SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1949

Appendix to the Journals of the House of Representatives, 1949 Session I, H-09

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1949 NEW ZEALAND

SOCIAL SECURITY DEPARTMENT REPORT FOR THE TWELVE MONTHS ENDED 31st MARCH, 1949

Presented to Both Houses of the General Assembly Pursuant to Section 141 of the Social Security Act, 1938

This report deals with Part II 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 Department and Land and Income Tax Department respectively.

REPORT

To the Hon. the Ministeb of Social Secubity. Sib, — Social Security Department, Wellington, 24th June, 1949. We have the honour to submit for the information of Parliament the tenth annual report of the Social Security Department for the period Ist April, 1948, to the 31st March, 1949. SECTION I—SOCIAL SECURITY BENEFITS NEW LEGISLATION Legislation was enacted to give effect to the agreements reached with Great Britain and Northern Ireland covering reciprocity in family benefits. The Family Benefits (Reciprocity with Great Britain) Act, 1948, and Family Benefits (Reciprocity with Northern Ireland) Act, 1948, came into force on Ist December, 1948. The main effect of this legislation is that, in its application to family benefits, residence or birth in Great Britain or Northern Ireland of children who are British subjects will be treated as residence or birth in New Zealand. As a result of further negotiations, a new agreement was reached with the Commonwealth of Australia which extended the scope of the reciprocal arrangement which had existed between New Zealand and Australia since 1943. The Social Security (Reciprocity with Australia) Act, 1948, will repeal the Age Benefits and Invalids' Benefits (Reciprocity with Australia) Act, 1943, and extend the scope of reciprocity between the two countries to age, widows' invalids' family, unemployment, and sickness benefits, A Proclamation will be issued bringing this Act into force from Ist July, 1949.

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The Finance Act (No. 2), 1948, enacted certain amendments to the Social Security Act, 1938, as follows : AGE-BENEFITS Provision was made for the aggregate rate of benefit payable to a totally blind applicant for age-benefit to be not less than the rate which would have been payable if the applicant had been eligible for an invalid's benefit. WIDOWS' BENEFITS The position regarding benefits for deserted wives and wives of mental defectives has been amplified by the substitution of new subsections in the principal Act. ORPHANS' BENEFITS The date of expiry of an orphan's benefit is now the end of the month in which the orphan dies or attains the age of sixteen years. FAMILY BENEFITS The family benefit residential qualification of one year has been removed in respect of any child born to a mother during her temporary absence from New Zealand. EMERGENCY BENEFITS The principal Act has been amended to enable any benefit to be transferred to an emergency benefit or an emergency benefit to be granted where it is considered that suitable training or medical treatment will assist the beneficiary in his recovery. Authority is given to the Commission to fix the rate of benefit in such cases. It is intended to operate this provision in conjunction with the provisions made in the Tuberculosis Act, 1948, for vocational training and industrial rehabilitation of sufferers from tuberculosis. MISCELLANEOUS Any person employed outside New Zealand and while so employed is liable for the payment of the social security charge on his earnings arising from such employment may have his absence treated as a period of residence for the purpose of determining his eligibility for any benefit under the Social Security Act, 1938. Any benefit may now be paid, in the discretion of the Commission, during any period of temporary absence of the beneficiary from New Zealand. This amendment to the Act does not affect the statutory rights of miners beneficiaries and certain invalids beneficiaries in receipt of benefits in respect of total blindness to be paid for periods of absence from New Zealand not exceeding two years in the aggregate. QUARTERLY BENEFITS SUPERANNUATION BENEFITS Superannuation benefits, payable at the age of sixty-five years, came into operation from Ist April, 1940, at the rate of £lO a year. This rate is increased by £2 10s. each year, and will reach the maximum of £ll7 a year in 1983. For the year ended 31st March, 1949, the rate was £3O a year, and the sum of £1,850,079 was expended during the year, an increase of £256,322 over the figure for the previous year. During the year, 10,030 new benefits were granted and 334 applications were declined. There were 65,839 benefits in force as at 31st March, 1949, an increase of 4,227 over the number for the previous year.

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MONTHLY BENEFITS AGE-BENEFITS During the year, 9,351 new benefits were granted and 953 applications were declined, also 110,246 existing benefits were renewed for a further year after individual investigation. At the 31st March, 1949, there were 116,254 benefits in force, a decrease of 907 from the figure for the previous year. The expenditure increased from £12,976,286 for the year ended 31st March, 1948, io £13,790,971 for the year ended 31st March, 1949, an increase of £814,685. WIDOWS' BENEFITS During the year 2,067 new benefits were granted, 516 applications were declined and 13,092 existing benefits were renewed for a further year. The number of benefits increased from 14.145 at 31st March, 1948, to 14,883 at the 31st March, 1949, an increase ■of 738. Included in the above figures are benefits paid in respect of women who have been deserted by their husbands and who have taken proceedings for maintenance orders under the Destitute Persons Act, 1910. These women must satisfy the other provisions of the ■Social Security Act, 1938, applicable to widows. At the 31st March, 1949, there were 1,140 such benefits in force, an increase of 44 over the figure for last year, and there were maintenance orders in operation against 926 defaulting husbands, representing an annual amount of £118,020. On the granting of benefits the Department undertakes the •enforcement of maintenance orders. During the year £64,104 was collected by way of maintenance, representing 54 per cent, of the amount of the orders in force. The number of widows receiving mother's allowance of £65 decreased from 4,863 as at the 31st March, 1948, to 4,683 as at the 31st March, 1949. The expenditure for the year for all widows' benefits amounted to £1,911,134, an increase for the year of £140,512. This expenditure included £180,758 in respect of women deserted by their husbands. The Department throughout the year has continued to take the initiative in assisting women whose husbands have just died, and where necessary, emergency benefits have been granted pending finalization of applications for widows' benefits. ORPHANS' BENEFITS During the year 80 new benefits were granted. The number of benefits in force increased from 370 (in respect of 557 children) as at 31st March, 1948, to 371 (in respect of 518 children) as at 31st March, 1949. The expenditure increased from £24,187 for the year ended 31st March, 1948, to £27,623 for the year ended 31st March, 1949. FAMILY BENEFITS During the year under review 19,979 new benefits were granted and 223 applications were declined. The number of benefits in force increased by 5,589 from 243,137 at 31st March, 1948, to 248,726 at 31st March, 1949. These benefits represented payments in respect of 548,330 children, as against 521,394 children for the previous year. The expenditure increased from £13,798,648 for the year ended 31st March, 1948, to £14,242,202 for the year ended 31st March, 1949, an increase of £443,554. The special concession granted to mothers whereby the monthly instalments of family benefit may be credited to Post Office Savings-bank accounts continued in popularity, and the number of benefits dealt with in this manner increased from 65,975 last year to 74,534 at the 31st March, 1949. The total amounts lodged to Post Office Savings-bank accounts through this medium totalled £3,705,398 for the year, as against £3,379,675 for the previous year.

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With the beneficiary's authority the whole or portion of a family benefit may bediverted to the Commisioner of Taxes for the purpose of meeting the income-tax payments of the beneficiary or her husband. At the 31st March, 1949, 4,737 benefits were wholly or partially being diverted in this manner, as against 5,520 for the previous year. The amount paid to the Commissioner of Taxes for the year was £198,874, compared with £227,535 for the year ended 31st March, 1948. At 31st March, 1949, benefits were being paid in respect of 9,758 children beyond the age of sixteen years to assist in their further education.

Number of Family Benefits According to Size of Families

INVALIDS' BENEFITS Applications were received from 1,581 persons during the year on the grounds of permanent incapacity for work or total blindness. Grants were made in 1,022 cases and 622 applications were declined, mainly because medical evidence did not indicate permanent incapacity, and 9,242 existing benefits were renewed for a further year. The number of benefits in force decreased by 631, from 10,682 as at 31st March, 1948, to 10,051 as at 31st March, 1949. The expenditure for the year decreased by £18,684 from £1,367,300 for the year ended 31st March, 1948, to £1,348,616 for the year ended 31st March, 1949.

The following table, prepared as at 31st January, 1949, indicates tlie nature of the diseases suffered by invalid beneficiaries who are permanently incapacitated for work :

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Number of Children in Family. l. 2. 4. 5. I 6. Number of families, 31st March, 1948 Number of families, 31st March, 1949 101,325 95,681 ■ 68,883 75,178 38,871 41,488 ; n 18,552 19,741 8,048 8,586 3,737 3,975 Number of Children in Family—continued. Total Number of Benefits. i Total Number of Children. 1 . 7. 8. 9. 10 or more. Number of families, 31st March, 1948 Number of families, 31st March, 1949 1,984 2,088 988 1,098 462 531 287 360 243,137 248,726 521,394 548,330

1 Disease Category. | Total. Males. Females. Infectious and Parasitic Diseases — Tuberculosis of the respiratory system .. .. .. .. .. ! 446 370 Other forms of tuberculosis .. .. .. .. .. 81 68 Acute poliomyelitis and sequelae .. .. .. .. .. ! 147 167 Other infectious and parasitic diseases .. .. .. .. 90 54 Neoplasms— 30 19 Malignant neoplasms .. .. .. • .. .. Nonmahgnant neoplasms .. .. .. .. .. • 15 18 Rheumatic Fever, Diseases of the Endocrine Glands and Nutrition and Other General Diseases — Rheumatic fever 25 19 Diabetes mellitus .. .. .. .. .. .. 37 40 Diseases of the thyroid and endocrine glands 42 103 Other nutritional and general diseases 5 19 Diseases of the Blood and Blood-forming Organs 25 26 Chronic Poisoning and Intoxication I

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MINERS' BENEFITS During the year 25 new grants were made. The number of benefits in force decreased by 25, from 685 as .at 31st March, 1948, to 660 as at 31st March, 1949. This includes -85 benefits paid to widows whose husbands died while in receipt of miners' benefit. The expenditure for the year increased by £3,553, from £110,106 for the year ended 51st March, 1948, to £113,659 for the year ended 31st March, 1949. RECIPROCAL BENEFITS Reciprocity With Australia Under the Age and Invalids' Benefits (Reciprocity with Australia) Act, 1943, the Social Security Commission was empowered to grant age and invalids' benefits to persons living in the Dominion not eligible for benefits under the Social Security Act, 1938, but who immediately before taking up residence in New Zealand were resident in Australia. The rate of reciprocal benefit was not to exceed the rate payable in the country with the lower maximum benefit. The basic rate of Australian age and invalids' pensions was increased from £97 10s. to £llO 10s. a year from the 21st October, 1948. Negotiations which extended over a considerable period between Australia and New Zealand resulted in the passing by the New Zealand Parliament on 2nd December, 1948, of the Social Security (Reciprocity with Australia) Act, 1948. This Act ratified a new reciprocal agreement with Australia. The new agreement, which comes into operation on Ist July, 1949, extends the scope of reciprocity to cover age, invalids', widows', family, unemployment, and sickness benefits. The former requirement that benefits be subject to the more restrictive .conditions of either country has not been incorporated in the new agreement.

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Total. Disease Category. Males. Females. Diseases of the Nervous System and Sense Organs, Including Mental Disorders— Residuals of other and unspecified paralysis 232 202 Mental deficiency 944 1,206 Epilepsy .. .. .. .. . ; 202 264 Diseases of the organs of vision 324 161 Other diseases of the nervous system and sense organs, including mental 478 568 disorders Diseases of the Circulatory System— Diseases of the heart 637 454 Diseases of the arteries 63 31 Varicose veins and hemorrhoids 16 19 Other diseases of the circulatory system 14 10 Diseases of the Respiratory System— Bronchitis 78 46 Asthma .. .. .. .. .. .. .. 178 131 Other diseases of the respiratory system 42 19 Diseases of the Digestive System— Ulcer of the stomach and intestines .. .. 35 8 Hernia .. .. .. .. .. .. .. 11 9 Other diseases of the digestive system 47 57 Diseases of the Genitp-urinary System 43 55 Diseases of the Skin 25 23 Diseases of the Bones and Organs of Movement — Arthritis and rheumatism 384 385 Other diseases of the bones and organs of movement 155 117 Other deformities due to previous disease or injury, including amputations .. 89 64 <Congenital Malformations 131 104 lOther and Ill-defined Diseases 32 61 Injuries and Poisoning .. .. .. .. 85 33 Totals 5,188 4,930

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The position regarding applications for reciprocal benefits and benefits in force as at 31st March, 1949, under the Age and Invalids' Benefits (Reciprocity with Australia) Act, 1943, is shown in the following table :

Reciprocity with Great Britain and Northern Ireland Reciprocity.between British countries has been considered for many years, particularly at various Imperial Conferences, but it was considered that the varying nature of benefits and qualifying conditions in the different countries prevented the framing of a standard scheme. It was left to the Governments of the different countries to negotiate separately with one another if they wished. A proposal by the Hon. the Minister of Finance while in England in 1946 that a British Commonwealth conference be held to work out principles and administrative details for reciprocal arrangements was agreed to by the British Government. At this Commonwealth Conference on National Insurance held in London during May, 1947, it was felt that, while multilateral agreements within the Empire were not practicable, bilateral agreements between any two countries might be arranged. Negotiations carried on between Great Britain, Northern Ireland, and New Zealand following this Conference finally resulted in separate agreements providing for reciprocity in the field of family benefits and family allowances being concluded by New Zealand with Great Britain and Northern Ireland. New Zealand legislation giving effect to these agreements came into force on Ist December, 1948. Negotiations for reciprocity in age and widows' benefits with Great Britain and Northern Ireland are still proceeding. From Ist December, 1948, to 31st March, 1949, 713 reciprocal family benefits were granted, of which 561 were still current at the latter date. WEEKLY BENEFITS UNEMPLOYMENT BENEFITS The following figures show the number of applications for unemployment benefits dealt with during the years ended 31st March, 1948, and 31st March, 1949, respectively :

As at 31st March, 1949, there were 30 persons in receipt of unemployment benefit, as against 16 as at 31st March, 1948. The total expenditure for the year amounted to £8,948, as against £8,358 for the previous year, an increase of £590.

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1947-48. 1948-49. Age. Invalids. | Total. Age. Invalids. Total. Applications received and those outstanding 172 22 194 149 1 13 162 at the beginning of the year Applications granted 134 15 149 104 6 110 Applications rejected 15 4 19 22 4 26 Applications outstanding as at 31st March 23 3 26 23 3 26 Benefits in force as at 31st March 216 55 271 219 1 51 270

— 1947-48. 1948-"49. Males. Females. j Totals. Males. Females. j Totals. Persons granted benefit .. .. * Number of applications declined Totals 368 296 12 851 380 1,147 330 383 14 25 1 344 408 664 863 ! 1,527 | 713 39 752

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Statement Showing for the Year Ended 31st March, 1949, Duration of Unemployment for Males and Females According to Age-groups

The above schedule discloses that approximately 49 per cent, of the male beneficiaries were unemployed for less than five weeks, while approximately 34 per cent, were unemployed for periods varying from five to twelve weeks, and 14 per cent, from thirteen to twenty-five weeks. Of the few female beneficiaries, approximately one-half were unemployed for less than five weeks. SICKNESS BENEFITS The following figures show the number of applications for sickness benefits dealt with during the years ended 31st March, 1948, and 31st March, 1949, respectively:—

The number of sickness benefits granted during the year totalled 30,421, a decrease of 934, or approximately 3 per cent., from the previous year. There were 4,945 benefits current at 31st March, 1949, and expenditure for the year amounted to £911,107, an increase of £14,014 over the figure for the previous year.

Statement Showing for the Year Ended 31st March, 1949, Duration of Sickness for Males and Females Whose Sickness Benefits Ceased During the Year

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Years Years Years Years Period of Unemployment. 16 to 19. 20 to 29. 30 to 39. 4-0 to 49. M. F. M. | p. M. 1 F - M. 1 E ' 1 to 4 weeks 5 32 3 45 2 38 5 to 12 weeks 18 1 22 42 13 to 25 weeks 1 8 1 7 12 26 to 52 weeks 3 1 Totals 6 58 5 77 2 i 93 Years 50 to 59. Years 60 and over. Totals. Grand Period of Unemployment. Total. ii. E. M. p. M. | jr. 1 to 4 weeks 31 5 1 156 6 162 5 to 12 weeks 20 1 4 106 2 108 13 to 25 weeks .. .. 15 1 2 45 2 47 26 to 52 weeks 5 9 9 Totals 71 2 11 1 316 10 326

1947-48. 1948-49. Males. Females. | Totals. Males. | Females. Totals, Persons granted benefit Number of applications declined 24,073 2,683 7,282 1,195 31,355 3,878 23,150 2,665 7,271 832 30,421 3,497 Totals 26,756 8,477 35,233 25,815 8,103 33,918

Period of Sickness. Males. | Females. | Total. 1 to 4 weeks 7,939 1,913 9,852 5 to 12 weeks 7,864 2,380 10,244 13 to 25 weeks 2,763 1,047 3,810 26 to 52 weeks 1,418 486 594 2,012 Over 52 weeks 269 755 Total 20,470 6,203 26,673

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Statement Showing Disease Classification of Sickness Beneficiaries Whose Benefits Ceased During the Year

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Disease Category. Males. Females. Total. Infectious and Parasitic Diseases— Influenza 876 192 . 1,068 Tuberculosis of the respiratory system .. .. 334 252 586 Other forms of tuberculosis .. .. .. 71 32 103 Acute poliomyelitis and sequelae 87 29 116 Other infectious and parasitic diseases not included above 583 189 772 Neoplasms— Malignant neoplasms 117 21 138 Nonmalignant neoplasms .. .. .. 186 170 356 Rheumatic Fever, Diseases of the Endocrine Glands, and Nutrition and Other General Diseases— Rheumatic fever 167 77 244 Diabetes mellitus .. .. .. .. 75 11 86 Diseases of the thyroid and endocrine glands 114 141 255 Other nutritional and general diseases 38 11 49 Diseases of the Blood and Blood-forming Organs 55 113 168 Chronic Poisoning and Intoxication 7 7 Diseases of the Nervous System and Sense Organs Including Mental Disorders — Neuritis 78 19 97 Sciatica 210 20 230 Psychoses and other mental diseases 859 682 1,541 Diseases of the organs of vision 246 50 296 Diseases of the ear and mastoid process 125 39 164 Other diseases of the nervous system and sense organs, including 177 27 204 mental disorders Diseases of Circulatory System— Diseases of the heart 863 142 1,005 Varicose veins and haemorrhoids 424 48 472 Other diseases of the circulatory system 195 84 279 Diseases of Respiratory System— Diseases of the nose and nasal fossae, including sinusitis 235 67 302 Diseases of the pharynx and larynx, including tonsillitis 368 216 584 Bronchitis 731 151 882 Pneumonia 582 82 664 Pleurisy 292 95 387 Asthma 228 70 298 Other diseases of the respiratory system 101 24 125 Diseases of Digestive System— Ulcer of the stomach and intestines .. .. .. j 490 26 516 Appendicitis .. .. 990 541 1,531 Hernia 692 39 731 Peritonitis 19 11 30 Other diseases of the digestive system 1,171 285 1,456 Diseases of the Genito-urinary System 689 417 1,106 Diseases of the Skin 1,471 317 1,788 Diseases of Bones and Organs of Movement— Arthritis and rheumatism, except rheumatic fever .. .. | 1,297 263 1,560 Other diseases of the bones and organs of movement 817 188 1,005 Congenital Malformations 55 26 81 Other and Ill-defined Diseases 494 399 893 Injuries and Poisonings— 144 1,809 Fractures 1,665 Dislocations, sprain, or other joint injury without fracture .. j 505 102 607 Other injuries and poisoning .. .. .. .. ■ 1,691 161 1,852 Other Enumerated Conditions Without Sickness— Pregnancy 226 226 Other conditions 4 4 Total 20,470 6,203 26,673

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EMERGENCY BENEFITS In cases of hardship a special benefit may be granted at the discretion of the Social Security Commission to any person who is not qualified for any other benefit under the Act, but who by reason of age, physical or mental disability, or for any other reason is unable to earn a sufficient livelihood for himself and his dependants. Emergency benefits may also be granted in lieu of other benefits where it is considered that a course of medical treatment or training in any occupation would be beneficial. Full and sympathetic use was made of this section, and during the past year 2,735 benefits were granted. The number of benefits in force decreased from 2,141 as at the 31st March, 1948, to 2,026 as at the 31st March, 1949, and the expenditure for the year was £251,409, as against £227,857 for the previous year, an increase of £23,552. FINANCE STATEMENT SHOWING THE RECEIPTS AND PAYMENTS OF THE SOCIAL SECURITY FUND FOR THE YEAR ENDED 31ST MARCH, 1949 Receipts Payments Balance as at Ist April Monetary benefits—--1948— £ £ Universal super- £ £ Cash .. .. 1,342,701 annuation .. 1,850,079 Imprest .. .. 899,217 Age .. .. 13,790,971 Investments .. 5,000,000 Widows'.. .. 1,911,134 7,241,918 Orphans' .. 27,623 Social security charge Family .. . . 14,242,202 on wages and other Invalids' .. 1,348,616 income .. .. 29,378,385 Miners' .. .. 113,659 Miscellaneous receipts, Maori War .. 10 interest, penalties, Unemployment .. 8,948 and fines .. 58,651 Sickness .. .. 911,107 29,437,036 Emergency .. 251,409 Recoveries under main- 34,455,758 tenance orders, Medical benefits, &c.— widows'benefits* .. 63,429 Medical benefits .. 2,306,881 Grants from Consolidated Fund, Hospital benefits .. 1,997,375 vote, "Social Security" (Social Maternity benefits.. 916,120 Security Act, 1938, section 105(c)) 15,000,000 Pharmaceutical benefits .. .. 1,793,159 Supplementary benefits .. .. 861,913 7,875,448 Administration expenses : Social Security Department .. 729,259 Balance at 31st March, 1949 Cash .. .. 533,874 Imprests outstanding 148,044 Investments .. 8,000,000 8,681,918 £51,742,383 £51,742,383

* This item reduces the cost to the Fund on account of widows' benefits by an equivalent amount.

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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 and the War Pensions Appeal Boards are the function of the Secretary for War Pensions. NEW LEGISLATION In the Finance Act (No. 2), 1948, provision was made for an amendment to section 28 of the War Pensions Act, 1943, enabling widows of servicemen who are granted remarriage gratuities to receive the benefit of any increased rates of pension which may become payable during the currency of the gratuity. In the same enactment provision was also made for amendment to section 68 of the War Pensions Act, 1943, to enable the widow of a war veteran to be given the benefit of any increase made in the rate of war veteran's allowance during the currency of the gratuity granted to her in respect of the death of the war veteran. In both cases the amendments were operative from Ist October, 1947. Section 74 of the War Pensions Act, 1943, was also amended by the Finance Act (No. 2), 1948, to enable the War Pensions Board, in its discretion to pay war veterans' allowances in respect of any period of the recipient's temporary absence from New Zealand. NEW APPLICATIONS FOR WAR PENSIONS During the year 7,078 applications for pensions were lodged with the Department. Of these, 1,931 applications were in respect of disablement, including 170 from the 1914-18 war and 1,761 from the 1939-45 war. Claims by dependants, applications for economic pensions, and war veterans' allowances totalled 5,147. The number of applications in respect of both wars lodged for the previous year was 7,331, which included 2,406 in respect of an applicant's own disability. A further decline of new applications for war-disablement pension was noted during the past year. This was to be expected with the elapse of time from the cessation of hostilities of the 1939-45 war.

The following shows the disabilities in respect of which new disablement pensions were granted during the past year to personnel who served in the 1939-45 war :

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Type of Service. Class of Disability or Disease. Overseas. 1 New Zealand. Total. (1) Infections and infestations (2) Nervous system (3) Eye, ear, and nose (4) Circulatory and blood system (5) Metabolism (6) Lungs (7) Diseases of bones, joints, muscles, tendons, and ligaments .. (8) Digestive system (9) Generative system (10) Gunshot wounds and accidental injuries to bones, joints, and soft tissues (11) Skin (12) Tumours and neoplastic growths (13) Malformations (14) Amputations .. .. .. .. .: (15) Urinary tract (16) Sundry minor disabilities 67 103 92 52 4 108 64 101 4 114 55 9 2 6 14 6 1 22 13 16 3 25 29 15 "20 7 1 1 " 4 68 125 105 68 7 133 93 116 4 134 62 10 3 6 18 6 801 157 958

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WAR PENSIONS BOARDS During the year the War Pensions Boards visited many centres in New Zealand and interviewed 1,429 pensioners. In each centre visited, the local ex-servicemen's organizations were given an opportunity to present special cases and to have discussions with the Boards. By this means close contact has been kept with the organizations outside Wellington, with benefit to the ex-servicemen and to the Department in its administration of the War Pensions Act as it relates to disabled ex-servicemen. The War Pensions Boards dealt with 57,285 cases during the year ended 31st March,. 1949, under the following categories: — (1) Claims for pension on account of disablement .. .. .. 1,931 (2) Claims for economic pension .. .. .. ... .. 2,164 (3) Claims for dependant's pension .. .. .. .. .. 1,806(4) Cases submitted for renewal and review .. .. .. .. 35,945 (5) Cases submitted for reconsideration .. .. .. .. 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 apply for pension .. .. .. .. .. 505 (7) Claims for war veterans'allowances .. .. .. .. 1,177 (8) Sundry claims and reviews and cases adjourned for further consideration and decision .. .. .. .. .. ... 7-, 501 57,285 MEDICAL TREATMENT The provision of treatment for disabled ex-servicemen through the Pensions Medical Officers has continued to give satisfaction. The number of disabled ex-servicemen in hospital as a result of war disabilities has decreased, but there were as at 31st March, 1949,* still 174 pensioners of the 1914-18 war receiving in-patient treatment and 302 of the 1939-45 war. Numbers vary from time to time, however, as many admissions to hospitals are for short periods oniy. The Medical Officer in Charge of Treatment has noted a definite decline in the number of new applications by ex-servicemen suffering from pulmonary tuberculosis. In approximately 25 per cent, of these cases it has not been possible to associate the condition with war service. The Medical Officer in Charge of Treatment has drawn attention to the number of new dysentery cases dealt with by the War Pensions Boards. During the last two years some 120 cases of chronic amoebiasis have been diagnosed, none of the cases having previously, either overseas or within New Zealand, been suspected of suffering from this disease. Attention was drawn to the incidence of this disease through the DirectorGeneral of Health and through the columns of the New Zealand Medical Journal. During the year the Medical Officer in Charge of Treatment has published in the New Zealand Medical Journal two reviews following his research into the statistics and results of treatment of the disabilities suffered by ex-servicemen. One related to " Prolapsed Intervertebral Discs " and the other to " Fractures of the Carpal Scaphoid Bone." These two reviews have been of much importance and interest to the medical profession. It is hoped during the next year to carry out further reviews and to publish the results relating to other diseases and battle casualties. With the large numbers in different classes of diseases and casualties which occur among servicemen and with the follow-up of war pensioners after treatment, it has been possible to make available useful information to assist in the treatment not only of war disabled, but also of civilian, patients.

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During the past year a close liaison has been maintained with other Departments and organizations concerned with the welfare of ex-servicemen. In particular there has been close co-operation with the Rehabilitation Department and the Disabled Servicemen's Re-Establishment League in supplying information and advice regarding the rehabilitation and special training of ex-servicemen. MISCELLANEOUS EXPENDITURE FOR THE YEAR Administration costs for the year in respect of war pensions and allowances totalled £16,802. Medical treatment of war pensioners (including the cost of treatment of pensioners resident in overseas countries) amounted to £248,465, compared with £65,565 'for the previous year. The marked increase in this item is due to increased hospital charges and payment to Hospital Boards of arrears of maintenance charges in respect of 1939-45 war personnel. 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 £7,029, compared with £6,404 for the previous year. Loading on life-insurance policies due to war-service disabilities of war pensioners was paid by the Department, and amounted to £Bl9, compared with £597 for the previous year. Medical fees and travelling-expenses of pensioners cost £31,864, compared with £37,920 for the previous year.

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ECONOMIC PENSIONS PAYABLE AT 31st MARCH, 1949, IN SUPPLEMENTATION OF STATUTORY WAR PENSIONS

For the year ended 31st March, 1949, the expenditure on war pensions was £4,010,859, being £2,104,627 in respect of 1914-18 war and £1,906,232 in respect of 1939-45 war. T he expenditure on war veterans' allowances for the year was £562,634,

N.B.—During the year mothers' allowance of 30s. a week was paid to 2,278 wives and widows of disabled or deceased ex-servicemen.

DISSECTION OF WAR PENSIONS CURRENT AS AT 31st MARCH, 1949

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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. 1 Annual Value. 1 Number of Pensioners. Number of Children. Annual Value. Ex-member of Forces — Permanent Temporary Dependants of disabled ex-members Widows Other dependants of deceased servicemen 13,812 277 2,546 2,347 338 ' 970 209 64 £ 1,444,922 25,971 172,110 379,932 19,388 8,310 15,317 987 1,629 944 "523 1,295 893 • £ 470,859 1,310,516 80,058 349,999 41,989 22,122 15,594 3,533 3,976 1,282 i j 493 1,504 957 £ 1,915,781 1,336,487 252,168 729,931 61,377 Totals 19,320 1,243 2,042,323 27,187 2,711 • 2,253,421 46,507 3,954 4,295,744

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 .. .. .. 3,498 59 1,306 16 £ 393,465 6,616 82,956 777 293 1,096 803 55 £ 32,764 122,190 50,907 2,578 3,791 1,155 2,109 71 £ 426,229 128,806 133,863 3,355 Totals .. 4,879 483,814 2,247 208,439 7,126 692,253

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PENSIONS PAYABLE OUTSIDE NEW ZEALAND AT 31st MARCH, 1949

WAR PENSIONS APPEAL BOARD Following the death in May, 1948, of Sir Francis Frazer, Mr. J. R. Bartholomew, a former Stipendiary Magistrate, was appointed temporary Chairman of the Appeal Board. Mr. Bartholomew commenced his duties in July, 1948, and since then frequent sittings of the Appeal Board have been held in the four main centres. The number of appeals lodged during the year ended 31st March, 1949, fell considerably over those for the previous year.

The following summarizes.the work of the War Pensions Appeal Board during the year: —

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Class of Pension. War, 1914-18. Wai, 1939-45. Total. Ex-member of Forces — Permanent 858 " 130 988 Temporary 6 292 298 Dependants of ex-members— Widows 243 120 363 Wives and other dependants 214 111 325 Totals 1,321 653 1,974

— War, 1914-18. War, 1939-45. ~~ War Pensions and Allowances (Mercantile Marine) Act, 1940. War Veterans. Totals. Appeals outstanding at 31st March, 1948 Appeals lodged, 1948-49 29 98 121 581 4 1 2 151 685 m Total to be dealt with 127 702 4 3 836 Appeals upheld, 1948-49 Appeals dismissed, 1948-49 Appeals withdrawn or struck out, 1948-49 23 64 17 206 262 50 2 1 1 232 326 68 Total disposed of 104 518 2 2 ' 626 Appeals outstanding at 31st March, 1949 Percentage upheld 23 22-1 184 39-8 2 100 1 50 210 37

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SECTION III—GENERAL SUMMARY BENEFITS AND PENSIONS IN FORCE AND TOTAL PAYMENTS

COST OF ADMINISTRATION Administration costs for the year, excluding expenditure of £12,838 on capital items, amounted to £733,223, including £16,802 in respect of the administration of war pensions and allowances. This cost represents 1-84 per cent, on total payments. MISCELLANEOUS WAR SERVICEMEN'S DEPENDANTS' ALLOWANCES A parent of a deceased member of the Forces and of the New Zealand Mercantile Marine in receipt of a benefit under Part II of the Social Security Act, 1938, may have the benefit increased by an amount not exceeding £26 a year. At the 31st March, 1949, there were 1,674 of these allowances in force paid in conjunction with age, invalids', miners', and widows' benefits. This represents an increase of 35 over the figure of 1,639 for last year. REHABILITATION ALLOWANCES With the continued tapering-off of the number of Service personnel demobilized, the need for this allowance has declined, and only 3 rehabilitation allowances have been paid over the last twelve months.

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Social Security Benefits. As at 31st March, 1948. As at 31st March, 1949. Number in Force. Annual Value. Total Payments, 1947-48. Number in Force. Annual Value. Total Payments, 1948-49. Universal superannuation Age Widows' Orphans' Family Invalids' Miners' Maori War Unemployment Sickness Emergency Sub-total War Pensions and Other Payments— War, 1914-18 War, 1939-45 War veterans' allowances .. South African War Mercantile Marine pensions Emergency Reserve Corps Sundry pensions and annuities Civil Service Act, 1908 War and other pensions paid on behalf of the Governments of Great Britain, Australia, India, Pakistan, Canada, South Africa, Burma, and Crown Colonies Sub-total Total 61,612 117,161 14,145 370 243,137 10,682 685 1 16 4,248 2,141 £ 1,694,330 14,223,345 1,949,888 27,010 13', 542,730 1,406,285 111,518 117 £ 1,593,757 12,976,286 1,770,622 24,187 13,798,648 1,367,300 110,106 111 8,358 897,093 227,857 65,839 116,254 14,883 371 248,726 10,051 660 "30 4,945 2,026 £ 1,975,170 14,008,607 2,001,764 27,083 14,065,455 1,324,722 108,900 £ 1,850,079 13,790,971 1,911,134 27,623 14,242,202 1,348,616 113,659 10 8,948 911,107 251,409 454,198 32,955,223 32,774,325 463,785 33,511,701 34,455,758 19,715 28,249 2,617 42 24 11 173 3,619 2,097,676 1,899,678 470,798 4,013 1,925 1,404 27,655 391,045 2,049,391 2,031,194 422,275 3,689 2,727 1,368 24,783 697 393,459 19,320 27,187 3,367 41 23 10 159 4^004 2,042,323 2,253,421 613,458 3,768 2,184 1,463 26,300 345j 276 2,104,627 1,906,232 562,634 3,892 2,700 1,447 27,262 463,345 54,450 4,894,194 4,929,583 54,111 5,288,193 5,072,178 508,648 37,849,417 37,703,908 517,896 38,799,894 39,527,936

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DEMOBILIZATION ALLOWANCES During the year no applications were received from ex-servicemen or ex-service-women for these allowances, which are intended to provide for the maintenance of 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. There were 6 allowances current at the 31st March, 1949, representing grants made during the previous year, compared with 11 at the 31st March, 1948. Expenditure for the year ended 31st March, 1949, was £1,290, compared with £2,908 for the previous year. IMPERIAL AND OTHER OVERSEAS PENSIONS The Department has been called on to provide increased services during the past year on behalf of the Governments of Great Britain, Australia, Canada, South Africa,. Pakistan, India, and Crown colonies in respect of payment of pensions and allowances in New Zealand. The number of cases in payment in New Zealand on behalf of these Governments is now 4,004, compared with 3,619 at the 31st March, 1948. There were, however, a large number of cases paid during the year for short periods. The total amount paid during the year on behalf of other Governments was £463,345, an increase of £69,886 over the previous year. Whereas supplementary - payments were previously made in respect of exchange on amounts authorized by Great Britain and other Governments affected by difference of exchange, these have now ceased on account of New Zealand currency being appreciated to parity with sterling. In November last the Department was privileged to -have a visit from the Parliamentary Under-Secretary to the Ministry of Pensions of the Government of Great Britain, Mr. A. Blenkinsop, who was accompanied by Miss M. Cox, C.8.E., Deputy Secretary to the Ministry of Pensions. Discussions were held with departmental officers, and as a result it has been possible to delegate some additional powers to the Department and so dispose locally of many matters which formerly had to be referred to the Ministry in London. Opportunity was taken to have as many Imperial pensioners as possible seen by Mr. Blenkinsop and Miss Cox in Auckland, Wellington, Christchurch, and Dunedin, where meetings were addressed and many items of interest discussed. Representations made to the personal representatives of the Ministry during their visit to New Zealand have resulted in increases of pensions and new awards in several casesSTAFF At 31st March, 1949, the effective strength of the staff of the Department was 1,277, compared with 1,360 as at 31st March, 1948, a reduction of 83. Although it is pleasing to report that the work of the Department has not suffered through -persistent staff shortages, the rate of loss of trained staff is disturbing. Many of the offices of the Department continue to be undermanned. The staff-training programme has been maintained, with beneficial results. It is due to keenness and co-operation of the staff, combined with intensive staff training, that the Department has been able to function efficiently despite the staff shortage. In submitting this report we would like to record our appreciation of the loyal and efficient service rendered by the officers of the Department throughout the year. B. F. Waters, Chairman C. Dunn, Commissioner , Social Security Commission. A. E. T. Williams, Commissioner J

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APPENDIX COMPARATIVE TABLE SHOWING NUMBER OF BENEFICIARIES AND AMOUNT OF BENEFIT PAID FOR EACH YEAR SINCE INCEPTION OF SOCIAL SECURITY

Approximate Cost of Paper.—Preparation, not given ; printing (1,519 copies), £64

By Authority: R. E. Owen, Government Printer, Wellington.—l 949. Price ScL]

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1940. 1941. ■ 1942. 1943. Number in Force. Amount. Number in Force. Amount. Number in Force. Amount. Number in Force. 1 Amount. Superannuation Age Widows' Orphans' Family Invalids' Miners' Maori War Unemployment Sickness Emergency 10,174 330 11,053 11,811 988 12 4,053 2,565 1,043 £ 785,952 14,880 252,562 942,196 92,653 1,103 434,497 208,790 86,711 36,602 97,606 10,569 350 16,626 11,936 931 1,906 3,452 2,034 £ 240,336 7,101,346 836,368 17,713 411,811 999,648 88,656 744 299,161 279,581 130,096 41,021 99,152 10,765 372 18,316 12,107 888 | 4 841 3,672 2,170 £ 445,686 7,190,694 844,928 18,275 539,183 1,011,375 83,258 440 138,528 304,154 124,716 | 44,448 1 99,671 : 10,589 395 14,190 11,938 841 2 373 3,699 1,821 £ 603,124 7,783,084 866,597 20,628 790,719 1,036,373 80,100 190 49,639 362,088 118,923 Totals .. 135,291 9,337,243 182,019 10,405,460 189,308 10,701,237 187,967 11,711,465 1944. 1945. 1946. 1347. Number in Force. Amount. Number in Force. Amount. Number in Force. Amount. Number in Force. Amount. Superannuation Age Widows' Orphans' Family Invalids' Miners' Maori War Unemployment Sickness Emergency 49,289 102,530 10,836 412 15,950 12,126 795 1 292 4,446 1,915 £ 778,758 8,101,668 949,099 22,442 876,858 1,067,409 76,652 119 32,316 376,878 115,574 53,679 104,653 10,965 ' 421 24,251 12,205 783 1 198 4,233 2,083 £ 995,035 8,492,015 985,452 23,253 1,405,113 1,072,619 74,367 78 27,822 351,866 105,843 56,181 110,060 11,507 400 42,637 12,164 736 1 205 5,416 2,094 £ 1,185,508 9,817,615 1,043,593 24,178 2,611,759 1,183,537 88,359 101 31,661 565,420 121,959 i 57,992 115,287 13,133 397 230,021 12,466 718 1 35 4,273 1,845 £ 1,349,689 11,881,119 1,529,010 22,905 12,680,778 1,328,485 105,416 104 24,332 853,328 134,288 Totals .. 198,592 12,397,773 213,472 jl3,533,463 241,401 jl6,673,690 436,168 29,909,454 1948. 1949. Grand Number in Force. Amount. Number in Force. Amount. Total of Payments. Superannuation Age Widows' Orphans' Family Invalids' Miners' Maori War Unemployment Sickness Emergency :: - :: 61,612 117,161 14,145 370 243,137 10,682 685 1 16 4,248 2,141 £ 1,593,757 12,976,286 1,770,622 24,187 13,798,648 1,367,300 110,106 111 8,358 897,093 227,857 65,839 116,254 14,883 371 248,726 10,051 660 30 4,945 2,026 £ 1,850,079 13,790,971 1,911,134 27,623 14,242,202 1,348,616 113,659 10 8,948 911,107 251,409 £ 9,041,972 93,652,697 11,522,755 216,084 47,609,633 11,357,558 913,226 3,000 1,055,262 5,110,305 1,417,376 Totals . 454,198 32,774,325 463,785 34,455,758 181,899,868