Joan Burton (Dublin West, Labour) | Oireachtas source

I thank the Deputy. As I said, this is a type of wage subsidy. Many economists who believe in expansion and a Keynesian stimulus would agree with this, and both major parties in Germany agree with the use of wage subsidies. Whether positions are taken up depends to some degree on the calibre of the people who apply, because an employer is not going to make a hiring decision based only on the wage subsidy element.

Nevertheless, the scheme does offer a good cash-back incentive for employers. If they take on a person who has been on the register for one year or more, that subsidy will be €312 per month. Where the individual has been out of work for two years or more, the subsidy payable is more than €400 per month. Employers, for their part, must offer the employee at least 30 hours work per week and must abide by the minimum wage requirement and other aspects of labour relations law.

The two existing schemes were very well intentioned but did not have a very good take-up. If we succeed in getting, say, 2,500 people off the live register and into employment under the scheme, the cost will be more than €20 million. At the same time, however, we will save on social welfare payments, which are a minimum of €188 per week per individual. If we do the maths we see that everybody can be a winner, including the individual who has not been in work, the employer who receives a wage subsidy, and the Department of Social Protection. I will be much better thought of by the Minister for Finance as a consequence.

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