approval having been obtained to the expenditure involved. As in some of these cases it appeared that work was being undertaken by the local authority which might well have fallen to be undertaken by the tenants, we deemed it necessary to issue instructions to the architects and clerks of works on the various schemes to the effect not only that any expenditure incurred without our prior approval would be disallowed as a charge against the housing subsidy, but also that approved expenditure for the levelling of sites would be allowed only if we were satisfied that the work was not such as should be left to the individual tenants. At the same time we pointed out that the local authority, before carrying out any such levelling operations, must satisfy themselves that the contractors were not in any way relieved of any obligation resting upon them under their contracts in respect of the removal of excavations or the clearing of the site.

SUPPLY OF WATER FOR HOUSING SCHEMES.

High Cost for Scheme in Rural Area.

In our last Report, pp. 157 and 158, we referred to the difficulty experienced in some rural districts in obtaining an adequate supply of wholesome water for housing schemes, and we mentioned one local authority who had obtained a report by a water engineer on various schemes, which proved to be beyond the resources of the proposed special water district.

Further proposals to obtain water from an adjacent river or by means of sinking wells had also to be abandoned either because of expense or because of risk that the water would be contaminated. In the circumstances, the question of obtaining a satisfactory water supply having been found to be insuperable, the local authority decided to abandon their proposal to erect houses in the particular locality.

PROVISION OF SERVICES FOR HOUSES BUILT BY LOCAL AUTHORITIES OUTSIDE THEIR OWN AREAS.

Local authorities of burghs may provide houses outwith their own areas, and in a few burghs in Scotland this has been done, suitable sites not being available within the existing burgh boundaries. Difficulty has been experienced in the provision of certain services for these houses, more particularly water and sewerage services. The responsibility for the provision of these services rests as a rule with the local authority of the district in which the houses are being erected. That local authority, however, in the absence of any assessable rental from the houses in question, might not be in a position to carry out the necessary works. The Housing (Scotland) Act, 1920, made provision whereby these works might be carried out in the first instance by the local authority erecting the houses, subject to an agreement being entered into with the local authority of the district in which the houses were being built for the repayment by the latter local authority to the former local authority of the expenses incurred in providing these services. We are not

aware that the above provisions have been taken advantage of by any of the local authorities concerned.

SCAVENGING ARRANGEMENTS IN RURAL AREAS.

We allowed the approved cost of removing the household refuse from houses erected by a local authority at three rural sites to be charged against the State-assisted housing scheme. The areas were not included in a special scavenging district, so that the local authority as scavenging authority were under no obligation to undertake the work, while it was the practice for the owners of other houses in the areas to carry out and bear the cost of such work.

PROVISION OF GAS MAINS.

The difficulties encountered in financing the cost of the necessary extensions of gas mains to housing sites engaged our further attention during the year. Representatives of the various gas undertakings in Scotland, private and municipal, waited on us and urged that the cost of extending the gas mains to the various housing schemes. should be chargeable as part of the cost of carrying out the housing schemes. We stated that we could not agree to this course, but we indicated our willingness to ask the Treasury whether they would be prepared to sanction an arrangement under which local authorities. might guarantee to the gas authorities a specified return on their expenditure in the provision of mains, and to charge against the Stateassisted housing scheme expenditure incurred by local authorities in implementing that guarantee. In reply to our communication on the subject, the Treasury informed us that they were prepared to approve, for a period not exceeding five years, a guarantee not exceeding 7 per cent. of the capital cost on mains, less a rebate of 18. per 1000 cubic fect of gas consumed. These proposals, however, were not acceptable to the gas authorities interested, and the matter was under further consideration at the close of the year.

USE OF HARDWALL PLASTER.

We were asked by a local authority whether, in view of the difficulty of procuring ordinary plaster and the consequent delay in the completion of the houses, we would sanction the use of three coat hard wall plaster. As we were advised that two coats of hard wall plaster were sufficient, and as the use of an extra coat would involve considerable additional expense, we informed the local authority that we could not agree to three coats of hardwall plaster being applied.

PROVISION OF GANGWAYS.

A dispute arose in connection with certain schemes in the Lower Ward District of Lanarkshire in regard to the liability for the provision of gangways. No separate items for gangways were included in the schedules of the schemes, and it was contended by the contractors that this was an omission, and that an amount for gangways would fall to be added to the contract amount. The

local authority's surveyors maintained that under the Scottish National Building Code the contractors were not entitled to any extra payment. The matter involved an interpretation of the Code, and, after hearing the views of both parties, we informed the local authority that no additional payment should be made.

PROVISION OF BATHS.

During the year supplies of baths suitable for housing schemes began to be imported from abroad, more particularly from Belgium and Germany, at a cost considerably less than the cost of baths supplied by manufacturers in this country. We were, therefore, not prepared to approve the continuance of the purchase by local authorities of baths at the former high prices. We understand that, as the result of the importation, the home manufactured baths were considerably reduced in price, though not to the extent to enable them to compete with the foreign baths. Towards the end of the year we were informed by representatives of the home manufacturers that it was their intention to apply to the Board of Trade to obtain the benefit of the protective tariff available under the Safeguarding of Industries Act.

DRYING FACILITIES IN SCULLERIES.

In our last Report we referred to an experiment for the drying of miners' clothes by providing a drying closet in the scullery, the requisite heat being obtained from the kitchen flue and the hot water circulating tank. This experiment was entirely successful in those houses where the drying closet could be placed immediately at the back of the living-room range, and we agreed to the adoption of such closets in certain houses which would most probably be occupied by miners. Where the drying closets could not be situated at the back of the living-room range, we agreed as an alternative to the provision of a separate heating unit in the scullery either by gas or a small coal stove.

PROVISION OF DUST-BINS.

We were asked by several burghal local authorities where the practice was for owners to provide dust-bins for their houses whether, if the local authority as owners of the houses which they were erecting supplied the dust-bins, the cost of these would be allowed to rank as a charge against the State-assisted scheme. We decided that where a sufficient receptacle for refuse was not provided by the tenants, and the town council resolved to put into force Section 23 of the Burgh Police (Scotland) Act, 1903, requiring the owner to provide such receptacle, the cost of providing ash-bins would be allowed as part of the capital cost of the housing scheme. We stated, however, that town councils would not seem to be in a position to proceed under Section 23 until, first, the houses were occupied, and second, they were satisfied that each house was without a sufficient fixed or moveable receptacle.

We accordingly informed the local authorities that before we could agree to allow the cost of providing ash-bins to rank against

the housing scheme, we would require to be informed as to what steps the local authority had taken to secure that ash-bins should be provided by the tenants of the houses, and whether the local authority had satisfied themselves in each case that suitable provision had not been made by the tenants of the houses.

PROVISION OF ELECTRIC LAMPS.

In view of the urgent need for economy, we reviewed the position as regards the provision of electric lamps in houses erected by local authorities, and decided that in future the first lamps should be supplied by the tenants, and that where these had already been. supplied by the local authorities the cost of renewals should be met by the tenants.

PLANTING OF SITE WITH TREES AND SHRUBS.

A local authority whose scheme comprised the erection of two hundred houses enquired whether we would sanction the estimated expenditure of £200 for the planting of about two hundred and sixty trees and shrubs along the roads and on the open spaces of the scheme. In view of the urgent need for economy, we decided that in future all such expenditure should not be allowed as a charge against the State-assisted housing scheme.

LIABILITY FOR COST OF REMOVAL OF TELEGRAPH POLES.

In reply to a question we advised a local authority that Section 7 of the Telegraph Act, 1878, applies to alterations in telegraph lines necessitated by housing schemes, and that in these circumstances the cost of such alterations will form a proper charge against the Housing Grant.

III-NATIONAL HEALTH INSURANCE.

Approved Societies.

INTRODUCTORY.

The issue of the results of the first valuation as at 31st December, 1918 of every society and branch and the consideration and approval of the proposals for distribution in additional benefits of the surpluses realised; the extension by the passing of the Prolongation of Insurance Act, 1921, of the period during which persons ceasing to be employed may remain insured; the introduction of a medical referee scheme to make easily available to approved societies and insurance practitioners a second medical opinion in cases of doubt; the examination and approval of complete amendments to rules and other matters arising out of the special conditions of the time, have made the year an eventful one for approved societies.

A synopsis of the various circulars, etc. issued to societies is given in Appendix XXVII.

A resolution passed by the Consultative Council on National Health Insurance (Approved Societies' Work) in March voiced the general desire for the consolidation of the National Health Insurance Acts, and it is hoped that it may be possible for the Bill to be placed before Parliament in the coming year, after which the revision of the handbook for the use of approved societiesalready somewhat overdue-will be taken in hand.

GENERAL CORRESPONDENCE-INQUIRIES AND COMPLAINTS.

We continue to receive from approved societies, insured persons and others interested a considerable volume of correspondence seeking our advice as to the application of the various Acts, regulations and instructions, and also containing complaints as to incorrect interpretation of statutory or other provisions, including failure to carry out instructions. The great bulk of this correspondence may be grouped under the category of "benefit and membership complaints."

We stated in our last Report that in a proportion of these complaints we had found that the insured person had legitimate cause for asking inquiry to be made. One or two societies have represented to us that the proper channel for disputes between societies and their members is provided in the rules, and that our action on the complaints tends to prejudge a possible formal appeal to us from a decision under the Disputes Rule. Whilst we are sure that societies wish to deal justly by their members, we think it unwise to leave the members no channel but the Disputes Rule to air complaints and clear up misapprehensions. We must take cognisance of complaints brought to our notice through other channels not only to ensure the proper and smooth working of the Acts, but to avoid, if possible, the

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