THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE MONDAY, WEDNESDAY, FRIDAY "Public Service" WEDNESDAY, AUGUST 11, 1948 THE INSURANCE TAX

Hauraki Plains Gazette, Volume 57, Issue 4028, 11 August 1948, Page 4

THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE MONDAY, WEDNESDAY, FRIDAY "Public Service" WEDNESDAY, AUGUST 11, 1948 THE INSURANCE TAX

The tax on insurance is to continue if the report of the Earthquake and War Damage Commission reflects the opinion of the Government. This tax, gathered so easily by the insurance companies and paid so automatically by the premiumpayer, continues to amass, together with interest, a net capital of £600,000 a year; the fund now amounts to almost £6,000,000. The commission of course still shakes its collective head with foreboding; although claims totalled only £BOOO during the year there is no telling what lies around the corner. That is its attitude. The continuation of this compulsory tax is an indication of Mr Nash’s determination not to surrender an easy and lucrative source of revenue. The risk of war damage was the original reason for “ loading ” insurance premiums, but when the war ended with claims for war damage almost nil there was no readiness to end the tax. The emphasis was suddenly placed on earthquake risks and so emerged that strange present association, “earthquake and war damage.” The t Government would have been just as consistent in tacking on to it “ flood, lightning, volcanic and gale damage ”; these are risks as unpredictable as earthquake risks and if a compulsory tax is justified in one direction it is in the other.

The resources of the State, which are the resources of each individual, stand ready to meet a national disaster as it arises. Recognition of that fact suggests that now the earthquake fund has reached the staggering total of £6,000,000 the time has arrived to end the tax; which as it exists today is one more addition to high internal costs.