THE HEALTH SCHEME

Wanganui Chronicle, Volume 80, Issue 89, 16 April 1938, Page 10

THE HEALTH SCHEME

FRIENDLY SOCIETIES’ VIEW

EXPERIENCE SHOULD BE UESD

[ P*r Press Association. ] WELLINGTON, April 14

Stating that the national health scheme would be an extension of the operations of the Friendly Societies of New Zealand, Messrs W. J. Gregory (president), and A. G. Shrimpton (secretary) suggested to the Select Committee of National Health and State Superannuation that the experience of the Dominion Council ot Friendly Societies and its constituent branches should be used when the health proposals were put into effect. They quoted figures to show that large sums were administered by the societies at a very low cost. Mr Shrimpton quoted figures to show that the caiptal per member in the New Zealand society was higher than that of any State in Australia. During the 25 years since national health insurance was established in Britain, £565,000,000 had been paia out by approved societies, and an additional £150,000,000 had been paid from the independent funds of the societies. The societies in New Zealand had had experience to enable them to do similar work in New Zealand.

Mr Shrimpton said he hoped the Government would listen to their criticisms, because they would be constructive.

Mr Gregory said he wanted to assure the committee that they were not there to hinder: they regarded the proposals of the Government as tantamount to recognition of the good work of the Friendly Societies. They were prepared to do the utmost in their power to help the sick and. consequently. were in favour of an extension of their work. They took it for g; anted that the Government did not want the societies to go out of existence, and they expected the Government would leave the way open for them to continue in the work they were doing. The societies made provisions that would not be covered by a national, scheme.

Referring to the Government proposals. Mr Gregory said the provision >f a general practitioners’ service had always been the aim of the societv. The cost to members ranged from £1 to £2 per annum.

Societies’ Finances

Mr Shrimpton outlined the activi-

ties of the Friendly Societies. He said they were representing a membership Df 112.000. These members were contained in a thousand branches throughout th- Dominion, and this network of agencies could very well Carry out the distribution of benefits or any other section of national insurance. The societies considered a national scheme would be but an extension of their work, and offered the Government the advantage of their •xperience. Mr Shrimpton outlined the funeral and sickness benefits receivable by members. He said that applicants for admission to the society had to pass a medical examination and. generally •peaking, they were between the ages of 16 and 45. On an average the young recruit paid in more than he drew out, while the older member drew out a great deal more than he paid in. A member joining at the age of 20 would pay an annual contribution of £1 18s Bd. To assure the payment of benefits at all times, the societies in New Zealand had accumulated £4,116.121 in the sick and funeral *und, and had also surplus appropriation funds of x 455.242. a total of £4.571.363. Th ; s had been made possible by sound acturial calculations and the investment of funds. The societies in New Zealand had capital to the extent of £46 9s per member. Safeguard Sought Referring to hospital benefits. Mr Gregory said that if a national scheme was started the societies would be freed from hospital charges. He considered the proposal for free hospital services was the best of the proposals put forward. The societies had always aimed at free medical benefits, and the cost to members was about 8s per year per member. In the larger centres pharmacies had been established, and the organisation Df the societies in that direction coula be used for the whole community. The other proposals of the Government were outside the scope of the ictivities of the societies. He asked that the benefits received by the Friendly Societies should not be taken Into account in computing national payments. What was paid to memoers, was the money they had paid in, and they wanted a provision made in the Bill to safeguard that. He suggested that the societies should still have the opportunity to enroll members. They asked for the right to administer the benefits, ana for the right for any individual to elect to receive benefits through the Friendly Society. If the Government desired the societies to continue they would have to have the right to continue the benefits under their voluntary movement.