4:
MAJORITY REPORT.
Eo
to provide for an increase of sickness benefit in excess of bs
a week is to impress upon the Society the importance of treat-
ment benefits and to induce it to allocate a reasonable proportion
of the surplus to those benefits. We consider that this practice
should be continued.
605. Beyond this we do not consider it desirable to lay down
any fixed statutory limit to the amount which a Society may
devote out of its surplus to the provision of cash increases, and
we are of opinion that the question of the disposal of a surplus
should be determined in accordance with the wishes of the
members, subject to a reasonable control by the Department.
We do not therefore recommend any change in the present
position in this matter.
SECTION H.—MISCELILAANEOUS QUESTIONS
AFFECTING APPROVED SOCIETIES.
INTERNATIONAL SOCIETIES WITH FEW MEMBERS IN A PARTICULAR
NATIONAL AREA.
606. The Act does not lay down as a condition of continued
approval for any national area (England, Scotland, Northern
Ireland or Wales) any minimum limit as to the number of
members of an international Society resident in that area. We
are informed that cases have arisen in which such Societies
have retained approval in respect of one or more national areas
other than that in which the head office of the Society is situated
although the membership in such areas may be negligible
compared with the total membership of the Society. Notwith-
standing its small membership in one or other of the national
areas, the Society is required in such cases to keep separate
accounts in respect of its business in each country and to draw
its funds from the several National Health Insurance Funds
for the various countries. It has been suggested to us (Kinnear,
Q. 23,652-23,656) that, in order to simplify administration in such
cases the Minister or the National Health Insurance Joint
Committee should be empowered to withdraw approval in
respect of any country in which an international Society has a
very small membership. The effect of this would be that the
Society would lose the right to accept as new members persons
resident in the country in question, a right, it may be observed,
which they cannot have energetically exercised in the past. :
We accept the view that in the interests of administrative
efficiency it is desirable to make provision to this effect. We
accordingly recommend that Section 30 (2) of the Act should be
amended so as to provide that where the number of members of
an international Society who are resident in any country, other
than that in which the head office of the Society is situated, is less
than a specified small percentage of the total membership, and
is not more than a certain number, approval may be withdrawn