WORKERS’ COMPENSATION.

Otago Witness, Issue 3775, 20 July 1926, Page 61

WORKERS’ COMPENSATION.

SYDNEY, July 8. No Labour legislation, or any other legislation for that matter, in the history of New South Wales has created such a stir in the community as the Workers’ Compensation Act. The employers are all up against it; the majority of l he 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 ot 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 a fresh knot has been added to the tangle. It now remains to be seen whether, i” actual operation, thp Act is as bad as it is painted. It was rushed through Parliar.'mt, an< l the more vital provisions of it were strenuously opposed bv Mr Bevin, but it is onlv within the last week or 'O, on the eve of the Act comine into operation, that the business community appears tohaye 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, whose members, of course, have not been slow to sense public feeling in the matte' There is a fairly general feeling that it will prove something of a Frankenstein for the Government. The Act, for good or ill. w now on the, Statute Books. It is now for the Government to shoulder the burden of it, since the majority of the underwriters have decided to stand clear of The fact that more than 50 insurance companies, mainly British, and including some of the oldest and wealthiest of them operating in New South Vales, declined to take out licenses under the Act,, did not come as any very great surprise. Their attitude, in effect, is that on the terms which thev 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, because they are risking the loss of some of their fire business also, for, where workers’ compensation business poea, there will also go a certain amount of fire insurance business of' those who insure in respect to compensation. That some companies, however, as wall as the Government office, are prepared to issue policies under the Act will be something of a relief to the banks. The prospect of the Government doing all the business was regarded with some disquiet. In _ premiums amounting to perhaps £3,000,01X3 would have been*pnid into the Treasury, and by the Treasury to the bankers of the Government. Thus a more than normal amount of Government deposits would have accumulated, with a resultant stringency in some measure among other banks.