7 FEBRUARY 1931, Page 2

`The Government and Unemployment Insurance At a Labour Party meeting

in the House of Commons on Tuesday the Prime Minister made a statement about the policy of the Government which was regarded as rather vague. In particular he was asked to say what the Government would do when the Royal Commission on Unemployment Insurance had reported. He would not go further than to promise that be would. confer with the Party before committing himself. The London correspondent, of the Manchester Guardian- says that a majority of the Commission will probably report in favour of the reduction of benefits and drastic' retrenchments. We have written in a leading article about the alarming comments of the Treasury and the Government Auditor upon . the borrowings of the Unemployment insurance Fund. But the left wing of the Labour Party will anion certainly refuse economy upon unemployment benefits. If there is to be a definite cleavage in .the Party before long it will be caused by a revolt of the Trade Unions- The General Council of the Trades Union Congress is becoming very restive. * * * *