HC Deb 31 July 1934 vol 292 cc2479-80W
Mr. DINGLE FOOT

asked the Secretary of State for Scotland the reasons why an order was made by the Department of Health at the beginning of this year that any surplus in the funds of friendly societies over 1s. per member must be transferred from the administration account to the benefit fund account; and whether he is satisfied that the said order has not made it difficult for the smaller societies to build up a reasonable reserve?

Sir G. COLLINS

A regulation made on 26th May, 1933, applicable to all approved societies in the United Kingdom provides that where the surplus in the administration account of an approved society or branch at the date at which a valuation is made exceeds an amount equal to 1s. per member or the sum of £10, whichever is the greater, the excess shall be transferred to the benefit fund account. The object of the regulation is to secure that the amount available for administration expenditure shall approximate more closely to actual requirements than was formerly the case, and that accrued savings on administration shall be made available for the provision of benefits. I am not aware that the regu- lation has caused embarrassment to any of the smaller approved societies.