FINANCIAL ASSISTANCE

Otago Daily Times, Issue 17299, 26 April 1918, Page 8

FINANCIAL ASSISTANCE

CURTAILING THE. GRANTS TO RECIPIENTS. A good deal was said in tho House during tnc short session about the curtailment ol tho financial assistanco to soldiers wives and families. Dr 'l'liacker asked w„hy tho financial arrangements to soldiers, made by tho Financial Assistance Board, wero cancelled when the increased separation allowances camo into force on January 1. This, ho said, prevented married women with children putting asido a nest-egg for their husband's return; tho single reservist could always do so. Sir Jas. Allen replied: .The grants made to soldiers by the Financial Assistance Board were not cancelled when the increased separation allowances came into force on January 1. In view of tho increased allowances, however, the board resolved to review all grants, and felt justified in reducing its grants in certain cases in order to extend equitaole treatment to all applicants, ns later applications would havo to be considered on the 1918 allowances. The board was obliged to take this course also for the purpose of removing certain anomalies that were created when the increase : ;Owances was made, particularly in the cases where tho wife's income was in excess of the soldier's total civil earnings before joining the Expeditionary Force. If,, however, the honourable gcntlemah knows of any cases where, in his opinion, tho circumstances of a soldier and his dependents have not been adequately met and will submit full particulars direct to the Soldiers' Financial Assistance Board the latter will bp only too pleased to reconsider its previous decision.

Mr Ukey asked the Minister of Defence whether he will amend the regulations relating to soldiers' insurance so that the 1' mancial Ass.stance Board shall pay life insurance and war risk on policies up to JJSOO on young men going to the front without- any restriction us to their position? Many men who went away strong and healthv were returning, he said, in such a state of health that insurance companies would not accept them for life-insurance purposes.

iS._r J. Allen replied that the Financial Assistance Regulations were brought into operation to prevent -undue hardship. The board paid premiums and war-loading on policies up to £200 where the financial circumstances of the soldier were such that lift was una bio to meet such obligations and provide lor reasonable personal require ments when on activo service. The suggestion would, however, receive consideration.

Mr Veitch asked the Government whether it would, when considering the question of allowances made by the Finanoial Assistance Board ,also completely redraft the regulations in tho direction of granting more generous separation allowances to the mothers of soldiers.

Sir J. Allen replied that tho matter of separation allowances was under review at present.

Mr Anderson asked the Government whether it would see that the Financial Assistance Board did not refuse assistance tc widows who received an allotment of the pay of their soldier sons and were saving the money for their boys when they return to pay interest on mortgages on property in the _ name of their soldier sons. Sir J. Allen replied that at the present time all grants' made under the Soldiers' I'inancial Assistance Regulations wero conditional upon the soldier making an allotment of 3s 6d per day in favour of his dependents. In effect, the honourable gentleman was .asking that claims for financial assistance should be considered irrespective of the soldier's allotment in order that the latter might bo put aside for him when he returns to civil life. The adoption of such a principle would involve a very heavy additional expenditure The suggestion would, however, receive careful consideration.

Air Anderson asked the Government whether it would instruct the Financial Assistance Board to pav the nremiums on insurance policies taken out" by soldiers for the benefit of their families, up to {he amount of £700 at least, more especially when the families were not in good financial circumstances.

Sir J. Allen replied that the principle was at present observed with respcct to policies no to £200. The question of increasing the amount to £300 would receive consideration.