SESSION OF HOUSE

Waikato Times, Volume 195, Issue 22513, 23 November 1944, Page 2

SESSION OF HOUSE

END ON DECEMBER 15 EARTHQUAKE INSURANCE BILL (By Telryraph.—rress Association) WELLINGTON, Thursday A considerable number of questions were placed on the order paper when the House of Representatives met yesterday before members settled down to the debate on the Earthquake and War Damage Bill. The Prime Minister, the Rt. Hon. P. Fraser, also made announcement regarding the measures the Government proposed to introduce during th£ remainder of the session, which he said would probably occupy members until December 15. Mr Fraser syid the business proposed to be taken during the remainder of the session would include, in addition to measures already before the House, an Agricultural Emergency Regulations Confirmation Bill, an Emergency Regulations Amendment Bill, an Engineers’ Registration Amendment Bill, a Finance Bill, a Housing Improvement and Slum Reclamation Bill, a Land and Income Tax Amendment Bill, a Land Lav/s Amendment Bill, a Statutes Amendment Bill and a Wool Industry Bill.

The House then resumed the second reading debate on the Earthquake and War Damage Bill, whicn had been commenced before the House adjourned last month. The Minister of Finance, the Hon. W. Nash, said that before the Bill was introduced that it was difficult to get adequate earthquake cover. Discussing the question of reinsurance, Mr Nash said that while it was desirable that there should be reinsurance in other currencies to facilitate replacements in the event of damage, he did not think we should accept the premiums which had been quoted to the present time because they were so high. Operative From New Year

Mr Nash said that as the date of November 1 from which it had been proposed the new Act should become operative had already elapsed, it was proposed that the measure should become effective from January 1. Discussing suggestion that the fund should be extended to cover risk of damage by floods, hurricanes and other disasters, Mr Nash said there were other factors arising in such circumstances which made it impracticable at present to extend the scope of the fund in this way. Under the regulations there was provision for continuity of all contracts under the rate of Is per cent, which had obtained since March 1. The annual premium income of the fund would be £300,000.

Mr C. G. Harker (Opposition Waipawa) said the Bill was a good and a wise measure, but could be improved in seme respects. While he agreed that it was impracticable at present to give the insurance under the fund against loss by flood or hurricane, he thought the experience which would be gained from the administration of this fund could be introduced separately. Mr Harker commended the principle of providing in advance against earthquake calamity. Reinsurance Held Necessary Mr C. M. Bowden (Opposition— Wellington West) said we could not afford to take the risk of not reinsuring. If this proved costly then a premium should be charged sufficient to enable it to be carried out. If a serious earthquake occurred, the claims on the fund might be a serious menace to it. In fact they might absorb it entirely, and a call on the State guarantee could be serious at a time when business and production would be dislocated through the earthquake itself. No Government members took part in the debate during the afternoon, and the Opposition members who spoke all agreed that the principle of the Bill was sound, although the possibility of differential payments according to the amount of risk, because of both locality and quality of the buildings insured, was discussed. The debate was interrupted by the tea adjournment. Replying to the debate this evening, Mr Nash assured Mr Harker that the fund would not be raided for other purposes, as the Labour Government did not believe in raiding funds. Opposition Members: What about the Petrol Tax? Power to Refuse Cover Mr Nash said the contention that buildings easily damaged by earthquake would be a charge on the fund at the expense of the owners of better buildings was met by the provision for a commission to refuse cover where the risk had been refused by an insurance company. In reply to Opposition interjections, Mr Nash said there would probably be a number of such cases. He added that it was possible that the strength of future buildings would have to be considered when the question of cover against eartnquake risk came up.

The Bill was read a second, time and the committee stages were taken immediately. An amendment making the Bill operative from January 1 next was adopted. The remainder of the evening until the adjournment at 10.15 p.m. was devoted to consideration of the committee stages of the Clerks of Works Bill. A number of points were raised by members, the principal one being that care should be taken not to exclude jpen because of service with the forces overseas. The Hon. P. C. Webb, who was in charge of the Bill, and the Prime Minister both agreed that this point should be investigated before the Bill was put through the Legislative Council. The committee stages were completed and the Bill passed.