FAMILY AID

Auckland Star, Volume LXXIV, Issue 34, 10 February 1943, Page 2

FAMILY AID

BENEFITS IN N.Z. SOCIETIES ADVANCE

Many people expected that when the State entered the field of social security on a compulsory basis the old-established and financially sound friendly society movement would be severely hit. Some predicted its ultimate demise, as the benefits offered under the national scheme encroached on what had been the very lifeblood of friendly societies, namely, sick benefits, medicine and doctors' fees. In New Zealand to-day, however, members of friendly societies number nearly 97,000. As a member's wife and children under the age of 16 are included in the benefits provided by lodges, a conservative average of three a family would mean that over 290,000 people are vitally interested in the future of the movement. In funds, according to the latest Departmental report, the strength of all friendly societies in the Dominion amounted at the end of 1941 to £5,670,757, the average capital per member being £58 12/1. Of the total wealth of the societies, £4,613,139 was in the sick and funeral funds. The net income from investments credited to the funds was, in 1941, £199,639, the average rate being £4 9/11 per cent. The amount of money paid to members in sickness benefit during the year was £175,250, equal to £8 11/8 per member sick, while the funeral benefit paid totalled £56,076. "These figures will show," said a leading officer of the strongest order in Auckland, "that friendly societies which had their origin in, and have been built up by, the working people on the principle of mutual help and fraternity have been most successfully and carefully managed. They have played a part in New Zealand, as in every community in the British Empire and in foreign countries, that has been definitely beneficial and has been the means of tiding thousands of families over difficult periods during illness or the death of a breadwinner." Effects of Social Security This official explained that it was difficult to assess wnat effect, if any, the inauguration of State social security had had on friendly societies. The national scheme had not been long enough functioning before the outbreak of war to arrive at a reliable conclusion. Lodges were still initiating members, though the field was seriously limited through the war, and most of the societies had made arrangements to carry the responsibility for contributions of members with the forces. The managements of most of the leading societies had not been idle, however, and one outstanding result of the inauguration of national social security had been an extensive broadening of the basic benefits provided, and in some cases a lowering of the rates of contribution. The great edifice built up over long years of prudent administration and thrift, this officer stated, had been reinforced and activities spread to avenues at one time never contemplated. There was a resiliency in the whole movement reflected in the more extensive benefits offered to members and future generations by the adjustments being mada to meet the changing conditions. Scope of Lodge Benefits Taking the main lodge benefits, it was found that they were little affected by social security, this authority stated. For instance, no provision was made in the # social security scheme for funeral benefits. A member of a friendly society and his wife were both covered in this respect. Lodges also paid £1 per week for the first 52 .weeks of a member's illness, and 10/ thereafter, which was additional to the social security benefit, and had been specially provided for under the Social Security Act. These payments by the friendly societies commenced from the first day of sickness, while the social security payments did not operate during the first week, and were restricted to persons within stipulated income limits. Some lodges have a hospital benefit scheme under which a sick member, for a contribution of 3/6 per 13-week quarter, is paid a cash benefit of 4/6 a day while in hospital, and the same payment is made for a wife and 2/3 for a child, there being no such provision for hospital payments for wives and children under the national scheme. Contributors to the hospital fund also have advantages in regard to massage, in which a part contribution of 2/6 is made per treatment, also ambulance charges and clinical treatment. In regard to medicine the societies go further than the social security scheme. For the" sum of 1/ quarterly members of lodges are entitled to receive free from the Friendly Societies' dispensary prescribed drugs not covered by the national scheme. A limit of 5/ is imposed on any one prescription, while there is the privilege of procuring a repeat of the prescription on payment of 1/ without a further consultation. Additional benefits to those under the national scheme are also provided in regard to maternity, the principle being to afford to members the widest range of benefits at the minimum of cost over and above the provisions of the social security programme. Insurance Extended Another example of the wider benefits being offered members of societies is the extension of the increasing assurance fund, which offers insurance, life or endowment with bonuses, at highly advantageous rates, up to the statutory limit of £500, inclusive of the funeral benefit. With administrative costs at a minimum, the premiums are much below anything in the insur-ance-field. While to meet the new conditions these additional benefits have been devised, the societies are continuing the age-old schemes of financial aid to members by way of loans for the purchase of homes. Money is advanced on table mortgage at 5 per cent which will repay principal and interest in 20 years. Under the Friendly Societies Act loans can be made up to 66 per cent of the value of land and buildings, the payments covering principal and interest, amounting to approximately 3/4 a week per £100. The general structure of the friendly society movement is stated to go much further than the national plan of social relief. It had gone much further even before social security was thought of on a national basis. The cost of the benefits gamed by the lodge member would average probably less than £1 a quarter Cm/6 a week), being more economical trij&n that of social security and the assistance obtainable under the respective schemes differs widely.