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REPORT

ADMINISTRATION 1. The Fire Service Council came into existence on the appointment of two members by the Minister on the 7th November, 1949. The other appointments, under section 4 of the Act, were completed on the Bth December, 1949, and the first meeting was held on the 13th-15th December, 1949. 2. The Act requires (section 15) that the staff of the Council shall be employees of the Public Service. At the request of the Council a Secretary, clerical officer, and secretarial typiste have been appointed. Arrangements have also been made for the Accountant of the Department of Internal Affairs to act as Treasurer for the Council and for its recording work to be carried out by the Records Branch of the Department. During its first meeting the Council met members of the Public Service Commission and recommended that a Chief Officer (technical) be appointed as soon as possible. At the date of this report no appointment has been made. 3. The Act constituted new Urban Fire Authorities in thirty-four fire districts and in seventy-nine secondary fire districts. In order to assist the Authorities in these districts the Council issued a series of explanatory memoranda setting out the effect of the Act in each class of district, and of instructions as to procedure in setting up the administrative Committees required under the Act. Formal arrangements were made for the necessary elections and initial meetings of Committees. It was known that considerable capital expenditure would be necessary in many of the newly constituted districts in order to bring the equipment and accommodation of the brigades up to a reasonable standard. The Committees were therefore asked to give consideration to both immediate and long-term requirements so that the necessary provision could be made in the estimates of expenditure for the coming year. A standard form of estimate for the purposes of section 47 and of typical accounts and balance-sheets necessary to conform with section 56 were also prepared and circulated. All statutory requirements were complied with by the 31st March, 1950, so that the Authorities in the new districts could assume responsibility for the local fire service for the financial year 1950-51. 4. The provisions of the Act with respect to contributions by insurance companies are similar to those in force under the Fire Brigades Act, 1926, except that, instead of the premium income returns having reference to each individual district, they are now required to cover the premium income received throughout New Zealand. This will result in a considerable saving in accounting and collection costs both to the insurance companies and to the Fire Boards. It also makes practicable the inclusion in the returns of premiums received in respect of insurance against fire in comprehensive or multiplepurpose policies. The most common of these is that issued in respect of motor-vehicles. The attendance at fires in motor-vehicles, both garaged and in the street, is a not inconsiderable part of brigade duty, and there is therefore good reason why such policies should bear a reasonable proportion of the fire protection costs. 5. The Act does not specify the proportion of the premium to be returned in such cases in respect of the fire risk. Discussions were held with representatives of the Fire Underwriters' Associations, the State Fire Office, and the Motor Union insurance companies with respect to the proportion of premiums returnable under section 52. This could only be roughly estimated in the absence of information as : to" the total amount of premium income returnable and the proportion of this income payable under the Act. It was therefore agreed by the Council, the Underwriters' Associations, and the State Fire Office that an empirical figure of 5 per cent, of motor-vehicle comprehensive policy premiums should be returned for the current year and that the matter would be reviewed next year after the effect of the returns had been studied. The Motor Union insurance companies have, however, denied liability, and the matter has been referred to the Council's solicitor for the necessary action to clarify the legal position.

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