UNEMPLOYMENT INSURANCE
CAROL PATON: Forgotten facts from jobless fund tell new tale of incompetence
Improved unemployment benefits may eventually come, but not before a fourth Christmas has passed
With the government facing tough times and looking for new sources of cash, attention has fallen on the healthy R130bn surplus in the Unemployment Insurance Fund (UIF). There have been informal suggestions from officials in the Presidency and in the Treasury that these funds be put to work. The Presidency has thought of using the UIF to fund higher education; the Treasury is mulling over a contribution holiday, which would have the effect of putting more money into the pockets of workers to stimulate consumption. The Heher report on funding higher education also suggested taking R50bn out of UIF to use to upgrade infrastructure at technical and vocational colleges. It is, thankfully, not possible under the Unemployment Insurance Act for the government to launch a raid on the fund, as the uses of this money are closely prescribed. (The Heher report did at least recognise this reality.)Nonetheless, the focus of attention on the UIF reveals an untold and startling tale of government in...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.