THIRTY-FIFTH ANNUAL REPORT OF THE PENSIONS DEPARTMENT FOR THE YEAR ENDED 31st MARCH, 1933.

Appendix to the Journals of the House of Representatives, 1933 Session I, H-18

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1933. NEW ZEALAND.

THIRTY-FIFTH ANNUAL REPORT OF THE PENSIONS DEPARTMENT FOR THE YEAR ENDED 31st MARCH, 1933.

Presented to both l/ouscs of the General Assembly pursuant to Section 90 of the Pensions Art, 1926.

The Commissioner of Pensions to the Hon. the Minister op Pensions. Sir, — Pensions Department, Wellington, Ist September, 1933. I have the honour I" furnish herewith, for the information of Parliament, the report of the Department relating fco war, old-age, widows', Maori War, miners', epidemic, blind, and sundry pensions, and family allowances for the year ended 31st March, 1933. The following comparative statement relates to the annual value and gross payments of all pensions administered by the Department for the past two years : —

Pensions in Force: Annual Value and Total Payments.

Cost per head of European population : 1931-32, £2 2s. sd. ; 1932-33, £2 Is. 4d.

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As at 31st March, 1932. Aβ at 31st March, 1933. Class of Pension. Total ~T^T~ Number. Annual Value. Payments, Number. Annual Value. Payments, 1931-32. 1932-33. £ £ £ £ War.. .. .. .. 21,041 1,242,480 1,261,778 21,104 ! 1,200,468 1,217,586 Old-age .. .. .. 32,317 1,353.360 1,277,107 34,932 1,305,772 1,271,157 Widows' .. .. .. 4,709 345,471 340,162 4,687 307,926! 311,317 Maori War .. .. .. 143 7,007 7,582 106 5,194 5,831 Miners' .. .. .. 991 74,035 69,785 743_ r>(>,f>]H 62,563 Epidemic .. .. .. I 111 4,'JOS 5,580 98 ' 3,6$0 4,197 Blind .. .. .. 360 17,179 | 16,710 395 18,422 18,065 Boer War .. .. .. 56 2,279 | 2,483 55 2,157 I 2,176 Sundry pensions and annuities.. 115 9,383 j 9,388 120 10,090 9,626 Civil Service Act, 1908 .. 23 6,857 7,861 20 6,142 6,453 Family allowances .. .. 7,332 101,608 90,100 10,320 131,118] 122,810 Totals .. .. 67,198 3,164,657 3,088,536 72,580 3,047,597 3,031,781

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Legislation. Under the provisions of the National Expenditure Adjustment Act, 1932, the maximum rates of old-age, widows', and miners' pensions were reduced by 10 per cent., and the income exemptions of old-age and widows' pensions were decreased to £39 and £65 respectively. Certain income exemptions previously allowed were repealed, and provision made that no pensioner under the Pensions Act, 1926, other than an old-age pensioner, should receive a pension under the War Pensions Act, 1915. Pensions to miners' widows which were payable during widowhood were restricted to payment for a period of two years as previously obtained in the original enactment but an amendment of the law passed later in the same year provides for continuance of the miner's pension at the rate of £35 19s. per annum until the widow becomes qualified to receive an old-age pension to those widows who were actually in receipt of pension on the passing of the National Expenditure Adjustment Act, subject to the same means test as applicable to old-age pensions. War pensions tn ex soldiers for disablement, and war pensions payable to the widow, child, or widowed mother of a deceased member of the New Zealand Expeditionary Force, were not reduced in any way by the National Expenditure Adjustment Act. bul pensions to other dependants were reduced by 17£ per cent. Economic pensions to ex soldiers were decreased from £] LOs. weekly to £1 Is. weekly, and economic pensions to dependants from 10s. to Br., and 15s. to 12s. for widows, and £1 to It's, for widowed mothers. Provision was made in the National Expenditure Adjust ment Act th.it the rate of pension should in no case lie reduced liv more than I" per cent, during the currency of the pension certificate in force on the passing of t he Act. The only ;i mendment affecting family allowances was to reduce the limit of income from £3 12s. to c> r> s. weekly. These reductions were made liv the State and Parliament with great reluctance owing to the hardship imposed on the individual pensioner, who in practically every case received his pension on the grounds of unfortunate financial needs, but the necessary cost of the benefits of free pensions systems has been so steadily rising in recent ye.-irs thai the financial aspect had to be resolutely faced. Despite the savings effected l>v these reductions in pensions rates, the greater numbers being granted pensions and family allowances as compared with the figures prior to the economic depression will very shortly negative the financial effect thereof. ,is it is estimated that in this financial year the expenditure will lie greater by £160,000 than that for the year ended :(lst March, 1933.. From the figures shown in the tallies of pensions in force on the preceding page it will be seen that the expendi ture in pensions was less by £r>fi.7">. r ) for the year ended :11st March. 1933, as compared with that of the previous year, notwithstanding that the number of beneficiaries, particularly old-age pensioners and recipients of family allowances, increased by a total of 5,382. No reduction in the rates for blind pensions or military (Maori War) pensions payable under the Pensions Act, 1926, was made. Under the Pensions Amendment Act, 1932, passed on 19th November, L 932, the residence qualification for applicants for miners' pension was extended to allow of occasional absences from New Zealand, not exceeding six months in the aggregate, without interrupting continuous residence. Provision was also made that continuous residence for blind-pension applicants should not be deemed to be interrupted liy absence from New Zealand for the purpose of medical treatment in respect of the applicant's eyes, and that pension could lie paid outside New Zealand for two years if'the pensioner was absent for the s.iine purpose.

Payments on behalf of other Governments. The following figures relate to the war and other pensions paid by the Department during the year on behalf of other Governments : —

Family Allowances. The claims lodged during the year totalled 4,384, which, wit h 1 he 332 outstanding from the previous year, made a total of 1,716 to be dealt with. Of these, 3,841 were accepted and 427 rejected. Of the rejected claims 184 represent cases where the income of the family was in excess of the limit allowed. 392 new claims from Maoris were finally dealt with during the year, 268 being granted and 124 rejected. The total children of the 10,320 allowances in force as at 31st March, 1933, and those in excess <>f two in a family numbered 46,150 and 25,510, the average per family being 4-47 and 2-47 respectively.

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Number at ... „ Government. Class of Pension. 31st March, n " ual £ vera 8 e 7 Q y Q me " ts ' 1933 Value. Pension. 1932-33. £ £ s. d. £ Great Britain .. .. War .. .. 1,522 79,252 52 0 0 \ .. Army and civil .. 761 53,169 70 0 0 j^450 Australia .. .. .. | War .. .. 501 21,872 43 13 2 23,398 India .. .. .. Army and civil .. 74 16,957 229 0 0 28,724 South Africa .. .. War" .. . . 3 136 45 0 0 273 .. Civil .. .. 30 3,446 115 0 0 7,835 Crown Colonies .. .. „ .. 34 11,114 327 0 0 13,474 Canada .. .. .. War .. .. 1 273 272 14 7 597 i Totals.. .. .. 2,926 186,219 .. 271,751

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The total amount paid during the year was £122,810, while the total annual value of .ill allowances m force at the close of the year was £131,1 18.

Weekly Rates at which Allowances granted.

Numbers according to Size of Family.

Weekly Incomes of Families.

Cost of Administration. The cost (if administration for the year amounted to £58,320, the principal items of expenditure being £27,874 for salaries of officers of the Department, who numbered 162 as at 31st March. 1933: £15,701 and £4,008 paid to bhe Postal Departmeni respectively for payment of [tensions and postage and telegrams; £2,693 for salaries and other expenses of the War Pensions Appeal Board: and £1,836 for salaries of the War Pensions Board. The percentage of cost of administration to the total payments made of L.'5,303,532 (including £271,751 paid on behalf of other Governments) was 1-77.

WAR PENSIONS. Summary of War Pension Payments.

The amount paid for the year ended 31st March, 1933, shows a decrease over the preceding year of £44,192.

Summary of Annual Liability as at 31st March, 1933.

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I YVeeidy Rate. Is. 2s. 3s. 4s. 5s. 6s. 7s. 8s. 10s. lis. 12s. 14s. 16s. 20s. I | I I I | I Number granted 8 j 1,862 14 1,107 7 515 2 184 97 1 .31 8 4 1

Number of Children , o o , _ ! in Excess of Two. l " 2 " 3 " 4 ' 6 " 7 " 8 - »• J I ! I I Number of families 1,824 1,147 514 204 104 34 9 4 .. 1 L L

Wee kly Income. £1 and under. Om«-d -, Over £t«d up | Overhand up f , vi . r£8fc Number of families .. 129 2,161 924 589 38

Payments made in ~ j : j TotaL London. Australia. Canada. entries. . New Zealand - £ £ £ * £ £ £ £ Total payments to 31st. 858,791 466,709 26,768 3,963 7,580 18,385,824 19,749,635 March, 1932 Payments in 1932-33 42,499 40,038 2,332 .. 771 1,131,946 1,217,586 Total payments to 31st 901,290 506,747 29,100 3,963 8,351 19,517,770 20,967.221 March, 1933 | !

Class of Pension. j £»£* , Annual Vahl , Ave^e E Soldiers (permanent) .. .. .. 9,548 28 495,511 52 Soldiers (temporary) .. .. .. 3,615 54 253,517 70 Dependants of disabled soldiers .. .. 1,744 3,515 132,994 76 Widows (withoui children) .. .. 979 .. 89,485 91 Widows (with children).. .. .. 409 665 62,958 154 Other dependants of deceased soldiers — Parents .. .. .. .. 4,352 1 147,686 34 Other adult dependants .. .. 99 I 2.902 29 Guardians of children .. .. 358 574 15,415 43 Totals, &c. .. .. .. 21,104 4,838 1,200,468 57 I

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War Pensions payable outside New Zealand as at 31st March, 1933.

Economic Pensions payable at 31st March, 1933.

War Pension Appeals. Appeals outstanding on 31st March, 1932 .. .. .. .. 229 Appeals lodged during 1932-33 .. .. .. .. ..608 837 Appeals dismissed during 1932-33 .. .. .. .. .. 306 Appeals upheld during 1932-53 .. .. .. .. ..324 Appeals withdrawn and struck out, 1932-33 .. .. .. ..27 —- 657 Appeals outstanding on 31st March, 1933 .. .. .. 180 Percentage upheld, l'.K'i per cent. The total number of appeals dealt with to the 31st March, 1933, was 4,871, the percentage upheld being 48 per cent. Of the 657 cases dealt with during the past year, 358 were heard nt Auckland, 56*1 percent, being upheld ; 107 at Wellington, 32-7 per cent, being upheld : 112 at Christchurch, 35-7 per cent, being upheld : and .SO at Dunedin, 60 per cent, being upheld.

Medical treatment of war pensioners during 1932-33 cost £71,077. Railway concessions to war pensioners cm maximum permanent disablement pension and those with locomotive disabilities on permanent pension in excess of 50 per cent, cost £1,482 during the year. The Loading paid on life-insurance policies of war pensioners due to war-service disability amounted to £182 for the year. Temporary war pensions to soldiers increased by 143 and permanent pensions to soldiers increased by 44 during the year. The 400 deaths among war pensioners are made up as follows : Soldiers. 139 ; widows of soldiers, 8 : other dependants, 253. Discharged Soldiers' Civil Re-establishment Act, 1930. During the year ended .'list March. 1933, the committees and employment officers appointed in terms of the provisions of the above mentioned Act found it increasingly difficult to place disabled ex-soldiers in employment, owing to the large number of fil men and boys able to undertake continuous and arduous labour being available to fill vacant positions, but, notwithstanding this handicap, were

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Wives and Soldiers. Parents of Dependants. Soldiers. . . _ ,... Annual Liability Permanent. Temporary. Temporary. Widows. Dependants. Great Britain.. .. 256 91 26 147 495 52,539 Australia .. .. 257 202 .11 50 156 40,674 Other countries ..51 21 .. 5 30 4,458 Totals .. 564 314 57 202 681 97,671

Average Class. Number. Annual Value, Annual Grant. £ £ Soldiers with permanent pensions .. .. .. : 1,071 55,680 52 Soldiers with temporary pensions .. .. .. 1,242 65,490 53 Widows with children .. .. .. .. 91 2,275 25 Widows without children .. .. .. .. 153 4,708 31 Widowed mothers .. .. .. .. .. 169 3,830 23 Totals 2,726 131,983 48

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able to place some 350 disabled ex-soldiers in jobs, of which approximately 20 per cent, represented permanent positions, the balanoe being in semi-permaneni oi casual work. With the experience gained sine,, the scheme came into operation in July, 1931, the committees are unanimous in coming to the oonclusion that Letter results for disabled ex-soldiers can lie achieved by creating new avenues of employment suitable for tin- individual need and particular physical disability of the man rather than to continue exploiting the ordinary channels of labour, which through the lack of physical elKciency are practically closed to this class of disabled ex-soldier. Recognizing this, the Christchurch Committee set up a scheme of disabled soldiers' handicrafts, whereby the disabled men manufactured articles at home and sold them through Iwo shops in the cil v. Later a factory was established, and these ire now making basketware, seagrass furniture, leather cases and bags, toy novelties, and wood worfc of all descriptions. In Dunedin a factory, manned by disabled ex-soldiers, operates under the trade 11:111 ' Disabled Soldiers' Products, and turns out all classes of fibre and leather cases, and of leather work generally. The system in Wellington is somewhat similar to that in Christchurch, whereby goods mostly ol leather, w I. and metal are manufactured at home and sold through the agency of two shops, the establishment of a factory being under consideration. In the Auckland District schemes lor the manufacture and sale of wire and metal work and basketware are in operation in two towns, and it is hoped that a scheme similar to those op,.rating in the South will shortly be introduced in Auckland City itself. Other avenues which the committees are investigating arc tobacco-culture, seedraising, and the manufacture of New Zealand mementos. In Christchurch fifteen disabled men have been placed on Angora-rabbit farms and it is expected that these will shortly become self-supporting. " lr " l,rl< °f fc ie committees and the employment officers, in the face of the adverse conditions of employment aiul the lack of finance, is to be highly commended on the results shown.

Statistics in regard to Civil Pensions.

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Old-age. Widows'. Maori War. Miners". | Blind. Epidemic. Pensions in force at 31st March, 1932 .. 32,317 4,709 143 408* J* 360 111 New pensions granted, 1932-33 .. .. 5,534 731 .. 52 Deaths during 1932-33 .. .. .. 2,262 3 36 52 9 Cancellations during 1932-33 .. 657 750 ] 296 8 13 Net increase or decrease .. .. .. +2,615 —22 —37 —248 +35 —13 Pensions in force at 31st March, 1933 .. 34,932 4,687 106 133f }" 395 98 Total children in receipt of pension, 31st .. 9 675 127 March, 1933 Total European pensioners sixty-five years and * 27,687 over at 31st March, 1933 Total female European pensioners sixty years 5,592 to sixty-four years at 31st March, 1933 Percentage of European pensioners to total 2-3 European population Total Maori pensioners .. .. .. 1,621 353 37 41 New claims lodged .. .. .. 6,965 827 .. 152 74 New claims rejected .. .. .. • 1,416 112 .. 61 20 Number of children on whose account pension .. 1,586 granted Annual liability at 31st March, 1933 .. £1,305,772 £307,926 £5,194 £56,618 £18,422 £3 690 Average pension per annum .. .. £37 7 7 £65 13 11 £49 0 0 £76 4 1 £46 12 9 £37 13 1 Gross expenditure for year 1932-33 .. £1,271,157 £311,317 £5,831 £62,563 £18.065 £4,197 Increase or decrease on figures of previous —£5,950 —£28,845 —£1,751 —£7,222 +£1,355 — year Cost per head of European population .. 17s. 4d. 4s. 3d. Id. 10-2d. 3d. 0-7d. Credit from national endowment .. .. £22,259 Credit from gold duty .. .. .. .. .. .. £3 719 Refunds paid to Public Account .. .. £577 £69 £8 £5 £2 £5 Number of pensioners in homes and hospitals 1,102 .. 6 8 96 Amount paid to controlling authorities of £45,179 j .. £327 £404 £5,220 these Number of pensioners in mental hospitals .. 138 .. .. 2 2 Amount paid to Mental Hospitals Depart- £4,814 .. .. £83 £78 ment on account of these Unpaid instalments as at 31st March, 1933 .. £4,867 £2,056 £69 £319 £22 £16 Instalments forfeited and subsequently paid .. £1,394 £481 £4 £43 £18 £9 Average of family under fifteen years .. .. 2 • 06 Total claims lodged to date .. .. 127,082 17,537 1,893 2,525 706 " Total claims established .. .. .. 99,891 1 14,934 1,698 2,055 521 972 Total claims rejected .. .. .. 26,513 2,541 195 458 170 Total number of children benefited.. .. .. 36,239 Total deaths .. .. .. .. 52,647 127 1,586 803 90 14 Total guardians appointed .. .. .. 328 Total cancellations .. .. .. 12,312 10,120 6 509 36 860 Grand total paid to date .. .. .. £20,506,146 £3,940,937 £596,731 £636,821 £110,333 £467,654 Total credit from gold duty .. .. .. .. .. £54,742 Total amount paid on account funeral expenses .. .. .. £7,187 Total credit from national endowment .. £718,137 ; * Miners. t Widows. Total European population at 31st March, 1933, 1,465,833.

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Pensions granted, Deaths, and Cancellations in each Year, with Number in Force.

* This represents 625 reinstatements less 514 actual cancellations. J. H. Boyes, Commissioner of Pensions.

Approximate Cost of I'aper —Preparation, uol given ; priutiut! (589 copies), £9.

Bj Authority: G. H. Loney, Government Printer, Wellington.— l 933. Prire 6d.]

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, r , , Number of n In Force ,^ r ;" Pensions Deaths. C^^ a " at End of 31st March, granted turns. period Old-age. 1899-1900 12,186 824 77 11,285 1901-1910 17,848 10,237 3,576 15,320 1911-1920 24,028 16,017 3,338 19,993 1921 .. 2,152 1,880 428 19,837 1922 .. 2,553 1,578 321 20,491 1923 .. 2,781 1,763 328 21,181 1924 .. 2,549 1,870 392 21,468 1925 .. 2,654 1,635 425 22,062 1926 .. 3,100 1,839 418 22,905 1927 .. 3,302 2,049 407 23,751 1928 .. 3,638 2,093 421 24,875 1929 .. 3,614 1,968 411 26,110 1930 .. 3,506 2,242 465 26,909 1931 .. 4.640 2,202 352 28,995 1932 .. 5,806 2,188 296 32,317 1933 .. 5,534 2,262 657 34,932 Totals.. 99,891 52,647 12,312 Widows'. 1912-1920 5,817 47 2,326 3,444 1921 .. 627 8 642 3,421 1922 .. 523 3 598 3,343 1923 .. 616 12 536 3,411 1924 .. 730 8 607 3,526 1925 .. 602 6 524 3,598 1926 .. 684 2 447 3,833 1927 .. 705 6 562 3,970 1928 .. 761 4 629 4,098 1929 .. 823 5 584 4,332 1930 .. 702 6 655 4,373 1931 .. 815 9 613 4,566 1932 .. 798 8 647 4,709 1933 .. 731 3 750 4,687 Totals.. 14,934 127 10,120 Blind. 1925 .. 114 .. 114 j 1926 • 92 9 1 196 1927 .. 46 6 4 232 ]928 .. 39 11 1 259 1929 .. 43 14 6 282 1930 .. 47 10 8 311 1931 43 18 6 330 1932 .. 45 13 , 2 360 1933 .. 52 9 8 395 Totals.. 521 90 36 Family Allowances. 1928 .. 3,154 25 123 3,006 1929 .. 1,437 39 641 3,763 1930 .. 1,004 41 858 3,868 1931 .. 1,399 46 604 4,617 1932 .. 3,040 56 269 7,332 1933 .. 3,841 68 785 10,320 Totals.. 13,875 275 3,280

, , Number of n In Force Year ended penBjon9 Doaths Cancella- , End of J 1st March, t.ons. period Maori War. 1913-1920 1,691 750 2 939 1921 .. 2 130 .. 811 1922 .. 1 72 740 1923 .. 1 71 1 669 1924 .. 1 80 1 589 1925 .. 1 71 519 1926 .... 74 1 444 1927 .. .. 70 .. 374 1928 .. .. 66 .. 308 1929 .. .. 49 .. 2:9 1930 .. .. 50 .. 209 1931 .. 1 40 170 1932 .. .. 27 .. 143 1933 .. .. 36 1 106 Totals.. I 1,698 1,586 I 6 .. War. 1916-1920 49,254 953 13,730 34,571 1921 .. 2,207 358 4,656 31,764 1922 .. 945 369 3,249 29,091 1923 .. 625 358 2,898 26,460 1924 .. 551 361 3,484 23,166 1925 .. 432 334 1,946 21,318 1926 .. 353 369 586 20,716 1927 .. 350 353 88 20,625 1928 .. 330 401 —6 20,560 1929 .. 398 360 —88 20,686 1930 .. 347 405 —111 20,739 1931 431 387 -242 21.025 1932 .. 348 432 —100 21,041 1933 .. 352 400 *—111 21,104 Totals.. 56,923 ; 5,840 \ 29,979 Miners'. 1916-1920 683 133 135 415 1921 .. 107 43 5 474 1922 .. 78 38 8 506 1923 .. 96 52 6 544 1924 .. 88 48 4 580 1925 .. Ill 70 14 607 1926 .. 96 50 13 640 1927 .. 84 51 5 668 1928 .. 104 47 4 721 1929 .. 94 53 2 760 1930 .. 86 59 8 779 1931 .. 153 51 5 876 1932 .. 175 56 4 991 1933 .. 100 52 296 743 Totals., i 2,055 803 509 .. Epidemic. 1920 .. 939 1921 .. 27 4 113 849 1922 .. 6 .. 172 683 1923 .. .. 2 112 569 1924 .... 1 HI 457 1925 .. .. .. 92 365 1926 .... 1 51 313 1927 .... 2 52 259 1928 .... 3 47 209 1929 .. j 21 188 1930 .... 1 27 160 1931 .. .. .. 22 138 1932 .. .. .. 27 111 1933 .. .. .. 13 98 Totals.. 972 14 860