Government still plans to bring in unemployment insurance despite no mention of it in the recent Budget or last year’s Throne Speech.

The idea was first put on the table in 2002 by then Finance Minister Eugene Cox and two years later $1 million seed money was set aside for the scheme.

However, the plan then appeared to fall off the radar screen although current Finance Minister Paula Cox said early last year that legislation would be tabled in the House of Assembly by the end of 2006.

And now she has confirmed it is still on the way.

She told The Royal Gazette: “The idea of unemployment assistance has not been dropped.

“A small technical team comprised of officials from the Ministry of Finance and the Ministry of Social Rehabilitation is working on the details of a scheme that will suit Bermuda’s unique economic circumstances.”

Some business heads have said Bermuda’s nominal unemployment rate didn’t warrant the measure and could push up costs. However, the Bermuda Industrial Union leader Chris Furbert said short-term benefits were necessary to tide over seasonal workers, such as hotel staff, when they were laid off.

He said: “I think it’s a great thing, wonderful, and hopefully they can get it up and running sometime soon.

“When people are unemployed they need a decent wage to tide them over until they find gainful employment.”

He said even though Bermuda had full employment people could still find themselves temporarily jobless — such as when a hurricane hit a hotel.

“What’s the answer to that? It’s is only there when you need it.”

And he said if the benefit was not being used that much then contributions could be suspended once the fund had reached a certain level.

He said the benefit would need a time limits, to be worked out between unions, employers and Government, so people don’t draw on it indefinitely.

And those drawing the money should also prove they were actively seeking work said Mr. Furbert.

Bermuda Employers’ Council president William DeSilva declined to comment about the latest development until he has seen the details.