STATE FIRE OFFICE

Evening Post, Volume CXII, Issue 25, 29 July 1931, Page 11

STATE FIRE OFFICE

LABOUR MEMBERS' PRAISE

BUT TAXATION DEPLORED

Various aspects of the operations of the State Fire Insurance Office were discussed in tho House of Representatives yesterday. Mi\ H. T. Armstrong. (Labour, ChrJstchurch East) contended that the Stale insurance companies should have tho right to develop in the ordinary way, and that' private insurance companies which could not compete should go out in the ordinary way. There should be no co-operation between the offices of the State Office and the private companies. The objection to the levy last session was that the people who contributed would not be insured against earthquake, and if tho Government had devised some scheme of earthquake covpr there might not have boon tho same opposition to the levy. Mr. F. Langstone (Labour, Waimarino) referred to the immense benefits which the. State Fire Office had bestowed on the people of New Zealand in the way of reduced premiums. At the same time he thought the operations of the office - had been _ crippled by unsympathetic administration. He could not understand the reason for charging State insurance offices incometax. . Mr. W. Nash (Labour, Hutt) said that no private company could show a service record equal to that of the State Office. The cover of risks for accident and fire should not bo subjected to profits by a. section of the conimunThe Minister of Transport (the Hon. AY. A. Vo.itch) said that the State Advances Department did not require that its mortgagors should insure in the State Office. A Reform member: "That is not so. ■ The Minister of Labour (the Hon. S. Or. Smith): "They don't insist on it." Mr. Voitch: "lam sure I am right in saying that the State Advances Department does not compel its clients to insure in the State offices." Mr. Langstone: "It should do so." The Leader of the Opposition (the Eight Hon. J. G. Coatcs): "They won't accept lawyers." a Mr. Vcitch: "They will not accept an office which they have not full confidence in." He said, that the State Fire-and Accident Insurance Office paid income-tax on tho samo basis as private companies. It had been urged that tho State Oflico should make a monopoly of earthquake insurance, but the question of re-insurances would have to be seriously considered if this suggestion was contemplated.. The State Office could not tako the risk on its present capital. The office had a splendid record. ■ .