UNEMPLOYMENT FUND

Otago Daily Times, Issue 21265, 20 February 1931, Page 9

UNEMPLOYMENT FUND

*ss> POWER TO BORROW MORE. HOUSE OF COMMONS BILL. SECOND READING CARRIED. (United Press Association.) (By Electric Telegraph—Copyright.) LONDON, February 18. Feb. 19, at 5.5 p.m.) In the House of Commons Mr J. J. Lawson (Lab.), moving the second reading the Unemployment Insurance Bill, embodying increased borrowing powers, gave an instance of the rapid development of the situation. He pointed out that months ago France had not admitted that there were any unemployed, but she now had 1,300,000. Instead of wage cuts what was needed was an improvement of the workers’ standard of life in order to increase their power of consumption of .goods. Sir Arthur Stecl-Maitland (Con.), in moving the rejection of the Bill, said that unemployment was still increasing, despite Mr Snowden’s warning of the gravity of the financial situation. I lie Bill would commit them to an uncontrolled additional £20,000,000 in ordinary benefits and from £17,000,000 to £20,000,000 in transitional benefits. If Mr Snowden did not balance the Budget the blow to British credit would intensify the hardship by the reaction upon trade. If he balanced the Budget there must be a means of fresh taxation, which Mr Snowden admitted industry was unable to bear. The only way was a reduction of misplaced expenditure. A considerable proportion of the unemployment insurance expenditure was not justified. Mr Churchill covered the whole range of unemployment despite Labour cries that he should keep to the subject under discussion. He declared that the Government could truly and hoijestly proclaim that it had by every device and dodge managed to continue paying for the longest term and in 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 recent speech on the city, 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, where a tremendous struggle was going forward, in which the whole of the people were involved, for sound and Honest methods of finance. The context of such speeches and the atmosphere in which they were delivered was 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, Avhile Russia constitutes an economic factor stranger and more menacing than anything we have witnessed. Nevertheless, the resources, strength, energy, and comradeship of these islands are unsurpassed, perhaps unequalled, in the world. Much will have to be endured, but we have ridden through many a gale, and we must reach out our hands in special co-operation with' our kin throughout the world. When an economic revival of the Western world comes, as it surely will, despite Asia, we will be borne forward in the forefront of normal industry, which will reabsorb the unemployed in manageable dimensions.”

Mr Lloyd George, answering the charge that his speech resulted in a fall of securities, reminded Mr Churchill that not even the joint efforts of the Chancellor pf the Exchequer and himself had reduced securities as low;,as they were wdien Mr Churchill was in office. They were higher even now than when he left office, and he wondered why Mr Churchill made his speech, which w’as entirely irrevalent to the Bill, with the exception of a few phrases tacked to the end to give it an air of statesmanship. It was an excellent comic turn. Mr Jack Jones (Lab.) combatting the Opposition statement 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 at 5 per cent, on the flames. of hell the money would be raised.”—(Roars of laughter.) The Bill was read a second time by 279 to 218.