asked the Minister for Industry and Commerce if he is aware that, arising out of Emergency Powers Order No. 274, 1943, which directs that in the case of workmen in receipt of average weekly earnings exceeding 40/- maximum compensation payable under the Workmen's Compensation Act, 1931, shall be increased from 30/- to 37/6 per week, the insurance companies, insuring against such risks, have notified insurers that an additional premium of 12½ per cent. is payable in respect of all workers irrespective of whether their average weekly earnings exceed 40/- or not; and whether, in view of these circumstances, he will make strong representations to insurance companies who are taking advantage of the Order in question to increase premiums on insurers not affected by the Order, with a view to having the position favourably settled.
Ceisteanna—Questions. Oral Answers. - Increase of Insurance Premiums.
I am aware that in consequence of Emergency Powers (No. 274) Order, 1943, the insurance companies have made an all-round increase of 12½ per cent. in premium rates for employers' liability insurance business, irrespective of whether the average weekly earnings of an employee exceeded 40/- or not. Before the Order was made, the question of its effect on premium rates was discussed with representatives of the insurance companies and I was given to understand that in adjusting the premium rate to meet the increased liability under the Order, it was not practicable to exempt certain employees on a basis of wages differentiation. The premium rates for this class of business are, however, kept under review in my Department.
Does not the Minister agree that it is unjustifiable to raise the premium where no extra compensation is being paid?
It is the standard practice of companies engaged in this business to fix premiums on the basis of a percentage of the total wages bill. In a sense, it is not true to say that no extra compensation is being paid so far as agricultural workers are concerned. In so far as their compensation when injured, determined as a percentage of their pre-accident earnings, is within the maximum fixed by law, they are entitled to get the increased compensation to which their increased rate of earnings entitles them.
They have not got the increased rate of earnings. It is anomalous, especially following an emergency Order, that, where there are no increased earnings, there must be increased premiums in order to pay for other people.
There are increased earnings.
Not in a number of specified areas.
The agricultural workers' rate of wages is increased everywhere.
Not over the amount specified in Emergency Powers Order No. 274.
On the contrary, the average earnings of agricultural workers have increased far more than the percentage increase in the insurance premium.
Is it not a fact that, when the agricultural rate of wages did increase in the past number of years, the insurance companies had already raised their premium to meet that increase?
No.
Yes, because you paid on the total amount of the earnings.
Paid as a percentage— that is quite true.
Would the Minister say whether or not the Government has given any consideration to the question of making the administration of the Workmen's Compensation Act a State liability——
That is a separate question.
——so as to provide the workers with better compensation and to ensure a lower premium?
A separate question which the Minister need not answer.