LOOKING AHEAD

Wairarapa Times-Age, 6 April 1940, Page 5

LOOKING AHEAD

UNEMPLOYMENT FINANCE IN BRITAIN. AFTER-WAR PROSPECTS. (British Official Wireless.) RUGBY, April 4. It was stated in the House of Commons that the income of the unemployment insurance fund for the year ended December 31 exceeded expenditure by £16.601,578, and there was a net balance of £57,555,222 at the end of the year. Though the state of the fund was very much better than the unemployment insurance fund statutory committee expected, the debt of the fund was just over £77,000,000 at the same dale. In the committee’s view it is very probable that there will be severe unemployment after the war, and it recommends that £3,700,000 of the balance be allocated, to repayment of debt, thereby freeing from the fund £1,100,000 yearly, while preserving borrowing powers. The committee also recommends an increase in the benefit rate from 3s to 4p weekly respecting children, and from 33s to 35s in respect to agricultural contribution.

The Government decided to accept the proposals and the House of Commons is asked to approve. Labour Opposition moved an amendment asking for application of the balance to increased benefits, and contended that, it was the Government's duty (o prepare a plan for transition from war to peace economy and avoid severe unemployment after the war.

The record reduction in the unemployment figures in March is generally regarded as an indication of the speeding up of Britain’s war time industrial effort.

The “News Chronicle” says: “As in the last war, Britain’s expanding war effort is reflected in the unemployment returns. The rate of absorption of labour has been concealed during the past, month or two largely because of the unusually bad weather. Now we get a bettor idea of its extent. The country has been rather perplexed by the persistence of the high unemployed total when so many young men are being taken for the Army and factories are receiving huge Government orders. These orders are now beginning to affect employment, and the war programme is evidently getting under way.”