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MAJORITY REPORT.
that particular kind of case? »’'—"* It has been dealt with under
the Coal Mines Emergency Act on the question of the illegal
deduction of wages. There is one point we did get right under
the Unemployment Insurance Scheme, and which we want badly
in the Health Insurance Scheme. When our inspectors go round
and visit employers to see if the cards are properly stamped,
fraudulent statements are very often made. An employer may
say, ‘ I have two men,” when in fact he may have six. Con-
sequently, persons lose their benefit rights because the employer
has been defrauding under the Act, and we suggest that the
making of fraudulent statements in order to avoid payments
under the Act should be made an offence under the Act in a
similar manner as it is under the Unemployment Insurance
Scheme.” (Q. 23,443.)
478. We are prepared to accept the opinion of the Ministry
as to the extent to which their present powers have proved in
practice to be not altogether adequate, and we think that they
should be given all reasonable powers which they think necessary
for enforcing the provisions of the Act. We, therefore,
recommend :—
(1) That the time limit for instituting proceedings for any
of the offences specified in ection 96 (2) and (3) of the Act
should be extended to twelve months.
(2) That Section 96 (1) of the Act should be amplified
<0 as to render liable to prosecution any person who makes
a fraudulent statement with a view to avoiding compliance
with the Act.
(3) That the offences of trafficking in stamps should be
made subject to the penalty of imprisonment as an alternative
to a fine.
(4) That the preferential period for the recovery of unpaid
contributions in the case of bankruptcy or companies in
liquidation should be extended from four months to twelve
months.
(5) That directors of companies who are actively engaged
in the conduct of the company’s business should be made
personally liable for the non-payment of contributions due
in respect of employees unless they can show that they could
not reasonably be expected to have knowledge of the default.
479. A further suggestion was made to us (National Associt-
tion of Trade Umion Approved Societies, App. Xo, 72
that in order to avoid the hardship which falls upon
insured persons through their employers failing to pay
contributions at the proper time and subsequently becoming
bankrupt before the contributions were paid, the con
tributions so lost should be made good out of insurance
funds. We are, however, unable to recommend the adop-
tion of this proposal. In the first place, we are not aware of
