27
ave
62
162.
If a full unemployment insurance scheme were initiated, it would of course be some time before it would be possible to bring it into operation. In order to determine the rates of contributions and benefit payments under such a scheme it would be desirable to conduct an actuarial survey, which would be very difficult at the moment owing to lack of data, In addition such a scheme would be quite expensive as it would necessitate the establishment of a central "Claims and Record Office" which would be responsible for the maintenance of separate ledger accounts in respect of each worker and for recording therein all contri- butions paid and benefit drawn. It may even have to assume responsibility for authorising claims to benefit.
165.
A prerequisite of any such scheme would be the establish- ment of an Employment Exchange service as an agency, not only for the payment of unemployment insurance benefit but also for the purpose of effectively testing "title to benefit" because benefit would only be payable to persons who were in fact unemployed through no fault of their own and were genuinely seeking whole time employ- ment and unable to obtain it. It would also be restricted to persons in respect of whom a stipulated minimum number of contributions had been paid. The institution of an Employment Exchange service is, of course, a declared aim of policy in Hong Kong.
164
The drafting of a suitable Ordinance would be a compar- atively simple matter after the completion of the actuarial. survey, but the scheme could not possibly come into operation until the minimum number of contributions had been paid in respect of the workers to justify title to benefit. In addition, in view of local circumstances it may first have to be introduced in respect of certain specific industries only and later extended.
165.
With the expressed desire of the workers for this kind of security, the tacit agreement of the representative employers with whom the matter was discussed and having regard to social security projects in China, it would seem desirable that a teneral plan should be formulated and pursued to permit of the introduction of a full contributory unemployment scheme when circumstances permit.
167.
The first action, of course, would be to establish an Employment Exchange service and the necessity for such an organisation has been stressed in other sections of this report, particularly under the heading of statistics. The service would initially operate as
a placing, statistical and training organisation and subsequently as a benefit-paying agency.
167.
It is accordingly recommended that steps be taken to secure the loan, for this purpose, of a young experienced officer from the British Ministry of Labour & National Service for a period of, suy, three years.
The Labour advisor to the Secretary of State would be able to assist in the selection of a suitable officer. In carrying out his work it is suggested that this officer makes the fullest use of the spade work cafried out on behalf of the Government of India by Mr. K.D. Jones, 0.B.E. of the British Ministry of Labour and National Service in inaugurating an Employment Exchange service in that country.
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