INDUSTRIAL AND PROVIDENT SOCIETIES (No. 1) BILL (Hansard, 11 March 1952)

§ THE EARL OF SELKIRK

My Lords, may I move this Second Reading on behalf of my noble friend Lork Birkenhead? It is a short, simple and non-controversial Bill which seeks to do two fairly simple things. First, it increases from £200 to £500 the limit on the shareholding of a member in a society registered under the Industrial and Provident Scheme. Secondly, the amount on deposit which such a society can hold without being treated as carrying on banking business is increased from £20 to £50, and the amount which can be deposited at any one, time is increased from ten shillings to £2. These societies have a very large membership indeed; in fact their membership collectively is somewhere around 12,000,000. There are some 6,000 societies, which include. 579 the many retail co-operative societies, wholesale co-operative societies, manufacturing co-operative societies, agricultural trading societies, agricultural farming societies, housing societies and a certain number of clubs, many of which are run by the British Legion, with a variety of activities ranging from insurance to fishing. It is not thought that a great many members will want to take advantage of the provisions of the Bill, but it is understood that a certain number of agricultural societies would be glad to have the opportunity to obtain additional funds, and in certain cases in the retail organisations where the "divi's" have been left to accumulate and have reached the £200 level it is inconvenient for the members to make alternative arrangements.

The reason for this Bill is really the fall in the value of money. The limit of shareholding of £200 was set in 1893, and accordingly the figure of £500 is, we think, a much more real figure to-day and one which still maintains what might be described as the principle of cooperation. I should perhaps mention that there is also provision in the Bill to enable societies whose rules do not permit a larger shareholding than the present statutory limit by a simple procedure to alter those rules. That is a matter of convenience to the societies and also to the Registrar. The Bill does not extend to Northern Ireland, where the matter will be dealt with by the local Legislature. It is perhaps appropriate for me to add that this year is the centenary of the year in which the co-operative movement first received statutory recognition. I beg to move.

§ LORD MORRISON

My Lords, I think we are all indebted to the noble Earl for the explicit and brief way in which he has explained the provisions of this useful little measure. In accordance with the ordinary practice of the House, I am afraid I must, in this case, declare an interest, the interest being that I have been an ordinary member of a cooperative society all my adult life, as my parents were before me. This little Bill has gone through the other place almost 580 unobserved. It is a useful measure and I think your Lordships' House is entitled to some credit for it. I believe in honour where honour is due, and it was a member of your Lordships' House who, in my opinion, took the first practical step towards bringing this Bill here to-day. I refer to His Grace the Duke of Montrose, who placed on the Order Paper of your Lordships' House a Question asking that the provisions of this Bill should be applied to agricultural co-operative societies. As a result, I believe the Government decided to do the whole thing properly and to bring in a measure to treat all co-operative societies alike. I think that that was a very wise decision. I believe the Bill will give much satisfaction to all concerned. It will remedy a long-standing grievance, not only of agricultural co-operative societies but of ordinary co-operative societies.

I am sure that every officer and committee member of a co-operative society will be doubly grateful for one provision in particular to which the noble Earl referred and which is contained in Clause 1 (2). This, as the noble Earl indicated, will permit a co-operative society to put into force the provisions of this Bill, when it becomes an Act, by a simple resolution of the management committee, instead of employing the long, laborious and expensive method of each society calling a special meeting for the purpose of amending the rules. In my opinion, it will also prevent the Registrar-General's office from being overwhelmed with resolutions, which might run into thousands—as the noble Lord has said, there are 6,000 co-operative societies—applying for the rules to be amended. I do not know who has thought of this simple and practical idea, although I am informed that the Registrar-General and his officers have been most helpful in the negotiations. I do not know whether this bright idea came from the Department, or whether a member of the Government had a brain-wave; but I do know that this provision to by-pass the cumbersome method by which each society has to seek an amendment of rules before new provisions can be put into force is most valuable. Nothing more remains for me to say except to thank the Government again. I hope that the Bill will have a speedy passage and be on the Statute Book before spring is here.