STATE FIRE OFFICE.

Auckland Star, Volume XLIII, Issue 214, 6 September 1912, Page 7

STATE FIRE OFFICE.

WILI, WOT JOIN THE COMBINE. BUT REFUSES TO BE SQUEEZED. (By Telegraph.—Parliamentary Eeport«C.) WELLINGTON. ThursdayIn moving the second reading of the State Fire Insurance Amendment, the lion. F. M. 1?. Fisher explained that the original Act made provision for the surplus funds of the office being paid to the policy holders. It was found now that it I was necessary that, the fluids should be used for the purpose of building Up a reserve fund for the institution, and also to repay the £200,000 with which the office was originally started and was borrowed from the State. Sir Joseph Ward, who approved the bill, said it was far mitre important that j the Department should build up a reserve than pay bonuses. He suggested that the ela-use relating to bonuses should I be deleted from the original Act. Only J one other fire insurance company paid J a bonus, so that in abandoning the right to do so the State Department need not fear that it would fail to draw business on tin independent basis. Mr. 0. W. Russell suggested that the less combination of the State Department with private insurance companies the greater the confidence which would be lelt in its operations. Several members raised the question of the State-guaranteed Advances Office insisting UO n mortgagors insuring with the State Fire Office. Mr. H. ft. XII expressed a. fear that, the administration of the State Fire Office was going to be run more i n the interests of the large private loan companies. He was afraid that the right exercised by the Advances Department up to the present was going to be dropped, and if that were done it would throw a large amount int- /J"*,?* 3° W C '°»'"-W by the State into the hands of private companies. Boplymg. the Ron. Mr. Fisher declared rnai Uiore v.-ns no intention to alter the PWWy of the State Fire Office. The statoment.that the State was working in «n----u nction with private companies olutelv .ncorrect. The State Fi re Offiec had no agreement with the companies, PH tedt-H -vr-Y 1 Bot hee " «»*«*- Pire nm ' llini stry. While the State ww. the. Department was not to be TIV° S \ Still the State li not ?oing to take hazardous risks, but if the OMipaniee put the State Office in the posi ion of having to fight them they Tear' C7 I R * hi - ' Hot - members: Hear hear.) Proceeding, the Minister remarked that whnt had hanpened J risk-q 7" s ,.r onne v'<-'n with som e large he companies w ,zld not J i?*,? 0 ° f the ri * " 'he. State was in it. Ihere was a s triJci nß ill llß . tration only three weeks ago They did not desire to ruin the companies, or that the companies should run at a loss oj- to IT%A amount of bnsuieM into he State Office, but *h P state Fire Office was not jro.ng to allow itself to be squeezed o n every occasion. m Mr. Ell: Are you going to retain all tIH» Mate advances insurance? The Minister: The position is just the same n.< when you were in office. Continuing Mr. Fisher remarked that the member for Christchurcl. South had tried to make the country believe that the object of the present Administration 118 to try and destroy the State. Fire Office! i-tSf-onhiSS? , Bakin for «» Mm The Minister: f am speaking for myself, ire explained that the advances to Setl ?l* bu ? inpe s, if distributed among all the private companies, would nolv ftne them £S7 worth of business each There was no intention to change the system, though lie recognised it a fair principle to share the business with those «-ho were really partners in the concern. It was not fair of the companies to take advantage of their co-operation to squeeze business away from, the .State Department wherever they could. TV Department was never established to destroy the private companies, but simply to regulate the rates. Tlie second reading was agreed to on the voices.