PROVIDENT FUND.

New Zealand Times, Volume XXXVI, Issue 8192, 6 August 1912, Page 4

PROVIDENT FUND.

HELPING FiiIENDLY SOCIETIES. A contributory scheme of sick benefit is provided unuer the iNational Provident Fund, the State paying one-third of the cost. These operations are outside the scope of the friendly societies, hut it was considered by Mr it. G. Ell, M.P., when he was Minister in charge of the Provident Fund Department, tnat members of these organisations were entitled to the State subsidy, just as much as contributors to the State system. He therefore gave instructions to ascertain the cost of providing an official subsidy upon the disbursements of fnendy societies for such benefit on the basis of 2s 6u on the first ss. of every weekly payment for sick benefit. This was to be a direct Government subsidy. The departmental officers reported that the cost of such a scheme would be between JL'I2,OUO and a year. Mr Ell did not have an opportunity of bringing a Bill down to provide for this scheme while he was a Minister, but hopes non as a private member to do so. Dndei the present system also the National Provident Fund cannot be takeh advantage of by local bodies, because they cannot deduct from the pay of employees for contributions. The late Minister gave, instructions to amend the Act sc that local authorities and companie should be enabled to participate in tb? fund. Local bodies would then subsidise the contributions and decide whr.; proportion they should conti ibuto. More over, this provision was to be irrespective of the age of the employee.