§ (1) If it appears to the Treasury at any time that the unemployment fund is in all the circumstances of the case in danger of becoming insolvent, the Minister shall, if the Treasury so direct, by order make such temporary modifications in any of the rates of contribution, or the rates or periods of unemployment benefit, and during such period as the Minister thinks fit, and as will on the whole, in the opinion of the Treasury, be sufficient to secure the solvency of the unemployment fund:
§
Provided that no order under this Section shall—
(a) come into force until one month after it is made; or
(b) reduce the weekly rate of unemployment benefit below the sum, in the
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case of men, of twelve shillings, and in the case of women, of ten shillings; or
(c) increase the rates of contribution by more than one penny from the employer and one penny from the employed person per person per week; or
(d) increase those rates unequally as between employers and employed persons.
(2) An order under this Section shall not be made so as to be in force at any time while any previous order made under this Section is in force.
(3) On an order being made under this Section the Minister shall cause the order, together with a special report as to the reasons for making the order, to be laid before Parliament.
§ Lieut. - Commander KENWORTHYI beg to move to leave out the Clause.
My object is to compel the Government to come to the House with a new Financial Resolution and an amending Bill in case the Act should become insolvent. A bargain is a bargain, and if it is agreed that contributions shall carry with them certain benefits, then the Treasury ought to be prepared to make up any deficit, and if not, the Government should come to this House with new proposals. It is, I think, going too far to give power to the Minister and the Treasury to alter this Bill. I am afraid there may be considerable unemployment in the near future in this country, and under those circumstances the Act might become insolvent. A slump has set in in the textile trade, as Lancashire and Yorkshire members know. and unless the Government open up fresh markets, which they are apparently in no hurry to do, unemployment will be rife in the coming winter. At the same time there may be rising prices, and I suggest under those circumstances it is not right to give power to put down the unemployment benefit.
§ Dr. MACNAMARAThe next Clause provides for a septennial revision, and the proposal of this Clause is substantially a reproduction of the Section in the Insurance Act. It is not at all revolutionary, and is simply following the usual practice. There is the further safeguard—
On an order being made under this Section, the Minister shall cause the order together with a special report as to the reasons for making the order, to be laid before Parliament.
§ Lieut. - Commander KENWORTHYParliament might not be sitting.
§ Dr. MACNAMARAI am simply introducing the form used in the old Insurance Act.
§ Amendment negatived.
§ Amendment made: In Sub-section (1, b) leave out the word "twelve", and insert instead thereof the word "thirteen".—[Mr. W. Smith.]