SOCIAL SECURITY DEPARTMENT REPORT FOR THE YEAR ENDED 31st MARCH, 1950

Appendix to the Journals of the House of Representatives, 1950 Session I, H-09

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1950 NEW ZEALAND

SOCIAL SECURITY DEPARTMENT REPORT FOR THE YEAR ENDED 31st MARCH, 1950

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

HON. J. T. WATTS, MINISTER OF SOCIAL SECURITY Social Security Department, Wellington, 4th July, 1950. The Hon. the Minister of Social Security. Sir, — We have the honour to submit the eleventh annual report of the Social Security Department for the year ended 31st March, 1950. B. F. Waters, Chairman C. Dunn, Commissioner Security Commission. A. E. T. Williams, CommissionerJ

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CONTENTS PAGE Section I—Activities op Department .. .. .. .. .. .. 3 Section ll—Social Security Cash Benefits— New Legislation— Social Security Amendment Act, 1949 .. .. .. .. .. 3 Increased Income Exemptions .. .. .. .. .. . . 3 Quarterly Benefits— Superannuation Benefits .. .. .. .. .. .. 3 Monthly Benefits— Age-benefits .. .. .. .. .. .. .. .. 4 Widows' Benefits .. .. .. .. .. .. .. 7 Orphans' Benefits .. .. .. .. .. .. .. 7 Family Benefits .. .. .. .. .. .. .. 7 Invalids' Benefits .. .. .. .. .. .. .. 8 Miners' Benefits .. .. .. .. .. .. .. 9 Weekly Benefits— Unemployment Benefits .. .. .. .. .. .. 9 Sickness Benefits .. .. .. .. .. .. .. 10 Emergency Benefits .. .. .. .. .. .. .. II War Servicemen's Dependants' Allowances .. .. .. .. .. 11 Reciprocal Benefits — Reciprocity with Australia .. .. .. .. .. .. .. 12 Reciprocity with Great Britain and Northern Ireland .. .. .. 13 Miscellaneous— Total Number of Benefits in Force .. .. .. .. .. 13 Total Expenditure .. .. . .. .. .. .. .. .. 13 European Immigrants .. .. .. .. .. .. .. .. 14 International Labour Organization .. .. .. .. .. 14 Section lll—Social Security Fund .. .. .. .. .. .. .. 15 Section IV—War Pensions — New Legislation— War Pensions Amendment Act, 1949, and War Pensions and Allowances (Mercantile Marine) Amendment Act, 1949 .. .. .. .. .. .. 16 Finance Act (No. 2), 1949 .. .. .. .. .. .. .. 16 War Pensions Regulations 1945, Amendment No. 2 (1949/181) .. .. 16 Increased Income Exemptions for War Veterans' Allowances .. .. 17 Disablement Pensions— Pensions Granted and in Force .. .. .. .. .. . . 17 Medical Treatment for Ex-servicemen .. .. .. .. .. 18 Concessions to Disablement Pensioners .. .. .. .. .. 19 Dependants' Pensions .. .. .. .. .. .. .. 19 Economic Pensions .. .. .. .. .. .. .. 20 War Veterans' Allowances .. .. .. .. .. .. •. 21 Expenditure, War Pensions and Allowances .. .. .. .. . . .. 21 War Pensions Boards .. .. .. .. .. . • •. .. 22 War Pensions Appeal Board .. .. .. .. .. •. 22 Overseas Pensions Paid in New Zealand .. .. .. .. • • 22 Demobilization Allowances .. .. .. .. . - .. .. 23 Section V —General— Publications .. .. .. .. .. .. .. .. 23 Sundry Pensions and Special Annuities .. .. .. .. .. .. 24 Summary of Benefits and Pensions Payments .. .. .. .. 24 Prosecutions .. .. .. .. .. .. ■ • . • 25 Administration and Staff .. .. .. .. .. . • •. .. 25 Appendix—Statistics of Social Security Benefits and War Pensions in Force, 1940-50 26

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REPORT

SECTION I—ACTIVITIES OF DEPARTMENT The principal legislation administered by the Department consists of Tart II of the Social Security Act, 1938, and amendments, under which social security cash benefits are paid, &nd the War Pensions Act, 1943, and amendments, under which war pensions and allowances, medical treatment for ex-servicemen, and other related matters are administered. Reports on Part 111 and Part IV of the Social Security Act, dealing with health benefits and contributions, are submitted by the Health Department and the Land and Income Tax Department respectively. SECTION lI—SOCIAL SECURITY CASH BENEFITS NEW LEGISLATION SOCIAL SECURITY AMENDMENT ACT, 1949 This amendment, which came into force from Ist June, 1949 (1) Increased the rates of benefits by ss. a week from Ist June, 1949. {2) Postponed the reassessment of widows' benefits on the same basis as age-benefits for widows without children from the sixtieth birthday to the first renewal date thereafter. ■(3) Authorized payment of benefit where a wife or widow was in receipt of a war pension in respect of her own disablement. (4) Extended the period for which instalments of benefit are available at paying offices. (5) Gave the Social Security Commission statutory authority to recover benefit where ex gratia payments are made in lieu of compensation or damages. {6) G-ave authority for age, widows', invalids', and miners' benefits to be paid to the end of the month, and sickness and unemployment benefits to the end of the week in which a beneficiary dies. (7) Extended war servicemen's dependants' allowances to include, under certain circumstances, beneficiaries who were parents of members of His Majesties Forces other than the New Zealand Forces or Mercantile Marine of the British Commonwealth other than New Zealand. INCREASED INCOME EXEMPTIONS The allowable other income for age, widows', invalids', sickness, unemployment, and related emergency benefits was increased to £7B a year from Ist January, 1950. Legislation to validate this increase will be introduced this session. 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 for the year ended 31st March, 1950, was £32 10s. a year. The maximum rate of £l3O a year will J)e reached in 1988.

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During the year 9,882 new benefits were granted and 355 applications were declined. The number of benefits in force increased by 3,517, from 65,839 at 31st March, 1949, to 69,356 at 31st March, 1950, and represents 3-62 per cent, of total population. Expenditure on superannuation benefits increased by £329,286, from £1,850,079 for the year ended 31st March, 1949, to £2,179,365 for the year ended 31st March, 1950, MONTHLY BENEFITS AGE-BENEFITS During the year 10,785 new benefits were granted, 774 applications declined, and 109,847 existing benefits renewed for a further year after individual investigation. Included in the new grants were 437 transferred from invalids' benefits and 1,084 from widows' benefits. The number of benefits in force increased by 902, from 116,254 at 31st March, 1949, to 117,156 at 31st March, 1950, and represents 6*12 per cent, of total population. The number of dependent wives not eligible for benefit in their own right but who were included in the husbands' benefits at 31st March, 1950, was 7,861. Included in the beneficiaries at 31st March, 1950, were 492 men receiving the additional allowance of £l3 13s. a year paid to veterans of the South African War. Expenditure on age-benefits increased from £13,790,791 for the year ended 31st March, 1949, to £15,133,751 for the year ended 31st March, 1950, an increase of £1,342,960.

Table 1—Age-benefits: Estimated Age Distribution of People Granted Benefit During the Year Ended 31st March, 1950 (Excluding Transfers from Widows' and Invalids' Benefits)

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(Estimate based on an analysis of 45 per cent, of benefits granted) Men. Women. Total. Age. | n i, J o3 I a 0 1 f Previously Included in Husband's Benefit. 1 If .2 S c o 11 1 o % e6 (3 Total Total Pi 13 1=4 ? f§ Total 60 985 985 803 1,066 2 1,871 1,788 2 2,856 61 373 20 393 412 154 9 575 785 29 968 62 287 20 307 323 89 18 430 610 38 737 63 265 36 301 278 47 31 356 543 67 657 64 298 44 342 207 4 29 240 505 73 582 60-64 2,208 120 2,328 2,023 1,360 89 3,472 4,231 209 5,800 65 249 24 273 169 4 36 209 418 60 482 66 191 31 222 155 4 36 195 346 67 417 67 217 44 261 105 48 153 322 92 414 68 161 53 214 91 27 118 252 80 332 69 138 31 169 114 4 44 162 252 75 t 331 65-69 956 183 1,139 634 12 191 837 1,590 374 1,976 70-74 .. 381 151 532 305 2 118 425 686 269 957 75-79 .. 138 42 180 122 46 168 260 88 348 80-84 .. 56 . 20 76 46 22 68 102 42 144 85 and over 9 2 11 24 4 28 33 6 39 Sub-total, 70 and over 584 215 799 497 2 190 689 1,081 405 1,488 Total 3,748 518 4,266 3,154 1,374 470 4,998 6,902 988 9,264

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Table 2—Age-benefits: Estimated Classification by Marital Status of People Granted Benefit During the Year Ended 31st March, 1950 (Excluding Transfers from Invalids' and Widows' Benefits)

Table 3—Age-benefits: Estimated Percentage of Benefits Granted During the Year Ended 31st March, 1950, to People in 60-64 Years and in 65 Years and Over Age Groups According to Marital Status

An indication of the age distribution of women under sixty years of age whose husbands were granted age-benefit during 1949-50 is given in the following table, based on an analysis of a cross-section of new benefits which included payment for a dependent wife.

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(Estimate based on analysis of 45 per cent, of benefits granted) Men. Women. Total. Marital Status. First Application. o g b A Total. First Application. Previously Included in Husband's Benefit. Re-application. [ Total. First Application. Re-application. Total. Married 2,796 285 3,081 1,635 1,361 188 3,184 4,431 473 6,265 Single 349 99 448 620 60 680 969 159 1,128 Widowed 436 89 525 697 13 195 905 1,133 284 1,430 Separated and divorced 167 45 212 202 27 229 369 72 441 Total 3,748 518 4,266 3,154 1,374 470 4,998 6,902 988 9,264

Marital Status. Men. Women. 60-64 Years. 65 Years and Over. Total. 60-64 Years. 65 Years and Over. Total. {1) Married 58 42 100 76 24 100 (2) Married men with wives under 60 years 78 22 100 of age (included in (1) above) (3) Married women previously in husband's 99 1 100 age-benefit (included in (1) above) {4) Single 53 47 100 70 30 100 (5) Widowed .. .. .. .. 1 36 64 100 42 58 100 (6) Separated and divorced .. .. 52 48 100 81 19 100 <7) Total 1 55 45 100 69 31 100

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Table 4 Age-benefits: Dependent Wives Included in Typical Cross-section of New Grants, 1949-50 (379 applicants)

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Husband's Age at Grant. Wife's Age at Grant. 25. 26. 30. 33. 36. 40. 41. 42. 43. 44. 45. | 46. 47. 48. 49. 50. 151. 52. 1 I 53. 54. 55. 56. 57. 58. 59. "3 o H 60 61 62 63 64 65 66 67 68 69 70 71 72 75 76 77 80 81 84 i 1 1 i 1 2 2 1 1 1 1 1 1 1 1 1 2 1 2 1 1 1 1 1 6 3 2 i 1 5 1 2 1 1 1 8 2 1 2 1 1 1 1 6 4 1 2 7 3 2 1 1 1 7 1 4 3 1 1 2 1 2 1 1 13 7 2 1 5 1 i I I 17 4 3 2 1 1 2 1 2 1 1 1 1 16 3 2 4 2 i 3 1 1 20 7 6 6 1 1 2 1 2 2 2 1 20 4 4 2 3 2 1 1 2 i i I 26 9 2 2 9 3 5 4 2 1 1 1 160 50 33 27 25 10 16 15 12 11 4 6 2 2 2 1 1 1 1 l 1 1 I 1 2 2 1 3 3 2 6 4 13 11 17 13 15 25 32 1 34 1 33 51 42 65 379

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WIDOWS' BENEFITS Widows' benefits are payable to widows, to wives of mental patients, and to wives who have been deserted by their husbands and who have taken proceedings for maintenance orders under the Destitute Persons Act, 1910. The Department has continued its policy of taking immediate steps to assist women whose husbands have just died. During the year, 1,883 new benefits were granted, 501 applications declined, and 12,387 existing benefits renewed for a further year. The number of benefits in force decreased from 14,883 at 31st March, 1949, to 14,198 at 31st March, 1950, a decrease of 685.

Table 5—Widows' Benefits: Classification of Benefits in Force at 31st March, 1950

Beneficiaries with children receive mothers' allowance up to £7B a year. Expenditure for all widows' benefits amounted to £2,159,914 for the year ended 31st March, 1950, compared with £1,911,134 for the previous year, an increase of £248,780. Expenditure for the year included £194,421 in respect of women deserted by their husbands. On the granting of a widow's benefit to a deserted wife the Department undertakes the enforcement of the maintenance order. At the 31st March, 1950, there were 1,104 maintenance orders in operation against defaulting husbands, representing an annual amount of £132,012. During the year, £65,010 was collected by way of maintenance, representing 49 per cent, of the amount of the orders in force and 33 per cent, of the expenditure on benefits for deserted wives. ORPHANS' BENEFITS During the year 66 new benefits were granted, 16 applications declined, and 294 benefits renewed for a further year. The number of benefits in force decreased from 371 (in respect of 518 children) at 31st March, 1949, to 366 (in respect of 484 children) at 31st March, 1950. Among the children in respect of whom benefit was being paid at 31st March, 1950, were 36 school-children over the age of sixteen years. Expenditure increased from £27,623 for the year ended 31st March, 1949, to £31,176 for the year ended 31st March, 1950, an increase of £3,553. FAMILY BENEFITS During the year 19,876 new benefits were granted and 121 applications declined. The number of benefits in force increased from 248,726 in respect of 548,330 children at 31st March, 1949, to 254,920 in respect of 567,587 children at 31st March, 1950. At the end of the year benefits were being paid in respect of 8,592 school-children over the age of sixteen years and 99 incapacitated children over the age of sixteen years. Expenditure increased from £14,242,202 for the year ended 31st March, 1949, to £14,850,959 for the year ended 31st March, 1950, an increase of £608,757.

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With "Without —— Dependent Dependent Total. Children. Children. Widows 3,948 8,996 12,944 Deserted wives 772 346 1,118 Mental hospital 90 46 136 Total 4,810 9,388 14,198

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At the request of the beneficiary, family benefit may be credited to the mother's Post Office Savings-bank account or diverted to the Commissioner of Taxes for the purpose of meeting income-tax payments of the beneficiary or her husband. The number of family benefits being paid to Post Office Savings-bank accounts increased from 74,534 at 31st March, 1949, to 80,636 at 31st March, 1950, and the amount so lodged increased from £3,705,398 last year to £4,111,994 for the year ended 31st March, 1950. The number of benefits wholly or partly diverted in payment of income-tax continued to fall from 4,737 benefits last to 3,825 at 31st March, 1950, and the amount paid to the Commissioner of Taxes for the year ended 31st March, 1950, was £175,945, compared with £198.874 for the previous year.

Table 6—Family Benefit: Number of Benefits According to Size of Families, 31st March, 1949 and 1950

31st March, 1949. 31st March, 1950Total number of children .. 548,330 567,587 The average number of children in respect of whom benefit was paid per family receiving benefit was 2-13 in 1947, 2-14 in 1948, 2-20 in 1949, and 2-22 in 1950. INVALIDS' BENEFITS During the year 907 new benefits were granted, 449 applications declined mainly because medical evidence did not indicate permanent incapacity, and 8,776 existing benefits renewed for a further year. The number of benefits in force decreased by 575, from 10,051 at 31st March, 1949, to 9,476 at 31st March, 1950. The number of dependent wives included in the husband's benefit at 31st March, 1950, was 1,819.

Table 7—Invalids Benefits: Age and Marital Status at Grant of Benefit, Year Ended 31st March, 1950

Expenditure 011 invalids' benefits increased from £1,348,616 for the year ended 31st March, 1949, to £1,397,713 for the year ended 31st March, 1950.

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dumber of Children Number of Number of Receiving Benefit Benefits, Benefits, in Family. 31st March, 1949. 31st March, 1950. 1 95,681 94,627 2 75,178 78,924 3 41.488 43,576 4 19,741 20,590 5 .. .. 8,586 8,906 6 .. .. .. ! 3,975 4,078 7 2,088 • 2,143 8 1,098 1,178 9 .. .. 531 527 • 10 or more 360 371 Total .. | 248,726 254,920

Separated, Single. Married. Widowed. Divorced, Total. Age. Apart. Males. Females. Males. Females. Males. Females. Males. Females. Males. Females. 16-19 65 63 65 63 20-29 36 42 12 i 49 42 30-39 24 26 26 3 3 I 3 51 35 40-49 32 25 53 7 6 7 8 99 39 50-59 56 67 250 3 17 22 22 27 345 119 Total 213 223 341 6 24 31 31 38 609 298

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MINERS' BENEFITS During the year ended 31st March, 1950, 23 new benefits were granted and 14 applications declined. Included in the new benefits were 7 granted to widows of miners who died while in receipt of miner's benefit. The number of benefits in force decreased from 660, including 85 widows, at 31st March, 1949, to 636, including 85 widows, at 31st March, 1950. The number of dependent wives included in the husband's benefit at 31st March, 1950, was 307.

Table 8—Miners' Benefits: Classification of Benefits Granted to Miners, Year Ended 31st March, 1950, by Age, Disease, and Type of Mining

Expenditure on miners' benefits increased from £113,659 for the year ended 31st March, 1949, to £120,061 for the year ended 31st March, 1950, an increase of £6,402. WEEKLY BENEFITS UNEMPLOYMENT BENEFITS Particulars of applications for unemployment benefit dealt with during the last two years, and the number in force at 31st March, 1949 and 1950, are shown in the following table :

Table 9—Unemployment Benefits: Applications Granted and Declined and Benefits in Force, 1948-49 and 1949-50

Payment of additional benefit for a dependent wife was included in 229 of the benefits granted during 1949-50 and in 7 of the benefits in force at 31st March, 1950. The total expenditure for the year ended 31st March, 1950, amounted to £10,402, &s against £8,948 for the previous year, an increase of £1,454.

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Gold-mining. Coal-mining. Total. Age. Miners' Other Miners' Other rPrtfn! Miners' Other Phthisis. Diseases. Phthis s. Diseases. Phthisis. Diseases. iotai. 47 .. 1 1 1 i 50-54 1 1 1 1 2 2 .55-59 2 1 3 1 1 2 2 4 60-64 2 3 5 2 3 5 65-69 2 »> 1 1 3 3 73 .. 1 1 1 1 Total .. 7 1 8 4 4 8 11 5 16

— 1948-49. 1949-50. Males. | Females. | Total. Males. | Females. Total. Benefits granted 330 14 344 317 6 323 Applications declined 383 25 408 159 16 175 Benefits in force at 31st March 29 1 30 10 2 12

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Table 10—Duration of Unemployment Benefits Which Ceased During the Year Ended 31st March, 1950*

SICKNESS BENEFITS Particulars of applications for sickness benefit dealt with during the last two years,, and the number in force at 31st March, 1949 and 1950, are shown in the following table :

Table 11—Sickness Benefits: Applications Granted and Declined, and Benefits in Force, 1948-49 and 1949-50

Payment of additional benefit for a dependent wife was included in 12,572 of the benefits granted during 1949-50 and in 2,280 of the benefits in force at 31st March, 1950. The total expenditure for the year ended 31st March, 1950, amounted to £1,008,651, compared with £911,107 for the previous year, an increase of £97,544.

Table 12—Duration of Sickness Benefits Which Ceased During the Year Ended 31st March, 1950

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Number of Weeks on Benefit. Total. 1-4 5-12 13 -25 26-52 Over Age. Weeks. Weeks. Weeks. Weeks. 52 Weeks. | Males. Females 1 Males. Females Males. Females Males. Females Males. Females Males. Females-16-19 1 2 1 4 20-29 23 1 15 i 5 1 1 44 3 30-39 44 31 11 3 1 90 40-49 57 35 I 16 4 112 i 50-59 31 i 17 15 7 70 1 60 and over .. 4 •• 9 3 16 | • • Total .. 160 2 109 2 51 1 15 1 336 5 * Excluding benefits paid for less than three days. Three days and over counted i is a full week.

1948-49. 1949-50. Males. Females. Total. Males. j Females. Total. Benefits granted Applications declined Benefits in force at 31st March 23,150 2,665 3,536 7,271 832 1,409 30,421 3,497 4,945 21,901 2,104 3,539 6,902 635 1,392 28,803 2,739 4,931

N umber of Benefits. Period of Sickness Benefit. * Males. Female?. Total. 1-4 weeks 9,888 2,615 12,503 5-12 weeks 7,099 2,233 9,332 13-25 weeks 2,855 1,137 3,992 25-52 weeks 1,360 559 1,919 Over 52 weeks 696 375 1,071 Total 21,898 6,919 28,817

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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. As far as possible these benefits are related to the type of benefit which they most closely resemble. Particulars of emergency benefits granted during the year and in force at 31st March, 1950, together with expenditure for the year, are shown in the following table :

Table 13—Emergency Benefits: Number Granted, Number in Force, and Expenditure, 1949-50

Payment of additional benefit for a dependent wife was included in 10 of the age, 5 of the invalids', 138 of the unemployment, and 116 of the sickness benefits in force at 31st March, 1950, and in 277 of the unemployment and 161 of the sickness benefits granted during the year ended 31st March, 1950. WAR SERVICEMEN'S DEPENDANTS' ALLOWANCES Parents of deceased members of His Majesty's Forces and the British or New Zealand Mercantile Marine in receipt of benefits under Part II of the Social Security Act, 1938, may, under certain conditions, have the benefit increased by an amount not exceeding £26 a year. At the 31st March, 1950, there were 1,816 of these allowances in force paid in conjunction with 1,623 age, 181 widows', 11 invalids', and 1 miner's benefits. This represents an increase of 142 over the figure of 1,674 for last year. RECIPROCAL BENEFITS The information in the following paragraphs is intended to show the extent to which reciprocal agreements operate within the social security scheme, and the benefits under this heading are already included in the ordinary statistics relating to social security benefits.

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Emergency Benefits Related to Number Granted Year Ended 31st March, 1950. Number in Force at 31st March, 1950. Expenditure, Year Ended 31st, March, 1950. Age Widows' Orphans' Family Invalids' 44 18 1 193 3 116 128* 12f 190 J 64 £ 10,097 16,192 818 3,189 7,524 Sub-total, monthly benefits .. 259 510 37,820 Unemployment Prisoners' dependants' Sickness 1,461 161 849 1,049 98 620 146,407 95,928 Sub-total, weekly benefits 2,471 1,767 242,335 Total 2,730 2,277 280,155 * Includes 28 receiving mothers' allowance of £78 a year. t In respect of 14 children. 1 In respect of 231 children (119 beneficiaries with one child and 41 with two children).

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RECIPROCITY WITH AUSTRALIA A new reciprocal agreement with Australia covering age, invalids', widows', family, unemployment, and sickness benefits came into operation on Ist July, 1949. Under this agreement the above benefits are available to persons who take up permanent residence in either country and who at any time have lived in the other country. Generally the qualifications for benefits under the reciprocal agreement are the same as for the corresponding benefits in the country in which the applicant has taken up permanent residence, and for the purposes of the agreement residence or birth in one country is regarded as residence or birth in the other. Applicants for age, invalids', or widows' benefits must satisfy the residential qualifications of both countries, and male applicants for age benefits must be sixty-five years of age or over. Apart from the above, benefits under the reciprocal agreement are assessed and paid in the same way as other benefits in the country in which the beneficiary is residing. The total number of reciprocal benefits in force at 31st March, 1950, was 341, compared with 270 at 31st March, 1949, when reciprocity applied only to age and invalids' benefits. Particulars of benefits paid under the reciprocal agreement to permanent residents of New Zealand are shown in the following table :

Table 14—Reciprocity with Australia (Permanent Residents of New Zealand): Benefits Granted, &c., and Expenditure, 1949-50

There were 4 dependent wives included in grants of sickness benefit. Under the new agreement beneficiaries ordinarily resident in New Zealand or Australia who go to the other country for a period of temporary residence may continue to receive their benefits during such period of temporary residence. In these cases the benefits are paid through the Government of the country which the beneficiaries are visiting, and the amount spent recovered from the Government of the country in which the beneficiaries normally reside. Particulars of New Zealand benefits paid in Australia and Australian pensions paid in New Zealand are shown in the following tables:—

Table 15—Reciprocity with Australia (Agency Payments in Australia): Number of New Zealand Benefits Paid in Australia by Australian Government as Agent for New Zealand Government, 1949-50

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— Age Benefit. Widow's Benefit. Family Benefit. Invalid's' Benefit. Unemployment Benefit. Sickness Benefit. Total. Number granted 90 18 156 9 12 285 Number declined 11 1 5 3 1 21 Number terminated 73 54 7 5 139 Number in force at 31st March, 211 23 79 21 7 341 1950 Dependent wives included in 4 3 1 8 number in force Expenditure £24,882 £1,446 £2,456 £2,470 £257 £31,511

— Age Benefit. Widow's Benefit. Family Benefit. Invalid's Benefit. Unemployment Benefit. Sickness Benefit. Total. Number authorized 98 14 19 2 1 134 Number terminated 67 7 16 1 91 Number in force 31 7 3 1 i 43 None of the above agencies included additional payment for a dependent wife.

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Table 16—Reciprocity with Australia (Agency Payments in New Zealand): Number of Australian Pensions Paid in New Zealand by New Zealand Government as Agent for Australian Government, 1949-50

Expenditure on behalf of Australian Government during the year ended 31st March, 1950, was £1,715. RECIPROCITY WITH GREAT BRITAIN AND NORTHERN IRELAND Reciprocity with Great Britain and Northern Ireland is confined to family benefits and is provided for by agreements which have been in operation since Ist December, 1948. The number of reciprocal family benefits in force increased from 561 at 31st March, 1949, to 776 at 31st March, 1950. Particulars of benefits granted, refused, and in force, and expenditure for the year, are shown in the following table : Table 17—Reciprocity with Great Britain and Northern Ireland : Number or Family Benefits Granted, &c., and Expenditure, 1949-50 Number granted .. .. .. 892 Number refused .. .. .. 6 Number in force at 31st March, 1950 .. 756 (includes 20, Northern Ireland). Expenditure, year ended 31st March, 1950 £35,653 (includes £486, Northern Ireland). MISCELLANEOUS TOTAL NUMBER OF BENEFITS IN FORCE The total number of benefits in force increased from 463,785, or 2,476 per 10,000 of population, at 31st March, 1949, to 473,328, or 2,473 per 10,000 of population, at 31st March, 1950.* TOTAL EXPENDITURE Total expenditure on social security cash benefits increased from £34,455,758 for the year ended 31st March, 1949, to £37,172,149 for the year ended 31st March, 1950, representing £l9 13s. Id. per head of mean population, including Maoris.y Of the expenditure on cash benefits, £17,150,387, or 46*1 per cent., was paid without a means test and £20,021,762, or 53-9 per cent., subject to a means test. The expenditure on cash and health benefits combined for the year ended 31st March, 1950, was £45,633,258, of which £25,611,496, or 56-1 per cent., was paid without a means test and £20,021,762, or 43*9 per cent., subject to a means test.

* Population, including Maoris, at 31st March, 1950, 1,914,120. t Mean population including Maoris, year ended 31st March, 1950, 1,891,307.

— Age Benefit. Widow's Benefit. family Benefit. Invalid's Benefit. Unemployment Benefit. Sickness Benefit. Total. Number authorized 60 19 17 9 2 116 Number terminated 43 12 16 5 2 78 Number in force 26 7 1 4 38

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Table 18—Social Security Benefits: Expenditure Outside New Zealand (Other than Under Reciprocal Agreements) for the Year Ended 31st March, 1950

EUROPEAN IMMIGRANTS During the year over 950 displaced persons were brought to New Zealand from Europe, and from their arrival in Wellington on the 27th June, 1949, until the end of the week in which they were placed in employment they were assisted as required by way of emergency unemployment benefit through a temporary office of the Department located in the Displaced Persons Reception Centre at Pahiatua. Children received free board and lodgings in the camp, and therefore no benefit was paid until they left the camp, when emergency family benefits were granted. Single people aged sixteen to nineteen years received emergency unemployment benefit up to ss. a week, provided their weekly income from all sources, including board and lodging, did not exceed £2 ss. People aged twenty years and over received emergency unemployment benefit up to 10s. a week, provided their weekly income from all sources, including board and lodgings, did not exceed £3 ss. for single people and £5 10s. for married people. Free board in camp was calculated at £1 a week for people aged sixteen to nineteen years and £1 15s. a week for people twenty years and over. Between 27th June, 1949, and the closing of the camp on 11th November, 1949, 577 emergency unemployment benefits were granted, 134 of these including payment for a dependent wife. Expenditure on these benefits amounted to £2,986. On leaving the Reception Centre those who were unable to work and who were in need of assistance were granted emergency benefits according to their circumstances. INTERNATIONAL LABOUR ORGANIZATION From its inception the International Labour Organization has considered social security a main feature of its activities and in the last thirty years has adopted twenty-two conventions and eighteen recommendations on social security. The present programme of the Organization in the sphere of social security is directed towards the creation of a network of social security systems embodying the principles contained in the conventions and recommendations, the bringing up to date of the conventions and recommendations, and the extension of social security to undeveloped countries. At the invitation of the New Zealand Government, the first session of the Committee of Social Security Experts of the ILO met at Wellington from the Bth to 17th February, 1950. Although drawn from various countries, the officers attending the meeting did so not as Government representatives, but as experts in their own right. The meeting was attended by fifteen experts from America, Argentina, Brazil, Canada, Denmark,

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Details. Expenditure, 1.949-50, Paid through High Commissioner, London— Age-benefit Widow's benefit Family benefit Invalid's benefit Paid in Australia— Superannuation benefit Miner's benefit £ 794 21 13 242 1,070 4 176 180 Total £1,250

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England, France, Mexico, Netherlands, New Zealand, Peru, and Sweden, a representative of member Governments, and an employers' representative from the Governing Body •of the International Labour Organization and two representatives of the International Social Security Association. During this meeting the Committee considered objectives and minimum standards of social security and approved a questionnaire for issue to Governments. Other matters discussed included training in social security administration, actuarial aspects of adjustments of benefits to cost of living, the role of co-operative societies in social security, social security for agricultural workers, and social security statistics. While in New Zealand the visitors from overseas, through extensive questioning and personal contact with the Department's officers, gained first-hand information regarding the operation of social security in New Zealand. They also had a brief glimpse of some of the country's tourist resorts, and from their -comments it is likely that they will prove to be enthusiastic ambassadors for New Zealand tourist trade. To facilitate the revision of social security conventions the International Labour Office asked Governments to prepare a monograph on social security legislation according to a uniform plan drafted by the International Labour Office. The Department prepared a monograph in the required form, and this was published in 1949 by the International Labour Office as the first of a series of handbooks on national systems of social security under the title " Systems of Social Security : New Zealand." SECTION lII—SOCIAL SECURITY FUND Table 19—Receipts and Payments of the Social Security Fund, Year Ended 31 st March, 1950 Receipts Payments Balance as at Ist April, Monetary benefits— £ £ 1949 — £ £ Superannuation .. 2,179,365 Cash .. .. 533,874 Age .. .. 15,133,751 Imprest .. .. 148,044 Widows'.. .. 2,159,914 Investments .. 8,000,000 Orphans' .. 31,176 8,681,918 Family .. .. 14,850,959 -Social security charge Invalids' .. 1,397,713 on wages and other Miners' . . .. 120,061 income .. .. 31,702,570 Maori War .. 2 Miscellaneous receipts, Unemployment .. 10,402 interest, penalties, j Sickness .. .. 1,008,651 and fines .. 70,603 Emergency .. 280,155 31,773,173 ' " 37,172,149 Recoveries under maintenance Medical benefits, &c. — orders, widows' benefits* .. "65,010 Medical .. .. 2,524,290 from Consolidated Fund, vote Hospital.. .. 2,011,649 '' Social Security '' (Social Security Maternity .. 871,386 Act, 1938, Section 105(c)) .. 12,000,000 Pharmaceutical .. 2,043,843 Supplementary .. 1,009,941 8,461,109 Administration expenses: Social Security Department .. 783,822 Unauthorized expenditure .. 6,641 Social Security (Reciprocity with , t Australia) Act, 1948: Agency payments .. 1,715 Balance at 31st March, 1950 — £ Cash .. .. 998,369 Imprests .. 96,296 Investments .. 5,000,000 6,094,665 £52,520,101 | £52,520,101 * Th : s item reduces the cost to the Fund on account of widows' benefits by an equivalent amount.

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SECTION IV—WAR PENSIONS Report of the Secretary for War Pensions which has been submitted to the Minister of Defence NEW LEGISLATION WAR PENSIONS AMENDMENT ACT, 1949, AND WAR PENSIONS AND ALLOWANCES (MERCANTILE MARINE) AMENDMENT ACT, 1949 These amendments, effective from the Ist June, 1949, increased the maximum basic rate of war-disablement pensions from £3 to £3 10s. a week. The weekly rate of pension for a wife without dependent children was increased from £1 to £1 ss. and for a wife with dependent children from £1 10s. to £1 15s. The maximum attendant's allowance was increased from £5 10s. to £5 15s. Pensions to widows of deceased members of the Forces or Mercantile Marine were increased from £2 ss. to £2 10s. a week, and the additional mother's allowance paid where there are dependent children was increased from £1 10s. to £1 15s. a week. Pensions for children remained at 10s. a week, but pensions payable in respect of orphans whose fathers' deaths were due to war service were increased from £1 to £1 ss. a week. The War Pensions Board was given authority to grant a war pension in respect of any child adopted by a member. Previously pensions in respect of the death or disablement of a member could be granted only to children adopted before the 31st May, 1940, or the date of disablement or other event to which death was attributable. War pensions in respect of children were brought into line with the family benefit provisions of the Social Security Act by authorizing payment from a date not earlier than the Ist day of the month of birth, and to the end of the month in which the child attains the age of sixteen years or dies. Pensions for certain girls were made payable to the end of the month in which they attained the age of seventeen years instead of ceasing from the seventeenth birthday as formerly. The basic rate of war veteran's allowance was increased from £ll7 plus £ll7 for a. wife, to £l3O plus £l3O for a wife. FINANCE ACT (No. 2), 1949 This Act, also effective from the Ist June, 1949, increased the limit of income,, including pension, for widowed mothers receiving economic pensions concurrently with dependants' pensions from £3 10s. to £3 15s. for widowed mothers who were wholly dependent on the deceased member, and from £2 ss. to £2 10s. for widowed mothers who were not wholly dependent on the deceased member. WAR PENSIONS REGULATIONS 1945, AMENDMENT No. 2 (1949/181) The availability of instalments of war pension was extended to the end of the month following the month in which the instalment became payable. The maximum amount, payable to Service patients in hospital was increased from 15s. to £1 a week. The allowance payable to pensioners required to travel for medical examination or treatment was increased from 17s. 6d. to £1 ss. a day for board and lodging and from £1 a day to 13s. 9d. a half-day for compensation for loss of wages.

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The provision for endorsing free passes on the New Zealand Railways and New Zealand Railways Road Services to cover escorts of pensioners who are totally blind or have lost both lower limbs above the knee was extended to enable free passes to be endorsed to cover escorts of pensioners who are unfit to travel alone because of a permanent war disability. INCREASED INCOME EXEMPTIONS FOR WAR VETERANS' ALLOWANCES The income exemption for war veterans' allowances was increased from £52 to £7B a year from the Ist January, 1950. Legislation to validate this increase will be introduced this session. DISABLEMENT PENSIONS PENSIONS GRANTED AND IN FORCE Applications for disablement pensions have continued to taper off, the number of applications granted and declined during the year ended the 31st March, 1950, being as follows

Table 20—War Disablement Pensions: Disabilities in Respect of Which Pensions Granted to Ex-personnel of 1939 War

The total number of disablement pensions in force at 31st March decreased from 37,716 in 1949 to 36,891 in 1950. More detailed information regarding the pensions in force is shown in Table 23 on page 20. 2-19

17

— 1914 War. 1939 War. Total. Applications granted 92 648 740 Applications declined 172 502 674

(Total up to 31st March, 1950) Type of Service. Class of Disability or Disease. Overseas. J Force. New Zealand. Total. (1) Infections and infestations 1,869 9 112 1,990 (2) Nervous system 9,589 10 1,646 11,245 (3) Ear, eye, and nose 6,418 15 1,317 7,750 (4) Circulatory and blood system 1,925 1 985 2,911 (5) Metabolism and endocrine system 380 1 172 553 (6) Lungs 3,203 47 1,077 4,327 (7) Diseases of bones, joints, museles, tendons, 5,003 4 1,807 6,814 and ligaments (8) Digestive system 3,825 7 1,128 4,960 (9) Generative system 316 119 435 (10) Gunshot wounds and accidental injuries to 5,997 23 1,183 7,203 bones, joints, and soft tissues (11) Skin 2,329 10 519 2,858 (12) Tumours and neoplastic growths 149 48 197 (13) Malformations 300 131 431 (14) Amputations .. 471 18 489 (1"S) Urinary tract 525 2 135 662 (16) Debility .. .. .. 442 109 551 Total 42,741 129 10,506 53,376

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Table 21—War Disablement Pensions: Nunber in Force at 31st March, 1950, According to Percentage of Disability

MEDICAL TREATMENT FOR EX-SERVICEMEN At the 31st March, 1950, there were 165 ex-servicemen of the 1914 war and 308 of the 1939 war receiving in-patient treatment in hospitals as a result of war disabilities. Medical treatment of war pensioners (including the cost of treatment of pensioners living overseas) amounted to £216,762 for the year, compared with £248,465 for the previous year. The number of ex-servicemen in the four Red Cross homes at 31st March, 1950, was 76, of which 19 were in Mowai Home, 17 in Evelyn Firth Home, 19 in Rannerdale Home, and 21 in Monticello Home. During the year 8 original and 105 duplicate artificial limbs were supplied and fitted to war pensioners and major repairs were carried out to 129 artificial limbs. The Medical Officer in Charge of Treatment has again noted a decline in the number of new applications for war pension on account of pulmonary tuberculosis. The incidence of amoebiases has remained much the same, 62 new cases being diagnosed during the year. The Medical Officer in Charge of Treatment has reviewed in detail the incidence of tuberculosis among applicants for war disablement pension and has made the following comments: —. (1) The incidence of pulmonary tuberculosis is slightly higher among Naval personnel than among personnel of the Army or Air Force. (2) The incidence of tuberculosis in personnel other than Maoris who served overseas is much the same as for the Civil population. (3) The incidence of tuberculosis in Maori personnel who served overseas, while greater than that for non-Maori men overseas, is much less than that for Maori Civil population, and indicates that the higher incidence of tuberculosis among Maoris is due to environment rather than any inherent susceptibility to the disease. (4) Mass radiology has proved its worth in eliminating unsuspected cases from the Services. (5) Early observation and treatment does not always prevent progress of the disease. Approximately 1,500 ex-servicemen applied for pensions on account of pulmonary tuberculosis between 1939 and 1949, and of these approximately 1,400 were considered to show some disability.

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1914 War. 1939 War. ■Wx * A -j-v • « • 1 • , Permanent. Temporary. Total. Permanent. Temporary. Total. 100 1,871 25 1,896 510 946 1,456 90-99 76 76 53 14 67 80-89 426 5 431 218 92 310 70-79 898 9 907 322 231 553 60-69 810 10 820 260 255 515 50-59 2,003 37 2,040 650 578 1,228 40-49 836 33 869 606 595 1,201 30-39 2,015 28 2,043 1,135 | 1,198 2,333 20-29 3,357 54 3,411 3,249 ! 3,739 6,988 10-19 1,244 29 1,273 3,033 5,360 8,393 Under 10 .. 49 49 29 3 32 Total 13,585 230 13,815 10,065 13,011 23,076

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The results of treatment in the cases reviewed is summarized in the following table: —

Table 22—Medical Treatment for Tuberculosis: Results of Treatment of Personnel of Army, Air Force, and Navy Who Applied for War Pensions, 1939-49

During the year the Department has continued to co-operate with other Departments and organizations concerned with the welfare of ex-servicemen. Information and advice has been supplied to the Rehabilitation Department and the Disabled Servicemen's Re-establishment League to facilitate the rehabilitation and special training of ex-servicemen, and the Medical Officer in Charge of Treatment has supplied medical statistics and other information to the authorities responsible for compilation of the medical war history. CONCESSIONS TO DISABLEMENT PENSIONERS Railway and bus concessions to pensioners for total and permanent disablement and for locomotor disabilities for which a permanent pension for over 50 per cent, disablement is paid cost £14,548, compared with £7,029 for the previous year. Loading on life-insurance policies of war pensioners is paid by the Department where the loading is due to war disabilities, and £1,143 was paid during the year, compared with £Bl9 for the previous year.

DEPENDANTS' PENSIONS The number of applications for dependants' pensions granted and declined during the year ended 31st March, 1950, was as follows :

The total number of pensions in force decreased from 8,791 at 31st March, 1949, to 8,622 at 31st March, 1950.

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Condition. All Patients. Patients Diagnosed by Routine X-ray. AD Services Overseas and in New Zealand Army Overseas. All Services Overseas and in New Zealand. Army Overseas. Apparently cured .. .. Quiescent Stabilized Active In hospital Dead Per Cent. 29-3 21-8 17-7 15-0 10-4 5-8 Per Cent. 30-2 19-4 15-4 16-5 11-2 7-3 Per Cent. 39-6 20-4 15-6 14-2 7-1 3-1 Per Cent. 40-0 22-7 12-0 14-6 7-1 3-6 100-0 100-0 100-0 100-0

— 1914 War. 1939War. Total. Applications granted 242 732 974 Applications declined 134 245 379

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Table 23 —War Pensions (Disablement and Dependants): Number in Force and Annual Value, 31st March, 1950

The number of widows and wives receiving mother's allowance at 31st March, 1950, was 2,080.

Table 24—War Pensions Paid Outside of New Zealand: Number in Force, and Annual Value, at 31st March, 1950

ECONOMIC PENSIONS Economic pensions subject to a means test may be granted to disablement pensioners whose disabilities are such that their ability to undertake employment is seriously impaired and to dependants of deceased servicemen. The number of applications granted and declined during the year ended the 31st March, 1950, was as follows :

The total number of economic pensions being paid at 31st March, 1950, was 6,888 r compared with 7,126 at 31st March, 1949.

20

Number of Pensioners. Number of Children. Annual Value. 1914 War. 1939 War. Total. 1914 War. 1939 War. Total. 1914 War. 1939 War, Total. Disablement pension— Permanent Temporary Sub-total .. Dependant's pension— Dependants of disabled serviceman Widows Other dependants of deceased servicemen Sub-total .. Total 13,585 230 10,065 13,011 23,650 13,241 £ 1,595,266 25,314 £ 699,473 773,074 £ 2,294,739 798,388 13,815 23,076 36,891 1,620,580 1,472,547 3,093,127 2,509 2,377 275 923 1,582 956 3,432 3,959 1,231 936 180 55 463 683 927 1,399 863 982 200,048 415,996 19,320 85,678 350,635 48,870 285,726 766,631 68,1905,161 3,461 8,622 1,171 2,073 3,244 635,364 485,183 1,120,547 18,976 26,537 45,513 1,171 2,073 3,244 2,255,944 1,957,730 4,213,674

Class. Number of Pen siona. Annual Value, 31st March. 1914 War. 1939 War. Total. 1914 War. 1939 War. Total. Disablement — Ex member on permanent war pension .. Ex member on temporary war pension .. Dependant— Widows Wires and other dependants 848 1 138 301 986 302 £ 89,947 194 £ 10,845 20,439 £ 100,792 20,633244 180 125 104 369 284 36,504 11,043 25,065 6,577 17,620Total 1,273 668 1,941 137,688 | 62,926 ! 200,614

— 1914 War. 1939 War. Total. Applications granted 344 1,085 1,429 Applications declined 114 317 431

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Table 25—Economic Pensions: Number in Force and Annual Value at 31st March, 1950

Table 26—Economic Pensions: Number in Force at 31st March, 1950, According to Percentage of Disability

WAR VETERANS' ALLOWANCES During the year ended the 31st March, 1950, 831 allowances were granted and 143 applications declined. The number in force at 31st March increased from 3,367 in 1949 to 3,997 in 1950. Of the allowances in force, 2,375 included payment for a dependent wife and 170 were gratuities being paid to widows of war veterans. Expenditure on war veterans' allowances increased from £562,634 for the year ended 31st March, 1949, to £743,999 for the year ended 31st March, 1950, an increase of £181,365. EXPENDITURE, WAR PENSIONS AND ALLOWANCES Expenditure for the year on war pensions—i.e., disablement, dependants', and economic pensions—excluding expenditure on treatment, &c., railway and bus concessions, to £4,282,223, being £2,271,371 in respect of the 1914 war and £2,010,852 in respect of the 1939 war. Funeral grants in respect of deceased ex-servicemen cost £7,391 for the year. This item is included in the costs of medical treatment shown on page 18. The total expenditure on war pensions and allowances in respect of service in the Armed Forces, Mercantile Marine, South African War, and Emergency Reserve Corps amounted to £5,034,039 for the year ended 31st March, 1950, compared with £4,581,532 foT the previous year, Further details relating to this expenditure are included in Table 30 on page 24. B—H 9

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Class of Pension. Number of Pensions at 31st March, 1950. Annual Value at 31st March, 1950. 1914 War. 1939 War. Total. 1914 War. 1939 War. Total. Ex-member with permanent pension Ex-member with temporary pension Widows .. .. .. Widowed mothers 3,394 43 1,361 18 384 877 762 49 3,778 920 2,123 67 £ 368,942 4,770 85,817 931 £ 42,053 97,632 47,105 2,261 £ 410,995 102,402 132,922 3,192 Total .. .. 4,816 2,072 6,888 1460,460 189,051 649,511

Percentage of Disability. 1914 War. 1939 War. Number on Permanent "War Pensions. Number on Temporary War Pensions. Total. Number on Permanent War Pensions. Number on Temporary War Pensions. Total. 100 .. 90-99 80-89 70-79 60-69 50-59 40-49 Under 40 Total 1,341 30 179 479 327 757 220 61 18 "2 5 5 9 4 1,359 30 181 484 332 766 224 61 211 5 26 51 30 30 30 1 648 5 19 41 46 77 41 859 10 45 92 76 107 71 * 1 3,394 43 3,437 384 877 1,261

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Table 27—War and Other Related Pensions, Sundry Pensions, and Annuities: Expenditure in New Zealand and Other Countries, Year Ended 31st March, 1950

WAR PENSIONS BOARDS Most of the work of the two War Pensions Boards is carried on at Head Office, but the Boards have continued their visits to other parts of the Dominion. Pensioners have been interviewed and many pensions have been made permanent. During these visits the Returned Services Association and other ex-servicemen's organizations were given the opportunity to present special cases and to discuss various matters of interest concerning war pensions and medical treatment of ex-servicemen suffering from war disabilities. WAR PENSIONS APPEAL BOARD The number of appeals lodged each year has fallen steadily from the peak of 2,661 in 1944-45 to 465 during 1949-50, and visits of the War Pensions Appeal Board to the four main centres have therefore been less frequent.

Table 28—War Pensions Appeals Dealt With During the Year Ended 31st March, 1950

OVERSEAS PENSIONS PAID IN NEW ZEALAND The Department has continued to pay war pensions, Service pensions, Civil pensions, retiring-pay, release leave, privilege payments, gratuities, and other temporary grants on behalf of other Governments. Since Ist June, 1949, under the reciprocal agreement with Australia the Department has acted as agent for the payment of Australian social security benefits in New Zealand,

22

Type of Pension. Payments Made in 1914 War. 1939 War. Other. Total. £ £ £ £ Australia 64,397 18,075 831 83,303 Canada 6,668 8,392 168 15,228 London 56,893 29,529 578 87,000 South Africa 261 216 477 Fiji 44 44 Foreign countries 541 108 " 93 742 New Zealand 2,142,611 1,954,488 779,895 4,876,994 Total 2,271,371 2,010,852 781,565 5,063,788

— 1914 War. 1939 War. Mercantile Marine. War Veteran's Allowance. Total. Appeals outstanding, 31st March, 1949 Appeals lodged, 1949-50 23 89 184 374 2 1 1 1 210 465 Total to be dealt with 112 558 3 2 675 Appeals upheld, 1949-50 Appeals dismissed, 1949-50 Appeals withdrawn or struck out, 1949-50 Total disposed of 22 60 4 155 212 41 1 2 1 1 179 274 46 86 408 3 2 499 Appeals outstanding, 31st March, 1950 Percentage upheld 26 25-6 150 38-0 33-3 50-0 176 35-9

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War and other pensions being paid on behalf of other Governments at 31st March, 1950, numbered 4,545, compared with 4,004 a year earlier. Expenditure for the year ended 31st March, 1950, was £421,035, compared with £463,345 for the previous year. In June, 1949, the Ministry of Pensions in the United Kingdom appointed Mr. H. F. Calder, M.C., a senior member of the Ministry, as its representative in Australia and New Zealand. Mr. Calder, whose headquarters are in Melbourne, has paid three visits to New Zealand since his appointment, and in addition to conferring with departmental officers has personally interviewed 292 applicants and pensioners and conferred with many organizations concerned with the welfare of ex-Imperial servicemen and their dependants in New Zealand. As a result of these interviews a number of new awards have been made and pensions increased.

Table 29 —Pensions Paid in New Zealand on Behalf of Other Governments

DEMOBILIZATION ALLOWANCES No allowances were granted during the year and the number in force at 31st March, 1950, was 3, compared with 6at 31st March, 1949. Expenditure for the year ended 31st March, 1950, was £902, compared with £1,290 for the previous year. The need for this allowance has now passed; and payments ceased from Ist April, 1950, the allowances being transferred to the appropriate social security benefit. B. F. Waters, Secretary for War Pensions. SECTION V—GENERAL PUBLICATIONS During the year the Department, with the co-operation of the Health Department, published a comprehensive survey of social security entitled " The Growth and Development of Social Security in New Zealand." Copies of this book are on sale at the Government Printing Office.

23

Number in Expenditure, Government on Whose Behalf Force at Year Ended Payments Made. 31st March, 31st March, 1950. 1950. Great Britain — £ War 1,682 Civil and Army 1,878 India : Civil and Army 210 Pakistan 14 South Africa — ► 385,256 War 6 Civil .. .. 16 Crown agents for the colonies 87 Southern Rhodesia 4 Australia 609 33,562 Agency payments under reciprocal agreement 38 1,715 Canada 1 439 South African allotments 63 Total .. 4,545 421,035

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SUNDRY PENSIONS AND SPECIAL ANNUITIES Particulars of sundry pensions and special annuities being paid by the Department at 31st March, 1950, were as follows

SUMMARY OF BENEFITS AND PENSIONS PAYMENTS

Table 30—Social Security Benefits, War and Other Pensions: Number in Force at 31st March, 1949 and 1950, and Total Payments, Including Payments in New Zealand on Behalf of Other Governments

24

Number in Expenditure, Force at Year Ended 31st March, 31st March, 1950. 1950. £* Defence and Naval (peacetime service) 93 9,205 Judicature .. .. 7 7,240 Special annuities 76 13,304 Total 176 29,749

1948-49. 1949-50. Class of Benefit or Pension. Number in Force, 31st March 1949. Expenditure, Year Ended 31st March, 1919. K umber in Force, 31st March, 1950. Expenditure, Year Ended 31st March, 1950. Soeial security benefitsSuperannuation Age Widows' Orphans' Family Invalids' Miners' Maori War Unemployment Sickness Emergency 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 69,356 117,156 14,198 366 254,920 9,476 636 12 4,931 2,277 £ 2,179,365 15,133,751 2,159,914 31,176 14,850,959 1,397,713 120,061 2 10,402 1,008,651 280,155 Sub-total 463,785 34,455,758 473,328 37,172,149 War pensions and allowances— 1914 War 1939 War War veterans' allowances South African War Mercantile Marine Emergency Reserve Corps 19,320 27,187 3,367 41 23 10 2,104,627 1,906,232 562,634 3,892 2,700 1,447 18,976 26,537 3,997 39 24 11 2,271,371 2,010,852 743,999 3,826 2,403 1,588 Sub-total 49,948 4,581,532 49,584 5,034,039 Sundry pensions and annuities Civil Service Act, 1908 159 27,262 39 176 29,749 Sub-total 159 27,301 176 29,749 Total (cost borne by New Zealand Government) Pensions paJd on behalf of and recoverable from other Governments* Total payments 513,892 39,064,591 523,088 42,235,937 4,004 463,345 4,545 421,035 517,896 39,527,936 527,633 42,656,972 * For details of this item, see Table 29, page 28.

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PROSECUTIONS During the year the Department asked the police to prosecute 12 social security beneficiaries and 9 was pensioners who deliberately and wrongfully obtained payments to which they were not by law entitled totalling £1,740 and £1,250 respectively. In addition, an imposter who represented himself as a war pensioner and obtained payments totalling £5l was also prosecuted. Convictions were obtained in every case. ADMINISTRATION AND STAFF Administration costs for the year, excluding expenditure of £7,819 on capital items and including £17,581 in respect of the administration of war pensions and allowances, amounted to £793,584. This represented I*B6 per cent, of the total payments shown in Table 30. During the last two years the authority to grant and review benefits has been delegated by the Commission to Registrars, and the changed procedure has operated smoothly and well. Applications for and reviews of benefit are now finalized more speedily than when all cases were referred to Wellington. Departmental Inspectors continued to visit branch offices during the year and have contributed considerably to the uniformity of administration between districts. From the end of June, 1949, to the 11th November, 1949, the Department operated a temporary office at the Displaced Persons Reception Centre, Pahiatua, with a staff of three officers. On the closing of this office the records were transferred to the Registrar of Social Security at Masterton. The increasing of social security benefits, war pensions, and war veterans' allowances from June, 1949, and the raising of the income exemption for social security benefits and war veterans' allowances from January, 1950, involved a great deal of additional work and was responsible for a large proportion of the overtime worked during the year. The effective strength of the staff of the Department at 31st March, 1950, was 1,257, the lowest it has been since 1945. The nominal strength at 31st March, 1950, was 1,287, including 220 men and 185 women at Head Office and 519 men and 363 women in district offices. During the year the Department lost 187 permanent and 32 temporary members of the staff by resignations, termination of services, deaths, &c., and 59 members of the permanent staff by transfer to other Departments. This loss of trained staff, particularly of Powers machinists, as in past years, has been disturbing. Some relief was afforded by the appointment of British immigrants, but of the 19 girls (including 9 machinists) appointed to the staff during the* year, 9 (including 6 machinists) resigned or were transferred to other Departments. The staff-training programme has again proved very beneficial. In closing, the Commission wishes to express its appreciation of the loyal co-operation and efficient service rendered by officers of the Department during another busy year.

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APPENDIX

Table 31—Cash Benefits: Number in Force and Expenditure, by Type, 1940-50

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Isist March* Sup< y®™ ua " Age. Widows'. Orphans'. Family. Invalids'. Miners'. Sickness. Emergency. Total. Number in Force 1940 .. .. 93,262 10,174 380 11,053 11,811 988 12 4,053 2,565 1,043 135,291 1941 .. 36,602 97,606 10,569 350 16,626 11,936 931 7 1,906 3,452 2,034 182,019 1942 .. 41,021 99,152 10,765 372 18,316 12,107 888 4 841 3,672 2,170 189,308 1943 .. 44,448 99,671 10,589 395 14,190 11,938 841 2 373 3,699 1,821 187,967 1944 .. 49,289 102,530 10,836 412 15,950 12,126 795 1 292 4,446 1,915 198,592 1945 .. 53,679 104,653 10,965 421 24,251 12,205 783 1 198 4,233 2,083 213,472 1946 .. 56,181 110,060 11,507 400 42,637 12,164 736 1 205 5,416 2,094 241,401 1947 .. 57,992 115,287 13,133 397 230,021* 12,466 718 1 35 4,273 1,845 436,168 1948 .. 61,612 117,161 14,145 370 243,137 10,682 685 1 16 4,248 2,141 454,198 1949 .. 65,839 116,254 14,883 371 248,726 10,051 660 .. 30 4,945 2,026 463,785 1950 .. 69,356 117,156 14,198 366 254,920 9,476 636 .. 12 4,931 2,277 473,328 Expenditure 1940 .. .. 6,517,899 785,952 14,880 252,562 942,196 92,653 1,103 434,497 208.790 86,711 9,337,243 1941 .. 240,336 7,101,346 836,368 17,713 411,811 999,648 88,656 744 299,161 279,581 130,096 10,405,460 1942 .. 445,686 7,190,694 844,928 18,275 539,183 1,011,375 83.258 440 138,528 304,154 124,716 10,701,237 1943 .. 603,124 7,783,084 866,597 20,628 790,719 1,036,373 80,100 190 49,639 362,088 118,923 11,711,465 1944 .. 778,758 8,101.668 949.099 22,442 876,858 1,067,409 76,652 119 32,316 376,878 115,574 12,397,773 1945 .. 995,035 8,492,015 985,452 23,253 1,405,113 1,072,619 74,367 78 27,822 351,866 105,843 13,533,463 1946 .. 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 16,673,690 1947 .. 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 29,909,454 1948 .. 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 32,774,325 1949 .. 1,850,079 13,790,971 X, 911, 134 27,623 14,242,202 1,348,616 113,659 10 8,948 911,107 251,409 34,455,758 1950 .. 2,179,365 15,133,751 2,159,914 31,176 14,850,959 1,397,713 120,061 2 10,402 1,008,651 280,155 37,172,149 * Family benefits paid without means test from 1st April, 1946.

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Table 32 —War Pensions: Number in Force and Expenditure, by Type, 1940-50

Table 33 —War-disability Pensions: Number in Force, 1940-50

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Year Ended 31st March, 1914 War.* 1939 War.* War Veterans. 1 South African War. Mercantile Marine. Emergency Reserve Corps. Total. Number in Force 1940 23,874 2,079 50 , , , , 26,003 1941 23,458 551 2,033 47 9 1 26,099 1942 22,894 3,297 1,888 45 3 2 28,129 1943 22,161 7,666 1,807 42 6 19 31,701 1944 21,038 13,037 1,791 44 12 10 35,932 1945 20,849 20,584 1,892 45 18 12 43,400 1946 20,460 26,926 2,029 46 26 11 49,498 1947 20,081 30,028 2,277 42 27 - 10 52,465 1948 19,715 28,249 2,617 42 24 11 50,658 1949 19,320 27,187 3,367 41 23 10 49,948 1950 18,976 26,537 3,997 39 24 1149,584 Expenditure £ £ £ £ £ £ £ 1940 1,673,730 203,439 1,993 1,879,162 1941 1,649,076 14^376 211,325 1,858 916 3 1,877,554 1942 1,617,481 178,135 210,575 1,581 617 1,062 2,009,451 1943 1,574,062 479,477 224,942 1,504 350 1,985 2,282,320 1944 1,973,069 917,855 224,705 2,550 719 1,404 3,120,302 1945 2,046,005 1,407,460 242,501 3,243 1,652 1,228 3,702,089 1946 1,997,390 1,662,227 275,029 3,547 1,879 1,351 3,941,423 1947 2,036,825 2,080,952 346,694 3,502 2,985 1,336 4,472,294 1948 2,049,391 2,031,194 422,275 3,689 2,727 1,368 4,510,644 1949 2,104,627 1,906,232 562,634 3,892 2,700 1,447 4,581,532 1950 .. 2,271,371 2,010,852 743,999 3,826 2,403 1,588 5,034,039 . * Disability and dependants' pensions. For dissection of these, see Tables 33 and 84.

1914 War. 1939 War. Total. 31st March, Permanent. Temporary. Total. Permanent. Temporary. Total. Permanent. Temporary. Total. 1940 11,897 3,993 15,890 11,897 3,993 15,890 1941 12,235 3,543 15,778 433 433 12,235 3,976 16,211 1942 12,171 3,433 15,604 24 2,209 2,233 12,195 5,642 17,837 1943 12,117 3,341 15,458 77 5,331 5,408 12,194 8,672 20,866 1944 12,548 2,753 15,301 344 9,836 10,180 12,892 12,589 25,481 1945 13,037 2,059 15,096 926 15,897 16,823 13,963 17,956 31,919 1946 14,071 822 14,893 2,562 20,284 22,846 16,633 21,106 37,739 1947 14,139 526 14,665 5,014 21,020 26,034 19,153 21,546 40,699 1948 14,088 324 14,412 6,545 17,971 24,516 20,633 18,295 38,928 1949 13,812 277 14,089 8,310 15,317 23,627 22,122 15,594 37,716 1950 13,585 230 13,815 10,065 13,011 23,076 23,650 13,241 36,891

H—9

Table 34 —War Dependants' Pensions: Number in Force, 1940-50

Approximate Cost of Paper. —Preparation, not given ; printing (1,489 copies), £147 10s.

By Authority: E. E, Owen, Government Printer, Wellington. —1950. Price 9d.]

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31st March, 1914 War. 1939 War. Total (Both Wars). Dependants of Disabled Men. Widows. Others. Total. Dependants of Disabled Men. Widows. Others. Total. Dependants of Disabled Men. Widows. Others. Grand Total. 1940 3,141 1,906 2,937 7,984 3,141 1,906 2,937 7,984 1941 3,098 1,932 2,650 7,680 118 118 3,216 1,932 2,650 7,798 1942 2,932 1,953 2,405 7,290 339 545 180 1,064 3,271 2,498 2,585 8,354 1943 2,782 2,002 1,919 6,703 828 1,083 347 2,258 3,610 3,085 2,266 8,961 1944 2,855 2,044 838 5,737 832 1,541 484 2,857 3,687 3,585 1,322 8,594 1945 2,903 2,119 731 5,753 892 2,176 693 3,761 3,795 4,295 1,424 9,514 1946 2,808 2,235 524 5,567 950 2,434 696 4,080 3,758 4,669 1,220 9,647 1947 2,732 2,239 445 5,416 1,114 2,106 774 3,994 3,846 4,345 1,219 9,410 1948 2,633 2,291 379 5,303 1,000 1,849 883 3,732 3,633 4,140 1,262 9,035 1949 2,546 2,347 338 5,231 987 1,629 944 3,560 3,533 3,976 1,282 8,791 1950 2,509 2,377 275 5,161 923 1,582 956 3,461 3,432 3,959 1,231 8,622