HC Deb 08 November 1933 vol 281 cc173-5
15. Sir J. HASLAM (for Mr. HAMMERSLEY)

asked the Minister of Labour if he will make a statement on the financial position of the Unemployment Insurance Fund?

Mr. HUDSON

During the current financial year, because of the continued improvement in employment, the Unemployment Fund has accumulated a surplus on insurance account of about £5,250,000. This sum appears to be more than sufficient to provide against contingencies during the winter months. My right hon. Friend has accordingly decided to apply a part of it to the repayment of the debt of the fund, which, as the House knows, had reached a total of £115,000,000. Repayment is being made as the various parts of the debt fall due for repayment or renewal. The sum of £210,000 has already been repaid and a further sum. of £1,460,000 will be repaid during the current week. A statement of the transactions of the Unemployment Fund appears in the Ministry of Labour Gazette each month.

Mr. BUCHANAN

May I ask the hon. Gentleman if, before repaying to the fund, he ought not to take steps to carry out the insurance obligations to the insured person, seeing that this Government cut down the insurance obligations under the Economy Act; and is it not the first duty to see that the contract of insurance with the people who are in insurance is carried out?

Mr. HUDSON

To do that would mean fresh legislation. I would ask the hon. Member to be patient until to-morrow morning, when he will read, with his papers, the text of the draft Insurance Bill which deals with this point among others.

Mr. BUCHANAN

Is not the hon. Gentleman prejudicing the issue by devoting a sum to the repayment? Why is the Minister not waiting, before allocating a certain sum, until this House has decided what is to be done with the surplus?

Mr. HUDSON

I think that the hon. Member, if he waits until to-morrow, will see the answer to that question as well.

Mr. BUCHANAN

I am sorry, but may I press the Under-Secretary on this point? A certain surplus has arisen; is the first duty not to those who have entered into a contract, and should not the Minister, before repaying any sum, not wait until this House decides what is to be done with its contractual obligations?

Mr. HUDSON

The position is this: This sum, having accumulated, can either be used for repaying the debt or be left to accumulate still further. To alter that would mean fresh legislation. If we allow the money to accumulate we shall receive a comparatively small sum in interest, but if we pay back the money we shall reduce the debt. It is obviously more to the advantage of the insured person that we should pay off the debt than that we should ask Parliament to allow the money to remain idle. It will be fully within the power of this House, when considering the new Bill, to deal with this sum, which will have been used pro tanto to reduce the debt.

Mr. C. WILLIAMS

Is it not most important, in the interests of the unemployed themselves, to get the fund really solvent?