Séamus Brennan (Dublin South, Fianna Fail)

The National Economic and Social Forum, NESF, report covers the full breadth of issues involved in creating a more inclusive labour market. The recommendations underlying the report extend beyond the social welfare system, to include local partnership-based strategies, labour market and social inclusion measures and structures, make-work-pay policies, the national employment services, workplace strategies and progression of low-skilled workers.

The Government noted the contents of the report and agreed that it would be considered by all relevant Departments and agencies. It will also be considered by the senior officials group on social inclusion, chaired by the Department of the Taoiseach, in the context of wider labour market issues and process under way. The specific implications of the report for the Department of Social and Family Affairs will be assessed as part of the process.

The report notes that more than €1 billion of State funding is spent annually on measures aimed at helping people into work and tackling problems associated with labour market vulnerability. This encompasses the work of several Departments, including the Departments of Enterprise, Trade and Employment and Education and Science. To improve ways in which this spending addresses its objective, the report recommends that a national strategic framework should be developed to provide better opportunities for vulnerable people to get into and stay at work. This would ensure coherence and integration in a co-ordinated response to improve access to employment, training and education and to finding better quality jobs on the labour market. A more integrated strategic framework would provide better opportunities for vulnerable people to access and remain in employment and facilitate an increased participation in employment for vulnerable groups.

Such a framework could make a significant contribution toward this end as it would build upon a considerable degree of co-operation and co-ordination between Departments and agencies in the administration of the various programmes. An example of this is the roll-out of the national employment action plan, NEAP, between the Department of Social and Family Affairs and FÁS, in which people on the live register are referred to FÁS and find a progression path such as training, education or employment most suited to their individual circumstances.

There is always room for improvement and scope for increasing the value and coherence of expenditure by improving the policies, institutions and measures in place. Given the rapidly growing demand for labour in our economy, a strong business case exists for an inclusive labour market approach, as this leads to a more productive, higher skilled work force. Through the NEAP and a range of other supports, the Department of Social and Family Affairs has already made considerable progress in this regard.

Additional information not given on the floor of the House.

The report makes several specific recommendations with regard to the future direction and administration of social welfare employment supports and the family income supplement scheme. The Department of Social and Family Affairs is considering these as part of the overall Government response to the report but also bearing in mind the context of expected work in this area by the National Economic and Social Council.

In this context, several issues highlighted in the report are already being addressed, including the removal of disincentives to taking up employment or to participating in training courses and to assisting in the transition from welfare to work. These measures include the introduction of special means disregards and tapered withdrawal of benefits as earnings increase, and the provision of employment support schemes such as the back to work programme.

The specific recommendations in the report and others which come within the responsibility of the Department of Social and Family Affairs will be considered, as agreed by Government, in providing incentives for job seekers and other disadvantaged people to become financially independent.

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