SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1944

Appendix to the Journals of the House of Representatives, 1944 Session I, H-09

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1944 NEW ZEALAND

SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1944

Presented to both Houses of the General Assembly -pursuant to the Provisions of the Social Security Act, 1938

In so far as the Social Security Legislation is concerned, this report deals with Part II of the Act only. Reports on the operation of Part 111 and Part IV of the Act will be submitted by the Health and Land and Income Tax Departments respectively.

REPORT To the Hon. the Minister of Social Security. Sir, — Social Security Department, Wellington, 31st May, 1944. I have the honour to submit for the information of Parliament the fifth annual report of the Social Security Department, for the period Ist April, 1943, to 31st March, 1944. NEW LEGISLATION The following legislation became operative during the year :— (a) The Social Security and Pensions Emergency Regulations, Amendment No. 2, incorporated as part of the substantive benefit the former bonus of 2s. a week in respect of each child of the recipient of family benefit. The maximum benefit in respect of each child therefore became 6s. a week. This provision was later withdrawn in favour of increased benefits under the Social Security Amendment Act, 1943 : (b) The Social Security Amendment Act, 1943, became operative from Ist July, 1943, and made provision for increased benefits under the principal Act. The provisions of the Social Security and Pensions Emergency Regulations 1942, Amendment No. 1, authorizing the payment of additional age-benefits to the parents of deceased servicemen were widened and included as part of the Amendment Act. A similar provision was also made in respect of the parents of deceased members of the New Zealand Mercantile Marine. The provisions of the Social Security Act, 1939, in their relation to deserted wives were considerably broadened, and the Social Security Commission now has power to pay benefits to any woman with a dependent child or children who has taken action to obtain an order under the Destitute Persons Act, 1910. Any maintenance paid under such maintenance order is required to be credited to the Social Security Fund as an offset against any benefits paid : (c) The War Injuries to Civilians Emergency Regulations 1942, Amendment No. 1, increased the basic rates of pensions in respect of qualified persons and brought them into line with the new rates of pension payable under the war-pensions legislation. BENEFITS UNEMPLOYMENT BENEFITS The following figures show the number of applications for unemployment benefits dealt with during the years ended 31st March, 1943, and 31st March, 1944, respectively, and illustrate a further noticeable decline in unemployment in the Dominion

SICKNESS BENEFITS The following figures show the number of applications for sickness benefits dealt with during the years ended 31st March, 1943, and 31st March, 1944, respectively :—

1042-43. 1043-44. Males. Females. Totals. Males. Females. Totals. Persons granted benefit .. .. .. 2,052 317 2,369 1,524 177 1,701 Number of applications declined .. .. 558 I 586 1,144 325 597 '922 Number of persons whose applications were 186 351 537 158 ! 504 662 declined, but who were granted emergency benefits on grounds of hardship ! ' Totals 2,796 ! 1,254 4,050 I 2,007 j 1,278 3,285

1 "42-43. 1043-44. Mules. Females. Totals. Males. Females. Totals. Persons granted benefit .. .. ..18,936 7,807 ! 26,743 ] 18,350 7,942 26,292 Number of applications declined .. .. 1,798 805 2,603! 1,591 757 2,348 Number of persons whose applications were 136 278 ; 414 126 346 '472 declined, but who were granted emergency benefits on grounds of hardship Totals ■■ ■■ 20,870 i 8,890 29,768 20,067 9,045 I 29,112

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EMERGENCY BENEFITS Under the provisions of section 58 of the Social Security Act, 1938, the Social Security Commission may, in its discretion, grant a special benefit on grounds of hardship to any person who is not qualified for any other benefit under the Act, but who, by reason of age or of physical or mental disability, or for any other reason, is unable to earn a sufficient livelihood for himself and his dependants. Full and sympathetic use is made of this section, and emergency benefits granted during the year totalled 1,554. OTHER MONETARY BENEFITS Details with regard to other monetary benefits under the Act are included in the table on page 4, RECIPROCAL AGE AND INVALIDS' BENEFITS On 25th August, 1943, another milestone was reached in the progress of social legislation in this Dominion with the passing of Age-benefits and Invalids' Benefits (Reciprocity with Australia) Act, 1943. The Act is designed to provide for reciprocity in relation to age-benefits and invalids' benefits between this Dominion and the Commonwealth of Australia. The Act came into force by Proclamation on Ist September, 1943. A similar Act was passed in Australia and came into force on the same date. The legislation provides that, for the purpose of New Zealand age-benefits and invalids' benefits, residence in Australia shall be counted as the equivalent of residence in New Zealand, while in respect of Australian old-age pensions and invalids' pensions, residence in New Zealand shall count as the equivalent of residence in the Commonwealth. Similarly, total blindness or permanent incapacity arising in Australia shall be treated as though it had arisen in the Dominion, or if the applicant is resident in Australia, then total blindness or permanent incapacity which arose in New Zealand shall be treated as though it had arisen in the Commonwealth. To qualify for a reciprocal benefit an applicant is required to comply with the more restrictive conditions of the laws, whether as to residence or otherwise, of New Zealand or of Australia, and the rate of benefit must not exceed the maximum of the country which provides the lower maximum rate. It is interesting to note that the genesis of the scheme had its beginning in 1913 when the Old-age Pension Reciprocity Act, 1913, was placed in the statute-book of the Dominion. The number of applications received and dealt with since Ist September, 1943, are as follows :— Age-benefits — Applications received . . . . .. .. • • .. 64 Applications granted .. .. •• r •• ..34 Applications rejected .'.., .. .. .. •• ..21 Invalids' benefits — Applications received . . .. . . • • • • .. 17 Applications granted .. .. .. • • • • .. 9 Applications rejected .. .. .. ■ • • • .. 2 The total reciprocal benefits in force as at 31st March, 1944, including certain emergency benefits transferred to reciprocal benefits, were : Age-benefits, 51 ; invalids' benefits, 20. FINANCE Statement showing the Receipts and Payments of the Social Security Fund tor the Year ended 31st March, 1944 Receipt* Payments £ Monetary benefits — £ £ Balance .. .. •• •• 8,086,801 Universal superannuation .. .. 778,758 £ Age .. .. •■ 8,101,668 Social security registration fees .. 551,064 Widows .. .. .. .. 949,099 Social security charge on wages and other Orphans .. .. .. .. 22,442 income .. .. -h. ■■ 12,796,108 Family .. .'. •• •■ 870,858 Penalties, fines, interest, and miscellaneous 44,912 Invalids .. .. .. .. 1,067,409 13,392,084 Miners .. .. .. .. 76,652 Grants from Consolidated Fund, vote " Social Maori War .. .. .. 119 Security "(Social Security Act, 1938, section 105(c) ) 4,100,000 Unemployment .. .. .. 32,316 Sickness .. .. •• .. 376,878 Emergency .. .. .. 115,574 12,397,773 Medical benefits, &c. — Medical benefits .. .. .. 1,179,331 Hospital benefits .. .. .. 2,133,389 Maternity benefits . . .. .. 513,939 Pharmaceutical benefits .. .. 762,198 Supplementary benefits .. .. 137,823 4,726,680 Administration expenses — .Land and Income Tax Department •. 120,000 Health Department .. .. 80,000. Social Security Department .. .. 309,293 509 293 Bal.mce .. .. .. .. .. 2,945',139 £20,578,885 £20,578,885 WAR PENSIONS The general administration of the enactments providing for pensions and allowances in respect of service in the present and former wars and the carrying-out of decisions of the War Pensions Board and the War Pensions Appeal Board are functions of the Secretary for War Pensions. NEW LEGISLATION A comprehensive review of the whole of the war-pensions legislation was undertaken during the year. The War Pensions Act, 1943, became operative from Ist July, 1943, incorporating therein and extending the provisions of the former legislation affecting war pensions, war veterans' allowances, and pensions to members of the Emergency Reserve Corps. The new Act provided for the general rates of disablement pensions being increased by 50 per cent, as well as increases in dependants and economic pensions, and certain provisions of the former legislation were liberalized, especially in so far as attributability was concerned.

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The War Pensions and Allowances (Mercantile Marine) Amendment Act, 1943, generally brought the rates of pension payable under that Act into line with those payable in respect of war pensions. A new provision enables the War Pensions Board to grant a pension or allowance to any member of a mercantile marine other than the New Zealand Mercantile Marine and in respect of the dependants of such member, provided that the member to, or in respect of, whom the pension or allowance is granted was immediately prior to the commencement of the present war a bonafiide resident of New Zealand and that the claimant is actually resident in the Dominion.

Dissections of War Pensions current at 31st March, 1944

Economic Pensions payable at 31st March, 1944, in Supplementation of Statutory War Pensions

Pensions payable outside New Zealand at 31st March, 1944

Summary of War Pension Payments

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War, 1914-18. Present War. Totals. Class of Pension. , T „ ,_ Niimhpr dumber Number Num>r [Pensioners Children. ,alue - si Children. Val,le - Pensioners Children. VaIue - j , r— ~ - — . _ Ex-members of Forces— £ £ c Permanent .. ... 12,548 6 1,190,797 344 1 37,835 ' 12,892 7 1228 632 Temporary .. .. 2,753 ... 293,735 9,836 .. 715,261 12,589 .. l'o08'996 Dependants of disabled ex- 2,855 2,780 220,230 832 882 61,154 3,087 3 062 '28l'384 members WidoWS 2,044 479 291,122 1,541 1,186 266,237 3,585 1,665 557 359 Other dependants of deceased 838 87 43,895 484 204 28,006 1,322 291 7l'901 members ' Totals •• •■ 21,038 3,352 2,039,779 13,037 2,273 1,108,493 34,075 5,625 3,148,272

War, 1914-18. Present War. Total. Class of Pension. , . Number. Annual Value. Number. "y^"™ 1 Number. Annual Value. £ £ £ Ex-members with permanent 2,734 239,948 92 8,297 2,826 248,245 pensions Ex-members with temporary 904 79,948 1,443 129,346 2,347 209,294 pensions Widows 966 52,137 774 47,196 1,740 99,333 Widowed mothers .. .. 62 2,985 116 5,064 178 8,049 Totals •• •• 4,666 375,018 2,425 189,903 7,091 564,921

Class of Pension. War, 1914-18. Present War. Total. Ex-members of Forces — Permanent .. .. .. , . .. 846 i g^ Temporary .. .. .. .. .. 32 60 92 Wives and parents of ex-members : Temporary .. 104 7 111 Dependants of deceased members — Widows .. .. .. .. .. 207 68 275 Other dependants .. . . 258 36 294 Totals •• ■• •• •• •■ 1,447 172 1,619

Payments made in i Total. London. Australia. Canada. *£ L*>™£ New Zealand. , I ! I \ ~ £ £ I £ | £ £ £ £ Total payments to 31st | 1,363,663 i 939,517 I 54,363 1],049 15,387 34,329,744 36 713 723 March, 1943 Payments in 1943-44.. 78,652 61,533 6,227 805 569 2,744,542 *2,892,328 Total payments to 31st 1,442,315 11,001,050 '' 60,590 111,854 15,956 37,074,286 39 606 051 March, 1944 * Includes £917,855 in respect of war pensions in connection with the present war and £1,404 to members of the Emergency Reserve Corps.

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War Pensions Appeal Board The following table summarizes the operations of the War Pensions Appeal Board during the year with respect to appeals under war pension and related legislation : —■

Medical treatment of war pensioners during 1943-44 cost £35,850. (This item includes the cost of treatment of pensioners resident in overseas countries.) Railway concessions to ex-members of the Forces pensioned for total and permanent disablement and those with locomotor disabilities on permanent pensions in excess of 50 per cent, cost £4,775.

Benefits and Pensions in Force and Total Payments

COST OF ADMINISTRATION Excluding expenditure of £1,566 on capital items, administration costs for the year amounted to £364,525, including £53,374 in respect of the administration of war pensions and allowances. This represents 2-29 per cent, on total payments. GENERAL Under the heading of rehabilitation allowances, which, by arrangement with the Rehabilitation Board, are made available to demobilized servicemen and servicewomen for periods up to thirteen weeks following the cessation of Service pay for the purpose of facilitating reabsorption into civil life, a total of 14,730 cases were reviewed during the year, representing 14,462 servicemen and 268 servicewomen. Grants were made in 7,196 cases, representing 7,024 servicemen and 172 servicewomen.. Included in these grants were allowances in respect of 4,396 children. The large majority of the others had already been successful in returning to civil employment or had otherwise indicated that they did not require assistance. The total amount paid out by way of rehabilitation allowances for the period Ist April, 1943, to 31st March, 1944, was £235,522. As at 31st March, 1944, there were 909 allowances, current, representing a weekly expenditure of £4,019. The number of officers absent on military service as at 31st March, 1944, was 470, and of these, 24 had made the supreme sacrifice. The absence of so many of its trained personnel with the Armed Forces has thrown a very heavy burden on the existing staff of the Department, but I am happy to say that the year's achievements have been accomplished with general satisfaction to the community. In submitting this year's report I would again like to express my full appreciation to the staff of the Department for their willingness and co-operation in bringing to a close another difficult year's work. H. Digby-Smith, Chairman, Social Security Commission. Approximate Cost of Paper. —Preparation, not given ; printing ((>O2 conies), £9.

Authority: E. V. Paul, Government Printer, Wellington. —1944.

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War Pensions and War, 1914-18. Present War. War Veterans - Totals.. Marine) Act, j 1940. Appeals outstanding at 31st March, 1943 j 52 350 .. . . 402 Appeals lodged 1943-44 .. .. 290 1,958 3 7 2,258 Total to be dealt with .. 342 2,308 3 7 2,660 Appeals upheld, 1943-44 .. .. 79 619 .1 1 700 Appeals dismissed, 1943-44 .. ..159 845 1 4 1,009 Appeals withdrawn and struck out, 1943-441 19 153 .. 1 173 Total disposed of, 1943-44 .. | 257 1,617 2 6 1,882 Appeals outstanding at 31st March, 1944 j 85 691 1 1 778 Percentage upheld .. ..I 30-7 38-2 50 16-6 37-1

As at 31st March, 1943. As at 31st March, 1944. Class. j Number in Annllal Val]lp Total Payments Number in : «__..., Va ,,.„ 'L'otal Payments Force. Annual vaiue - 1942-43. Force. Annual value - 1943-44. £ £ £ £ Universal superannuation .. .. 44,448 066,720 603,124 4!),289 862,558 778,758 Age .. .. .. .. 99,671 7,903,910 7,783,084 102,530 8,489,484 8,101,668 Widows .. .. .. .. 10,589 864,062! 866,597 10,836 981,742 949,099 Orphans .. .. .. .. 395 21,033 20,628 412 21,939 22,442 Family .. .. .. .. 14,190 764,841 790,719 15,950 1,052,700 876,858 Invalids .. .. .. .. 11,938 1,029,055 1,036,373 12,126 1,076,789 1,067,409 Miners .. .. .. .. 841 76,362 80,100 795 74,983 76,652 Maori War .. .. .. 2 164 190 I 85 119 Unemployment .. .. .. 373 .. 49,639 292 .. 32,316 Sickness'.. .. .. .. 3,699 .. 362,088 4,446 .. 376,878 Emergency .. .. .. 1,821 .. 124.268 1,915 .. 115,574 War (1914-1918) .. .. .. 22,161 1,602,777 1,574,062 21,038 2,039,779 1,973,069 War (present war) . . .. .. 7,666 714,640 479,477 13,037 1,108,493 917,855 War Veterans' allowances .. .. 1.807 222,173 224,942 1.791 230,038 224,705 Boer War (Defence Act, 1909) .. 42 1,453 1,504 44 3,245 2.550 Mercantile Marine pensions .. .. 6 498 350 12 1,073 719Emergency Reserve Corps .. 19 1,477 1,985 10 1,037 1,404 Sundry pensions and annuities .. 139 15,069 13,581 150 18,505 15,462 Civil Service Act, 1908 .. .. 5 1,903 2,176 4 1,683 1,662 War and other pensions paid on behalf 3,224 242,718 352,104 3,208 256,074 290,496 of the Governments of Great Britain, Australia, India, Canada, South Africa, and Crown colonies ■ Totals .. .. 223,036 14,128,855 14,366,991 237,886 16,220,207 15,825,695