Social Security Will Kill Industrial Insurance

Northern Advocate, 21 April 1939, Page 5

Social Security Will Kill Industrial Insurance

—MR NASH,

[Special to “Northern Advocate ”l WELLINGTON, This Day. Confidence that the Social Security Act, when the public fully realised the extent and value of its provisions, would be the death blow of industrial insurance, was expressed by the Minister of Finance, the Hon. W. Nash, at the Easter conference of the Labour Party, according to the “Standard.”

The subject of this typo of insurance was introduced to the conference by the Epsom-Royal Oak branch in the following remit: “That a committee be set up to investigate and report regarding industrial insurance.” The general committee recommended to the conference that it should ask the Government investigate the operations of industrial insurance. Mr A. S. Richards, M.P., said he would support the recommendation if the committee would agree to an addition, that when a report was made to the Government it should be the subject of early legislation, if necessary.

Alleged Waste. The recommendation, amended to incorporate Mr Richards’ suggestion, was adopted. The “Standard” quotes Mr Nash as saying: “Too great a part of the money collected on industrial policies by the insurance companies is wasted in expenses, and never returns to the policy-holders.” He told the conference, it is stated, that so much authentic evidence on the subject was available that it might not even be necessary for the Government to hold ,an inquiry before bringing about reforms. Mr Nash said a large amount of striking and valuable evidence had come to hand in the past year. He mentioned a bulky report by .a British expert and a report prepared and legislation passed in Victoria.

Insufficient Reforms,

He had very recerftly been in touch with insurance companies writing industrial business—they were largely the same firms as operated in Britain and Australia—and the firms had agreed to accept some of the reforms brought about in Victoria, That, however, would not completely satisfy the ‘Government, Mr Nash said, adding that he felt sure the Social Security Act would be the death blow of industrial insurance. The Government, he concluded, would take the strongest action possible at the earliest possible moment.