UNEMPLOYED INSURANCE

New Zealand Herald, Volume LXIX, Issue 21289, 16 September 1932, Page 12

UNEMPLOYED INSURANCE

MEN ON RELIEF WORKS BOARD TO BEAR COST HELP FOR LOCAL BODIES OPERATION FROM OCTOBER ! [r.V TELEGRAPH—I'UKSS ASSOCIATION 1 WELLINGTON, Thursday Tho, Unemployment Board lias decided to take over tho cost of insurance for relief workers from October 1, according to a statement by the acting-Minister of Employment, Hon. A. Hamilton. "For some tinic past local bodies throughout New Zealand have beon complaining to tiie Unemployment Board of tho cost of carrying different charges relating to relief workers under their care, such as thoso for insurance, tools, transport and supervision," Mr. Hamilton said. "This problem has become very acute in the capital city. In order to givo local bodies a measure of relief the board has now decided to take over the insurance cost. This employers' liability has always been carried by tho Public Works Department. Subject to necessary confirmations the Unemployment Board will, from October 1. accept this insurance liability.

"Arrangements will be made for the State Fire Insurance Office, which has offered to assist the board at a nominal cost, to determine the amount of compensation duo to any injured relief worker. Tho board freely acknowledges tho valuable assistance given it by local bodies in handling the unemployed problem. The measure of help thus given will enable theso local bodies more freely to continue their. assistance lo the board in the administration of (ho relief fund."

The average expenditure on wages paid to relief workers in tho Auckland metropolitan area is from £IO,OOO to £12,000 a week, "so that tho decision of the Unemployment Board to relieve the local bodies and other organisations of tho need for paying insuranco would savo them from £125 to £l5O a week. Some of the local bodies and school committees would ba able to use tho money thus saved for providing tools and supervision for a greater number of workers, while thoso which are now compelled to ceaso operations because of their inability to find tho insurance payments would be able to keep the workers employed. It has been suggested that Unemployment Board would bo able to make an arrangement whereby it would bo able to cover the workers by insurance at a lower rate than 25s per £IOO, so that the additional cost, involved in assuming the responsibility for the payment of insuranco would not bo so great as would appear at first sight.