§ 53. Mr. WISEasked the Chancellor of the Exchequer for what reasons the Treasury estimated the cost to the Exchequer of transitional unemployment benefit for 1931 at £35,000,000 or £40,000,000, or even more, in their memorandum submitted to the Royal Commission on Unemployment Insurance in the latter part of January, but reduced the figure to £30,000,000 in framing the Budget Estimates?
§ Mr. PETHICK-LAWRENCEThe figures contained in the Treasury Memorandum represented a conjectural estimate of the cost to the Exchequer of prolonged transitional benefit in its existing form throughout the financial year 1931–32. The estimate presented to Parliament has been based on the law as it stands at present. The ultimate Exchequer cost for the year will depend in part on legislation yet to be submitted to the House, and also on the course of unemployment.
§ Mr. WISEMay we assume from that answer that the Budget estimate is based on the assumption that transitional benefit begins to run off in September of this year?
§ Mr. PETHICK-LAWRENCEI have already said that the estimate is based on the law as it exists at present.
§ Major ELLIOTDoes not the law as it exists at present involve the run-off beginning in October, and being concluded 12 months after that date?
§ Mr. PETHICK - LAWRENCEThis matter raises important issues which cannot be dealt with by way of question and answer. My right hon. Friend will make a statement with regard to all these matters on the Second Reading of the Finance Bill, and I think it would be better for hon. Members to wait until then. I have already answered in advance the question which the hon. and gallant Member for Kelvingrove (Major Elliot) has just put to me.
§ Major ELLIOTSurely it is a question of fact? I wanted to be sure whether, 206 under the existing law—[Interruption.] Surely we are entitled, during the Budget Debates, to ask questions closely connected with the Budget. The assumption is that the existing system is that the transitional benefit begins to stop in October of this year, that several thousands of men will begin to run-off in October, and that thereafter several thousands a week will be knocked off for a year when the thing will come completely to an end. [Interruption.]
§ Mr. SPEAKERThe hon. and gallant Member is putting a rather long question.
§ Major ELLIOTI simply wish to ask whether it is on that basis that the Chancellor of the Exchequer has framed his Budget?
§ Mr. PETHICK - LAWRENCEThe estimate is based on the existing law, and the hon. and gallant Gentleman and the House as a whole are perfectly acquainted with the existing law with regard to unemployment insurance.