PM: NIS can pay unemployment claims

Prime Minister Mia Amor Mottley reassured Barbadians last night that the National Insurance Scheme (NIS) can and will pay the unemployment claims submitted.

Speaking during a national address yesterday evening, Mottley acknowledged that the NIS was the first line of defence for many households in Barbados.

In answer to the growing question as to whether the scheme had enough funds to handle the burden of the growing unemployment crisis, Mottley said, “Yes we do. We have the sufficient assets to meet the demands but many of the assets are not liquid or not in the right division.”

Using the example of the Severance Payment Fund, which has $140 million as compared to the $19 million in the unemployment fund, the prime minister explained that funds would have to be reallocated as the $19 million would not facilitate the growing number of claims.

Mottley announced that as of last Monday, April 27, claims had risen to 29 078 and the NIS department had paid 10 989 of the claims, totaling $11.9 million.

“The government therefore will support the NIS whether through existing funds at the Central Bank, through loans that we have already recovered under policy-based lending, or by purchasing bonds that the NIS holds to the tune of $250 million.”

She said that those who had been laid off would receive benefits for six months and those on short weeks would be paid 60% for days not worked.

In answer to the cry of the self employed, the prime minister lamented the fact that under the current law, self-employed persons were not entitled to unemployment benefits. However, seeing the need to provide for the self-employed, the government is in the process of establishing a one time business cessation benefit. This initiative would provide self-employed persons with $1500 per month for April and May only. (AS)