THE GOVERNMENT LIFE INSURANCE ASSOCIATION.

Otago Daily Times, Issue 7541, 19 April 1886, Page 4

THE GOVERNMENT LIFE INSURANCE ASSOCIATION.

'Per United Pjjess Association.)

Wellingtok, April 17. ~ The Ministerial journal this evening publishes' the following information relative to the Government Insurance Association: —

Towards the end of March a committee of the Board, consisting of Sir J. Vogel, Messrs Bell, Graham, N. Reid, and the Solicitor-general, -,vas appointed to prepare a scheme of reconstruction. Their report, agreed to on April 1 by-the-way, was that a member of the Government should be on the Board, and that the number of members should, by the gradual retirement of the three nominated members, be reduced to six, three of whom should be elected, the others being the Secretary to the Treasury, the Solicitor-general, and the Commissioner of Property Tax, if the Public Trustee did no), wish to be a member. The appointment of chairman, it was recommended, should be made by the Government, who should appoint one of the official members to that position. The honorarium of each member was to be fixed at 50 guineas a year, but the chairmau should in addition receive any sum not exceeding £200 which the Board" might fix. The present nominated members would retire in tho order

fixed by the Act and should not be reappointed, except that the member retiring next month might, if he desired it, be reappointed, which, of course, would mean the postponement of any alteration in the constitution of the Board for another year. Certain alterations in the powers of the Board were also recommended. When this report was brought up, Mr Shannon gave notice of moving several amendments, which were to the effect that the Board should elect its own chairman annually, that the honorarium of the official members should be £100, that the elected members should receive £200 and the chairman not exceeding £400 a year, and thatall the present nominated members should cease to hold office as soon as Parliament passed an amendment Act. Yesterday the Board met to consider the report and certain other motions of which notice had beeu given, and to which I will refer hereafter. Mr Shannon's amendments were partly carried, the scale of honorarium being fixed at £-50 for official members and £100 for elected members, and £200 for the chairman. It was also resolved that the chairman should be appointfid by the Government from amongst the members of the Board. When the adoption of the amended report as a whole came on it was f however, met by an amendment—of which Mr Nicholas B.eid, one of the nominated members, had given notice-to the effect that it was desirable that the business

of the Government Life Insurance Association

should be returned to the charge of the Government. As a counter proposal to this Mr Shannon had tabled a motion that the actuary be instructed to prepare a scheme for converting the Association into a mutual office, subject to the maintenance of the Government guarantee to all policies issued before some future date to be named, but so that the Government may be absolutely protected against all risk of loss. A somewhat warm discussion took place, but ultimately the adoption of the Committee's report as amended was negatived, and Mr Reid's motion to hand back the Association to Government control was carried, Sir Julius Vogel, Mr Graham, and Mr Shannon voting against it. Of course this settled the question, so that Mr Shannon's mutual office proposal could not be put. As the matter now stands, therefore, the Board has resolved to invite Parliament to resume control of the Association as a Government department and to deprive the policyholders of all voico in the management of the business. This decision has been arrived at on the motion of one of the nominated members,

and was supported by one of the elected representatives of the policyholders—Mr Bell. Mr Fisher was absent, and practically, therefore, Mr Graham and Mr Shannon stood alone.