§ 34. Mr. HUNTasked the Chancellor of the Exchequer if he can state how the Government can guarantee that the officials employed by the Prudential Company for their approved society will not be employed for the profit-making part of the company?
§ Mr. MASTERMANThe Regulations allow an approved society to spend what is needed on management within a certain sum per member. Any illegitimate expenditure would necessarily come under review by the Government auditors, and if it appeared that expenditure had been incurred in remunerating officials in respect of work done for some other body than the approved society, it would of course be challenged by the auditor.
§ Mr. HUNTIf these men are employed by approved societies as well as by insurance companies, is there anything to prevent them from being paid in both capacities?
§ Mr. MASTERMANIf they are paid for the work they do for an approved society, there is nothing illegal under the Act in their being paid out of the funds of the approved society. There is no reason why men should not be doing work for an approved society and for an insurance company.
§ Sir HILDRED CARLILEMay I ask how it would be possible to say what part of the pay should be charged against the insurance company and what part against the approved society?
§ Mr. MASTERMANThe auditors will have to be satisfied that the money given for administration has been rightly spent in the administrative work of the approved society.