Untitled

New Zealand Herald, Volume XXV, Issue 9188, 18 October 1888, Page 4

The Government of New Zealand are especially unlucky with their public buildings ; and if some patriotic member were next session to call for a return showing the losses which had been sustained by the Government through fire within the last few years, the grand total of the whole would be very surprising. The Wellington Post Office is a recent instance, and now wo have the Sunnyside Asylum, by the destruction of which the colony loses £15,000. The colonial Government determined some years since to be their own insurers, and the insurance companies will no doubt think that it was lucky they did so. The history of the Government and their policy of insuring their own buildings is somewhat curious, and we do not think it has ever been made public. Some two or three companies were invited by the Government to send in tenders for the insurance of all Government buildings throughout the colonypost-offices, asylums, etc. The idea was, that these companies would re-insure with the other companies with which they did business. Some companies, however, objected to do the business in the way of re-insurance, and said they would not take it in that shape. The risks were to be taken at a low figure by tender, and by e " insurance they would be running a large risk for a small premium. It suggested that all the companies should be asked to tender directly, and «' e understand that proposals were sent m on that basis. But here arose another difficulty. Some of the companies declined one kind of risk, and another another ; one would take so much 011 one class, and so much on anotherAnd thus there arose a very complicated situation, but one which, we are informed by insurance experts, a skilled man could ' ul i e smoothed out, and got satisfactorily adjusted. But it was stilted tba

* mmtmmmmm the gentleman to whom the business wis referred, an officer in one of the Government departments, reported that ii could not be done, and that it was hopeless to attempt to do business with the insurance companies. Thereupon the Government determined to become their own insurers. We believe the Auckland Post Office is insured, and a few other buildings, but with these exceptions the Government bear the risk of all the public buildings. We are informed that the terms proposed by the companies were low, lower •than they would be now when the proportion of destruction amongst Government buildings has been made manifest.