Clause 65 - Industrial and provident societies, friendly societies etc.
Licensing Bill [Lords]
3:30 pm
Mr Mark Hoban (Fareham, Conservative)
I was surprised to find that clause 65 forms part of this Bill because my perception of industrial and provident societies and friendly societies was that they tend to be savings entities or other societies that are set up for the mutual financial benefit of their members. I think that I am right in saying that certain health insurers are set up as friendly societies and that friendly societies have particular tax benefits that arise based on the savings vehicles that they operate, which offer a good product for people on low incomes. Having understood that that was the background of those societies, it came as a surprise to me to see provisions in the Bill to cover the operation by them of clubs in the sense that we discussed with regard to earlier sections of the Bill.
I wish to understand why these organisations are allowed to operate such clubs. Is there not a risk that by operating clubs they might start to become more commercial ventures than they are at present? BUPA is a provident society: would we find it acceptable if it operated a club on the premises of one of its hospitals or nursing homes? Is that really what we are allowing them to do under this part of the Bill? I would be grateful if the Minister would give some clarification about the extent to which this clause is likely to be used by existing clubs or societies.