STATE INSURANCE FUNDS

Evening Post, Volume CXI, Issue 93, 21 April 1931, Page 8

STATE INSURANCE FUNDS

Strong protests are made in our correspondence columns against the Government's proposal to transfer to the Consolidated Fund llic proceeds of the 10 per cent, reduction of salaries iv llic Slate Insurance offices. Among those who protest on principle arc a former actuary of llic Department and a former deputy-com-missioner. They point out that it

has been widely advertised that all i profits Belong lo the policy-holders and that the proposal lo seize the proceeds of the cut will be a breach of that assurance. It appears to us that the case submitted against the proposal 'is so strong in principle that the Government cannot afford lo ignore it. If it could be shown that the salaries or any of the expenses of the insurance departments were met from taxation the Government would be justified in it's action. But it is contended that all. such expenses are met from policy-holders' funds. In such circumstances the seizure of the 10 per cent, is equivalent to a demand that the Government insurance offices shall pay a special tax to which other insurance offices are not subject. Unless the Government can show that there are facts which alter this statement of the issue, we think it would be .wise to withdraw the clause. Though the money is urgenly needed, harmful precedents should not be established in order to secure it.