REPORT OF THE EARTHQUAKE AND WAR DAMAGE COMMISSION ESTABLISHED UNDER THE EARTHQUAKE AND WAR DAMAGE ACT, 1944, FOR THE YEAR ENDED 31st MARCH, 1945

Appendix to the Journals of the House of Representatives, 1945 Session I, B-11

B.-11

1945 NEW ZEALAND

REPORT OF THE EARTHQUAKE AND WAR DAMAGE COMMISSION ESTABLISHED UNDER THE EARTHQUAKE AND WAR DAMAGE ACT, 1944, FOR THE YEAR ENDED 31st MARCH, 1945

Presented to both Houses of the General Assembly pursuant to the Provisions of the Earthquake and, War Damage Act, 1944

Wellington, 29th June, 1945. In accordance with the provisions of section 23 of the Earthquake and War Damage Act, 1944, the following report with statement of accounts is presented for the year ended 31st March, 1945 : — (1) Since the last report the Earthquake and War Damage Act, 1944, has repealed the War Damage Act, 1941, and the War Damage Amendment Act, 1942, and revoked the Earthquake Damage Emergency Regulations 1944. Regulations under the new Act were gazetted on the 21st December, 1944. The legislation re-enacted the main administrative provisions of previous legislation and extended full State guarantee to the Fund. A leaflet outlining the provisions of the legislation for the information of the insuring public has been prepared, and will be available shortly. (2) Mr. G. E. Brangwin, consequent on his removal to Australia, resigned from the Commission on the 31st January, 1945, and was replaced by Mr. W. B. McKenzie. Under the Act of 1944 the State Fire Insurance General Manager became an additional statutory member of the Commission as from the Ist January, 1945, when the Act came into force. During the year fourteen meetings of the Commission were held.

(3) The following comparative statement shows the figures for each period since the scheme came into operation on the 19th December, 1941 : —

The reduced premium income is entirely due to the reduction in the rate for compulsory insurance from ss. per cent, to Is. per cent., which latter rate operated throughout the year. In the previous year the rate of Is. per cent, applied for one month only. Two claims for earthquake damage were admitted, after full investigation. The payment of a discount at the rate of 2f per cent, for collection of premiums applied throughout the year. Prior to the Ist March, 1944, this work was undertaken entirely gratuitously. Reduced premiums have also contributed to the rise in the percentage ratio of working-expenses to income. The surplus for the year was £408,734 15s. 7d., and the total of the Fund at the end of the year increased to £4,381,213.

Period lath rwomU Twelve Months Twelve Months Twelve Months 1Q/)1 . , ' ended.31st March, ended ;l 1st March, ended 31stM&roh, 1943 ' ">«• Income— £ £ £ £ Premium .. .. 877,369 1,611,218 1,423,305 320,274 Interest .. .. .. .. 16,623 57,469 99,516 Outgo — Claims .. 956 55 82 Salaries .. .. .. 1,018 5,696 2,070 2,042 Other working-expenses .. 1,261 919 368 965 Discount to insurance offices .. Nil Nil 943 7,891 Audit fee ...... .. 120 100 75 Surplus .. .. .. 875,090 1,620,150 1,477,238 408,735 Total of Fund .. .. .. 875,090 2,495,240 3,972,478 4,381,213 Ratio per cent, of working-expenses 0-260 0-418 0-245 3-426 to premium income Ratio per cent, of working-expenses 0-260 0-413 0-235 2-614 to total income

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(4) The survey of buildings referred to in the last annual report, which is being undertaken tor the purpose of framing suitable insurance standards when sufficient data has been collected, is proceeding slowly, but the reports have already provided some valuable information as to the condition and resistance of buildings in the business blocks of Wellington. The Commission recognizes the urgency of completing the survey of buildings in areas which are considered most liable to shock, but more rapid progress is not possible until additional staff competent to undertake this expert work is available. (5) A considerable amount of the time of the Commission has been occupied in dealing with applications for insurance under the voluntary provisions of the Act (section 15). Many of these applications refer to types of property not insured against fire, but which are liable to earthquake damage. Risks of this class which are considered acceptable have been charged differential rates by the Commission, acting under the authority of subsection (3) of section 15. J. 11. Jeiiram, Deputy Chairman.

EARTHQUAKE AND WAR DAMAGE FUND (Under Earthquake and War Damage Act, 1944) Income and Expenditure Account fob the Year ended 31st March, 1945 £ s. d. £ s - d. Net premiums .. .. .. ■ • 320,273 15 6 Claims .. .. .. .. •• 811411 Interest .. .. .. •• 99,516 9 2 Salaries and overtime .. .. .. 2,042 U 0 Pees of members of Commission .. .. 125 0 0 Expenses of management .. .. .. 915 12 3 Discount allowed insurance offices .. .. 7,891 1 11 Balance transferred to Earthquake and War Damage Fund .. .. .. 408,734 15 7 £419,790 4 8 £419,790 4 8 Balance-sheet as at 31st March, 1945 Liabilities Assets £ s. d. £ s. d. £ 8> o. Balance as at 31st March, Government stock .. .. .. 4,270,000 0 0 1944 .. 3,972,477 18 8 Cash in Public Account to credit of Earthquake Net income for year ended and War Damage Fund .. .. .. fB,WO 15 10 31st March, 1945 .. 408,734 15 7 Interest accrued but not due .. .. 12,b58 18 1 1 4,381,212 14 3 Premiums accrued but not due .. .. 57,152 4 6 Discount due on accrued premiums .. 1,421 14 9 Sundry debtors .. .. .. •• 0 14 Premium and other deposits .. .. 5,247 10 9 £4,387,881 19 9 £4,387,881 19 9 19th June, 1945. T. L. Seator, Secretary. 1 hereby certify that the Income and Expenditure Account and Balance-sheet have been duly examined and compared with the relative books and documents submitted for audit, and correctly state the position as disclosed thereby. —Cyril G. Collins, Controller and Auditor-General.

Approximate Cost of Paper— Preparation, not given ; prinl iug (1,105 copies), £5.

By Authority: E. V. Paul, Government Printer, Wellington. —1945.

Price 3d.]

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