DRAFT UNEMPLOYMENT INSURANCE (ADDITIONAL DAYS AND WAITING PERIOD) ORDER, 1937. (Hansard, 9 March 1937)

§ THE PAYMASTER-GENERAL (LORD HUTCHISON OF MONTROSE)
My Lords, I have pleasure in moving the Motion that stands in my name. I do not think it is necessary at this late hour for me to give your Lordships a large number of figures, and I am sure that the noble Lord opposite, Lord Strabolgi, will understand that this is really a non-controversial measure which passed in another place without a Division. We are all extremely gratified that the Fund is 585 in such a position that it is able to provide this extra relief for those who benefit under the Insurance Acts. The Statutory Committee which was appointed under the Acts of 1934 and 1935 reports from year to year on the financial position of the Fund and makes recommendations. This year it has found there is an estimated accumulated surplus coming along of £39,000,000. That is £6,700,000 more than was estimated last year. The estimated surplus for this year is £12,275,000. The Committee recommend that we should proceed on the basis of 80 per cent. of that potential surplus, which works out at £9,820,000. Add to that the £6,700,000 already realised, and we get a total of approximately £17,000,000, including interest over the period in which this money is to be spent.
The Committee recommend that this sum should be used over a period of eight years, which is known as a "trade cycle" of eight years, and they are devoting this sum to relief in the way they now recommend. They recommend that the waiting days should be reduced from six days to three days, and that those who have long periods of employment to their credit should receive additional days benefit as a result of this surplus. The reduction in the number of waiting days will cost the Fund £1,225,000 per annum, and the additional benefits over the eight years will cost a total sum of £9,700,000. I do not propose to go into the technical jargon to show how these benefits are worked out, but additional days are added to the standard benefit of 156 days which a man, after long employment, is entitled to when his employment ceases. That will cost £1,000,000 per annum, or an amount of £8,000,000 over the whole period. These figures show that the Fund is progressing. There is one other point. The Committee, after examining the Fund, believe that at the end of eight years it will be sufficiently solvent to continue these benefits which have now been given as the result of the surplus of this last year. I beg to move.

§ THE SECRETARY OF STATE FOR INDIA (THE MARQUESS OF ZETLAND)
My Lords, I have pleasure in moving the Motion which stands in my name.

§ THE MARQUESS OF ZETLAND
My Lords, I beg to move the Motion that stands in my name.