SAFEGUARD DESIRED.

Dominion, Volume 4, Issue 1147, 7 June 1911, Page 6

SAFEGUARD DESIRED.

FRIENDLY SOCIETIES' LEGISLALATION. : 'MINISTERIAL INTERVIEW. A combined effort of tho friendly societies is being made to induce Parliament to pass into law clauses that were deleted from tho Friendly Societies' Consolidation Act of 1909. The clauses deal with the "equal levy" death benefit scheme, which a society numbering 15,000 members has adopted in New Zealand, and which it is contended is unsound, and might' bo extended. Tho clauses which it is desired now to have passed direct that a society or branch of a society shall not be registered until the rates of contributions for sickness, death, superannuation, and annuity benefits are certified as adequate by the Actuary of Friendly Societies, or some other appointed by the Governor. Other safeguarding provisions are also added. Yesterday a strong deputation repre=entative of the friendly societies interviewed the Hon J. A. Millar, on the matter. Mr. Leigh Hunt Explains, Mr. Leigh Hunt said (hat tho deputation was representative of all tho societies in New Zealand, with the exception of two, and of three-fourths of the members in the Dominion. They desired to again bring before the Minister the resolutions passed at the Conferenco of 190 G. The deputation felt that a day of reckoning was approaching, and that unless something was done, a very f-eri-ous position would result. They iclt that friendly societies should not be permitted to canvass for business or for further membership, unless they were able to make Rood in the futuro tho things promised; the.v should be able to make provision for the new members as well as those already on tho books. Previously, in their representations to the Minister, they had had to meet tho opposition of a society which carried on the equal death levy system, but a largo section of that society had now rcco»nised that theirs was an unsound system, and there was a movement to .put it. , on ii proper, sound basis. The.v were glad this conclusion had been como to in the ranks of the society in question, and it would no doubt now clear the way for some- provision that would niako it impossible for a similar state of affairs to bo inaugurated a?nin. He referred to the unmeasured condemnation of the system by the Registrar of Friendly Societies, in his annual report to Parlia-. ment. Other Speakers. Jlr. D. Loasby (of the 1.0.0.1'., M.U.) emphasised the point that the glamour of the systerii they were condemning appealed to members who had no time to investigate for themselves. Tho offering of large death benefits had been condemned by the Government's responsible officer, and, therefore, protective legislation surely should bo granted. It would be a great hardship upon the older members of lodges, if, after many years of contributing, they found that benefits looked for were taken from them. Mr." J. Robbin, Otago J1.0.0.F., M.U.;, said it had been, very discouraging in 1909 to find that although so many of thb lodges were in favour of their request they could not get the legislation introduced, and when it was introduced to find it thrown out.' ■ . ■

Thb Minister Sympathetic. The .Minister expressed tho pleasure it gave, him to see tho .leading men in the various societies showing this-healthy interest. . As ho had already stated, ho was thoroughly in accord with the proposal, because tho question at issue was a very serious one—for a young man to make provision for old ago when the contract into which he was entering could not be carried out. New members could bo tempted by.the prospects of immediatebenefits. In' a young country like ours we should look carefully at what was taking place in older lands, so that, at least, their mistakes should bo avoided here. If the friendly societies here were allowed to proceed on lines proved to bo a failure in older countries, it would .result in their .ultimate decer.se. At present, said tho Minister, he was only acting for the Hon. J. G. Ward, who had charge of tho Friendly Societies' Department. Ho was glad to have learned from tho Registrar of Friendly Societies, what he had also just heard stated by the deputation, viz.: that the disadvantages of the system complained of had been seen by the society which had adopted it originally, and that an alteration was carefully, but steadily, being made. This society was taking steps to do away altogether with the equal levy system, and to make its financial basis thoroughly sound. Tho great danger was, of course, that other societies would commence on similar lines, and legislation was desirable to prevent this in the future. He would make- representations to his colleagues and endeavour to get the legislation through next, session. "It will not be a very lonj? session," said the Minister, but the Bill also would be a short one. Tho provisions now desired by the deputation )•- been deleted by the Premier in 1909, because the Bill of that \year embodied other important issues, and it was feared the whole would be lost if the clauses were insisted on. Mr. Millar concluded that he looked upon this as an urgent matter, and he would ilo what he could to meet the desires p! the deputation ' I think you have promised all we can expect, , " said Mr. Robbin.