STATE INSURANCE.

Dominion, Volume 4, Issue 11110, 6 May 1911, Page 5

STATE INSURANCE.

HUGE BRITISH SCHEME.

COMPULSORY PROTECTION FOR

WORKERS.

SICKNESS AND INVALIDITY.

By Telegraph—Press Association— Copyrleht London, May 4.

In the House of Commons, Mr. Lloyd-George, (Chancellor of the Exchequer) introduced his Invalidity and Unemployment Bill. It provides for the compulsory deduction from wages of fourpenco a week in the case of men, and from threepence down to a penny in the caso of women. Tho employers arc to contribute threepence and "tho State, twopence for each worker. Mr. Lloyd-George explained that the voluntary scheme would admit members under the age of 45 years for sevenpence weekly; those over 45 would have to pay more. All would receive medical attention. The Government would dovote a million and a half to assist in building sanatoria for consumptives, and givo a further million every year for tho maintenance, of patients. Tho sick allowance for men would be 10s. weekly for three months, os. for tho next throe, and os. thereafter if tho person receiving the allowance was permanently disabled, but the benefits for women would be slightly less.

The surplus after loi years would, it was estimated, permit of the payment of old ago pensions at the age of 65 years, and of increased pensions for those- working who were over G5. THE CHANCELLOR EXPLAINS WHAT THE SCHEME WILL COST. MILLIONS OF WORKERS AIDED. (Rec. May 6, 0.25 a.m.) London, May 5. The House of Commons was crowded when the National Insurance Bill was brought down. Mr. Lloyd-George, who has been unwell, was greeted with general cheers on his reappearance. His voice is now fairly strong again, and he spent two and a half hours unfolding tlio Bill, which is to operate from May 1, 1912.

In opening, tho Chancellor paid a. tribute to.Mr. John Burns's services in connection with the scheme. Ho oxplained that the contributions to the sickness insurance schemo in its first year would bo as follow:— Employers £9,000.000 Workors £11,000,000 Tho contributions to the insuranco fund to be paid by the State would be: First year £1,742,000 Second year £3,359,000 Third year ~ £4,563,000 The first year's benefits would be seven millions and would rise to twenty millions in 1016. Accidents would not be included under tho schemo. County health committees would be formed to administer sanatoria. . A.maternity benefit of 30s. would bo allowed with a provision .that tho woman should not return to work within a month. No sick pay would be. given when the. illness was due to a.man's misconduct. The doctors would be paid above the friendly society scale and medicines would bo obtained from chemists. Tho schemo applies to all men' and women not liable to income tax (i.e., with incomes below £160 per annum). It is estimated that 0,200,000 men, and 3,900,000 women will bo compulsoxy contributors, and 1,000,000 persons voluntary contributors, the latter including waiters, cab-drivers, and boys and, girls under sixteen.

Special arrangements aro to be mado for soldiers and sailors.

ATTITUDE OF THE PARTIES. GENERAL APPROVAL. ~ (Rec. May 5, 10.45 p.m.) London, May 5. Tho Unionist members in the House of Commons are delighted with the sickness and invalidity scheme, but aro less emphatic in their approval of the unemployment provisions, believing that these will add to the cost of manufacture, and should bo accompanied by some form of protection against goods produced under other conditions.

The Liberals aro enthusiastic with tho whole scheme.

Labour members generally approve tho Bill, but regret that tho unemployment insurance is not to be more general.

FOR THE SICK AMD THE UNEMPLOYED. DETAILS OF THE SCHEME. Mr. Lloyd-George's invalidity and unemployment insurance scheme was drafted as a result of a number of private conferences which have beim held between the Chancellor of the Exchequer and the members of the Committee of the National Conference as representing the friendly societies which are formed on a permanent basis. It was drafted with the intention as far as possible of making use of existing agencies and of working the compulsory national scheme of sickness insurance through the present voluntary societies. • . .

Unemployment insurance will bo compulsory only for the building, shipbuilding, and engineering trades—(hat is, for ii million, workers. Invalidity insurance will ba compulsory and universal for all persons between the ages of sixteen or eighteen and seventy, whose income is less than <£IGO a year. Unemployment insurance supplements the work of trade unions; invalidity insurance supplements tho work of friendly societies.

The scheme as drafted in January did not propose any control of the investments of friendly societies other than that of audit, but this v:ould bo likely to follow a guarantee by the State. The voluntary insurance which the member may make, in addition to the minimum Stale insurance, will be entirely a matter between the member and the friendly society, in which tho State will have no part or lot, and the accounts, so far as they concern these insurances, will in no way bo subject to State audit or supervision. The scheme makes provision for Hid establishment of a Central Administrative Council, composed of representatives of tho Government, the friendly sociclie.?, and employers of labour, to deal with all questions which arise under the working of the scheme. This follows the principle adopted in Germany, where it is found that many delicate and difficult questions are constantly arising. This brief outline of the scheme makes it clear that a largo and costly Stale Department will rcnuiro to be set up for tho administration, of sickness and invalidity insurance. There will, for instance, bo annual audit of the accounts so far as they relate to State insurances, periodical valuation by Government actuaries, nnd (he supervision of the general work of tho societies, together with tho periodica) meeting of the Administrative Council. WHAT GERMANY IS DOING. Only in Germany, says the "Daily News," do we find a. scheme comparable with the Government's programme. Tho Gfcrinan schemes aro compulsory upon all

wage-earners and snlnricrl persons earning not more (inn .£IOO per .'iniiuin. There are, in fact, two schemes, one dealing wilb sickness of a temporary character, and Iho second dealing wilh invalidity. In IMS the cost of insuring W million perrons against sickness whs 17 million pounds, of which a sum of 1G millions was paid away in benefits. The accumulated funds at the end of tlio year were ■£1.1,71G,0W). To this scheme- thn Stale makes no contribution at all, Iho workpeople pbyiiig two-thirds, while one-third is found by Ihe employer?. The term invalidity as used in Germany implies fairly permanent incapacity l'or \vorl;, and tlio eust of insulins about. 16 million Germans against this invalidity is Hi millions, of wliich about 8 millions is paid away in benevolent benefits during the. year. Of the IK millions which the scheme cost, 41 millions was paid by the worker?, and 43 by the employers, tho remaining 2J millions only being paid by tho S'.nte, niid this subs-idy was marie in the form Of a yearly addition of £2 10s. to tho pension which accrues.. Tho accumulated funds amount to 731 millions.

On January* 1, 1907, tho number of pensions being paid was 862,277, divided thus: Old age, 125,603; permanent invalidity, 811,575; provisional invalidity, 22,099. Tho average olrl ago pension was £.1 18s. Id. The average permanent invalidity pension yeas .£8 Os. 2d. The average provisional invalidity pension was £S Os. 3d., benefits which, of course, are very much lower than tho standard ss. a week, or £13 a year, which holds in Great Britain.