Joan Burton (Dublin West, Labour)

I thank Deputy Keaveney for raising this important matter. I heard about the redundancies in Rehab with great regret. However, I emphasise that they do not arise as a result of any reduction in funding by the Department of Social Protection. As Deputy Keaveney is aware, the Department of Social Protection has recently taken over full responsibility for the wage subsidy scheme since the former FÁS employment services division joined the Department of Social Protection with effect from 1 January last. The funding available to Rehab under the wage subsidy scheme from the Department of Social Protection has not been reduced in any way.

I emphasise that as a result of these redundancies the employment services unit of the Department of Social Protection will engage with the workers being made redundant to assist them to find alternative employment or appropriate training. I have been informed by the Department of Social Protection local team in Galway that in total, 19 posts have been made redundant. A total of 16 of these were supported through the wage subsidy scheme and local departmental offices are working with the wage subsidy scheme clients to provide them with ongoing support in what is, I realise, a most difficult time for the workers involved. I have been assured that the local office in Galway will work vigorously to ensure that as many of these individuals as possible are given the necessary further training, guidance and support that they may require.

I wish to give some context in respect of the wage subsidy scheme, which plays an important and valued role in supporting employers to provide job opportunities in the open labour market for people with disabilities. The objective of the scheme is to increase the numbers of persons with a disability in employment. The scheme provides payment of a wage subsidy to the employer to compensate for the reduced productivity of the disabled worker. The wage subsidies are designed to provide an incentive to employers to consider more closely the potential of disabled people to meet their labour force requirements. The wage subsidy scheme is applied to all commercially oriented enterprises in the State which provide employment to disabled workers. It does not include the voluntary sector.

The RehabRecycle group in Galway has 34 employees for whom it receives a strand 1 wage subsidy of €5.30 per hour, subject to a maximum of €10,748 per annum in respect of each employee. The company also receives the maximum 50% top-up subsidy under strand 2. Nationally, Rehab employs 192 people with disabilities, for whom it receives wage subsidy scheme funding. It is the only employer currently eligible to receive a strand 3 subsidy. This hourly subsidy rate of €5.30 per hour was originally index-linked to the minimum wage. However, the hourly rate was not altered when the minimum wage was last reduced. Subsequently, as Deputy Keaveney is aware, the minimum wage was reinstated.

Arrangements have been put in place by the Department of Social Protection in the event that an employee for whom a wage subsidy is payable can no longer continue in employment for any reason. If this arises, their income support payment will automatically be restored without the need to re-apply. I understand that SIPTU will meet the director of Rehab Enterprises on Friday to discuss the matter further. I hope these discussions will be positive.

I wish to restate that the Department of Social Protection will continue wage subsidy scheme funding to Rehab. I emphasise that the wage subsidy scheme continues to be available as an incentive for employers which provide jobs for people with disabilities. I look forward to hearing a report from the meeting on Friday. As Deputy Keaveney stated, Rehab is in receipt of considerable funding from various organs of the State in respect of its activities. I hope there is a positive outcome for the workers concerned.

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