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HOME	JANUARY 15th, 2005

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The state-run National Insurance Scheme (NIS) has given assurances that its recently launched Unemployment Assistance Benefit (UAB) programme will have no significant impact on the long-term sustainability of the finances of the scheme.

This was disclosed Monday by one of the Directors, Ashton Frame at a press conference held at the NIS Board Room on Melville Street in St. George's.

The $EC10 million programme will last 39 weeks and is geared towards providing income support to persons who lost their jobs as a direct result of the passage of hurricane Ivan on September 7.

In October last year, the NIS in collaboration with the Central Statistical Office (CSO) and the Ministry of Labour spearheaded an initiative to conduct an unemployment survey to determine the scale of the problem as a result of the hurricane.

A total of twenty-one (21) persons comprising 16 NIS staffers as well as 5 from CSO conducted the surveys by visiting employers all over the country including Carriacou and Petit Martinique.

The results showed that at least 4000 persons from all sectors such as tourism and hospitality, telecommunications, manufacturing and retail trade were affected with their jobs because of Ivan. According to Frame, the NIS came up with the idea for UAB after consulting with actuary Derek Osborne from the Bahamas.

Before any funds are to be paid out to unemployed persons, the Scheme will have to determine the impact the programme will have on the long-term sustainability of the NIS Fund.

Section 42 of the NIS Laws gives the Board the authority to introduce regulations for new benefits provided that there is prior written recommendation from an actuary.

Noting that Grenada was dealt a hard blow to its infrastructure, economy, as well as financial and social structures with the passage of the hurricane, Frame pointed out that quite a number of businesses were forced to close as a result of the severe damages suffered to property.

"As can be imagined, many sectors of the economy have been hard hit especially tourism and hospitality and also the telecommunications sectors as well as manufacturing and retail trade", he said. He added that the end result is that many have either lost their jobs permanently or temporarily.

Frame stressed that the UAB regulations are now a reality having been gazetted in December last year and that the monies will be paid out for a period of 6 months retroactive September 8.

He said that in order to qualify persons had to be working on September 6, and became unemployed as a result of the passage of the hurricane, and should have at least one NIS contribution made on their behalf prior to September 7.

Statistics, Research and Planning Manager at the NIS, Dorset Cromwell who spoke at the launch said he believes the possibility exists that there could be more than the 4000 persons in the long run qualifying for benefits under the new programme.He appealed to displaced employees to be honest and truthful in making out their claims to NIS.

President of the Grenada Trades Union Council (TUC) Derek Allard, who is also a member of the NIS governing Board welcomed the idea by the scheme to introduce an unemployment assistance programme for workers.

Allard said it is very commendable and that this should be the true purpose of any social security scheme in that they should provide assistance for persons in situations like what currently exists. Under the Programme, workers who became unemployed after Ivan but have since returned to work will also qualify for benefits for the period during which they were out of a job.

The NIS said consideration will also be given to employers who after Ivan attempted to resume business but eventually had to close or cease operations due to circumstances directly related to Ivan and whose employees have been unemployed.

According to NIS officials, the rates of unemployment assistance include 50% of the Average Insurable Earnings for the first 8 weeks, 45% for the next 8 weeks and 40% for the last 10 weeks. The NIS Board indicated that anyone receiving unemployment assistance to which he is not entitled will be liable to repay the funds received.