COST OF INSURANCE

Manawatu Standard, Volume XLVI, Issue 176, 26 June 1926, Page 9

COST OF INSURANCE

INCREASE IN AUSTRALIA. BAD EFFECT ON INDUSTRY. . SAWMILLERS MAY CEASE OPERATIONS. (By Electric Telegraph.—Copyright.) Received June 26, 9.45 a.m. SYDNEY, June 26. The new Workers’ Compensation Act is viewed with alarm by the sawmillers and timber operators generally. There is a probability that the majority will cease operations on Wednesday next, when the Act comes into force, thus causing serious unemployment. The most serious aspect is the liability of the millers for the teamsters and other bush workers who are contractors, and therefore beyond the millers’ supervision or control. One sajvmiller in tho Bellington district who employs 22 men and makes approximately £6OO a year from the industry has decided to close down, as lie finds that, after paying the new insurance premiums amounting to over £SOO, lie will have practically no profits at all. Other millers will be similarly affected. ... The Retail Traders’ Association has registered its own insurance company with a capital of £IOO,OOO. The manager of the company formed by the Chamber of Manufacturers states that his company has resolved to reduce the death rate from the 40s per cent decided upon by tli© Underwriters’ Association to 30s per cent, and will review the position at the end of six months .with the view to seeing if a further reduction in rates is possible.—Press Association.