COMPENSATION.

Auckland Star, Volume LXVII, Issue 252, 23 October 1936, Page 9

COMPENSATION.

AMENDMENT BILL.

THE FINAL STAGES. THIRD READING CARRIED. a CRITICISM." (By Telegraph.—Parliamentary Reporter.) WELLINGTON', Thursday. The Workers Compensation Bill was put through its final stages in the House of Representatives to-day and passed. In the course of the second reading debate, Dr. D. G. McMillan (Government, Dunedin West) said that the benefits were greater in Queensland, hence the higher premiums. He quoted the dividends paid by the Standard Insurance Company, the New Zealand Insurance Company, and South British Insurance Company, saying that the profits made by those companies were made possible by the exploitation of those who paid the premiums and those who were injured. A great toll had been extracted from the workers. Mr. W. A. Bodkin (National, Central Otago) said that the companies doing business in New Zealand liad been prudent over a long period of years, and had built up reserves, and a great factor had been the interest-earning capacity of the sums invested. Many insurance companies were nearly put out of business owing to the San Francisco earthquake. It was necessary for the companies to have substantial reserves, and that policy had been carried out by most of the New Zealand companies. He quoted figures to show that the worker in New Zealand had in reality larger benefits in the aggregate than the Queensland worker. The profitable business to insurance companies was fire and marine. He knew of no company that refused to insure an employee in industry. Every claim was settled on expert evidence and medical testimony. Taxi-drivers. Mr. Bodkin said the Minister would have to go further and devise ways and means to bring about the compulsory insurance of workers in business 011 their own account, such as taxi-drivers owning their own vehicles. The sharemilker would also have to be considered. He was not much concerned about industry having to pay the increased cost. If it were not borne by industry it would be borne by the Consolidated Fund. 11l the final analysis it would be found that the consumer paid. There was 110 doubt that the position would be much clarified by the new basis for computing compensation. The Arbitration Court, as a result, would be relieved of hearing many cases. Much contentious argument would now be obviated. More Liberal. v Mr. A. S. Richards (Government, Roskill) said that the existence of the State insurance made for more liberal treatment by other insurance concerns. It had saved premium payers thousands of pounds, and it had caused far less difficulty to injured claimants. Mr. Bodkin: It is just as difficult to deal with. Mr. Richards: No. it is not. Mr. Bodkin: That has been my experience. Mr. Richards said that the State insurance had served the public in a more beneficial way than any private institution. A few years ago, before there was State enterprise in the insurance business, the public was in danger of being robbed of the major portion of its premiums. Minister's Reply. In reply, the Minister of Labour, Mr. Armstrong, said that there had been a certain amount of helpful criticism, for which lie was thankful. No one, however, had expressed any opposition to the bill, and he was beginning to wonder whether he was doing the right thing or not. Touching 011 one or two of the points raised by Opposition speakers, Mr. Armstrong said it was almost impossible to form anything like an accurate estimate of what the bill would cost the premium payers of the Dominion, because there was 110 general increase. He had said in his opening speech that the underwriters had estimated it at 14 per cent. That would be the maximum, but he doubted very much whether the increase would be as high as that.

Mr. Armstrong said lie agreed that tliere was room for a thorough overhaul of the compensation law. He had had in mind a comprehensive bill, but it was considered too big to bring down in the dying hours of the present session. 'He thought it was wise to introduce the present legislation only. He hoped, in the not far distant future, that there would be no need for workers' compensation. He hoped that there would be free medical attention for the less fortunate, the cost being met out of a common fund. The responsibility should be the State's, and he thought that the day was not far distant when they would be discussing something of that nature.