104

MAJORITY REPORT.

not satisfied that this is always their primary purpose and that
it is not sometimes subordinated to other objects of a less commendable
 character. We do not think it necessary to the
welfare of the system of National Health Insurance that it
should have what may, without offence, be termed a political
side. To the activities engendered by such action a disproportionate
 part of the time of those concerned may possibly be
devoted, and this must, we think, be detrimental to those
important duties of daily routine in the management of the
Societies which should be the first care of their paid officials.
We think there is some danger to the system in tendencies
of this kind, and that this may be stimulated by the
arrangements under which Societies have a considerable degree
of liberty in sending representatives to conferences of all kinds
and remunerating them for time as well as actual expenses. If
one element in the system more than any other may be regarded
as a possible danger to its future, it is, we think, this inclination
towards the development of what we have called a political
side.

225. Having indicated these general considerations, which we
think deserve serious attention, we proceed to discuss certain
modifications of the Approved Society system to which, in our
opinion, effect should be given as soon as possible.

ADMINISTRATION OF TREATMENT BENEFITS.
226. In the first place it has been submitted to us that Approved
Societies are not the most suitable bodies for the administration
of ‘benefits in the nature of treatment, and that the arrangements
for these benefits could be better made on a territorial basis, as is
already done in the case of medical benefit. - Evidence on two
directly conflicting lines has been put before us on this subject.
On the one hand, bodies representing the Approved Societies
have urged that ‘*‘ all treatment benefits should continue to be
administered by the Societies.” (National Conference of
Friendly Societies, App. XXVI, 29; Loyal Order of Ancient
Shepherds, App. X1.IV, 36.) On the other hand, the British
Medical Association point out that the powers of Approved
Societies in this respect are restricted by the Act to paying the
whole or part of the cost of treatment, and that Societies are not
entitled to administer the treatment benefits in the proper sense.
The Association ‘‘ insist that payments in respect of treatment
shall be under public and not under Approved Society administration.””
 (Q. 15,000-15,002, 15,092-15,098.)
297. Sir Walter Kinnear, giving evidence on behalf of the
Ministry of Health. informed us that °° the administration of
schemes of treatment benefits is still largely in the experimental
stage. The Societies have administered these benefits fairly well,
considering the difficulties under which they work, but many of
the Societies, and particularly the smaller ones, are experiencing