WAR RISKS.

Sun (Christchurch), Volume I, Issue 196, 23 September 1914, Page 11

WAR RISKS.

MOST IMPORTANT SUBJECT * GOVERNMENT TAKES SMASXt • COVER. - ■ [From our own Parliamentary Reporter.] WELLINGTON, September 22. When the War Risk Insurance Bin came before the House this afternoo-; for its second reading, the AttorneyGeneral (Hon. A. L. Herdman) real a cablegram from London stating tln'f. the War Risks' Office rate was two guineas per cent., less 10 per cent, discount.

Mr Herdman said it would be se«r. that the amounts charged for war riskhad been reduced to a minimum. Th * premiums of five, seven, and ten guineawere charged by private institution--. The rate through the War Risks Oflii-. now was two guineas; it had bee:, that for some considerable .time. Sir Joseph Ward: As far as yov. know.

Mr Herdman: It's true. The rati 1 lias been two guineas since early : :i September. We were informed that • there was any alteration we would be told. Mr Herdman said that the Go vernment had lieen. blamed for not ha l ing initiated a scheme. The position was that their duty was to stand-by* the Imperial Government's-scheme. I* the New" Zealand Government had undertaken such a scheme the liabiii __/ ties by now would have been enoririov- ""■ It would have been ridiculous to hav: attempted it. Mr G. W. Russell: In other word* you were afraid to tackle it.

Mr JJerdinan: No, we were loyal Xc the Imperial Government's scheme.' I 1 / can- quite understand that the ho it. gentleman would not be. (Laughter.) JThe amount of cover- which the Go vernment would take under the BiH was set down at but the Government <was quite prepared to raise tliit to £10,0.00. r DIFFERENCE OF OPINION. - .. . i Sir Joseph Ward said he knew whafc „ :ha4 actually occurred, and the hon. gentleman had said that the rates which he had quoted were true and could not be denied. He did not think that the- \ Attorney-General really knew the position. During ,the period the Ministov had mentioned he knew of people who had had to pay 4 and 5 per cent, a.: the war risk rate. • Hon. Mr Fisher: In New Zealandf Sir Joseph Ward: It was-arrange! ' by cablegram to London. It could not be done here' ever since the war broke out. He knew of one firm which had paid five guineas within the last fortnight; He recommended the AttorneyGeneral and his colleagues to read what the Imperial Government had " done when the war broke out. They had initiated the war risks scheme, provided against unemployment, and generally * taken on financial obligations which " were comparatively huge in order that the trade of the Homeland should not be dislocated. Surely the New Zealand could have devised some scheme whereby the small man could be iprotected. The matter could have been . . | easily at the start by the Government taking up the liability and arranging re-insuranc-e at Home*. Tlk-' Minister, had said that the liabilities under such a scheme would be -hug«\ but he could not agree with this. Mr G. W. Russell said the Bill before the House showed the utter incompetence of the present Government, (o deal with such a great question as wai " risks. The Bill was farcical in its proposal to limit the amount of Government cover in any one ship to £SOOO. If the Minister who was piloting the Bill had taken the trouble to look into the- trade figures of the Dominion he would see that this was a mere flea,-* bite. Last year there was not a ship engaged in the export trade which did not average £IOO,OOO worth of produce . \ yet this Government was going to put a limit on its risk of £SOOO. The Min- - ister apparently knew.very little about' the whole matter. He said that exporters could cable Home and arrange -' their risks through a London agent. Could the small farmer who was export-- ' ing direct do thatf The great freezing '_■ -■ companies could arrange such things through; their agents at Home, but the; . small, farmer could, not possibly do this. Mr Myers's suggestion to again cable /• - Home to the Imperial Government asking to allow the New Zealand Government to act as agents of the War Risks' Office was a practical and reasonable* one. - ;. '

-Mr Herdman: We've already done that, and they refuse. .' Mr Bussell: Then if they refuse your, request they show they have no confidence in the present Government's business ability. The Bill passed through the re : . mainder of its stages without discussion.

WAR RISKS. , QUESTION OF RATES. [From. our own Parliamentary Reporter,} ■ WELLINGTON, September 22'. ' In the House to-day the Prime ister' stated that he had■'-received' * communication from the High Commissioner dated September 18/ intimating with reference to war risks that" the' rate of premiums on cargoes under the' Imperial Government schema was 122/- per cent net, whilst Lloyd's; for limited amounts, quoted £'2 per cent'., less customary discount —approximately 10 per cent. Sir Joseph Ward said that cases had come under his notice where more than 2 per cent, had to "be paid. The difficulty seemed to be that there was no local agent to apply to in the matter, and a considerable amount had to be spent in cables to London arranging for.* the cover of shipments. Mr'Massey replied that the Imperial authorities had -refused to have.'any agent outside London. The Government had asked to be allowed to act as agents, but the suggestion, had beeji declined. Anyone, desiring to arrange a war risk must communicate direct with the War Bisks Office -or a«ia difficult which had arisen the Government was bringing forward a Bill'dealing with the matter. ■ •'.;;■