HC Deb 06 February 1940 vol 357 cc33-4
63. Rear-Admiral Beamish

asked the Financial Secretary to the Treasury whether his attention has been drawn to observations on pages 5 and 6 of the Report of the Registrar of Friendly Societies just issued, relating to large payments to directors and officials of a building society without effective control by members; and whether he will issue a warning that the practice referred to must cease and take power, at a convenient date, to make illegal such payments as those which the registrar criticises unless the written authority of the majority of the members concerned shall have been previously obtained?

The Financial Secretary to the Treasury (Captain Crookshank)

My attention has been drawn to the Report referred to by the hon. and gallant Member. Although in the case referred to payments were made to directors and officials which, in the opinion of the registrar, were excessive, the consent of a majority of the members to the payments was obtained. Proposals for legislation are now before the House which would have the effect of giving the registrar a larger measure of control in these matters.

Rear-Admiral Beamish

Is the right hon. and gallant Gentleman aware that the amending of the new Bill will not put a stop to the discreditable practices already committed and commented on?

Captain Crookshank

I think that will be discussed when we come to the Bill.