INJURIES TO WORKERS

Otago Witness, Issue 3773, 6 July 1926, Page 30

INJURIES TO WORKERS

KEW SOUTH WALES COMPENSATION LAW. SYDNEY., June 29. One of the largest Australian insur*noo companies, operating in New South Wales, has decided to cease undertaking insurauces under the Workmen s Compensation Act. It is believed that the remaining Australian companies will do likewise. Nothing yet has been decided regarding companies having their headquarters in Britain, but it is known that the position is. receiving the earnest consideration of the London directors. Mr Lang stated definitely that there would be no postponement of the operation of the Act, which comes into force on Thursday. He declined to discuss the point raised by Mr T. R. Bavin as to the legality of the Government’s action, but said that if the State took on the responsibility his Government would never repudiate it. . The Leader of the Opposition pointed out that the Government, under the present law, had no power to undertake general insurance, that such action would bt purely illegal, and the Government would be in a position to repudiate any policy if it chose to do so. He declared that the confusion and alarm created by the Government’s action throughout the country was appalling. COMPANIES IN AGREEMENT. SYDNEY, June 29. After a conference with the controlling officers of the accident underwriters it was officially announced that 42 Australian, British, and foreign companies had decided not to be licensed under the Workers’ Compensation Act. The number includes most of the large British offices. UNDERWRITERS DIVIDED. SYDNEY, June 29. The meeting of underwriters split into two seetions, a number deciding to continue to undertake the compensation risks, but the rates to be charged are not yet fixed. A number of the companies, how. ever, hope to be able to undercut the Government rate. One company has already decided to make a reduction to 15s per cent., or 5s below the Government rate. SERIOUS EFFECT ON INDUSTRY. SYDNEY, fune 30. Many hundreds of people will be idle to-morrow, when the -Workers’ Compensation Act comes into operation. The saw-milling industry on the North Coast is practically suspended. Many share farmers have given notice of their intention to quit. In trades and industries generally the pruning knife is being applied and staffs are teing cut to a minimum. The Master Carriers’ Association has decided to increase the cartage rates from duly .1 owing to the operations of the Act. A section of the Act provides that insurance companies doing business under the Act must withih three months deposit with the Colonial Treasurer EoOOO or £IO,OOO, according to the income received. The Australian Jockey Club has taken out a license under the Act with the object of indemnifying and insuring racing clubs, owners, and trainers agaist payment of compensation by them. July 1. The State Cabinet, after considering the Workers’ Compensation Act, decided thnt at the present juncture there would be no State monopoly .of insurance. Additional insurance companies have notified that they are unable to operate under the new Act. In some country towns indignation meetings have been held, and a demand lias been made that the 'Act should be amended. Additional sawmills are closing down in the southern as well as in the northern districts. The town clerk told the Finance Committee of the City Council that the cost of insurance under the Workers’ Compensation Act last year was £13,139 and under ibe now Act the cost this year would be £4B 000 to £50,000. The operation of the Act will increase heavily the running cost of the shipping services. It is regarded as certain that freight rates and passonger fares will be raised. The closing of the sawmills will probably result in a number of ships being rendered idle. The Water Board docidsd to carry its own risks. All future applicants for employment will havo to nro. vide medical certificates showing that they are in a state of good health. ONE HUNDRED SAWMILLS CLOSE. SYDNEY, July 1. • The secretary of the Sawmillers’ Association states that nearly 100 mills have been closed in New South Wales as a result of the new Compensation Act. The closing of these mills has rendered idlo 15,000 hands.