HC Deb 10 April 1930 vol 237 cc2336-7
15 and 16. Colonel HOWARD-BURY

asked the Minister of Labour (1) whether, in view of the steady increase in unemployment, she will consider the giving of powers to local authorities to employ on works of public utility which would not be otherwise undertaken persons on the unemployed register and pay them the difference between unemployment pay and their normal wages;

(2) whether she has studied the system of unemployment insurance relief in Germany where there is a strict line of de- marcation between insurance benefit and welfare relief; whether she is aware that local authorities are responsible for this welfare relief, and that they supplement this welfare relief by the provision of work upon undertakings of common utility, paying the difference between the welfare relief and the standard rate for navvy labour, and that six months of this welfare employment is recognised as re-qualifying for insurance benefit; and whether, in view of the many advantages of this system, she will consider its application on similar lines in this country?

Miss BONDFIELD

I have under consideration the German scheme with a view to seeing whether it has any lessons for us. The question of using unemployment benefit in part-paying of the wages of persons in employment has been most carefully considered on many occasions in the past, but there are very serious difficulties and dangers inherent in proposals of this kind, and these have hitherto been thought to be conclusive against their adoption. I would add that it is the policy of the present Government to promote, with the aid of State grants, useful works of economic development on which the unemployed can be engaged. The hon. and gallant Member will find an account of those works in the White Paper recently issued by my right hon. Friend the Lord Privy Seal.

Colonel HOWARD-BURY

Is the right hon. Lady aware that there is a much greater chance of getting these men employed under some such scheme as this, which will help municipalities to get work of value done?

Miss BONDFIELD

I am rather endeavouring to press that side.

Mr. MILLS

Has the right hon. Lady considered the practice that obtains in the German Employment Exchanges of taking on the repair of boots and clothing?