Dáil debates

Wednesday, 2 December 2009

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 41: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the recommendations of the special group on public service numbers and expenditure programme that the jobs initiative scheme should cease; and if she will make a statement on the matter. [44605/09]

Photo of Conor LenihanConor Lenihan (Dublin South West, Fianna Fail)
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The jobs initiative scheme was launched in July 1996 and continues to provide full-time employment for people who are 35 years of age or over, unemployed for 5 years or more and in receipt of social welfare payments over that period. The main purpose of the programme is to assist long-term unemployed people to prepare for work opportunities by providing participants with work experience, training and development opportunities. The programme is sponsored by voluntary organisations and public bodies involved in not for profit activities.

Following changes introduced by the then Minister for Enterprise, Trade and Employment, Deputy Martin, on 10 November 2004, no new entrants have been admitted on to the job initiative schemes. However, contracts for existing participants are renewed allowing them the option to continue until they are 65 years of age. Where persons leave the job initiative scheme, that place can be allocated as a community employment place. The full range of FÁS services are made available to participants who leave voluntarily.

The 2009 budget for the job initiative is €39 million and there are currently 1,444 participants, with this number decreasing annually due to retirement and other reasons. The Government will continue to support the positive role of FÁS employment schemes in meeting the needs of long-term unemployed persons while at the same time providing essential services to communities. The operation of this scheme is being kept under constant review in the context of current difficult unemployment.

The jobs initiatives scheme forms part of the Government's response to unemployment. Other initiatives include a doubling of the provision of training and work experience places managed by FÁS to more than 130,000 places, an increase in the referral capacity of FÁS employment services from the Department of Social and Family Affairs to 147,000 persons in 2009 and the establishment of the employment subsidy scheme to directly or indirectly protect approximately 80,000 jobs at a total cost of €135 million over 2009 and 2010.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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I compliment the Minister of State on his reply, in particular the skilful way in which he avoided answering the question. He would have made an excellent barrister. The Minister of State knows that the McCarthy report indicated the jobs initiative scheme should be closed as soon as possible, something with which we do not agree, and that €10 million would be saved by off-setting the cost of accommodating the existing 1,400 participants on alternative schemes, compared to a gross saving of some €30 million.

Does the Minister of State have a view on that? If so, what is his position? In a time where there is significant unemployment and solutions, which are well thought out and would contribute to tackling the scourge of unemployment, are ten a penny from the Opposition, why has the jobs initiatives scheme remained closed? It was closed on 10 November 2004 by the Minister, Deputy Martin. Why is such a blinkered approach being taken to a scheme which offers people opportunities? It is a static scheme and there is plenty of room for development.

Photo of Conor LenihanConor Lenihan (Dublin South West, Fianna Fail)
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I remind the Deputy that I am not a barrister, and I am the only member of my family who is not. I have always prided myself on saying that I am the most honest member of the family. We will leave that matter for another day.

We do not intend to finish the jobs initiative scheme. Capped numbers are involved and people are allowed to participate until the age of 65. The Tánaiste referred to the valuable work being done by the committee on economic renewal, of which I am proud to be a part. It is generally recognised by Ministers and Deputies that many of the people who participate in these schemes are doing very valuable work for the communities in which they work.

There is no intention on the part of the Taoiseach, the Tánaiste or the Government to disturb that reality. However, we need to examine other training schemes to get a higher throughput of people because new people are coming forward.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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The McCarthy report has been kicked to touch.

Photo of Conor LenihanConor Lenihan (Dublin South West, Fianna Fail)
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I want to be very clear that we are not of the same mind as the McCarthy report, with regard to the savings it predicted could be made from closing the scheme.

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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The Tánaiste knew what she was saying six weeks ago.