an unemployment insurance scheme.

Faced with the highest-ever unemployment numbers, Finance Minister the Hon.

David Saul has tabled before Parliament the first sections of a feasibility study, ordered by the House of Assembly.

The report is being produced at a time when the trend towards unemployment threatens to become permanent. Joblessness has risen from one percent of the total labour force in 1970, and two percent in 1980 to six percent reported in the 1991 census -- more than 2,102 people out of work.

Dr. Saul said any insurance scheme would run in addition to present benefits schemes.

But the difference would be that funding for insurance payments would come from employers' and employees' contributions rather than public funds.

The Bermuda Employers' Council said they would study the plan once they had all the details, and have declined to comment until then.

Dr. Saul said that the study had reached its main stage where analysis would be made of critical issues.

He told MPs: "It remains my intention to present a full report on the feasibility of establishing a National Unemployment Insurance Scheme to Parliament before the end of the present session.'' The study was started following an Opposition-inspired motion in the House in November, which read: "This House recognises the grave situation regarding unemployment as a result of the worsening and unprecedented economic climate, which is impacting severely on the well-being of Bermudians.'' The Ministry of Finance has been helped in its study by the Bermuda Public Services Association, the Bermuda Industrial Union, the Amalgamated Bermuda Union of Teachers, the Hotel Employers of Bermuda, the Construction Division of the Chamber of Commerce and the Bermuda Employers Council.

The report tabled by Dr. Saul in the House of Assembly last Friday stated: "A distinction has been made between unemployment insurance schemes and unemployment assistance schemes.

"The distinction is that assistance schemes provide unemployment benefits which are financed from public funds rather than from contributions specifically collected to finance the benefits.'' Schemes which provide benefits as a result of mental or physical problems, maternity leave or sickness, are not included.

The report continues: "Benefits should at least be afforded to qualifying participants who experience a loss of earnings due to inability to obtain suitable employment if they are capable of working, available for work and actually seeking work.'' But there could be a number of cases when benefits would be withdrawn such as if an employee had contributed to his/her dismissal, had left employment voluntarily or obtained benefits fraudulently.

The report added: "It is generally accepted that, except for the last two years or so, Bermuda has experienced relatively low unemployment levels over the last 20 to 30 years compared to most developed countries.

"In fact, during that period, the overall employment situation in Bermuda was one of over-employment rather than one of unemployment.'' The Hon. David Saul.