HL Deb 08 May 1924 vol 57 cc335-7

Order of the Day for the Second Heading read.

EARL DE LA WARR

My Lords, I cannot help expressing my pleasure at being able to introduce a Ministry of Health Bill that the noble Earl, Lord Onslow, cannot claim to have started. However, in spite of this fact, I still hope for his benediction. This Bill, amongst other things, is the result of the settlement of the dispute with the doctors with regard to the capitation fee. The Government is faced with this situation: that as the law stands now 9s. 6d. is the sum that is allowed per insured person under the Act, whereas the actual cost of medical benefit per insured person has been as much as 4s. above that amount, and at the present moment is 2s. 4¼d. above it. Hitherto this deficiency has been met by Grants from the Exchequer. All parties concerned in this matter have, however, been agreed that this system of Grants from the Exchequer is not satisfactory. The merit of this Bill is that it has succeeded in contriving a method by which this Act will be financed for three years out of its own funds.

The actual deficiency to be made up is, approximately, slightly over £1,750,000 and there are three sources from which the Government intends to draw its money. The first is the friendly societies. The friendly societies regarded this deficiency with considerable alarm at first, for they rather naturally feared that their funds, which were in large measure designed for other purposes, might be raided in order to make up this deficiency. They have, however, consented to make a small contribution for certain expenses of administration, and this contribution amounts to £118,000. The largest source from which the Government intend to draw the money they need is the Central Fund. This Central Fund, I think your Lordships will probably be agreed, is in the main made up from rather a curious source. There appear to be a very considerable number of people who come under this insurance, scheme and who actually purchase the stamps but do not make use of them and do not claim benefit. There is, therefore, a very large number of these sums which have accumulated and have been credited to the Central Fund. The Minister is advised that this source of revenue is so regular, it can be so depended upon, that he is perfectly safe in drawing on it. The contribution from the Central Fund will be, approximately, £1,250,000. The contribution of the friendly societies and what is got from the Central Fund make up 1s. 8¼d. of the deficiency and we have therefore to look for a further sixpence. This will be obtained from the investment account.

It is quite clear that it would be impossible to carry on a business of this kind without a considerable margin in hand. This margin has not been allowed to lie idle, but has been invested in Government securities. The statutory interest on this invested money was laid down at 4½ per cent., but owing to the recent condition of the money market it has been possible to obtain slightly more than 4½ per cent. The Minister, therefore, has been advised that he would be acting with complete safety if he were to make use of this, shall we say, windfall, to make up the remaining sixpence that is needed. This Bill is intended to operate for three years, the years 1924, 1925 and 1926. It has been accorded agreement by all the parties concerned, and it is because of this agreement, that it has been able to pass through another place without either opposition or amendment. I therefore beg to move the Second Reading.

Moved, That the Bill be now read 2a.—(Earl De La Warr.)

THE EARL OF ONSLOW

My Lords, it is true that I did not have the privilege of introducing this Bill last Session, but at any rate during the lifetime of the late Government the controversy which the noble Earl has so successfully brought to an end with this Bill commenced and I must congratulate him on his success. The Bill is a necessary Bill and cannot be postponed, because the doctors are performing their work and the money must be found. I therefore hope that it will obtain a Second Beading at your Lordships' hands.

On Question, Bill read 2a and committed to a Committee of the Whole House.