§ Mr. McNamaraasked the Minister of Labour what is the present level of the Redundancy Fund.
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§ Mr. GunterThe amount paid out between 6th December. 1965, when the Act came into operation, and 16th March, 1968, was £69 million. The Redundancy Fund's receipts from contributions during the same period were £59 million. There is therefore a shortfall of £10 million and under the powers available in Section 35 of the Redundancy Payments Act the difference has been met by temporary loans at present totalling £9.9 million from the Consolidated Fund.
The Act provides that the aggregate amount outstanding in respect of loans from the Consolidated Fund may not exceed £8 million unless a higher figure (not exceeding £20 million) has been approved by Parliament. Last July, with the approval of Parliament, I made an Order increasing from £8 million to £12 million the amount so permitted to be outstanding.
My right hon. Friend the Chancellor of the Exchequer announced in his Budget speech that because payments from the Redundancy Fund have continued to run at a higher rate than receipts, it was intended to increase the employer's contribution by 2d. a week for men and 1d. a week for women with effect from 2nd September, 1968.
Meanwhile, to avoid the risk of the present loan limit of £12 million being exceeded before the new contribution rates take effect, I have thought it right to ask Parliament for a temporary and limited extension of the borrowing powers. I have therefore laid today a draft Order revoking the Order made last July and increasing the borrowing limit to £15 million for a period of 12 months.