H.—9.

WAR PENSIONS. One of the functions of the Social Security Department is the carrying-out of the decisions of the War Pensons Board made under the provisions of the War Pensions Act, 1915, and amendments, and the War Veterans' Allowances Act, 1935. The Director of the Department holds the appointment of Secretary for War Pensions and directs the administration of the War Pensions legislation. LEGISLATION. With the outbreak of the present war and the decision of the Dominion to range herself alongside the Mother-country, it was obvious that in the very near future Parliament would be required to extend the existing war-pensions legislation to cover members of the fighting services engaged in the present conflict, and their dependants, together with the members of other organizations charged with the defence of New Zealand. Accordingly the following legislation was passed by Parliament during the year : —■ (а) War Pensions Extension Act, 1940 : (б) War Pensions and Allowances (Mercantile Marine) Act, 1940 : (c) Finance Act (No. 4), 1940 : (d) War Pensions Amendment Act, 1940. The War Pensions Extension Act, 1940, was passed on Ist August, 1940, and makes provision for pensions, at the same rates as those payable in respect of death or disablement resulting from the Great War, 1914-1918, to be paid in respect of service either in or outside New Zealand in connection with the present war. The Act is designed to cover members of the New Zealand Army, the New Zealand Naval Forces, the Royal New Zealand Air Force, and the New Zealand Army Nursing Service. Territorials and members of the permanent forces are also included. Under the provisions of section 18 of the Fiuance Act (No. 4), 1940, pensions may be granted under Part 111 of the War Pensions Extension Act, 1940, to persons permanently resident in New Zealand, in respect of death or disablement suffered by members of any New Zealand Contingent who served in South Africa in connection with the South African War, if the War Pensions Board is satisfied that death or disablement is attributable to or aggravated by such service. The War Pensions and Allowances (Mercantile Marine) Act, 194-0, became law on 11th October, 1940. The Act, for the first time in New Zealand, makes provision for the payment of pensions and allowances to members of the New Zealand mercantile marine and their dependants, in respect of death, disablement, or detention suflered as a result of the present war. With the formation of the Home Guard and the various organizations under the Emergency Precautions Scheme the question of compensation for death or injury arising from training or the carrying-out of the duties required to be undertaken, received the careful consideration of the Government. On 6th December, 1940, legislation was embodied in the Finance Act (No. 4), 1940, making provision for pensions to members of the Emergency Reserve Corps established under the Emergency Reserve Corps Regulations, 1940, and their dependants. All pensions or allowances provided for under the legislation quoted above are granted by the War Pensions Board established under the provisions of the War Pensions Act, 1915. The following is a brief summary of the principal amendment made in respect of the War Pensions Act, 1915, and War Veterans' Allowances Act, 1935, during the year : War pension and war veterans' allowance may now be granted to or on account of the wife and children of an ex-member of the forces irrespective of the date of marriage. Children adopted on or before the 31st day of May, 1940, may also be pensioned.

Summary of War Pension Payments.

The amount paid for the year ended 31st March, 1941, shows a decrease over the preceding year of £10,275.

5

(War Pensions Act, 1915.) Payments made in Total. London. Australia. Canada, Cmmtries New Zealand. £ £ £ £ £ £ £ Total payments to 31st 1,269,477 805,609 47,433 9,355 13,219 29,052,973 31,198,066 March, 1940 Payments in 1940-41 .. 35,437 44,067 .. 345 867 *1,582,739 *1,663,455 Total payments to 31st 1,304,914 849,676 47,433 9,700 14,086 *30,635,712 *32,861,521 March, 1941 * Includes £14,370 paid out in respect of pensions under the War Pensions Extension Act, 1040, in connection with the present war and £3 paid under the Finance Act (No. 4), 1940, to a member of the Emergency Reserve Corps.