FRIENDLY SOCIETIES.

Colonist, Volume LVII, Issue 14154, 3 August 1916, Page 7

FRIENDLY SOCIETIES.

RELATION TO NATIONAL PRO- • .' YIDENT FUND. ' ,

DISCUSSION IN PARLIAMENT

1 In the House of Representatives the Hon., Mr. Hanan laid on the table <the friendly report. Mr. Fletcher asked the Minister of Friendly Societies if he intended to call a conference'of friendly societies with a view to discussing the w&ition of the friendly societies under clause 55 of the Finance Bill. There was great anxiety amongst members as to the'effectf of the clause, and there wa.= a feeling throughout the Dominion that a conference would serve to clear away misunderstandings. Messrs. Ell, Talbot, Buddo. Glover, and Payne urged the Vvisdo-v of ? conference co see if something could not .be done in the direction or co-ordinat-ing the National Provident Fund and the friendly societies. Sir Joseph Ward said he wanted to offer a word "of warning to those attempting, to trespass on the domain of the National Provident Fund. They would find the whole of the people of the Dominion against them in the event of. such a course being adonted. There was room for both the National Provident Fund and the. friendly societies. The national annuity system-had ■ inestimable < advantages, and would be found in years to come to provide for many, people in after life. He predicted that, in 50 years' time, the friendly societies would be prepared to acknowledge the wisdom of coming into the fund and make one strong fund, backed by the State.' He hoped that no attempt would be made to destroy it. Mr. T. W., Rhodes-said there was no antagonism towards the National Provident Fund by the friendly societies. What was wanted was more unity of action.

The Eton. Mr. Myers said he recognised the excellent 'spirit in which the advocates of the friendly societies had criticised the National Provident Fund, which was doing a great work in the Dominion, and was not antagonistic to friendly . societies. In a "few days lie ! , would lay on the table the report of the I department, and, though he did not wish to anticipate anything in that re-! port, he could say that the fund had made excellent progress during the year. He hoped his colleague would call a conference of friendly societies, which conference he would'have plea-; •sure in attending if invited. Mr. Poland advocated an amendment of the National Provident. Fund Act in the direction of giving greater benefits, lie thought the maternity bonus given ainder the Finance Act this year* was paltry. It should no tbe limited to wives of members of friendly societies hvery woman who needed* it should get it. Dr. Thaclcer suggested that the president of the British Medical Association .should be invited to the proposed conference, with a, view to endeavouring to reconcile the differences between the association and the societies He ■strongly advocated a national baby bonus. * The Hon. Mr. Hanan, in reply said that, as a result of the representations during the discussion, lie would carefully consider the proposal to hold a conference during the recess-

In his report upjn the friendiv societies, the actuary CMr -\ T iYavorsi) makes the following reference to the effects of the Avar upon the societies:—

. .No allowance has, so far, been made '" x]l° valuations for the'prospective ettect of the war upon the liabilities-of tue societies, and that fact will require to be borne in mind in "basino? any transactions upon the results-. So far as immediate mortality is concerned' "one financial effect of the war will to a great extent disclose itself durino- th-> continuance of the war—that is to" say" tiie first valuation following the war will automatically indicate the exact effect of deaths that have actually occurred m action or from disease. ' The case is different, however, when wo consider temporary or permanent impairment caused by the war and involving prospective sickness or early death" or both. This. w;ill constitute-an addition to the liabilities of the societies, depending, of course, upon the manner in which societies deal with these daises. There is no doubt that, if it were feasible, the proper course would be to I estimate the prospective effect of this i factor, and add it to tho liabilities in the valuation. An alternative course -is to leave the" matter m abeyance pending the end of the war, and then to n.ake estimates on the best facts that bo obtained. Meanwhile each valuation must be considered to be subject to a reservation. It is, of course, possible that in many lodges the additional liability so "produced may be negligible when measured against the total strength of the lodge."