CONFUSION AND ALARM.

Timaru Herald, Volume CXXIII, 28 June 1926, Page 9

CONFUSION AND ALARM.

Workers’ Compensation In N.S.W. LABOUR GOVERNMENT’S BURDENSOME POLICY. By Cable—Presß Association—Copyright. Australian and N.Z. Cablo Association* (Received June 27, 5.5 p.m.) SYDNEY, June 29. Tho position under the new Workmen’s Compensation Act, which operates compulsorily from July 1, lias been further complicated by the Premier’s announcement, after a. ; hurried consultation with the experts, that tho State Government Insurance Office will charge 20s per cent, sickness rate as against 40s per cent, adopted by the outside underwriters:

Whether tho Government Office intends to reduce other charges is not stated, but it is announced that the policy is to reduce rates to the fullest extent consistent with safety. The leader of the Opposition point* out that the Government, under the present law, has no power to undertake general insurance, and that such an action will be purely illegal, and tho Government would be in a position to repudiate any policy if it chase to do so. He declared that the confusion and alarm created by the Government’s action throughout the country is appalling. Everywhere the matter is being discussed.

The primary producers are generally reduced to a position of despair by this and the other Government burdens.

Tho North Coast Sawmillera’ Association have decided, as the result of the new Act, that all agreements with the timber suppliers and employees "'ill be terminated on Wednesday, and hundreds of timber getters and mill employees will be rendered idle.

EMPLOYERS GREATLY ALARMED. COUNTING HEAVY COST. By Cable—Press Association—Copyright Australian and N.Z. Cablo Association. SYDNEY, June 20. the new Workers Compensation Act is viewed with alarm by sawmillerg and timber operators generally. There is a probability that a majority will cease operations on Wednesday next, when tile Act comes into force, causing serious unemployment. The most serious aspect is the liability of millers for teamsters and other bush workers, who are contractors, and therefore beyond the millers’ supervision or control. One snwmiller, in the Bellinger District, who employs 22 men and makes approximately £OOO from the industry, decided to close down, as he finds after paying the new insurance premiums, amounting to over £SOO, that lie will have practically no profits at all. Other millers will be similarly affected.

The Retailers end Traders’ Association has registered its own insurance company with a capital of £IOO,OOO. The manager of the Company formed by the Chamber of Manufacturer!, states that his company has resolved to reduce the disease rate from 40b per cent., decided uaon by the Underuniters’ Association, to 30si and will review tho position at the end of six months, with a view to seeing if a further reduction of rates is possible. GOVERNMENT ENTERS BUSINESS. ENFORCING NEW PROPOSALS. By Cable—Press Association—Copyright. Australian and N.Z. Cable Association SYDNEY, Juno 25. The Government Insurance Office is advertising for business under the Workers Compensation Act. It will charge rates on the basis .of those declared hv the underwriters.