The Unemployment Fund Surplus
It was expected that the Labour Party would raise objec- tions to the recommendations made by the Unemployment Insurance Committee as to the disposal of the Fund's accu- mulated balance of £57 millions. The Committee, it will be remembered, took the view that there is sure to be severe unemployment after the war for which reserves ought to be held, and therefore made no recommendations for an increase in the rate of benefit, except to dependent children, using the balance for debt-repayment and reserve. The main criticisms of this proposal were, firstly, that the Govern- ment ought to plan ahead, so that there is no disastrous fall in employment after the war, and, secondly, that even if there were such a fall the Fund ought not to be used as a main line of defence against a national cataclysm. In regard to the history of the dole and the insolvency of the Fund nine years ago the Labour Party has not a-good record. The large debt bequeathed in those improvident days ought to be paid off as soon as the finances of the Fund permit. It is true that as long as expenditure over a long period exceeds revenue the profit in general ought to be reflected in benefits. But the principles of true insurance demand that the future should be taken into account as well as the present ; and since the improvement in the position of the Fund last year was certainly due to war conditions, it is equitable that the balance sNould be kept to meet post-war unemployment.
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