TRANSPORT BOARD’S INSURANCES

Dominion, Volume 30, Issue 299, 14 September 1937, Page 10

TRANSPORT BOARD’S INSURANCES

Transfer to State Office

TWO MEMBERS OPPOSE

CHANGE Dominion Special Service. Auckland, September 13. Objection to a recommendation of (lie Auckland Transport Board in committee to transfer ail its fire and fidelity insurances from private companies to the State Fire Office was voiced by two members of the board in open meeting. It was decided by a majority, however, that the transfer would be effected but that a stipulation be mode that the customary reinsurances would not be placed overseas by the State Fire Office.

Mr. J. A- C. Allum said such a move seemed to him to be a capricious action to place the whole of the board s insurance business with the State in preference to private undertaking, and he thought the board would find that the great mass of the public were getting a little tired of the State taking over so much of what had been before private enterprise. He objected to the principle of giving business to the State simply because it was the State. At present the board’s insurance business was shared among 39 local companies, and in the past the board had always stipulated that its business should be done locally and that any necessary reinsurances by a local company should not be placed overseas. From a letter of the State Fire Office, however, it seemed that unless the board made this stipulation some of the reinsurances would go to overseas firms. "We are making a change from business that has served us well and faithfully over a long period,” said Mr. Allum "and we are getting no pecuniary benefit at all. Ido not think the move is necessary, and I do not think that we should transfer business to the State merely .because it is the State. N Mr. 11. A. Anderson supported Mr. Allum’s objection. He said he could not see anything in the report of .the board in committee to justify such a peremptory change. There should certainly be a stipulation that reinsurances should not be placed overseas. The Hon. I*. E. Lark said that when the State Fire Office had 'been established it had been responsible for a reduction of 33 1-3 per cent, in the costs of insuring, and State insurance had resulted in a saving of £10,000,000 to the people, as well as an additional saving of £3,500,000 through its rebate system. The State office was the people’s own institution and the greater the support, given to it the greater would be the benefits to the people. The chairman, Hon. H. G. R. Mason, said if it was merely a question of State enterprise against private enterprise the sphere of insurance was an unfortunate one in which to raise the question. He believed, however, that local offices would still get almost as much, if not wholly as much, benefit from the transfer through reinsurances as they had got in the past. Mr. Allum and Mr. Anderson voted against adoption of the recommendation.