Service And Prices

NZ Truth, Issue 979, 30 August 1924, Page 1

Service And Prices

Insurance Grab

A Minister's Theory— And His Practice

With vwhat mixed feelings did the old hard-shell Reformers hear

their younger champion, W. Downie Stewart, confess;.' that, >to protect the public from excessive prices, there, is no better way than State trading businesses operating m competition with private enterprise. He even suggested State brick works. '

But the old hard-shell opponents at' the Sed&onlan State businesses (State Fire Office, etc.) may have found some consolation a little bit later, m seeing Downie Stewart go into the Reform lobby against State accident insurance (workers' compensation). ; -•' What may be SAID- by Downie Stewart the M.P. is one thing. What may t>s DONE by Downie Stewart the" Minister for Customs is quite another thing.-' ' : - "'•■■'.-. '• ; ' . '■'•. ■ ■'■■■■-■-.. ; -. Does Downie Stewart, want to curb excessive private prices by means of State action?. Well, m America the State has succeeded m performing a community-service (accident insurance) at the low** price of less than 8

per cent, of the premiums charged. And m New Zealand the private insurance companies rake off more than 50 per cent, of the premiums charged. Yet, when there is a motion endorsing the principle of State .accident insurance, Downie Stewart votes against it, even with his words about STATE BRICK WORKS hot on his lips. (See "Truth's" cartoon on this page.) The Minister for Customs may not go into the lobby to which the words of Downie Stewart plainly pointed. But F. J. Rolleston went there. And that fact will encourage all those who stand for accident insurance as a com-munity-service, not as a field for costly competition and high profits m private pockets.