inclusive 25-28 weeks both inclusive 29-32 weeks both inclusive 33-36 weeks both inclusive .. 37-40 weeks both inclusive 41-44 weeks both inclusive 45-48 weeks both inclusive 49-52 weeks both inclusive Totals 1,344 1,035 638 408 254 230 156 120 84 62 69 55 122 112 144 81 60 36 32 38 19 10 17 5 9 28 493 451 301 171 166 94 73 58 30 19 9 5 18 15 22 13 2 7 4 5 4 1 1 3 10,656 6,886 3,449 1,813 1,141 783 578 431 305 215 180 134 406 2,521 2,040 1,085 614 389 299 259 161 98 99 62 63 212 13,177 8,926 4,534 2,427 1,530 1,082 837 592 403 314 242 197 618 4,577 591 1,888 77 26,977 7,902 34,879

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EMERGENCY BENEFITS In cases of hardship a special benefit may be granted at the discretion of the Social Security Commission to any person who is not qualified for any other benefit under the Act, but who by reason of age, 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 was made of this section, and during the past year 2,518 benefits were granted, an increase of 816 over the number of grants for the previous year. The number of benefits in force increased from 1,845 as at the 31st March, 1947, to 2,141 as at the 31st March, 1948, and the expenditure for. the year was £227.857, as against £134,288 for the previous year, an increase of £93,569. FINANCE STATEMENT SHOWING THE RECEIPTS AND. PAYMENTS OF THE SOCIAL SECURITY FUND FOR THE YEAR ENDED 31st MARCH, 1948 Receipts * . Payments Balance at Ist -April, Monetary benefits—--1947— £ £ Universal super- £ £ Cash .. .. 1,227,836 animation .. 1,593,757 Imprest .. .. 183,140 Age .. .. 12,976,286 Investments .. 4,000,000 Widows'.. .. 1,770,622 5,410,976 Orphans' .. 24,187 Social security charge Family .. .. 13,798,648 on wages and other Invalids' .. 1,367,300 income .. .. 26,176,635 Miners' .. .. 110,106 Miscellaneous receipts, Maori War .. 11l interest, penalties, Unemployment .. 8,358 and fines .. 97,433 Sickness .. .. 897,093 26,274,068 Emergency .. 227,857 Recoveries under main- 32,774,325 tenance orders, Medical benefits, &c.— widows benefits* .. .. 60,569 Medical benefits .. 2,167,825 Grants from Consolidated Fund, Hospital benefits .. 1,949,489 vote, "Social Security" (Social Maternity benefits 800,030 Security Act, 1938, section 105 (c)) 16,000,000 Pharmaceutical benefits .. .. 1,558,350 Supplementary benefits .. .. 545,793 7,021,487 M \ Administration expenses : Social Security Department ... 707,883 Balance at 31st March, ft 1948 Cash .. .. 1,342,701 Imprests outstanding 890,055 Foreign imprest .. 9,162 Investments .. 5,000,000 7,241,918 £47,745,613 £47,745,613

* This item reduces the cost to the fund on account of .widows benefits by an ; equivalent amount.

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SECTION II. —WAR PENSIONS The general administration of the enactments providing for pensions and allowances in respect of war service and the carrying-out of the decisions of the War Pensions and the War Pensions Appeal Boards are the function of the Secretary for War Pensions. NEW LEGISLATION The War Pensions Amendment Act, 1947, and the War Pensions Allowances (Mercantile Marine) Amendment Act, 1947, came into force on Ist October, 1947, and provided for the following : An increase of ss. a week in the basic rate of pension to widows of deceased members of the Forces or of the mercantile marine. An increase of £l3 a year in the basic rate of War Veterans' allowance. The maximum rate for economic pensions was increased as follows :- , (a) Member of the Forces, 355. to 455. a week. (b). Widows with children and widows forty years of age and over with or without children, 20s. to 255. a week. (c) Wholly dependent widowed mother of a deceased member 20s. to 255. a week. The maximum rate of attendant's allowance which the War Pensions Board may grant where a pensioner requires the services of an attendant was increased from £5 to £5 10s. a week. Clothing-allowances were increased by £2 a year, and are now as follows : (a) Whole or partial loss of both legs, £lB a year. (b) Whole or partial loss of one leg, £l6 a year. (c) In respect of the use of any mechanical or other appliance, other than ,an artificial leg, £lO a year. Provision was also made that the pension of a partially-dependent widowed mother of a deceased member of the Forces should not be less than 255. a week. Previously such pensions were to be not less than one-half the rate that would be paid to a wholly--dependent widowed mother. The Amendment Act also provided that the widow of a pensioner who died while in receipt of a permanent war pension of not less than 70 per cent, may be granted a widow's pension, irrespective of the date of marriage. Previously such pensions were not granted where the marriage took place after the date on which the permanent disablement pension was granted. Where an applicant for war pension dies before completion by the War Pensions Board of its investigations, authority was given for the Board to proceed with the investigation of the claim and to grant a pension up to the date of death. WAR PENSIONS During the year the Department received 7,331 applications for pensions, including 2,406 lodged by ex-servicemen in respect of their own disabilities. Of these; 185 were in respect of the 1914-18 war and 2,221 in respect of the 1939-45 war. Claims by dependants, applications for economic pensions, and war veteran's' allowances totalled 4,925. The number of applications in respect of both wars lodged for the previous.year, was, 14,619, which included 9,531 in respect of an applicant's own disability.

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The following is a summary of the disabilities from which ex-service personnel of the 1939-45 war were suffering at the time of application for pension :

The War Pensions Board dealt with 65,505 cases during the year ended 31st March, 1948, under the following categories : (1) Claims for pension on account of disablement .. .. .. 2,856 (2) Claims for economic pension .. .. .. .. .. 2,622 (3) Claims for dependant's pension .. .. .. .. .. 1,709 (4) Cases submitted for renewal and review .. .. .. .. 41,062 (5) Cases submitted for reconsideration .. .. .. .. 8,726 (6) Cases where the question of entitlement was considered in respect of personnel discharged from the Forces on medical grounds, but who did not apply for pension .. .. .. .. .. 986 (7) Claims for war veterans' allowances .. .. .. .. 601 (8) Sundry claims and reviews and cases adjourned for further consideration and decision .. .. .. .. .. 6,943 65,505 Following the trend noted last year, there has been a further reduction in new applications for disablement pensions. Current applications are largely in respect of recurrences of war-time illnesses from which recovery had been made, and with disabilities where there is no direct relation to war service. With the presumption of attributability operating in the applicant's favour, it has been possible to deal with these applications expeditiously and with a minimum of inconvenience to applicants.

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Type of Service. Class of Disability or Disease. Overseas. 1 New Zealand. Total. (1) Infections and infestations (2) Nervous system .. .. .. .. (3) Eye, ear, and nose .. .. .. .. (4) Circulatory and blood systems (5) Metabolism (6) Lungs (7) Breast (8) Digestive system (9) Generative system (10) Gunshot wounds and accidental injuries to bones, joints, and soft tissues (11) Skin (12) Areolar tissue (13) Tumours and neoplastic growths (14) Malformations (15) Amputations .. .. .. .. (16) Urinary tract (17) Sundry minor disabilities Application for pension (no disability) 133 256 231 88 19 225 i92 17 426 150 "10 2 10 38 6 101 12 31 32 22 5 45 26 5 99 14 2 3 1 8 1 11 145 287 11024 270 218 22' 525164 12 5 11 46 7 112 1,904 317 2,221

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The War Pensions Boards have continued to visit the various centres in NewZealand and by this means have enabled manv ex-servicemen to present their cases in person. During such visits the Boards have also given local ex-servicemen's organizations the opportunity to present cases where some special feature is involved and this has given general satisfaction throughout the country. Close liaison is still maintained with other Departments and organizations concerned with the welfare and rehabilitation of ex-servicemen. By this means much has been done to re-establish ex-servicemen into civilian life. MEDICAL TREATMENT Many disabled ex-servicemen applied for medical treatment, and the work of the Department's medical officers in attending promptly to such applications has proved of great value. The Department has a wide coverage with medical officers attached to the office of each of the nineteen Registrars of War Pensions, and the advice of the medical officers has been much sought after in connection with the rehabilitation of disabled ex-servicemen. The work of the part-time orthopaedists in Auckland, Wellington, Christchurch,. and Dunedin is proving of great assistance to amputees and others requiring specialist advice. Through the attendance of these specialists at the artificial-limb-fitting centres the requirements of amputees have been attended to speedily. Most of the amputeesnow have duplicate artificial limbs, and the provision of new limbs is no longer a major problem. The Department is keeping in touch with overseas developments regarding artificial limbs and appliances, and at all times endeavours to provide the best possible service. Throughout the year the Disabled Servicemen's Re-Establishment League has co-operated with the Department in the fitting of new artificial limbs and the service provided for repairs of other artificial limbs and appliances. The establishment of a training centre at Auckland with fitting-rooms and full walking-race for amputees has been much appreciated. During the year 301 new limbs were fitted, of which 34 were original issues and 267 duplicate limbs. Major repairs were carried out on 157 limbs. MISCELLANEOUS EXPENDITURE FOR THE YEAR Administration costs for the year in respect of war pensions and allowances! totalled £18,858. Medical treatment of war pensioners (including the cost of treatment of pensioners resident in overseas countries) amounted to £65,565, compared with £60,550 for the previous year. 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 £6,404, compared with £5,085 for the previous year. Loading on life-insurance policies due to war-service disabilities of war pensioners, was paid by the Department, and amounted to £597, compared with £3OB for the previous year. Medical fees and travelling-expenses of pensioners cost £37,920, compared witk £49,445 for the previous year.

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ECONOMIC PENSIONS PAYABLE AT 31st MARCH, 1948, IN SUPPLEMENTATION OF STATUTORY WAR PENSIONS

DISSECTION OF WAR PENSIONS CURRENT AS AT 31st MARCH, 1948

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Class of Pension. War, 1914-18. War, 1939-45. Totals. Number of Pensioners. Number of Children. Annual Value. Number of Pensioners. Number of Children. Annual Value. Number of Pensioners. 1 Number of | Children. | Annual ! Value. 1 Ex-member of Forces — Permanent Temporary Dependants of disabled ex-members Widows Other dependants of deceased servicemen Totals 14,088 324 2,033 2,291 379 1 * 462 227 76 £ 1,031,428 30,607 191,790 372,048 22,099 | 0,545 17,971 1,000 1,849 883 ' 021 1,519 756 £ 378,840 1,512,240 82,981 396,586 45,303 20,633 18,295 3,033 4,140 1,262 2 j 083 1,746 832 £ 2,010,268 1,542,907 274,777 768,634 67,462 19,715 1,705 2,248,038 28,248 2,896 2,416,010 47,963 4,661 4,664,048 N.B. —During the year mother's allowance of 30s. a week was paid to 2,539 wives and widows of disabled or deceased ex-servicemen.

Class of Pension. War, 1914-18. War, 1939-45. Totals. Number. Annual Value. Number. Annual Value. 1 Number, j Annual Value. Ex-member with permanent pension Ex-member with temporary pension Widow's Widowed mothers Totals .. ... 3,556 76 1,265 26 £ 397,443 8,427 80,655 1,274 257 1,375 877 59 £ 29,089 155,097 55,290 2,861 3,813 1,451 2,142 85 £ 426,532 163,524 135,945 4,135 4,923 487,799 2,568 242,337 7,491 730,136

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PENSIONS PAYABLE OUTSIDE NEW ZEALAND AT 31st MARCH, 1948

SUMMARY OF PENSION PAYMENTS

WAR PENSIONS APPEAL BOARD The number of appeals lodged fell considerably, and there was no great accumulation of appeals at the end of the year under review. The following summarizes the operations of the War Pensions Appeal Board during the year with respect to appeals under the war pensions and related legislation :

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Class of Pension. War, 1914-18. 1 War, 1939-45. Total. Ex-members of Forces— Permanent 812 92 904 Temporary 8 286 294 Wives and parents of ex-members : Temporary dependants 84 15 99 of members Widows 231 141 372 Other dependants 153 85 238 Totals .. .. .. .. .. 1,288 619 1,907 :

Payments made in 1 Total. i £ 50,840,825 4,662,141 London. Australia. Canada. South 1 J Africa. 1 Foreign Countries. New Zealand. Total payments to 31st March, 1947 Payments, 1947-48 .. Total payments to 31st March, 194S £ 1,641,090 75,085 £ 1,167,369 65,831 £ 79,695 7,800 £ 14,905 1,246 £ 18,799 1,535 £ 47,918,967 4,510,644 1,716,175 1,233,200 87,495 16,151 20,334 54,429,611 55,502,966* * Includes £8,791,676 in respect of war pensions in connection with the 1939-45 war and £9,737 to members of the Emergency Reserve Corps.

— War, 1914-18. ■ War, 1939-45. War Pensions and Allowances (Mercantile Marine) Act, 1940. War Veterans. Totals. Appeals outstanding at 31st March, 1947 Appeals lodged, 1947-48 Total to be dealt with Appeals upheld, 1947-48 Appeals dismissed, 1947-48 Appeals withdrawn or struck out, 1947-48 Total disposed of Appeals outstanding at 31st March, 1948 Percentage upheld 37 129 347 824 3 i 388 957" 166 1,171 3 5 1,345 <• 48 76 13 412 534 104 1 2 3 1 461 615 118 137 1,050 3 4 i 1, 19.4 29 35-0 121 39-2 ■ 1 33-3 1 s 15! 38 >6

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SECTION III.—GENERAL SUMMARY BENEFITS AND PENSIONS IN FORCE AND TOTAL PAYMENTS

COST OF ADMINISTRATION Excluding expenditure of £18,349 on capital items, administration costs for the year amounted to £708,392, including £18,858 in respect of the administration of war pensions and allowances. This represents 1-88 per cent, on total payments. MISCELLANEOUS WAR SERVICEMEN'S DEPENDANTS' ALLOWANCE Benefits under Part II of the Act may be increased by an amount not exceeding £26 a year to parents of deceased members of the Forces and of the New Zealand Mercantile Marine. At the 31st March, 1945, there were 1,639 of these allowances in force, paid in conjunction with age, invalids', miners', and widows' benefits. This represents an increase of 118 over the figure for last year which was 1,521. REHABILITATION ALLOWANCES With the continued tapering-off of the number of service personnel demobilized the need for this allowance has declined, and there were no rehabilitation allowances in force as at 31st March, 1948. During the year 7 ex-servicemen were granted allowances, and the expenditure amounted to £95, compared with a total expenditure of £8,244, for the year ended 31st March, 1947.

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Class. I at 31st March, 1947. As at 31st Mareh, 1948. Number in Force. Annual Value. Total Payments, 1946-47. Number in Force. Annual Value. Total Payments, 1947-48. £ £ £ £ £ Universal superannuation .. 57,992 1,449,800 1,349,689 61,612 1,694,330 1,593,757 Age 115,287 12,450,996 11,881,119 117,161 14,223,345 12,976,286 Widows' 13,133 1,700,724 1,529,010 14,145 1,949,888 1,770,622 Orphans' 397 21,378 22,905 370 27,010 24,187 Family 230,021 12,746,760 12,680,778 243,137 13,542,730 13,798,648 Invalids' 12,466 1,333,862 1,328,485 10,682 1,406,285 1,367,300 Miners' 718 101,956 105,416 685 111,518 110,106 Maori War 1 104 104 1 117 111 Unemployment 35 24,332 16 8,358 Sickness 4,273 853,328 4,248 897,093 Emergency 1,845 134,288 2,141 227,857 War, 1914-18 20,081 1,968,042 2,036,825 19,715 2,097,676 2,049,391 War, 1939-45 30,028 2,173,632 2,080,952 28,249 1,899,678 2,031,194 War veterans' allowances 2,277 345,172 346,694 2,617 470,798 422,275 South African War 42 3,248 3,502 42 4,013 3,689 Mercantile Marine pensions .. 27 2,132 2,985 24 1,925 2,727 Emergency Reserve Corps .. 10 1,338 1,336 11 1,404 1,368 Sundry pensions and annuities 305 21,551 21,651 173 27,655 24,783 Civil Service Act, 1908 2 932 1,352 697 War and other pensions paid 3,156 299,112 414,354 3 j 619 39i,045 393,459 on behalf of the Governments of Great Britain, Australia, i 1 India, Canada, South Africa, 1 and Crown Colonies Total 492,096 34,620,739 34,819,105 508,648 37,849,417 37,703,908

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DEMOBILIZATION ALLOWANCES During the year applications were received from 15 ex-servicemen and 2 ex-service-women for these allowances, which are intended to provide for the maintenance of discharged Service personnel who require continuation of medical treatment, or medical after-care, and who are unable to resume civilian employment by reason of their incapacity. Grants were made to 11 ex-servicemen and 2 ex-servicewomen. There were 11 allowances current at the 31st March, 1948, compared with 18 at the end of the previous year, and the expenditure for the year ended 31st March, 1948, was £2,908 compared with £5,209 for the previous year. IMPERIAL AND OTHER OVERSEAS PENSIONS War and other pensions paid on behalf of the Governments of Great Britain, Australia, Canada, South Africa, India, and Crown Colonies numbered 3,619 at 31st March, 1948, and represented an annual value of £323,329. Payments for the year totalled £393,459, a reduction of £20,895 from the figure for the previous year. Altogether fifty different classes of payments, such as war pensions, civil pension, retiring pay, release leave, and other privilege payments were handled by the Department on behalf of the United Kingdom and other Governments. In addition, numerous gratuities and other temporary grants were paid. The varying rates and nature of the payments and allowances, which involve conversion of currencies and exchange, necessitated considerable accounting work and correspondence with overseas authorities. COMFORTS ALLOWANCES In the past the Department has continued payment of some monthly benefits to inmates of mental hospitals by way of comforts allowance. As from Ist November, 1947, the Mental Hospitals Department vote has included an item to cover the cost of comforts for all patients, and comforts allowances formerly paid by this Department have ceased. STAFF Although the effective strength of the Department decreased from 1,427 as at 31st March, 1947, to 1,360 as at 31st March, 1948, it is pleasing to be able to record that the work of the Department was carried out expeditiously and efficiently throughout the year in spite of shortages of staff, particularly in Wellington. The intensive staff-training programme which has been carried out in all offices of the Department during the past two years has enabled the large number of exservicemen on the staff to attain an excellent degree of efficiency in their work, and in most cases they have recovered the ground unavoidably lost during their service in the Armed Forces. At 31st March, 1948, there were still 22 officers absent on military service, 34 on sick-leave or special leave without pay, and 4 officers on loan to other Departments. In submitting this report we would like to record our appreciation of the loyal -and efficient service rendered by the officers of the Department throughout the year. C. Dunn, Acting-Chairman 1 0 . , „ ~ ri ■ . t, i r , ■ ■ > Social Security Commission. Jgj. Pearce, Acting-Commissioner J J Approximate Cost of Paper.—Preparation, not given; printing (1,463 copies), £5B.

By Authority: E. V. Paul, Government Printer, Wellington. —1948.

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