MAJORITY REPORT. 
28Y 
maximum amount available to Approved Societies for the pur- 
poses of administration. (para. 619.) 
(110) That the arrangements under which certain Societies are 
allowed to contract with their private sides or parent bodies for 
the performance of State Insurance work should not be pro- 
hibited, provided that the arrangements made are such as to 
secure a substantial advantage to the insured members in respect 
of the sum appropriated for the cost of administration ; and that 
the Central Departments should scrutinise closely from this point 
of view the terms and conditions of any proposed arrangement 
of this kind before giving their approval. (para. 621.) 
(111) That any arrangement under which the bulk of the 
money available for the purpeses of administration of a Society 
is paid to the secretary of the Society, who then undertakes to 
contract for the whole of the administrative work of the Society, 
should be prohibited. (para. 622.) 
(112) That no increased administration allowance should be 
made in respect of mercantile marine members. (para. 553.) 
(113) That Section 16 (1) (¢) of the Act, which requires 
employers to notify compensation agreements to the Minister, 
should be repealed. (para. 631.) 
(114) That provision should be made whereby in any case in 
which an award of compensation or damages has been made in 
favour of an insured person, and the payment cannot be 
recovered by reason of the insolvency of the employer or other 
person liable, sickness or disablement benefit should then become 
payable. (para. 629.) 
(115) That Section 26 of the Act should be repealed, and that 
provision should be made whereby Societies may, when formu- 
lating schemes of additional benefits, allocate a specific sum out 
of their disposable surpluses for the purpose of making payments 
to charitable institutions, this provision to be submitted as part 
of the Scheme and to be subject to the same scrutiny and control 
by the Central Department as are the proposals for additional 
benefits ; that it is desirable to define in fairly precise terms what 
constitutes a charitable institution; and that the powers con- 
ferred by the section on Insurance Committees should be with- 
drawn. (paras. 664-665.) 
(116) That so far as the powers of the Central Department to 
hold enquiry into excessive sickness are concerned, the penal 
provisions of Section 107 of the Act are useless and should be 
eliminated ; but that the bodies responsible for the local adminis- 
tration of medical benefit to insured persons should be given 
power to institute inquiry into cases of excessive sickness brought 
to their notice, and for this purpose to utilise the medical records 
of insured persons resident in their areas. (paras. 637-638.) 
(117) That it is desirable to make permanent provision which 
will protect’ an insured person from incurring any loss or penalty