HC Deb 16 July 1912 vol 41 c218
44. Mr. GODFREY LOCKER-LAMPSON

asked whether the National Insurance Act is to be construed as a contract between insured persons and the societies to which they belong?

Mr. MASTERMAN

I am advised that no Act of Parliament can properly be described as a contract. There is a contract between an approved society and its members, and one term of the contract is that the society shall provide the benefits conferred by the Act.

Mr. G. LOCKER-LAMPSON

Would a person be able to sue the society?

Mr. MASTERMAN

I must have notice of that question.

47. Mr. GODFREY LOCKER-LAMPSON

asked whether the contributions of insured persons are to be construed as part of a contract or as taxes?

Mr. MASTERMAN

Contributions are payable by virtue not of a contract, but of a statutory obligation, and inasmuch as the payments enure to the benefit of the person paying them and do not go into the Exchequer, they are not analogous to taxes.

Sir J. D. REES

What is the distinction between an obligatory contribution and a tax?

Mr. MASTERMAN

I think the hon. Member will find that I have stated that distinction already if he will do me the honour of studying my answer.