SEVERE BLOW TO FREE TRADING: STATE MONOPOLY

Gisborne Herald, Volume LXXVI, Issue 23020, 10 August 1949, Page 8

SEVERE BLOW TO FREE TRADING: STATE MONOPOLY

(P.A.) AUCKLAND, Aug. 9. Insurance business in New Zealand, although still of great value and more than holding its own, was falling in the proportion of total business, said Sir James Gunson, acting-chairman of the New Zealand Insurance company, Limited, at the annual meeting today.

The Government’s action in making a State monopoly—with minor exceptions —of employers' indemnity insurance was a great blow, and many employers were now being called upon to pay heavily-increased premiums. “Nor will the workers benefit to any extent, as they cannot reasonably expect to receive from a Government monopoly that prompt and generous settlement of their ordinary compensation claims which has always been extended by the insurance companies,” said Sir James. There is now nc alternative available, in the face of any inattention or discourtesy; no other insurer is allowed to compete," The implementation of the Labour Party’s nationalisation policy would cut deeply at the root of all free enterprise, and ultimately destroy initiative and the development of industry, he added. Overseas Developments New Zealand had many services which were appropriate for State ownership. If the Dominion would stop at that and allow freedom in trading, its future would be more assured. Looking overseas. Sir James said a steady development of operations in Britain was anticipated, but the U.S.Awas the most valuable of all fields. An extension of marine insurance there had been made by the company in the past two years. South Africa, East Asia, and the Near East all presented difficulties, but conditions In the new State of Israel had improved. Great importance was attached to business in India and Pakistan. In China business had been only nominal, and the utmost prudence had to be exercised. In Japan, it was confidently expected, it would be possible to re-enter the underwriting field, mainly for marine insurance. Australia, although prosperous, was now suffering through labour unrest, but taking the long view the company saw a great opportunity for business there.