§ 57. Mr. WILKIEasked why associations which come under an arrangement under Section 105 of the National Insurance Act are expected to advance money for the purpose of paying State unemployment benefit without receiving any interest for the amount of such advances; and why such associations are expected to under take the work of administration without any allowance for expenses, whereas approved societies are permitted to spend a reasonable sum for the cost of administration under Part I.?
Mr. ROBERTSONArrangements under Section 105 necessarily take the form of repayment to associations of moneys already expended by them, because only in this way is it possible to avoid requiring the separation of the funds for unemployment from the other funds of the association. The Board have no power under the Act to pay interest, but I hope to be able to arrange for monthly payments on account of money expended, in lieu of making a single payment at the end of each quarter. As regards the cost of administration, while the Board have no power to make a direct payment on account of this, I may remind my hon. Friend that under Section 106 an association which makes an arrangement under Section 105 can obtain from the State a certain payment under Section 106 in addition to the refund claimable under Section 105. This provision was intended to cover any increase in the association's cost of administration, and it should, I think, be sufficient for the purpose.
§ 58. Mr. WILKIEasked why an association whose members are compulsorily insured under Part II. of the National Insurance Act, and which does not come to an arrangement under Section 105 of the Act, is entitled to a maximum return of 2s. on the benefit they may pay from their funds, whereas an association which comes to an arrangement under the fore going Section is only entitled to a maximum return of 10d. on the unemployed benefit they may pay from their funds?
Mr. ROBERTSONAn association which does not make an arrangement under Section 105 of the Act can recover under Section 106 a sum not exceeding 2s. a week from moneys provided by Parliament, while an association which does make an arrangement under Section 105 of the Act can recover a sum not exceeding 2194 7s. a week from the Unemployment Fund, and also a sum not exceeding 10d., under Section 106, from moneys provided by Parliament, making 7s. 10d. in all. The maximum refund in the latter case can be recovered by an association paying out 12s. a week in out of work benefit, and no further Grant under Section 106 can be made on account of payments by the association exceeding 12s. This limit was deliberately inserted in the Act in view of the fact that the usual practice of the most important trade unions in the insured trades has hitherto been to pay 12s. a week, or less, by way of out of work benefit, and that it is not thought desirable to give direct State encouragement to an increase in the amount of this benefit, which may possibly lead to obvious abuses.