EARTHQUAKE BILL

Auckland Star, Volume LXII, Issue 81, 7 April 1931, Page 3

EARTHQUAKE BILL

ALTERATIONS RECOMMENDED

OPINION IN HASTINGS.

DEPUTATION TO MR. FORBES,

(By Telegraph.—Own Correspondent.)

HASTINGS, Monday,

For the purpose of recommending various alterations to the Hawke's BayEarthquake Bill a deputation is to wait «n the Prime Minister, the Rt. Hon. G. W. Forbes, at Wellington, on Wednesday morning. The deputation will present the views of the committee which was appointed at a public meeting recently. These views are set out in a lengthy commentary on the bill which has been prepared for the Prime Minister's-con-sideration. The committee expresses its opinion as follows:—

"That the amount of £1)500,000 for rehabilitation, both municipal and private, is inadequate, and that the insurance lass assessment of the damage would be in the region of £5,000,000.

Will Delay Reconstruction. "That the method proposed —the individual investigation of each claim —of ascertaining the damage and appropriating loans or grants will be cumbersome and must inevitably take considerable time, thereby delaying reconstruction.

"That the payments should be made to parties in proportion to the loss sustained without any reference to their financial position; and that .for proper rehabilitation it is necessary that all payments should be by means of a grant and not by loan.

"That in view of the inadequacy of the amount, the committee charged with the administration of the fund will either have to make inadequate payments to all who have suffered loss or else will be called upon to discriminate between - arious applicants. In either case there will be interminable delay and sufferers will be unable for many months to take any action because they will not know what finance will be available.

"It appears that the Rehabilitation Committee will function merely as an ordinary welfare committee providing grants for indigent and most necessitous cases only, and will thereby be the greatest obstruction to any reasonable and speedy reorganisation of the normal business and other activities in the district. Therefore we wish to emphasise that a general principle of distribution of funds should be laid down, whereby those having suffered loss will be able to form some idea of the measure of assistance which they will receive, so that thev may plan their restoration accordingly." ■

Matter of Urgency. A scheme drafted by the committee contain., the following proposals: — That the material damage to property, both real and personal, shall be urgently ascertained by ; the insurance companies operating in ITew Zealand. That any person objecting to the assessment of the insurance companies shall have the right of appeal to a special appeal board. While not regarding it as a vital issue in the scheme, the insurance companies be asked to m -kj an ex gratia payment of such proportion as they may consider fair and equitable.

That the Government raise a special loan (if necessary by, say, three annual instalments); That these loan moneys (together with the ex gratia payment, if any) be disbursed (preferably, but not essentially, by and through the insurance companies) in paying losses suffered on the basis of the amount of insurance cover held by the sufferer, but such losses to include loss by earthquake and by fire following earthquake. That the security or method for repayment of interest and principal be an amount added to the premium of existing and future insurance policies on all insurable risks domiciled' in New Zealand; this charge to be a permanent charge for the additional purpose of insuring against future disasters.

The committee states that these suggestions are submitted not in a spirit of carping criticism, but in the hope that they may help to attain the solution" of what is admittedly a difficult position. It requests that they be embodied in the forthcoming legislation.