Dáil debates

Thursday, 12 November 2009

Priority Questions

Employment Support Services.

3:00 pm

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Question 5: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of notified redundancies made to date in 2009; her plans to expand the terms of reference of the work placement scheme to include companies that employ less than ten people; and if she will make a statement on the matter. [41201/09]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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To date in 2009, 67,207 redundancy claims have been lodged with my Department, a very significant increase on the levels of claims lodged in earlier years. My Department and its agencies are actively trying to stem this unwelcome increase in job losses through initiatives such as the employment subsidy scheme. Earlier this week we announced that 7,478 jobs in 453 enterprises are to receive direct support under the first round of the scheme. Companies have now committed, as part of their application to the scheme, to retaining 35,283 jobs. In addition, we announced that a second broader call for applications with extended eligibility criteria, open to both exporting and non-exporting firms, will be launched next week.

The Government has enacted several measures in response to the increasing number of redundancies. We have doubled the provision of training and work experience places managed by FÁS to more than 130,000. In addition, we have increased the national employment action plan referral capacity of FÁS employment services to 147,000 places, almost double the 2008 provision. We are determined and committed to keeping the unemployed as close to the labour market as possible during these challenging times.

That is why the Government introduced the work placement programme which is providing an initial 2,000 six-month work experience places to unemployed individuals, including graduates. We are open to taking on board some of Deputy Penrose's suggestions in this regard. The work experience participants receive under the scheme will provide portable and transferable skills in a range of areas and will increase their employability. There are currently 102 participants on the programme and a further 2,019 have registered their interest with FÁS employment services. FÁS is currently advertising 527 positions and will continue to promote the programme at local, regional and national levels.

In view of the level of interest expressed by several stakeholders in the programme, a review of eligibility criteria is currently being conducted. That review will conclude shortly and we expect it to make the work placement programme more accessible to both participants and providers.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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I welcome the announcement that there will be changes both to the employment subsidy scheme and the work placement scheme. It is interesting how a week of questions at committee meetings can bring about those types of changes. While there have been more than 2,000 graduate applications, there is a shortage of companies applying to participate in the graduate employment scheme. We have been debating labour activation schemes and related issues for a year and a half but of the two schemes put in place by the Government, one has been only moderately successful and the other is clearly a failure, with only a few hundred places on offer. What types of changes are envisaged in order to attract more companies? We had a useful discussion at Tuesday's meeting of the Joint Committee on Enterprise, Trade and Employment which was attended by officials from the Department and from Enterprise Ireland. There was general agreement that changes are required to allow a greater number of social welfare recipients to take up places on such schemes. I acknowledge that the Department has undertaken to introduce changes but am interested to know precisely what those changes comprise.

Is there any proposal to lift the cap of 2,000 on the number of positions available under the work placement programme? There would be no significant cost in such an expansion. Will the Minister of State indicate whether his Department is in negotiations with the Department of Social and Family Affairs with a view to changing the rules to allow persons currently drawing down social welfare benefits to work? A change was made in respect of volunteers and the same should be done to allow more people to participate in new community schemes.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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On the first question, there is a commitment in the revised programme for Government to keep the number of places under review. On the second point, we are engaged in discussions with the Department of Social and Family Affairs and the Cabinet sub-committee on economic renewal. This week FÁS commenced a promotional campaign for the work placement programmes across local newspapers and radio stations in order to encourage providers and potential participants to register their interest in the scheme.

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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The departmental officials indicated at this week's meeting of the Joint Committee on Enterprise, Trade and Employment that it may be open to public bodies to avail of work placement schemes. Are there openings for local authorities to start up new community employment schemes for people on social welfare? If not, will that proposal be given serious consideration? The schemes we are discussing cater for a few thousands but there are hundreds of thousands of people in need of support.

The requirement that persons must be unemployed for an unbroken period of six months is causing problems for potential applicants to the schemes. For example, a person who is out of the country for some weeks within a six-month period or who secures employment for several weeks will not be eligible. That makes no sense. A person's application should not be hindered if his or her six-month period of unemployment is broken up for one reason or another. I understand this is a matter for the Department of Social and Family Affairs but it has a knock-on effect for the schemes administered by the Department of Enterprise, Trade and Employment. Perhaps the Minister of State will convey that message to the Minister for Social and Family Affairs.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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We are considering all the issues the Deputy has raised but there are also issues relevant to this matter to be considered by the Department of Finance.