STATE INSURANCE.

Hawera Star, Volume XLVII, 1 August 1928, Page 9

STATE INSURANCE.

OPERATIONS OF DEPARTMENT DISCUSSED.

OPPOSITION PARTY’S CRITICISM

(By Telegraph—l-ress Association.) W EDDINGTON, July 31. An interesting discussion ensued in the House, of Representatives to-day when the Hon. F. J. Rolieston laid on the table the annual report of the Government Rife Insurance Department. Mr. J. A. Lee (Auckland Fast) said the operations of the State Life Office went to show what could be accomplished by State enterprise. .Last year the department had assets valued at- £<>- Goo,OUO, and it played an important part in financing the country. Private companies were very hesitating in accepting security over rural lands, but the State Office had money which could be devoted to this purpose. In spite of the success of the Government lfife insurance Department there were those timid people who still emphasised the dangers of State enterprise and who were constantly asking where was the money to come from. If this department" was administered by a friendly Government it would be possible to make more sweeping reductions in premiums paid and larger bonuses could be granted to policy-holders. Mr. tV. E. Parry said the Reform Party generally' was hostile to State enterprise while the Nationalists were passive. When they observed active propaganda being carried on against State enterprise this attitude was instructive. The State should administer its enterprises as sympathetically as was intended by their promoters He did not suggest that life insurance should be made . a monopoly of the State, but he objected to the Government’Life Office being run by competing offices. „ The Hon R. A. Wright, Minister of Education, 'said the position taken up bv Messrs Lee and Parry would indicate that the Government was endeavouring to harm this institution. The Government could not do so if it tried. How could it P Mr. Lee: “Go slow policy.’ 5 Mr. Wright, continuing, said if there was any “go slow,” it must be on the part of the officials of the department, lor it had frequently been contended that departments were in the hands of those officials. The 1 arbour Party should show in what direction the Government could be more sympathetic towards the department. The only time Ministers interfered with departments was when there was something which required remedying. He did not think the Labour Party would suggest that the officials of the department were not doing their duty. . The Leader of the Opposition (Mr. H E. Holland) said the complaint of the Labour Party was that this office had its operations largely controlled by private companies. The Government would not admit the advisability of the State maintaining a monopoly of life insurance, because it would destroy competition, but at the same time it denied the department the right of competition. It did not use the depaitment as a means of bringing down premiums, but it practically allowed.tlie private companies to dictate the basis of premiums. The Labour Party bad not suggested making the State Life Department a Government monopoly, although a good ease could be made out in support of this course, but it did want to see the State Life Department an active competing concern. The Hon. A. D. McLeod, Minister of Lands, said that the Leader of the Opposition and others were endeavoring to drag a political red herring across the scent. At most, 90 per cent, of the insurance companies of the country were mutual concerns. “Privately owned . oinpanies” was a bogey set up by the Opposition Mutual concerns were valuable as ensuring that the State •oflice was “kept up to the scratch. Mr. G. W. Forbes said he would like to know what progress, had been made bv the department during the past year. It seemed to him there was not the same energy put into, the canvassing for new business. He contended that tlie Minister should take a closer interest in the all airs of the depaitMr. 11. T. Armstrong said that if tlie Government could put private companies out of business by legitimate competition it had the right to do so arid ought to do so. The Minister, in reply, said the amount of new business done duiing the past twelve months had been quite satisfactory compared with competing offices. It had done more business; with one exception,' than any other office in the Dominion, and was actually in fierce competition with its rivals. No Government had tlie power to interfere with business in the manner suggested. There was no truth in the statement that the department acted in collusion with other companies The Government was following a sale and sound policy, which was best in the interests of the country.