Dáil debates

Tuesday, 10 June 2014

Ceisteanna - Questions - Priority Questions

National Internship Scheme Funding

3:55 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein) | Oireachtas source

The Minister is probably aware of the economist and researcher Michael Taft. He has outlined an example of a large company taking on 14 young JobBridge interns for six months instead of recruiting at the minimum wage, which the company should be encouraged to do. It might even be encouraged to take on staff under a JobsPlus mechanism. In the example, the loss to the Exchequer over the six months includes the €144 per week social welfare payment plus the €50 top-up and lost employer PRSI of €765, which is not included in the Minister's figure of €82 million. There is also the fact that the income tax that would have been paid had someone been employed directly is lost. In this example of 14 young interns, JobBridge is costing the Exchequer €81,000 while the company is receiving the equivalent of a subsidy worth €136,000.

Can the Minister confirm the full cost of the displacement in the workplace in terms of pay and conditions is included in the €82 million she mentioned rather than just the subsidy paid on top of the social welfare payment?

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