THE New Zealand Herald. AND DAILY SOUTHERN CROSS. THURSDAY, JULY 18, 1912. NATIONAL INSURANCE ACTS.

New Zealand Herald, Volume XLIX, Issue 15048, 18 July 1912, Page 6

THE New Zealand Herald. AND DAILY SOUTHERN CROSS. THURSDAY, JULY 18, 1912. NATIONAL INSURANCE ACTS.

National .Insurance in Germany and France has been" instituted with such little disturbance of industrial conditions that little difficulty was originally anticipated in bringing into operation the provisions of the British Insurance Act. Unfortunately this optimistic anticipation appears to have been exaggerated, although it is impossible to estimate with any degree of accuracy the» depth of the antagonism now displayed in the United Kingdom to the practical application of a theoretically benevolent measure. The medical organisation has been stoutly opposing that particular phase of the Act which provides a basis for the payment of medical men, the ground of this opposition being the exceedingly small' sum offered by the Government for strenuous and skilful service. Apart from this difficulty, which may still be surmounted by reasonable concessions on. the part of the authorities, the Act is encountering the more serious opposition of general "apathetic acquiescence" and special active opposition. Sunderland shipyards are idle ; Liverpool dockers have struck; Grimsby labourers have been dismissed: all as a result of the inauguration of the Act. With these disheartening . occurrences in the initial period it is obvi-

>' 1 yjjrv " W V ' I 0u51y.... possible that much greater disturbances may arise unless they i are due solely to: misunderstanding of a very complex piece of legislation. If the Act is found' to work smoothly and to confer appreciable and ' material benefits without being oppressive in its incidence opposition will be speedily overcome, but in the meantime .there 'must I bo great uneasiness as to its effect upon British industrialism. There can be no question of the humane intentions of the British Government in the matter, but humane intentions are not sufficient where great national interests are deeply involved. The National Insurance Act of the United Kingdom provides for much the' same benefits as those whicjji have been so greatly appreciated by German workmen. • Both countries give sickness v benefit for twenty-six weeks, maternity benefit, sanatorium benefit and disablement benefit- at the expiration of the* sickness benefit. The German medical benefit terminates with the sickness benefit while the British medical benefit is for life. The British maternity benefit covers not only insured women, as does the German, but wives of insured, members; 9nthe other, hand, the Germans alone have a funeral benefit. From this it will be seen that the British system is somewhat more liberal than that of o>rmany; the British payments and benefits are on a higher scale. It was estimated by the British official actuaries that 9,800,000 men and 4,000,000 women would come under the Act at its initiation. The total cost for the first year is estimated at £7,385,000, an- amount which in fifteen years will increase to £21,000,000- annually. If the estimated cost. of Labour Exchanges and Old Age Pensions are added, the Ultimate annual' expenditure on " national insurance" will amount to

the enormous sum of 000,000. These figures indicate the tremen-

dous national importance of the new departure and emphasise the imperative necessity of sOund organisation and administration. The purpose of the National Insurance Act as it now stands,; is , simple enough, j it giveß insurance against sickness,; disablement and unemployment. To attain this simple purpose, however, a most complex and detailed measure has been found unavoidable. The almost infinite details and provisions are confusing in the highest degree, and it is presumable that from this complexity the opposition now being encountered has arisen. The fund; -from which the insurances provided by the British Act

are paid is ' formed, as in Germany, by contributions' from employers, employed and the State. The employer pays into the fund for himself and his workmen, deducting the workman's contribution from wages. This, provision appears to ~be the cause of trouble at Sunderland and Liverpool,, ' Where workmen are exempt from contribution, ;by age or incapacity, employers must contribute the employer's quota, but no; contribution .has to be made by. or for the exempted workman. Some misunderstanding of this provision may be at the root of the discharge of aged workmen at Grimsby. In any case, the British Government is now committed to the Act, which had the general support of. both sides of the House of Commons, and may be expected, to make such amendments and modifications as are needed to make it popular and practicable. . The need - for such insurances in' the United Kingdom has long been generally recognised, and it is impossible to ameliorate the grievous conditions of great masses of the population unless these, universal provisions are made. The difficulty is not in the benevolent spending of . many million sterling annually, but in the raising of the vast amount" required without inflicting hardship or disturbing industry. , . •> •