HC Deb 03 April 1912 vol 36 cc1164-5
Mr. CAUTLEY

asked the Chancellor of the Exchequer whether he can see his way to direct or advise the Insurance Commissioners to advance some funds to small friendly societies, either out of the public funds or the future contributions payable under the Act, in respect of their members in order to enable such societies to pay the expenses necessarily incurred in employing actuaries to prepare the schemes rendered obligatory under Section 72 of the National Insurance Act?

Mr. WEDGWOOD BENN (Lord of the Treasury)

My right hon. Friend has asked me to answer this question. The object of a preparation of a scheme under Section 72 is to protect the interest of existing members of societies as such, and it would therefore be inequitable to impose a charge on the members insured under the Act generally in respect of the cost of such scheme. There is no power under the Act to make payments for the purpose suggested or to allow funds under the Act to be employed temporarily for this purpose.

Mr. CAUTLEY

Can the hon. Gentleman say where the payment is to come from?

Mr. WEDGWOOD BENN

I presume out of the funds standing to the credit of the old members of the society. Perhaps the hon. Gentleman would give notice of a further question.

Mr. CAUTLEY

asked the Chancellor of the Exchequer whether he can see his way to direct or advise the Insurance Commissioners to draft a novel skeleton scheme for the use of small societies who are proposing to become approved societies and to form associations under Section 39 of the National Insurance Act?

Mr. WEDGWOOD BENN

The Insurance Commissioners will consider the suggestion of the hon. Member. Small societies do not require to associate under Section 39 before they become approved societies. They can apply for approval at once, and will be able to choose the other small societies with which they desire to associate after approval at any time before the first valuation. The association is only for the purpose of partially pooling surpluses and deficiencies occurring in their business under the Act, and does not involve any form of amalgamation. It will therefore be very simple in character.

Mr. PETO

Is the right hon. Gentleman aware it is absolutely essential that some definite lead should be given by the Insurance Commissioners. Although this matter may appear very simple, it is not simple to the secretaries of these small loan societies.

Mr. WEDGWOOD BENN

Yes, the Commissioners have the matter in mind and as I have stated will consider the suggestion of the hon. Member.

Mr. BOOTH

Is the hon. Gentleman aware that several associations have sent out circulars to the local societies offering their help?

Mr. WEDGWOOD BENN

No, Sir, I am not aware of that.