HC Deb 30 July 1908 vol 193 cc1764-6
MR. CLOUGH (Yorkshire, W.R., Skipton)

I beg to ask the Secretary to the Treasury whether the Chief Registrar of Friendly Societies is aware that an agreement has been arrived at between the supporters and opponents of the conversion of the Royal London Friendly Society into a mutual insurance company; whether he can state the terms of that agreement; whether the Chief Registrar has yet confirmed the conversion; and, if not, whether he can state when he is likely to do so.

THE FINANCIAL SECRETARY TO THE TREASURY (Mr. HOBHOUSE,) Bristol, E.

I understand that a meeting took place on the 22nd instant between the representatives of the Society of the National Union of Insurance Agents and of certain collectors, at which terms of agreement favourable to the dissentient collectors were offered by the Society and provisionally accepted, but I have not been informed how far these terms have been ratified. The main point conceded was that collectors should be guaranteed the market price for their books if they received notice to leave for any cause except "wilful dishonesty." I must, however, refer the hon. Member to the Society if he wishes to have a copy of the terms themselves. The Chief Registrar proposes to register the Resolutions to morrow.

MR. CLOUGH

Has all idea of testing the legality of the poll been abandoned?

MR. HOBHOUSE

That is a matter which does not concern the Treasury. It rests entirely with the members of the Society.

MR. LUPTON (Lincolnshire, Sleaford)

asked if those who voted for the conversion had their costs paid out of the funds of the society while the opponents paid their own expenses.

MR. HOBHOUSE

No, Sir. I have inquired and find that the society's funds were not used for that purpose.

MR. O'GRADY

I beg to ask the Secretary to the Treasury whether, having regard to the recent conversion, of the Royal London Friendly Society, he will consider the possibility of presenting a Bill amending the Friendly Societies Act, 1896, section 54 of which confers the absolute right upon wealthier societies to convert themselves into companies and so destroy the benefits in the Act specially designed for the use of the industrial community.

MR. HOBHOUSE

No, Sir. His Majesty's Government has no intention pf amending the Friendly Societies Act further than is provided in the Bill which has recently been read a third time in this House and is now under consideration in the House of Lords.

MR. O'GRADY

Was not the effect of this conversion a considerable fall in the value of shares?

MR. HOBHOUSE

That does not affect the Treasury, which has no power over that at all.

MR. O'GRADY

I beg to ask the Secretary to the Treasury whether he is aware that an application was presented to the Registrar of Friendly Societies on the 18th day of June last asking the Registrar to appoint inspectors to inquire into the matters connected with the attempt to convert the Royal London Society into a mutual company, and that, as yet, no such inquiry has been ordered or directed; and whether steps will be taken at once to institute such inquiry.

MR. HOBHOUSE

The Chief Registrar of Friendly Societies informs me that he has refused this application on the ground that the applicants did not shew sufficient cause for an inspection as is required by subsection 2 of Section 76 of the Act.

MR. O'GRADY

I beg to ask the Secretary to the Treasury whether he is aware that provision has been made in the new constitution of the Royal London Mutual Insurance Society, Limited, to take 30 per cent. of the premium income of the society (exclusive of commission paid to collectors) for management expenses, and that the total premium income is £1,000,000; and whether he will cause inquiry to be made into the affairs connected with such conversion, with a view of amending the Friendly Societies Act to prevent such conversion of friendly societies by laying down a draft code of rules and incorporating them in an amended Act.

MR. HOBHOUSE

The first part of this Question concerns the Board of Trade. I have already replied to the second part of the Question.