FRIENDLY SOCIETIES

Otago Witness, Issue 3403, 4 June 1919, Page 41

FRIENDLY SOCIETIES

INCREASED MATERNITY ALLOWANCE PROPOSED. PROBLEM OF SOLDIER MEMBERS. WELLINGTON, May 27. The Cabinet has dealt with the matters recently brought before Sir James Allen and other Ministers of the Crown by a deputation from the friendly societies. The Hon. Mr Hanan {Minister in Charge of Friendly Societies) made a statement on the subject to-day. In connection with the request made by the deputation relating to the maternity allowance, he was pleased to say that a recommendation made by the Hon. Mr Myers (Minister in Charge of the National Provident Fund) had been' approved, with the result that the necessary legislation would be prepared to raise the allowance to members of friendly societies from £4 to £6, and to increase the wages limitation for this allowance for all persons in the fund and in friendly societies to £250 \ Mr Hanan said that throughout the war he had given the question of friendly pociety finances anxious consideration. The decision to protect the funds against the war mortality of friendly society members, which resulted in the establishment by his department in 1916 of a special fund for the purpose, had been successfully carried out. Without this help a loss of about £70,000 would have fallen upon the friendly societies' benefit funds, but this deficiency had now been reduced to a minimum by means of the co-operative action adopted in this scheme. The Government had further recognised that friendly societies were deserving of consideration on account of their soidier members, whose contributions, not being paid while they were serving vith the forces, entailed an estimated loss of £29,000. A scheme had therefore been provided to re-establish the pre-war position in the benefits funds of the societies on this account. In connection with these two subsidies, the Minister said he was glad to be able to announce that the Cabinet had agreed that £4OOO (being the Government overcredit to the societies in respect of these two accounts) be deyoted towards further reducing any losses the societies would incur in connection with the war mortality fund. Referring to what he considered the most difficult problem to deal with—"the after discharge" sickness of soldier members of friendly societies, Mr Hanan said it was rery desirable to initiate a system that would enable this matter to be handled or. sound lines. In some quarters it was expected that this sickness would constitute a serious drain on the friendly soci«t : .<?&* benefit funds, which were built on contributions quite foreign to the recent war experience. The Government had agreed to a scheme submitted by him, under which friendly societies should separate all sickness of discharged soldiers from that of their other members, and establish separate funds

for the purpose of assessing and valuing the future experience of these members sepa rately. The Government would subsidise the excess sickness disclosed in these funds to the extent of one-half. Tho Minister said he hoped and believed that the friendly societies would co-operate with his department in the establishment of these separate sickness funds in order that this difficult problem might bs placed on a good administrative basis as early as possible. He had arranged for the Registrar (Mr_ R. E. Hayes) to confer with the societies in connection with the establishment of the system.