HC Deb 13 April 1934 vol 288 cc658-62

1. Every compensation trust must conform with the requirements of the following provisions of this Schedule.

2. the trust shall be expressed in the form of a deed executed between the owner of the coal mine to which the trust relates (hereafter in this Schedule referred to as "the owner") on the one hand and two or more other persons on the other hand, of whom at least one is an independent person, that is to say, a person who is neither a servant nor an agent of the owner and who has no financial interest in the business of the owner.

The last-mentioned persons and any person duly appointed in place of any of them are hereafter in this Schedule referred to as "the trustees."

3. The trust shall provide for securing that if at any time the trustees for the time being do not include an independent person as hereinbefore defined it shall be the duty of the owner forthwith to appoint such an independent person to be one of the trustees.

4. the trust shall provide for the creation of a trust fund (hereinafter in this Schedule referred to as "the fund") and for the vesting of the fund in the trustees, and shall declare that the trustees shall hold the assets of the fund on the following trust, that is to say, that whenever, by reason of any award or judgment against, or agreement or admission entered into or made by or on behalf of, the owner of the coal mine to which the trust relates, or his executors or assigns, any sum becomes payable by way of compensation in the discharge of any liability of the owner under the principal Act to a workman in respect of his employment, in the course of the relevant period, by the owner for the purposes of that coal mine, the trustees will, on behalf of the owner or his executors or assigns, as the case may be, pay the amount of that sum out of the fund to that workman.

For the purposes of this Schedule the relevant period shall be taken to be such period as may be specified in the trust, being a period beginning on or after the day on which the first contribution to the fund required by the following provisions of this Schedule has been duly paid by the owner to the trustees, so, however, that the relevant period shall be deemed to be terminated by whichever of the following events occurs the sooner (that is to say):—

  1. (1) the death of the owner;
  2. (2) the owner becoming bankrupt or making a composition or arrangement with his creditors;
  3. (3) where the owner is a company—
    1. (a) the passing by the company of a resolution for voluntary winding-up within the meaning of section two hundred and twenty-five of the Companies Act, 1929;
    2. (b) the making of a winding-up order in respect of the company under the Companies Act, 1929;
    3. (c) the due appointment of a receiver by or on behalf of the holders of any debentures of the company secured by a floating charge, or the due taking possession, by or on behalf of those debenture holders, of any property comprised in, or subject to, the charge.

5. The trust shall make provision for securing—

  1. (1) that, as soon as may be after the trust comes into force, the trustees shall cause to be given to them by a qualified actuary a certificate certifying the capital sum (including any such amount as the actuary considers to be a proper reserve to meet emergencies) necessary, in his opinion, to secure the payment of all sums which he calculates will, by virtue of the trust, fall to be paid out of the fund in discharge of the owner's compensation liability attributable to the first accounting 660 year (which capital sum is hereafter in this Schedule referred to as the "certified initial liability"); and
  2. (2) that, as soon as may be after the accounts of the fund for any accounting year have been submitted to audit, the trustees shall cause to be given to them by a qualified actuary a certificate certifying—
    1. (a) the capital sum (including such amount as the actuary considers to be a proper reserve to meet emergencies) necessary, in his opinion, to secure the payment of all sums which he calculates will, by virtue of the trust, fall to be paid out of the fund in discharge of—
      1. (i) any compensation liability of the owner which is outstanding at the end of that accounting year and which is attributable to the period between the beginning of the relevant period and the end of that accounting year; and
      2. (ii) the compensation liability of the owner attributable to the next succeeding accounting year; and
    2. (b) the difference (if any) between the said capital sum and the sum stated by the auditor, in accordance with the trust, to represent the value, as at the end of the accounting year to which the accounts relate, of the assets of the fund available for making payments by way of compensation in accordance with the trust (the amount, if any, by which it appears from the certificate that the sum so stated as aforesaid by the auditor falls short of the said capital sum, being hereafter in this schedule referred to as "the certified deficiency ")
and the trust shall require the trustees to transmit every such certificate as aforesaid forthwith to the owner.

Provided that nothing in the foregoing provisions of this paragraph shall apply in relation to any accounting year beginning at or after the end of the relevant period.

6. The trust shall contain a provision whereby the owner covenants with the trustees that, forthwith upon receiving any certificate transmitted to him by the trustees in accordance with the provisions of the trust required by the last foregoing paragraph, he will pay to the trustees by way of contribution to the fund—

  1. (a) in the case of the first certificate so transmitted, a sum being not less than the certified initial liability; or
  2. (b) in the case of any subsequent certificate, a sum being not less than the certified deficiency, if any.

7. The trust shall also provide for the following matters, that is to say:—

  1. (1) for requiring the trustees to effect, maintain, and enforce such contracts of insurance as may be necessary to cover the risk of the trustees having to make payments out of the fund by way of compensation in respect of the deaths of five or more workmen resulting from any one accident, and for securing that any sums paid to the trustees in settlement 661 of a claim tinder any such contract of insurance shall form part of the fund; and
  2. (2) for requiring the owner to furnish to the trustees all such returns, estimates, accounts, and other information as may be necessary for enabling them to perform their duties under the trust; and
  3. (3) for requiring the owner to defray, by means of contributions to the fund, the administrative expenses of the trustees (including sums paid or payable by them by way of premiums in connection with contracts of insurance effected by them in accordance with the trust); and
  4. (4) for requiring the trustees—
    1. (a) to keep proper accounts in relation to the fund; and
    2. (b) to cause the accounts of the fund for each accounting year to be audited as soon as may be after the end of that year by a qualified accountant; and
    3. (c) to obtain as soon as may be from the auditor by whom the accounts of the fund for any accounting year are audited a statement of the value, as at the end of that accounting year, of the assets of the fund available for making payments by way of compensation in accordance with the trust; and
  5. (5) For securing that the trustees are not empowered to invest any moneys of the fund in any securities other than securities in which a trustee may lawfully invest trust moneys by virtue of the powers conferred by section one of the Trustee Act, 1925, as extended by any subsequent enactment.

8. for the purposes of this Schedule—

  1. (1) the expression "accounting year" means a period of twelve consecutive months beginning on the first day of the relevant period or on the anniversary of that day;
  2. (2) the expression "compensation liability" means liability under the principal Act to workmen in respect of their employment by the owner for the purposes of the coal mine to which the trust relates, and the owner's liability under the principal Act to workmen in respect of their employment as aforesaid in the course of any particular period shall be taken to be his compensation liability attributable to that period;
  3. (3) the expression "qualified accountant" means a person qualified to be appointed auditor of the accounts of a borough council which has adopted the system of professional audit;
  4. (4) the expression "qualified actuary" means a person being either a fellow of the Institute of Actuaries or a fellow of the Faculty of Actuaries in Scotland.—[Mr. G. Nicholson.]

Brought up, and read the First time.

Mr. G. NICHOLSON

I beg to move, "That the Schedule be read a Second time."

This is an important Schedule and contains a large number of what may be controversial points. The last thing I want to do is to waste the time of the Committee, and, therefore, I will content myself with formally moving, but I shall be willing and anxious to explain any particular point which any hon. Member may desire to raise. Alternatively, I am prepared to go through the Schedule in detail and explain it, but I would rather not.

1.34 p.m.

Mr. G. MACDONALD

It seems to be a formidable addition to the Bill, and it may be that hon. Members on this side may find it necessary between now and Report to put down some Amendments. I only desire to preserve that right.

Question put, and agreed to.

Schedule read a Second time, and added to the Bill.

    c662
  1. TITLE. 124 words
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