Bermuda Employers Council president Eddie Saints has called for the private sector to run the unemployment insurance scheme proposed by Government.

Earlier this month Government passed an Act setting aside $1 million seed money with details of the scheme to be worked out later.

Mr. Saints said he recognised the need for unemployment cover but he said similar policies were already being offered by insurers, including BF&M and Argus.

He said: "These firms have schemes which offer cover for short term and long term disablement.

"Why don't we look at this insurance programme not being a public drain and a publicly-funded system and instead look into the private sector?

"Let's leverage their capabilities to introduce a scheme that employees can consent to as they do with medical and dental and all other types of policies.

"You don't want to see Government set up another Department to manage when we have private firms already structured to do this."

He said if Government funded the programme it would lead to taxes being levied on the population.

Bermuda Industrial Union President Derrick Burgess said: "Why shouldn't it be run by Government? Why have it run by the private sector?" He said insurance companies were getting rid of clients with health policies once they turned 65.

Mr. Burgess said: "They got rid of some taxi drivers recently. They should deal with that situation first before they start talking about unemployment insurance."

Mr. Saints said unemployment cover should be offered on a short-term basis to supplement income until the jobless got back on their feet .

He is now researching how other countries handle the issue.

He said in some countries the schemes went on too long and people could earn more money "on the dole" than working for their keep.

Mr. Saints said: "We are concerned about that."

He said supplementing the earnings of hotel workers in the off-season had always been an issue and had led to the gratuities system being set up.

"We want to be assured that this is purely designed to provide a short term safety net for legitimate workers who are unemployed and who need to be supplemented until they start earning."