An unemployment insurance fund will increase the cost of doing business in Bermuda, but it is the socially responsible thing to do, says Chamber of Commerce president Charles Gosling.

“I would say the main reaction is ‘here we come with yet another contributory cost and another way of increasing the expense of doing business in Bermuda',” Mr. Gosling told The Royal Gazette. Most businesses are taking a wait-and-see attitude.

Finance Minister Eugene Cox announced the new scheme in his Budget Statement last Friday. $1 million has been allocated as seed money for the fund but the Minister wants to consult with labour unions and employers representatives to work out the details.

At a breakfast meeting with the Chamber of Commerce last week, Mr. Cox said he hoped to have the fund in place in six months.

“I would like to see a method where an employee who gets thrown out of work does get insurance benefits - it's the socially responsible thing to do - but to do it in a way which is not too costly to the employer.”

Mr. Gosling said he is hoping that “good” employers, who keep their employees, can benefit from the scheme too, by getting their contributions back.

Power utility Belco says it needs more information - a position shared by almost all businesses contacted by The Royal Gazette.