EARTHQUAKE RISK

New Zealand Herald, Volume LXXI, Issue 21876, 11 August 1934, Page 13

EARTHQUAKE RISK

PREPARING BY-LAWS

GUIDE FOR LOCAL BODIES COMPULSION IF NECESSARY NATIONAL ASPECT OF MATTER * [B\- TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Friday "W hen the model by-laws for earthquake protection aro drafted by tho committee of experts which is at present engaged on this work, local bodies will be asked to put them into operation, but if no action is taken along tho lines recommended, compelling legislation will be brought down," said the Primo Minister, Mr. Forbes, in the House of Representatives to-day, speaking in tho debate on Mr. W. E. Barnard's Earthquake Protection Bill. Mr. Forbos explained that the committeo would take some time to report, but that in the meantime, action had been taken by one or two municipalities, including the Wellington City Council, which had framed by-laws similar to those recommended by the Hawke's Bay Commission. Copies to be Supplied

Mr. D. G. Sullivan (Labour —Avon): Is it to be left to the discretion of local bodies whether they accept, reject or amend tho by-laws? Mr. Forbes: Local bodies will be supplied with copies of the new by-laws, which they will bo asked to make use of. If they do that, there will be no need for enforcing legislation, but if local bodies do not work along the lines recommended, the necessary legislation will be brought down. That is my own view. When the committee has finished its work, I think we shall have set regulations which will give reasonable protection to the public and which will not add unduly to expense. Earlier in his speech tho Prime Minister referred to the visit to England of Mr. J. H. Jerram, general manager of the State Insurance Office, and said that when he returned tho Government would be in a better position to decide what further provision should bo made against earthquake risk. Proposed Special Tax

The primary object of Mr. Barnard's bill is to provide for the imposition of a special insurance tax at the rate of Is per cent in respect of fire insurances of buildings and contents, the' fund thus created to provido against earthquake losses. The bill was referred to the Public Accounts Committee, which reported to tho House to-day that it had heard evidence on the proposal contained in the bill. As the bill involved an appropriation, the committee recommended that it should not be allowed to proceed. However, the committee expressed the opinion that tho subject matter of the bill was of sufficient importance to warrant an inquiry by a committee appointed by the Government, to which the information on earthquake insurance at present being sought overseas by Sir. Jerram should be made available. Mr. Barnard said that as Mr. Jerram would return to New Zealand in October, he hoped, if the House was still sitting, that the Government would consider bringing down legislation to establish a fund for use in any portion of New Zealand should it be affected by earthquake. Waiting for Information

Mr. Forbes said the report of the committee was the only one that could have been brought down in the circumstances. When Mr. Jerram returned from England, the Government would be in a better position to decide what further provision should be made against earthquake risk. Mr.' Barnard had said he would not like any other district to be placed in the same position as Hawke's Bay as far as the method which had been adopted in regard to finances was concerned. Mr. Barnard: I am speaking of business people. Mr. Forbes: Well, business people then. I don't know whether the honourable gentleman has in mind the building up of a fund from which he proposes to make a free gift to business people and others who suffer loss through earthquakes. Mr. Barnard: Not necessarily. Mr. Forbes said that under the method adopted in Hawke's Bay, loaus were advanced at a reasonable rate of interest. Mr. Barnard: They might be free of interest altogether, I suggest. Mr. Forbes said it was left to the Napier people themselves to decide whether they wished to make an application for a loan with which to rebuild their premises. Importance of Principle The Leader of the Opposition, Mr. M. J. Savage, said that the principle in the bill was probably one of the most important the House could discuss. No part of New Zealand was immune from earthquake and 110 town knew when its turn was coming next. Tho Government should take immediate action to appoint a committee or to authorise the Public Accounts Committee to act upon whatever information was available upon the return of Mr. Jerram. "This is a national responsibility and the thing should be put on a proper basis," said Mr. Savage. "We might say to tho Hawke's B;ly people, 'You arc not going to pay any interest on money advanced to you for tho purpose of making good the loss brought about through no fault of yours. You have already suffered severely from what Nature has inflicted on you, and wo people of New Zealand are going to stand together and accept at least a major portion of your losses.' If we said that, I don't think it would he regarded as sentimental talk. Wo have to face up to the position. I suggest this is a national risk and I am quite positive people would regard it as such. It only requires the Government to put the machinery into operation." Other members generally supported the principle of establishing a national fund and tho committee's report, was tabled.

CUSTOMS REVISION FURTHER ADJUSTMENTS BILL APPEARING NEXT WEEK [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Friday Long conferences have taken place during tho past two days between tho Minister of Customs, Mr. Coates, and officers of tho Customs Department, with a view to preparing the Customs Amendment Bill for introduction in the House of Representatives next week. Various adjustments in tho new rates enforced by tho resolutions earlier in the session aro contemplated in the light of the representations since made to the Minister, but before details of the bill are completed, the Minister desires to secure the approval of the Cabinet. It is expected that tho bill will bo brought down about the middle of next week.