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1917. NEW ZEALAND.

FRIENDLY SOCIETIES AND TRADE-UNIONS. FORTIETH ANNUAL REPORT BY THE REGISTRAR OF FRIENDLY SOCIETIES, FOR THE YEAR ENDED 31st DECEMBER, 1916.

Presented to both Houses of the General Assembly pursua-nt to the Friendly Societies Act, 1909$ Section 9, and, the Trade-unions Act, 1908, Section 16.

Tlie Registrar of Friendly Societies to the Hon. the Minister. Sir,— Wellington, Ist July, 1917. I have the honour to submit herewith, in accordance with the Act, the annual report of this Office for- the year ended 81st December, 1916. I have, &c, R. E. Hayes, Registrar of Friendly Societies.

Social Insurance and Friendly Societies. As an outcome of tho conference held by the Government with the representatives of Friendly societies in April, 191.6, a scheme for the extension of State benefits to members of friendly societies, on special terms, was embodied in the Finance Act (Part IX) of last session. The objects of this Act are threefold : — (1.) To enlarge the administration of maternity assistance by extending its operations to members of provident organizations : (2.) To extend the State's propaganda for the establishment of a contributory system of provision for old age : (3.) To enable friendly societies to secure a provision in old age for their members at specially low rates and at the same time relieve their funds in respect of agedsiokness liability. As soon as the measure became law, steps were taken by the Department to draw up the necessary regulations, forms, &c, for the guidance of approved friendly societies. The conditions of " approval " were by the Act to be determined by the National Provident Fund Board. Towards the close of the year the necessary regulations and model rules were circulated to all societies with instructions as to the procedure to be adopted in applying for " approval." In adopting terms of " approval " the Board was to a certain extent bound by the financial obligations the Act itself imposed, as it was clear that only societies whose funds were established on actuarial principles would be able to conform to requirements. The well-known affiliated societies such as the Odd Fellows, Foresters, Druids, Rechabites, &c, had no difficulty in satisfying the Board in this respect. In the case of societies which were unable to hold their annual meetings before the end of the year the Board was empowered to grant " provisional approval " to extend only to the time of the first annual meeting at which the "model" rules could be made by tho society for registration. With the view of imparting to friendly societies a knowledge of the objects of the Act and its administration, the Registrar, during the months of November and December, visited the principal centres of the Dominion and addressed open meetings of societies. At those meetings there were excellent attendances, and the criticism of the scheme in the form of questions evidenced an intelligentinterest in this effort at co-operation as between the Government and the societies. Most of the societies were able to obtain " provisional approval " in time for the coming into operation of the Act-—lst January, 1917 —and thus at once secure for their members the maternity allowance. In those societies whose organization did not permit of " approval " by that date steps were taken to become approved as soon afterwards as possible. At the time of writing nearly every actuarially valued society in the Dominion had become either " approved " or " provisionally approved." I—H. 1.