In my judgment, one thing is certain: if the National Unemployment Scheme had not been administered, as it has been, by the Ministry of Labour through the past and present dark days of depression, there would have been a serious upheaval in this country. The very fact that a worker could go and discuss his position with a sympathetic official of the Labour Exchanges helped to soothe his feelings of resentment against his unhappy lot. The receipt of benefit over the counter of a State institution encouraged him to believe that the State took an interest in the welfare of himself and his dependents. Whether, therefore, unemployment insurance by industries as a whole or each industry separately may or may not be arranged in the future, it would be exceedingly ungrateful of the people in this country to overlook the national work that has been performed by the Ministry of Labour and the officials of the Employment Exchanges under most difficult circumstances.
2. CONSTRUCTION OF WORKS OF PUBLIC UTILITY
Unemployment Grants Committee
In December 1920, the Government decided financially to assist local authorities to enable them to put in hand works of public utility in order to relieve unemployment, and appointed the Unemployment Grants Committee, under Lord St. Davids as Chairman, to receive applications for grants, examine schemes and allocate funds.
The Scheme of 1920
The Committee was instructed to observe, amongst others, these general principles:
1. Works were to be approved only in cases where the Ministry of Labour certified that serious unemployment, not otherwise provided for, existed in the area administered by the local authority undertaking the work.
2. The works were to be such as would be approved by the appropriate Government Department as suitable works of public utility.
3. The grant was not in any case to exceed 30 per cent. of the wages bill of additional men taken on for the work.
4. Preference in employment was to be given to unemployed ex-Service men.