MORE FOR THE DOLE.

New Zealand Herald, Volume LXVIII, Issue 20767, 9 January 1931, Page 14

MORE FOR THE DOLE.

BRITAIN'S GREAT BURDEN.

TEN MILLIONS ADDED. ALLEGED ABUSES OF SYSTEM. [FROM OUR OWN CORRESPONDENT.] LONDON, Dec. 4. Miss Bondfield, the Minister of Labour, had the unpleasant task this week in the House of Commons of asking permission to raise the borrowing powers of the Unemployment Insurance Fund by yot another ten millions.

Tho Minister stated that the increase of expenditure from the Unemployment Fund undor the legislation of 1929 and 1930 had been £13,000,000. Of this sum, tho increased rates of benefit accounted for £4,250,000. A total of £5,500,000 had been paid to persons numbering 110,000 who had been disallowed benefit, but had been brought back to tho register, while £3.250,000 went to married women numbering 70,000 who had not previously been on tho register.

Tho dobt of Ihe fund was at presont £56,000,000, and was increasing at the rato of £40,000,000 a year. The contribu tions paid by the work-people on the pros cut register was £14,000,000, by the employers £16,000,000, and by the Exchequer £15,000,000 per annum. The cost of- or dinary benefit, including interest on the debt, was £85,000,000. Transitional bene fit, which fell wholly on the Exchecjuei, was estimated this year to cost £22,000,000. The big increases of expenditure occurred under the headings of " wholly unemployed," " short time," and " intermittent work." Pooling Employment.

Sir Henry Bettertor., who was UnderSecretary to Sir Arthur Steel-Maitland at tho Ministry of Labour in the last Conservative Government, spoko of recent abuses of the dolo. He laid tho blame for recent abuses on the changes made by the Act passed earlier this year. He exposed a system which was growing of pooling employment for three and a-half days, so that the association could get the benofit of unemployment benefit in addition to tho wages. This system, as employed in Cardiff, worked out to £4 9s lOd a mernner for three and a-half days' work a week, plus unemployment benefit. Sir Johu Simon also protested against the appointment of a Royal Commission at this stage. He quoted some striking figures from tho Labour Gazette, which went to show that, if the average rate of exit from industry bad been maintained 335,000 men and women now on the roll would have gone out of industry. Did that mean that they wero staying on drawing benefits without any intention ot resuming work ? If so, did it not show that there was a new psychology in the popular mind in regard to taking relief from public funds? Were our people beginning to find the clever way of getting relief, while still keeping within the law 7 If so, that pointed to a deterioration of character that was serious. An Amendment Rejectod. There was a great outcry at that from the Labour Benches, to which Sir John Simon replied that tie did not say it because he had any idea that they would like it. but only because he believed it to be true. It was an exceedingly clever speech, and the suavity and blandness with which the home truths were delivered infuriated the Labour members.

Captain Hudson and Major Thomas continued the debate, the latter arguing that abuse of insurance must inevitably come out of the worker in the long run. Sir Henry Betterton's amendment, which was to re'duce the maximum loan from-70 to 69 millions, was defeated by 274 votes against 20l', but the sense of the debate had gone quite the other way. It is reported that there are 315,000 people drawing the dole who formerly would not have received it, and who, while they may have a legal right, have no moral right to it. They are those who have left industry for good, who have passed out of the wage-earning class, or. in the case of women, have left work to get married and yet succeed in establishing claims to unemployment benefit. Other Methods, of Abuse. Other examples of the legal abuse of the dole, which is spreading with amazing rapidity, are thoso in which by collusion between' employers and employed it is used as a subsidy for wages. The basis of this is the fact that a man or woman may work three days a week and claim benefit as unemployed for the remaining period. Employers theiefore arrange to employ one set of men for half a week and another set for the other half, and the dole becomes an addition to wages, which are by no means inadequate without it.

This system is now in extensive operation among dock workers, minors and steel workers. Tho ease with which it operates, once discovered, will allow of almost unlimited extensions of dolo drawers, who increase the official unemployment' figures each week. Its origin still jts principal home —is among the dock workers of South Wales. Official figures quoted in the House of Commons show that in Cardiff. Barry and Penarth alone aro 1400 nun earning not less than £4 every week for three days' work and drawing tho dole for the icinaining days.