The Northern Advocate Daily “NORTHLAND FIRST” TUESDAY, MARCH 29, 1938. Insurance For Workers

Northern Advocate, 29 March 1938, Page 6

The Northern Advocate Daily “NORTHLAND FIRST”

TUESDAY, MARCH 29, 1938. Insurance For Workers

Registered for transmission through the post as a Newspaper

THE intention of the New Zealand Government to introduce a system of national insurance gives importance to a circular in which the Bank of New South Wales discusses the principles underlying social insurance on a national basis. The bank pointed out that a very small proportion of the lower income groups of the community is capable of providing against old-age and such contingencies as ill-health and unemployment. In many countries the Government has stepped in to help its citizens by provision of social insurance schemes, which are calculated to support insured workers when any of these risks mature. Great Britain already has a system of social insurance, and the Dominion Government, simultaneously with the Commonwealth Government, is contemplating the introduction of a comprehensive scheme of social service, specially adapted to its particular conditions. The bank discusses the principles underlying social insurance on a national basis, and points out the essential differences between the British scheme and any system that may prove acceptable to the Dominions, and particularly Australia. The main proposal under consideration is that of a compulsory contributory scheme with equal contributions by employers and workers, to a fund supplemented by a Government subsidy. The bank claims that the services of friendly societies should be utilised because “voluntary social insurance by friendly societies and trade unions has been very successful” Further, “they are better fitted than a Government department to acquire an intimate knowledge of individual circumstances.” In addition, the bank urges, benefits would need to be not less attractive and contributions not more onerous than those to which the insured are accustomed under existing voluntary schemes. 1 The best solution to the problem of whom to include in the scheme, the bank suggests, would be to extend the right to social insurance to all who wish to join.