Brian Cowen (Laois-Offaly, Fianna Fail)

This proposal was formally put by the Government in the past week to ICTU and IBEC on foot of progress in discussions that are ongoing. There is agreement in principle and there will be a formal signing off when they come back to us in due course. I expect the steering committee on social partnership to meet in the next few weeks — certainly before the break — and we will then be in a position to proceed with the implementation of the scheme by early September.

The Deputy asked whether the allocation being made was the full amount or an annual amount. This is the initial allocation that is being made based on the national monitoring committee that will sit to assess the scheme. We are prepared to ensure that the scheme works in the best possible way in terms of effectiveness, achieving the broadest possible application and avoiding displacement effects. It will be based on applications by companies for support. There are other initiatives that we also need to consider with regard to short-term working and helping employees individually. There is an ongoing discussion among the Department of Social and Family Affairs, the Department of Enterprise, Trade and Employment and the social partners with the aim of devising a scheme that will be helpful in this regard and that will be available to all, although there are complications in respect of those who work weekends, six-day weeks and so on. It is a technical exercise.

I am conscious of the fact that ICTU, in its submission on the issue of support for economic recovery, gave priority to job retention, jobs initiatives and the building of a scheme with a billion-euro response. It is not about the figure itself, but it is an indication of the priority the Government gives to this area. This is something upon which we are all agreed. As I have indicated, there will not be any problem on our part with regard to its application. The resources used for passive income support under the social welfare scheme will be used for job retention in an active labour market. That makes sense for everybody, including taxpayers. I am anxious to communicate the Government's willingness to continue to provide for the scheme on the basis of its effectiveness and take-up. We will work on that.

If we look at the scheme in terms of how many jobs it will retain, we are talking about tens of thousands — beyond 30,000 — even with an allocation of €200 million or €250 million. However, this is in addition to other labour market responses announced in the supplementary budget, as Deputies know, and we are prepared to consider other measures in an effort to ensure that we maximise effective responses. When we experienced increases in unemployment during past recessions, active labour market policies evolved and were modified based on experience. The inclusion of representatives of the social partners in the national monitoring committee ensures continuous participation by the social partners, including ICTU.

The Deputy asked to whom would one apply to participate in the scheme. It is intended that the scheme will be run by Enterprise Ireland and the county enterprise boards. As to when it will start, I expect the steering committee on social partnership to meet in mid-July and, as Deputies know, ICTU will have its annual conference this coming week. A meeting will take place thereafter in which we can finalise the details and prepare the scheme for its introduction.

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