SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1947

Appendix to the Journals of the House of Representatives, 1947 Session I, H-09

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1947 NEW ZEALAND

SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1947

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

This report deals with Part ll of the Social Security 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. Social Security Department, Wellington, sth June, 1947. Sir, — We have the honour to submit for the information of Parliament the eighth annual report of the Social Security Department for the period Ist April, 1946, to 31st March, 1947. SECTION I. —SOCIAL SECURITY BENEFITS NEW LEGISLATION The only new legislation affecting monetary benefits under the Social Security Act, 1938, was contained in the Social Security Amendment Act, 1946. The following is a brief summary of the legislation : (1) WIDOWS' BENEFITS (a) The basic rate for a widow's benefit was increased to £lO4 a year for all classes of widows. Previously only widows who had or had had a child or children received this rate. Widows who had never had a child were limited to a benefit of £7B a year. (b) Provision was made for the additional payment of a mother's allowance of £65 a year for widows with a dependent child or children. (c) On reaching the age of sixty years widows without a dependent child now have their widows' benefit computed in respect of both income and property on a similar basis to an applicant for an age-benefit.

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(2) FAMILY BENEFITS (a) Previously children adopted subsequent to an application for a family benefit were excluded from benefit. The Act has now been amended to provide for the inclusion of all adopted children. (b) The previous restrictive residential qualifications of the parents have been removed, and now a family benefit is payable in respect of all children born in New Zealand or who have been permanently resident in New Zealand for not less than one year. (c) For the purpose of further assisting in the education of children provision was made for the extension of the period for which benefit in respect of children over sixteen years may be paid to the end of the year in which the child attains the age of eighteen years. QUARTERLY BENEFITS SUPERANNUATION BENEFITS Superannuation benefits came into operation on Ist April, 1940, at the rate of £lO a year. This rate of benefit increases by £2 10s. a year until 1978, when the full rate of £lO4 a year will be in operation. For the year ended 3-lst March, 1947, the rate was £25 a year, and the sum of £1,349,689 was paid out during the year. There were 57,992 benefits in force at the end of the financial year, an increase of 1,811 over the number for the previous year. ■ MONTHLY BENEFITS (1) AGE BENEFITS During the year under review 12,835 new benefits were granted and 1,302 applications were declined, also 102,535 .existing benefits were, after individual investigation, renewed for a further year. At the 31st March, 1947, there were 115,287 benefits in force, an increase of 5,227 over the figure for the previous year. The expenditure increased from £9,817,615 for the year ended 31st March, 1946, to £11,881,119 for year ended 31st March, 1947. (2) WIDOWS' BENEFITS The number of women receiving widows' benefit increased from 11,507 as at 31st March, 1946, to 13,133 as at the 31st March, 1947. During the year, 10,888 existing benefits were, after investigation, renewed for a further year. New grants during the year totalled 2,407, and 608 applications were declined. Included in above figures are benefits paid as widows' benefits in respect of women who have been deserted by their husbands. A " deserted wife," in order to qualify for a benefit, must satisfy the main provisions of the Act applicable to widows whose husbands have died and, in addition, satisfy the Social Security Commission that they have been deserted by their husbands, and have taken proceedings against the deserting husbands for maintenance orders under the Destitute Persons Act, 1910. At 31st March, 1947, there were 1,102 benefits of this nature in force, and there were maintenance orders in operation against 959 defaulting husbands representing an annual amount of £109,842. On the granting of a benefit to a deserted wife the Department undertakes the enforcement of maintenance orders and the collection of maintenance. During the year £44,554 was collected by way of maintenance, representing 40-5 per cent, of the amount of the orders in force.

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At 31st March, 1947, there were 5,006 widows receiving the mother's allowance of £65 a year authorized by the Social Security Amendment Act, 1946. The expenditure for the year for all widows' benefits amounted to £1,529,010, an increase for the year of £485,417. (3) ORPHANS' BENEFITS During the year 63 new benefits were granted, and as at 31st March, 1947, there were 397 orphans' benefits in force, representing payments in respect of 595 children. The expenditure during the year amounted to £22,905. (4) FAMILY BENEFITS With the abolition of the means test on Ist April, 1946, the year under review witnessed a large influx of applications for family benefit, and grants were made in 194,313 cases, and 1,560 applications were declined. During the year 37,608 benefits current at the 31st March, 1946, were reviewed and brought within the new provisions of the Act. The number of benefits in force as at 31st March, 1947, totalled 230,021, representing payments in respect of 490,260 children. The actual expenditure for the year amounted to £12,680,778. As a special concession to mothers, arrangements were made for monthly instalments of benefit to be credited to Post Office Savings-bank accounts, if desired, as it was realized that this would be of great convenience, especially to mothers with very young children, who might find difficulty in collecting instalments through the normal channels each month. By the end of the year 58,960 mothers had taken advantage of this method of payment, and instalments are lodged direct to the credit of their individual Post Office Savings-bank accounts, the amount involved being £3,073,406 a year. Also by the special authority of the mother, the Department may divert the whole or part of any family benefit to the Commissioner of Taxes for the purpose of meeting the income-tax payments of the husband ; 6,602 benefits were diverted in this manner, representing a sum of £248,072. The provision in the legislation for family benefits to be continued beyond the age of sixteen years to the end of the calendar year in which a child attains eighteen years for the purpose of assisting in its further education was availed of in respect of 10,359 children who are continuing as full-time day pupils at schools.

Numbers according to Size of Families

(5) INVALIDS' BENEFITS During the year 3,608 persons applied for benefit on the grounds of permanent incapacity for work or total blindness, and 10,457 existing benefits were reviewed and renewed for a further year. Grants were made in 2,103 cases, and 1,178 applications were declined, mainly for the reason that the medical evidence revealed that they were not permanently incapacitated. As at 31st March, 1947, there were 12,466 benefits in force, an increase of only 302 for the year. The expenditure for the year amounted to £1,328,485.

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Number of Children in Family 1. 2. 3. 4. 5. 6. 7. 8. 9. | 10 or | more. Number of families 94,163 68,292 36,171 17,722 7,252 3,430 1,576 797 401 217-

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(6) MINERS' BENEFITS This class of benefit shows a decrease in the number of beneficiaries, there being 718 in force as at 31st March, against 736 for the previous year. During the year 45 new grants were made. The expenditure for the year amounted to £105,416. (7) MAORI WAR BENEFITS There is now only one person receiving this benefit of £lO4 a year. (8) RECIPROCAL AGE AND INVALIDS' BENEFITS Under the Age and Invalids' Benefits (Reciprocity with Australia) Act, 1943, the Social Security Commission is empowered to make grants of age and invalids' benefits to persons living in the Dominion not being qualified to receive these benefits under the Social Security Act, 1938, but who immediately before taking up residence in New Zealand had been resident in Australia. The number of applications received and dealt with for the period Ist April, 1946, to 31st March, 1947, was :

The number of reciprocal benefits in force as at 31st March, 1947, was age, 158 ; invalids, 53 : total, 211. WEEKLY BENEFITS UNEMPLOYMENT BENEFITS

The following figures show the number of applications for unemployment benefits dealt with during the years ended 31st March, 1946, and 31st March 1947, respectively.

As at 31st March, 1947, there were 35 persons in receipt of unemployment benefit, a decrease of 170 over the figure as at 31st March, 1946. The total expenditure for the year amounted to £24,332, as against £31,661 for the previous year, a decrease of £7,329.

— Age. Invalids. Total. Applications received and those outstanding at the 158 30 188 beginning of the year Applications granted .. 94 15 ! 109 Applications rejected 31 10 41 Applications outstanding as at 31/3/47 33 5 38

1945-46. 1946-47. Males. Females. i Totals. Males. Females. Totals. Persons granted benefit Number of applications declined Number of persons whose applications were declined, but who were granted emergency benefits on grounds of hardship 1,149 402 210 85 746 502 1,234 1,148 712 790 503 313 51 840 503 841 1,343 816 Totals 1,761 1,333 3,094 1,606 1,394 3,000

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Statement showing for the Year ended 31st March, 1947, Duration of Unemployment for Males and Females according to Age-groups

The above schedule discloses that nearly 46 per cent, of male beneficiaries had periods of unemployment varying from four to thirteen weeks, while 31 per cent, were unemployed for periods of less than four weeks. The largest group of female beneficaries is covered by the 4-13 weeks group, being nearly 33 per cent, of females who received benefit. In the age-grouping the largest number of persons is found in the group 50-59 years (inclusive) as regards males, while the largest group for females is 20-29 years (inclusive). SICKNESS BENEFITS

The following figures show the number of sickness benefits dealt with during the years ended 31st March, 1946, and 31st March, 1947, respectively: —

During the year the number of sickness benefits granted totalled 36,711, an increase of approximately 20 per cent, over the previous year's grants. There were 4,273 grants current at 31st March, 1947, and expenditure for the year amounted to £853,328, an increase of £287,908 over the previous year.

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Years Years Years Years 16 to 19. 20 to 29. 30 to 39. 40 to 49. Period of Unemployment. M. F. M. F. M. F. M. F. Less than 4 weeks 6 3 58 8 77 6 60 1 4 weeks but less than 13 weeks 7 12 55 9 95 9 94 4 13 weeks but less than 26 weeks 5 3 8 7 24 4 47 3 26 weeks to 52 weeks (inclusive) 1 2 8 8 10 11 8 9 Totals 19 20 129 1 32 206 30 209 17 Years Years 50 to 59. 60 and over. Totals. Grand Period of Unemployment. Total. M. jr. M. F. sf. F. Less than 4 weeks ,. . 63 5 269 18 287 4 weeks but less than 13 weeks 119 3 22 392 37 429 13 weeks but less than 26 weeks 51 3 8 1 143 21 164 26 weeks to 52 weeks (inclusive) 25 5 4 1 56 36 92 Totals 258 11 39 2 860 112 972

1945-46. 1946-47. Males. Females. Totals. Males. Females. Totals. Persons granted benefit Number of applications declined Number of persons whose applications were declined, but who were granted emergency benefits on grounds of hardship 22,493 2,159 111 8,154 1,076 331 30,647 3,235 442 28,232 3,646 246 8,479 1,449 434 36,711 5,095 680 Totals 24,763 9,561 34,324 32,124 10,362 42,486

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The following table illustrates the sickness benefit experienced during the year :

Statement showing for the Year ended 31st March, 1947, Duration of Sickness for Males and Females, according to Age-groups

The above schedule discloses that the predominance of sickness among male beneficaries is found in the 30-39 years age-group and among females on the . 20-29 years age-group. The largest group of beneficaries is covered by the 1-4 weeks group comprising 42 per cent, of the male beneficaries and 36 per cent, of the female beneficiaries. The average duration of sickness over all groups is 9f weeks for males and weeks for females. The Sickness beneficiaries who have been in receipt of benefit during the whole year represent sick persons with continuing incapacity but insufficiently so to warrant the granting of Invalids' benefits.

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Years Years Years Years 16 to 19. 20 to 29. 30 to 39. 40 to 49. Period of Sickness. M. F. M. F. M. F. M. F. 1 to 4 weeks both inclusive 1,183 1,199 3,741 1,517 3,434 435 2,558 229 5 to 8 weeks both inclusive 653 698 1,895 1,019 1,849 300 1,546 190 9 to 12 weeks both inclusive 264 286 733 518 879 196 833 135 13 to 16 weeks both inclusive 110 152 366 325 483 115 448 99 17 to 20 weeks both inclusive 70 107 220 194 253 70 313 57 21 to 24 weeks both inclusive 38 66 129 148 182 71 213 51 25 to 28 weeks both inclusive 33 53 109 102 143 52 162 44 29 to 32 weeks both inclusive 20 16 74 81 98 31 131 22 33 to 36 weeks both inclusive 13 19 61 57 66 23 109 25 37 to 40 weeks both inclusive 11 14 32 36 39 26 82 8 41 to 44 weeks both inclusive 9 15 28 32 36 16 72 ' 18 45 to 48 weeks both inclusive 11 9 19 33 28 12 50 15 49 to 52 weeks both inclusive 19 21 52 97 67 45 , 100 40 Totals 2,434 2,655 7,459 4,159 7,557 1,392 6,617 933 Years Years Tnt al« 50 to 59. 60 and over. JLUuddo* Grafwl Period of Sickness. Total. M. 1 F. M. F. 1 M. 1 F. 1 to 4 weeks both inclusive 1,635 148 646 27 13,197 3, oo5 16,752 5 to 8 weeks both inclusive 1,102 129 509 23 7,554 2,359 9,913 9 to 12 weeks both inclusive 691 107 338 15 3,738 1,257 4,995 13 to 16 weeks both inclusive 450 60 191 15 2,048 766 2,814 17 to 20 weeks both inclusive 307 41 149 13 1,312 482 1,794 21 to 24 weeks both inclusive 251 24 129 6 942 366 1,308 25 to 28 weeks both inclusive 171 31 92 4 710 286 996 29 to 32 weeks both inclusive 183 30 65 6 571 • 186 757 33 to 36 weeks both inclusive 91 8 38 4 378 136 514 37 to 40 weeks both inclusive 88 11 26 278 95 373 41 to 44 weeks both inclusive 70 11 19 234 92 326 45 to 48 weeks both inclusive 61 8 14 1 183 78 261 49 to 52 weeks both inclusive 183 32 31 4 452 239 691 Totals 5,283 640 2,247 118 31,597 9,897 41,494

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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 the grounds of hardship to any person who is not qualified for any other benefit under the Act, but who by reason of age or physical or mental disability, or for any other reason, is unable to earn a sufficient livelihood for himself and his dependants. Each year full and sympathetic use is made of this section, and during the past year 1,702 new grants were made. As at 31st March, 1947, there were 1,845 of these benefits still current, and the expenditure for the year amounted to £134,288, as against £121,958 for the previous year, an increase of £12,330.

FINANCE STATEMENT SHOWING THE RECEIPTS AND PAYMENTS OF THE SOCIAL SECURITY FUND FOR THE YEAR ENDED 31st MARCH, 1947

Receipts Payments £ £ £ Balance .. .. .. 1,716,302 Monetary benefits — Social security regis- £ Universal supertration fees .. 15,287 annuation .. 1,349,689 Social security charge Age .. .. 11,881,119 on wages and other ' Widows' .. .. 1,529,010 income .. 22,383,884 Orphans'.. . . 22,905 Penalties, fines, inter- Family .. .. 12,680,778 est, and miscel- Invalids' .. 1,328,485 laneous receipts .. 120,730 Miners'- .. .. 105,416 22,519,901 Maori War .. 104 Grants from Consolidated Fund, Unemployment .. 24,332 vote, "Social Security" (Social Sickness .. 853,328 Security Act, 1938, section 105 (c)) 18,000,000 Emergency .. 134,288 29,909,454 Medical benefits, &c.— Medical benefits .. 1,760,574 Hospital benefits .. 1,986,288 Maternity benefits.. 672,989 Pharmaceutical benefits .. 1,439,686 Supplementary benefits .. .. 352,043 6,211,580 Administration expenses — Social Security Department .. 704,193 Balance .. .. .. 5,410,976 £42,236,203 £42,236,203

SECTION lI.—WAR PENSIONS The general administration of the enactments providing for pensions and allowances in respect of war service and the carrying-out of the decisions of the War Pensions Boards and the War Pensions Appeal Board are the functions of the Secretary for War Pensions. NEW LEGISLATION The following legislation became operative from Ist April, 1946 : (a) War Pensions Amendment Act, 1946 : (b) War Pensions and Allowances (Mercantile Marine) Amendment Act, 1946.

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The main provisions of these amendments provided for the payment of a mother's allowance of 30s. a week to wives and widows of ex-members of the Forces and Mercantile Marine and stabilizes the rate of pension for each child at 10s. a week. During the year the Department received 14,619 applications for pensions. Of these, 9,531 were lodged by ex-servicemen in respect of their own disabilities, the balance of 5,088 being made up of claims by dependants, applications for economic pensions, and war veterans' allowances. The following -is a summary of the disabilities from which ex-service personnel were suffering at the time of application for pension :

The War Pensions Boards dealt with 85,209 cases during the year ended 31st March, 1947, made up as follows : (1) Claims for pension on account of disablement .. .. .. 8,223 (2) Claims for economic pension .. .. .. .. .. 3,409 (3) Claims for dependants'pensions .. .. .. .. .. 1,722 (4) Cases submitted for renewal and review .. .. .. .. 52,166 (5) Cases submitted for reconsideration and reinstatement .. .. 6,256 (6) Cases where the question of entitlement was considered in respect of personnel discharged from the Forces on medical grounds, but who did not lodge claims for pension .. .. .. .. 4,567 (7) Claims for war veterans'allowances .. .. .. .. 2,600 (8) Sundry claims and reviews .. .. .. .. .. 1,213 (9) Cases adjourned for further consideration and decision .. .. 5,053 85,209 During the past year there has been a considerable drop in the number of applications for disablement pensions, this being accounted for by the fewer discharges of unfit personnel from the Forces. While there should from now on be a sharp drop in fresh applications, which this year numbered 9,531, as against 19,306 for the previous year, many applications for reinstatement of former grants and review of existing grants continue to come to hand, and the War Pensions Boards have in consequence been required to consider almost as many disablement cases as formerly.

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Class of Disability or Disease. Type of Service. Overseas. New Zealand. Total. (1) Infections and infestations (2) Nervous system (3) Eye, ear, and nose (4) Circulatory and blood systems (5) Metabolism (6) Lungs (7) Breast (8) Digestive system (9) Generative system (10) Gunshot wounds and accidental injuries to bones, joints, and soft tissues (11) Skin (12) Aveolar tissue . . . . (13) Tumours and neoplastic growths .. . . (14) Malformations (15) Amputations (16) Urinary tract (17) Sundry minor disabilities I 280 1,101 1,510 322 61 723 2 758 70 2,329 509 15 34 28 147 117 148 17 149 222 125 19 144 2 134 21 360 88 3 10 15 7 13 48 297 1,250 1,732 447 80 867 4 892 91 2,689 597 18 44 43 154 130 "196 8,154 1,377 1 9,531

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As far as it has been possible, the War Pensions Boards have visited various centres in New Zealand and have been able to see some hundreds of ex-servicemen in person. This has proved a valuable contact and at the same time has enabled the Boards to interview local ex-servicemen's organizations and hear representations from them. The Boards plan to make their visits to centres more frequent than in the past, and by this means an increasing number of ex-servicemen will have the opportunity of appearing before the Boards in person, while the Boards will also maintain close contact with the representatives of ex-servicemen in the districts. In the period under review close liaison with the Rehabilitation Department in matters pertaining to the welfare of ex-servicemen has been maintained, and also with the Disabled Servicemen's. Re-establishment League. Endeavour is made to assist both organizations with all possible details which would assist the early and permanent rehabilitation of the disabled servicemen. Much has already been accomplished along these lines, but there are still numbers of ex-servicemen who require guidance into channels of occupation best suited for their particular disabilities. The Department's medical officers are keen to assist and advise on any problems arising from the training and education of the disabled servicemen, and this aspect of the work has been given a great deal of attention in the past year. MEDICAL TREATMENT The inauguration of part-time district medical officers attached to the Department to assist and advise locally on problems of treatment has proved of great value, and the Department wishes to record its appreciation of the consideration given by such officers to the cases which have come before them. Many visits are made to these local medical officers, and immediate direction to necessary treatment has resulted. An extension of the service to amputees in respect of treatment and the fitting of artificial limbs has recently been arranged by the appointment of part-time orthopsedists at Auckland, Christchurch, and Dunedin, where facilities for fitting and repair of artificial limbs exist. By this means it is hoped to improve the service given to amputees so that expert advice may be speedily given and acted on for the benefit of the amputee. All fittings and major repairs affecting the fitting and set-up of limbs will be recommended or supervised by the orthopaedist. Necessary treatment for disabilities suffered by amputees will also be directed by the -medical officer attached to these centres. The service to amputees at the Disabled Servicemen's Training Centres continues to give satisfaction, and many amputees have received considerable help from supervision by the Department's orthopsedists, who regularly attend at the centres. During the year 306 new limbs have been fitted, while it is hoped to fit even more during the coming year, and so provide more amputees with duplicate limbs. MISCELLANEOUS EXPENDITURE FOR THE YEAR The costs for the year in respect of the administration of war pensions and allowances "totalled £94,665. In addition, the medical treatment of war pensioners (including the cost of treatment of pensioners resident in overseas countries) amounted to £60,550. 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 £5,085. The loading paid on life-insurance policies of war pensioners, due to war service disabilities, amounted to £3OB. Medical fees and the travelling-expenses of pensioners cost £49,445. 2—H 9

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ECONOMIC PENSIONS PAYABLE AT 31st MARCH, 1947, IN SUPPLEMENTATION OF STATUTORY WAR PENSIONS

DISSECTION OF WAR PENSIONS CURRENT AS AT 31st MARCH, 1947

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Class of Pension. War, 1914-18. War, 1939-45. Totals. Number of Pensioners. Number of Children. Annual Value. Number of Pensioners. Number of Children. Annual Value. Number of Pensioners. Number of Children. Annual Value. Ex-member of Forces —- Permanent .. .. Temporary .. Dependants of disabled ex-members Widows Other dependants of deceased members 14,139 526 2,732 2,239 445 1,186 280 82 £ 1,348,534 57,611 209,411 330,030 22,456 " 5,014 21,020 1,114 2,106 774 ' 805 1,614 537 £ 264,140 1,295,834 86,015 485,895 41,747 19,153 21,546 3,846 4,345 1,219 2 j 591 1,894 , 619 £ 1,-612,674 1,353-, 445 295,426 815,925 64,203 Totals 20,081 2,148 1,968,042 30,028 2,956 2,T73,631 50,109 5,104 4,141,673 N.B. —Mother's allowance of 30s. a week was paid during the year to 2,819 wives and widows of disabled or deceased ex-servicemen.

War, 1914-18. War, 1939-45. Totals. Class of Pension. Number. Annual Value. Number. Annual Value. Number. J Annual Value. Ex-member with permanent pension Ex-member with temporary pension Widows Widowed mothers 3,540 116 1,125 35 £ 311,460 10,068 58,064 1,700 177 1,765 1,003 81 £ 15,653 153,636 51,994 3,634 3,717 1,881 2,128 116 £ 327,113 163,704 110,058 5,334 Totals 4,816 381,292 3,026 224,917 7,842 606,209

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PENSIONS PAYABLE OUTSIDE NEW ZEALAND AT 31st MARCH, 1947

SUMMARY OF PENSION PAYMENTS

WAR PENSIONS APPEAL BOARD The following summarizes the operations of the War Pensions Appeal Board during the year with respect to appeals under war pensions and related legislation :

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Class of Pension. War, 1914-18. War, 1939-45. Total. Ex-members of Forces — Permanent 860 66 926 Temporary 9 236 245 Wives and parents of ex-members : Temporary dependants 95 9 104 of members Widows 218 142 360 Other dependants 165 16 181 Totals 1,347 469 1,816

— Payments made in Total. London. Australia. Canada. South Africa. Foreign Countries. New Zealand. Total payments to 31st March, 1946 Payments, 1946-47 .. Total payments to 31st March, 1947 £ 1,548,415 92,675 £ 1,124,023 43,346 £ 71,531 8,164 £ 13,975 930 £ 17,297 1,502 £ 43,946,471 3,972,496 £ 46,721,712 4,119,113 1,641,090 1,167,369 79,695 14,905 18,799 47,918,967 *50,840,825 * Includes £6,760,482 in respect of war pensions in connection with the 1939-45 war and £8,369 to members of the Emergency Reserve Corps.

— War, 1914-18. War, 1939-45. War Pensions and Allowances (Mercantile Marine) Act, 1940. War Veterans. Totals. Appeals outstanding at 31st March, 1946 Appeals lodged, 1946-47 28 136 383 1,509 6 9 411 1,660 Total to be dealt with 164 1,892 6 9 2,071 Appeals upheld, 1946-47 Appeals dismissed, 1946-47 Appeals withdrawn or struck out, 1946-47 34 78 15 597 731 217 3 3 3 1 1 637 813 233 Total disposed of 127 1,545 6 5 1,683 Appeals outstanding at 31st March, 1947 Percentage upheld 37 26-7 347 38-6 50-0 4 60-0 388 37-8

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SUMMARY BENEFITS AND PENSIONS IN FORCE AND TOTAL PAYMENTS

COST OF ADMINISTRATION Excluding expenditure of £23,030 on capital items, administration costs for the year amounted to £775,828, including £94,665 in respect of the administration of war pensions and allowances. This represents 2-23 per cent, on total payments. SECTION 111. GENERAL WAR SERVICEMEN'S DEPENDANTS' ALLOWANCES Under section 11 of the Social Security Amendment Act, 1943, the Social Security Commission is able to increase age, widows', and invalids' benefits by an amount not exceeding £26 a year to parents of deceased members of the Forces and of the New Zealand Mercantile Marine. As at 31st March, 1947, there were 1,521 of these allowances in force. REHABILITATION ALLOWANCES The Social Security Commission, acting on behalf of the Rehabilitation Department, continued to make available, where necessary, to demobilized ex-servicemen and ex-servicewomen rehabilitation allowances following the cessation of Service pay to facilitate their reabsorption into civilian ocupations. As would be expected, the number of allowances granted during the past financial year has been considerably

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As at 31st March, 1946. As at 31st March, 1947. Class. Number in Annual Value. Total Payments, Number in Annual Value. Total Payments, Force. j 1945-46. Force. 1946-47. £ £ £ £ Universal superannuation .. 56,181 1,264,073 1,185,508 57,992 1,449,800 1,349,689 Age 110,060 11,589,318 9,817,615 115,287 12,450,996 11,881,119 Widows' 11,507 1,153,001 1,043,593 13,133 1,700,724 1,529,010 Orphans' 400 21,540 24,178 397 21,378 22,905 Family 42,637 3,935,395 2,611,759 230,021 12,746,760 12,680,778 Invalids' 12,164 1,411,024 1,183,537 12,466 1,333,862 1,328,485 Miners' 736 101,182 88,359 718 101,956 105,416 Maori War 1 104 101 1 104 104 Unemployment 205 31,661 35 24,332 Sickness 5,416 565,420 4,273 853,328 Emergency 2,094 121,959 1,845 134,288 War, 191^18 20,460 2,015j 934 1,997,390 20,081 i,968,042 2,036,825 War, 1939-45 26,926 1,923,166 1,662,227 30,028 2,173,632 2,080,952 War veterans' allowances 2,029 292,482 275,029 2,277 ■345,172 346,694 Boer War (Defence Act, 1909) 46 3,564 3,547 42 3,248 3,502 Mercantile Marine pensions .. 26 2,857 1,879 27 2,132 2,985 Emergency Reserve Corps .. 11 1,286 1,351 10 1,338 1,336 Sundry pensions and annuities 162 16,960 17,560 305 21,551 21,651 Civil Service Act, 1908 3 1,400 1,260 2 932 1,352 War and other pensions paid 3,121 260,045 301,548 3,156 299,112 414,354 on behalf of the Governments of Great Britain, • Australia, India, Canada, South Africa, and Crown Colonies Totals 294,185 J 23,993,331 20,935,481 492,096 34,620,739 34,819,105

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reduced as a result of the tapering-off of the number of Service personnel demobilized. During the year grants were made in 368 cases —to 363 ex-servicemen and 5 exservice women. During the period Ist April, 1946, to 31st March, 1947, £8,244 was paid by way of this allowance—£B,o47 to ex-servicemen and £197 to ex-servicewomen—a total reduction in expenditure of £6,885 on the previous year's figures. DEMOBILIZATION ALLOWANCES To provide for the maintenance of unfit discharged Service personnel who require continuation of medical treatment, or medical after-care, and who are unable to resume civilian employment by reason of their incapacity, the payment of a temporary allowance, termed a "demobilization allowance," is in operation. During the year applications were received from 99 ex-servicemen and 9 ex-servicewomen. Grants were made to 56 ex-servicemen and 6 ex-servicewomen. The amount paid out by way of demobilization allowances was £5,209 for the year. There were 18 allowances current at 31st March, 1947. IMPERIAL AND OTHER OVERSEAS PENSIONS Much additional work has been thrown on the Department during the past year as a result of the repatriation and rehabilitation of ex-servicemen who served in units of the Empire Forces other than the New Zealand Forces. Numerous paying authorities overseas have sought the assistance of this Department in order to pay retiring pay, release leave, and other privilege payments, while payment of gratuities for such authorities is now being undertaken. Because of the varying rates and nature of payments and allowances which involve questions of conversion of currencies and exchange, the task has involved considerable accounting work and correspondence with overseas authorities, but the Department has been pleased to undertake the work and so assist ex-servicemen and their dependants who, in many cases, have taken up permanent residence in New Zealand. In many other cases the Department has been the channel for making temporary grants while ex-servicemen of other than New Zealand Forces have been in New Zealand. Arrangements have been made to deal with payment of allowances to Polish ex-servicemen when these take up residence in the Dominion. Altogether sixty different classes of payments are handled by the branch of the Department handling the payments for the United Kingdom and other Governments. STAFF The effective strength of the officers employed in the Department increased from 1,353 at 31st March, 1946, to 1,427 at 31st March, 1947. The increase is accounted for mainly through extra staff being required to handle the large number of family benefits now in operation, and also due to further officers being demobilized from the Armed Forces ; 46 officers are still absent on military service and 70 on special leave without pay and 7 on loan to other Departments. Opportunity is taken to record appreciation of the excellent service rendered, during a difficult year, by the staff of the Head Office and district offices of the Department. Members of the staff generally have applied themselves unsparingly to their duties, notwithstanding that long hours and constantly varying problems have been the rule. C. Dunn, Acting-Chairman 1 D •, a •, n . . K. Peabce, Actmg-Commissioner j°® OCIal Security Commission. Approximate Cost of Paper.—Preparation, not given; printing (1,413 copies), £35.

By Authority: E. Y. Paul, Government Printer, Wellington.—l 947. Price 6d.]

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