THE GOVERNMENT INSURANCE COMMITTEE'S REPORT.

Grey River Argus, Volume XXXIII, Issue 5556, 26 July 1886, Page 2

THE GOVERNMENT INSURANCE COMMITTEE'S REPORT.

THE POLICYHOLDERS' TRIUMPH.

[united press association.] Wellington, July 23. The Select Committee appointed on June 9 to enquire into and report on the subject of the investments made by the Government Insurance Association in land purchases, and also to report generally on the working of the institution, presented their report to Parliament to-day. They find that properties were purchased at Wellington and D. unedin prior to the Board coming into office ; that a purchase at Christchurch had been under negotiation, and was completed by the authority of the Board, and thai a site at Auckland was purchased by the Board. It appears, they say, from the evidence, that all these purchases were made with the object of securing sites for the erection of imposing buildings, on the ground that such were necessary to influence and promote the business of the Association. The Committee has to report in respect \ to these purchases that- an outlay of £84,779 has been incurred'; that with the exception of the Wellington building the premises are not used for offices by the Association ; that costly buildings were intended to be erected on the sites ; that all the purchases must be regarded as having been made partly for speculative purposes; and that it was undesirable that the funds of the Association should have been bo invested. The committee considers the erection of costly buildings, with the idea of thereby attracting business, unnecessary, and recommends that only such buildings be provided as are requisite for the proper and convenient conduct of the Association's business.

The committee considers it extremely advisable that any future purchases of land or buildings, and all salaries of officers, should be submitted for the approval of Parliament. In respect to the general working of the Association under the present Board, in the opinion of your committee the evidence justifies the following conclusions :— That the- disagreements in the Board and the publicity given to theße disagreements hare acted injuriously to the interests of the Association ; that the working expenses of the Association have been considerably increased ; and that no proportionate advantage has accrued j that the interests of the policyholders require that a portion of the funds should be invested in securities yielding a better return than can be obtained from Government securities ; that canvassing for lives is necessary to the success of the Association. Your committee has agreed to the following resolutions, which it recommends to the consideration of the House : — That the present Board should be abolished. That the general management of the Association's business should be entrusted to an officer of high character and attainments, and possessing experience in the business of insurance. . That the Act of 1874 be re-enacted, Bubject to the recommendations of this Committee. That not less than one-half the funds of the Association should be invested in Government securities and in the debentures of public bodies in New Zealand secured by rates. That the remainder of the funds should be invested in advances on policies, and on mortgage of freehold properties; in New Zealand : provided that no; such mortgage shall exceed £1000, and the money lent shall not exceed one-half the market value of such property. That all moneys lent on mortgage^ should be invested in the various provincial districts, as nearly as practicable in the proportion in which_ the same have been derived from; Buch districts: provided this can be done without less to the Association. That applications for loans not exceeding £500, secured upon real property, should have priority over applications for larger sums. That for dealing with investments a special Board should be appointed, such Board to consist of the Minister in charge of the Department, the General Manager, the SurveyorGeneral, the Property Tax Commissioner, and the Public Trustee. That no investment by mortgage or loan ■hould be made without the unanimous vote of all the members of the Board present at the meeting at which such loan is considered ; and that in all cases the assent of not less than three members shall be required. ! That canvassing for lives should be continued ; and that encouragement be given to the issue of small policies.