WORKERS’ COMPENSATION.

Otago Daily Times, Issue 19844, 17 July 1926, Page 13

WORKERS’ COMPENSATION.

LABOUR'S FEANRENSTEOP, INSURANCE COMPANIES WITHDRAW, (IteoM Oor Own Correspondent.) SYDNEY, July 8. No Labour legislation, or any other legialotion for that matter, in the history of New South Wales has created such a stir in the community as the Workers Conl- - Act. The employers are all up against it; the majority of the underwriters, especially the British companies, have revolted against it and declined to operate under it; the Government has got itself into an almost hopeless tangle over it, and the Leader of the Opposition (Mr Bevin) has made peonle wonder whether it is really safe to insure through the new State Insurance Department by his declaration that the Government cannot enter this field of enterprise without parliamentary sanction. Each dav & iresn knot has been added to the tangle. It now remains to be seen m actual operation, the Act is as bad as it is painted. It was rushed through Parliament, and the more vital provisions of it were strenuously opposed by Mr Bevm, but it is only within the last week or two, on the eve of the Act coming into operation, that the business community appears tohave sat down to digest the measure. The Act has caused a storm, not only among employers and insurance circles, but even in the ranks of the Labour Party, whoso members, of course, have not been slow to souse public feeling in the matter. ,There is a fairly general feeling that it will p-.-ove something of a Frankenstein for the Government. The Act, for good or ill, is now on the Statute Books. It is now for the Government to shoulder the burden, of it, sine© the majority of tho underwriters have decided to stand clear of The fact that more than 60 insurance companies, mainly British, and including seme of the oldest and wealthiest of them operating in New South Wales, declined to take out licenses under the Act, did not com© as fl.ny very preat surprise. Their attitude, Jn cfTcct, is that on the terms which they would be compelled to offer they could not do satisfactory business against Government competition, especially under an ambiguous Act of which they have had no experience. _ For the smaller companies especially it is a big step, bocause they are risking the loes of some of their fire business also, for, where workers’ compensation business roes, there will also go a certain amount of fire insurance business of those who insure in respect to compensation. That some companies, however, as well as the Government office, are prepared to issue policies under the Act will be something of a relief to the banks. The prospect of th© Government doing nil the business was regarded with some disquiet. In that case premiums amounting^to perhaps £3,000,000 would have been paid into the Treasury, and by the Treatjurv to tho bankers of the Government. Thus a more than normal amount of Government deposit* would have accumulated, with a resultant stringency in some measure among other hanks.