"MOST LIBERAL"

Evening Post, Volume CIV, Issue 90, 13 October 1922, Page 4

"MOST LIBERAL"

WORKERS' COMPENSATION LAW

PROVISION FOR DOMESTIC) LABOUR

STATE MONOPOLY ADVOCATED.

\ The Workers' Compensation Bill was before'the House l«st night, and an ''advocacy o! a State monopoly of accident insurance business was a feature of the debate. The position of domestic servants and casual employees was also discussed.

The Minister of -Labour," in moving that the Bill should be committed, said that it was a consolidating measure and that the texts of the Acts dealt with had not been altered in any important particulars. The increase in the per- j centage of wages to be paid in cases of total incapacitation from 55 to 58 was important, and he had been advised that that might mean an' increase of 4 per cent, in the premium rates. The alterations covering common employment were of particular interest. The Labour Bills Committee had altered the law in regard to domestic servants, and in that connection he had been advised that he had gone too far. If the provision that a domestic servant should be employed for seven days before she could claim compensation for" injury were deleted, it would" mean that a washerwoman taken in for a day, or even half a day, would be covered. The person employing her would be liable for any injury she might receive. That ivas as the committee desired it should be. He was informed that if the law was allowed to operate in that direction people used to employing domestic labour on one day a week would cease to do so and would prefer to do all the work themselves. That would mean that many deserving women would be thrown out of employment. Mr. W. E. Parry: "Give them a, fair .run." The Minister: "Is it fair to makd the law so severe that they will not be employed?" He believed that the proposal went further than was intended. It was a matter for the House, and if the House decided that the committee's amendment should stand, it would have to go at that. ■-. However, he would propose to reduce the seven days provided for in the Act to three. The Minister claimed that when the Bill was passed New Zealand would have the most liberal compensation law in the world. DOES NOT GO FAR ENOUGH. Mr. .jH. Poland (Ohinemuri) said.that although an advance had been made in the Bill, those who took a radical interest in the workers were satisfied that it did not go far'enough. New Zealand had dropped behind, and anybody who stated that the law, when amended, would be the most liberal in the world, had not kept himself Well versed in the trend of affairs. Every State in U.S.A. gave more than 58 per cent, in cases of total incapacity. In France, if a man was incapacitated he received compensation for, life, whereas in New Zea- j land the compensation was for six. years only. The Federal State law (U.S.A.) 1 covering State employees provided for a life pension for the widow and children of a man who loses his life through his employment. There should be a system of vocational training for men incapacitated througii the loss of an arm or through 'any other causes. They should do for injured workers what all countries had done for soldiers. Further, the rate of cdmpensatiori should be so high that accidents would be made almost impossible; that was to say, the employers would take every precaution to see that accidents did not occur. The man who met with an accident which prevented him from continuing his occupation. should receive at least 66 2-3 per cent, of his- wages. The benefits could be provided without taking another shilling ' from the employer by establishing a State insurance fund, and by the* State taking over tho whole business. The compe"ting companies to-day paid more in fees than they paid out in compensation. In New Zealand they had 35 companies, one competing with the other, instead of only one company. Accident insurance for workers should be a State monopoly. He realised that they were up against vested interests, and :he was really of opinion that the Minister was afraid for that reason to go as far as ho wanted to go. ANOTHER PLEA FOE STAT3 MONOPOLY.' , Mi\ R. Masters stated '■ that Mr. Poland's speech' was a very effective answer to' the Minister's claim that the New Zealand law would be the most liberal in the world. They should be' more' generous in providing for the payment of medical expenses to an injured man. Mr. Masters discussed the rate charged by the various companies, and commented upon' the fact that the State appeared to work in harmony with the other offices. Mr. Howard: "It is admitted that they all confer." Mr. Masters said that the increase in tho rates last year wag out of all proportion to the increased benefits secured by the workers. Now they were told that the additional benefits proposed would moan an increase, of another 4 per cent, in the rates, or a total sum of £17,960. They looked to the State- office for, relief, but it was not forthcoming. The rates charged in New Zealand were .much greater than those ruling in New South Wales. In New Zealand, .the rate for brickmakers was 355, and in New. South Wales 11s 6d to £1 7s 6d; brewery workers, £1 15s and 10s respectively; building trades, £1 15a and £1 2s 6d; creamery workers, 18s and ss, and so on. Nobody could say that tho insurance com' panics were not making huge profits. They were making tremendous profits out of insurance of workers. The State office last year made a profit of £9325 out o.f a: premium collection of £30,268. Tho office was to bo congratulated on tho success achieved, but it was a question whether the State office Should make such a big' profit. The profit should be paid to injured workers. If the suggestion of a State monopoly were adopted, ' and the business were managed on the same basis as at present, the profit per annum would be £130,778. He was convinced that even at the present time the State office could increase its business if it were to put more energy into the accident insurance branch. According to the figures published in the last Year Book, the sum of £449,784 was collected in premiums by all companies, and £228,----032, or only 50.7 per cent., was paid out in claims —a vftry small proportion. There was paid in commissions- 14.44 per cent., a charge which would not be necessary if accident insurance were a State monopoly. Salaries accounted for 10.54 per cent., which was a ridiculously high proportion, and 24.4 per cent, was left for distribution ill the way of profits. Queensland legislation bad often been quoted in 'the House, but ,its exaniplo .as. .{iir. as acciilcnt insurance' .was concerned could very utilt !)O follow!;!:! by New '/.enikiiel. j Oij, jiKcqufit. pi the auccees aclUßY£d, it

was possible to insure domestic servants without charging any premium whatever.

DOMESTIC SERVANT QUESTION,

Sir John Luke ((Wellington North) considered there was no difficulty in covering casual domestic workers, and therefore he. appealed to the. Minister not to alter the schedulo as brought down from the Labour Bills Committee. He believed the New Zealand law compared favourably with that of other countries; Queensland, he thought, was the only State in which the percentage was higher, and there it was 60 per cent. '■ He was not in favour of, a State monopoly in insurance. a One of tho first duties of the Government, thought Mr. W. E. Parry (Auckland Central), should be proper consideration for all its employees who were providing and distributing the necessities of life. There was every reason why a man, when he was incapa'itated, ■ should receive as much as when he was at work. He' condemned the Government for deciding to limit the domestic servants who come under the Bill to those with at least three days' continuous service. .The State accident insurance policy was not being pushed enough, with the result that jt represented only 5 per cent, of . the total accident business- done in' New Zealand. There should be no variation of the compensation because of the fate of wages received.

Leave Labour with no room to complain of manifest economic injustice, and much unrest will -be removed, was the burden of the argument* put forward by Mr. L. M. Isitt (Christchurch North). Casual domestic employment could be covered by a very small premium, and he could not understand how the committee's proposal would effect the employment of charwomen and others. He joined with those members who »had' advocated a State monopoly for accident insurance, and he felt sure that the lion in the road was the vested interests. However, if the Government had the courage to go ahead with the plan it would be -strengthened rather than weakened.

Mr. E. J. Howard (Christchurch South) said that if Mr. Isitt had been assured by the insurance company that his casual labour was covered, then he had been cheated. Mr. Howard admitted that the basis of the Bill was the most generous in the world, and he referred particularly to the second schedule, which sets out the compensation payable on account of the various injuries. There were certain anomalies, however, which should be removed. He was thankful that the c6mpensation for total incapacitation had been, increased 58 pc? cent., but it should be 60 per cent.

The Minister, in reply, described the debate as both interesting and instructive. Mr. Poland was not' right when he took him to task for saying that the compensation law was the most liberal in the world. He had been assured that, taken as a whole, the New Zealand law was the most liberal—the best in the world. It had been stated that the New South Wales rates were lower than New Zealand's, but he was assured that on an average the rate in New Zealand was lower than that in New South Wales. That was the evidence of the highest authority available to him. As far as casual labour was concerned, he had been told that in no insurance scheme in the world were casual labourers covered. In that connection New Zealand would stind alone. Owing to the total additional cost of premiums, he could not see his way to increase the percentage for total incapacitation to 60. Such a step would not be justified with the state of trade as it was at present. It seemed to him that the Dominion had a very fine insurance scheme. The second schedule wa3 a very good one, and the next step would be to remedy some of Ihe defeats that had been mentioned.

The Bill was committed forthwith, and afterHhe short title had been agreed to, progress was reported.