UNEMPLOYMENT FUNDS

Hawera Star, Volume L, 20 February 1931, Page 5

UNEMPLOYMENT FUNDS

WIDER POWER TO BORROW BILL READ A SECOND TIME. CONSERVATIVE 'S CRITICISM. .United Prww Association—By Elcctnc Telegraph Copyright.) LONDON, Feb. IS. The Unemployment Insurance Bill, embodying increased borrowing powers for the Ministry of Labour, was read a. second time in the House of Commons to-day by 279 votes to 218. Giving an instance of rapid development of the situation, Mr J. J. Lawson (Labour) pointed out that months ago France had not admitted there were any unemployed in the country. France now had 1,300,000 out of work. Instead of wage cuts what was needed was an improvement in the workers’ standard of life in order to increase their power of consumption of goods. .Sir A. 11. Stcel-Maitland (Conservative), moving the rejection of the Bill, said unemployment was still increasing and, desoito Mr Snowden's warning of tho gravity of the financial situation ,the Bill would commit them to uncontrolled and additional debts of £20,000000 for ordinary benefits and from £17,000,000 to £20,000,000 for transitional benefits. If Mr Snowden did not balance the Budget the blow to British credit would intensify the hardship by reactiorrs upon trade. If balanced, the Budget must be the means of fresh taxation, which Mr Snowden admitted industry was not strong enough to bear. The only war was a reduction in mis placed expenditure. A considerable portion of tho unemployment insurance expenditure was not justified. Mr Winston ohurchill (uon.) covered the whole range of unemployment, despite Labour cries that he should keep to tho subject under discussion. He declared that the Government could truly and honestly proclaim that it had by every device and dodge managed, to continue paying for the longest time and iir the loosest fashion the largest dole to the largest number. He attacked Mr Lloyd George s scheme, which he declared had been rejected and spat upon by every expert and every responsible Minister. Dealing with Mr Lloyd George’s re- 1 : cent attack on the City of London, Mr Churchill declared that as a result of it a loss of between £70,000,000 and £80,000,000 would be inflicted on British funds at a time when delicate handling was essential. He pointed to the effect of such a. speech in Australia, whore there was a tremendous struggle, in which the whole people were involved, for sound and honest methods of finance.

Mr Churchill said the context of such, speeches and the atmosphere in which they were delivered were not understood abroad.

Turning to the causes of the great economic collapse he said it could be described in one word, Asia. "China is in a state of anarchy, India is seething with unrest, while Russia constitutes an economic factor stronger and more menacing than anything we have witnessed. Nevertheless the resources, strength, energy and comradeship of these islands is unsurpassed a,nd perhaps unequalled in the world. Much will have to be endured, but w r e have ridden through many a gale. We must reach out our hands in special co-operation, with our kin throughout tho world. When the economic revival of the AVestern world comes ,as it surely will, despite Asia, wc will be borne forward in the forefront and normal industry will re-absoru the unemployed in manageable dimensions.”

Answering the charge that his speech had resulted in a fall in securities, Mr Lloyd George reminded Air Churchill that not even the joint efforts of the Chancellor of the Exchequer and himself had reduced the securities as low as they were when Air Churchill was in office. They were higher even now than when he left office.

Air Lloyd George wondered why Air Churchill had made a speech which was entirely irrelevant to the Bill with the exception of a few phrases tacked tothe end to give it an air of statesmanship; it was an excellent comic turn. Air Jack .Tones, combating the Opposition -statements that there was no money in the country, referred to the speedy success of the Indian loan. "If the Devil himself would float a loan and guarantee 5 per cent, on the flames of hell, the money would be raised!”

Roars of laughter greeted this parting shot, and the division was then taken.