Dáil debates

Wednesday, 30 January 2013

Topical Issue Debate

Labour Activation Projects

11:45 am

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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I thank the Ceann Comhairle for selecting this matter for discussion. The Momentum programme introduced by the Minister for Social Protection in December is an excellent initiative providing 6,500 free education and training places for jobseekers. The focus is on creating jobs and getting jobseekers back to work. There are more than 84,000 people taking part in a range of labour activation projects. The JobBridge scheme has delivered positive results, with over 50% of finishers securing paid employment.

I was delighted that a company based in my constituency secured the contract to deliver a software development programme and cloud computing training programme. Future People, based in Cashel, is an excellent example of a company that is retraining people. However, several of my constituents who are interested in the programme have contacted me raising concerns about the eligibility criteria. I appreciate that the programme is prioritising the long-term unemployed, but there are people who are determined and anxious to get involved in these schemes and get back to work who are excluded. There are young married women at home who probably have mortgages but, because they are not receiving social welfare payments, they are finding times extremely hard. They would like to retrain and get involved in the job market but cannot because of the eligibility criteria that require them to be on jobseeker's allowance. They are one example of the type of person who cannot join these programmes. There are wives and partners who have been working but are not allowed join the programme. People who ran businesses cannot join because the loose ends of their businesses may not have been tidied up. They are under extreme pressure and want to work. They are people who have worked all their lives but unfortunately, due to the recession, they cannot. We are living in extremely difficult times and these people are under huge pressure. I ask that for a short period such people be allowed to join these programmes. They are wonderful programmes and great thought went into them. I compliment the Minister and her Department on coming up with this project and on the thought that people from FÁS and the Department put into bringing it together, but I want to know whether we can do something about the eligibility criteria.

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I thank Deputy Hayes for raising this issue. He has made many interesting points about the eligibility of self-employed persons to participate in certain schemes and I will certainly bring his views to the attention of my colleague, the Minister for Social Protection, Deputy Joan Burton. I will initially read the script provided by her Department to set the matter in context.


In the programme for Government an undertaking was given to introduce a more focused approach to how the State engages with and supports the unemployed in getting back into the workplace. Pathways to Work, the Government's policy statement on labour market activation, sets out how the Government intends to do this and is a key element of the Government's strategy to get Ireland working again. Pathways to Work has five strands: more regular and ongoing engagement with people who are unemployed, greater targeting of activation places and opportunities, incentivising the take-up of opportunities, incentivising employers to provide more jobs for people who are unemployed, and reforming institutions to deliver better services to people who are unemployed. The implementation of these five strands will ensure that people who are unemployed will be given the opportunity to acquire suitable skills and qualifications. The second strand commits to a greater targeting of activation places and opportunities. Given the limited public resources, it is essential that activation measures are targeted. The long-term unemployed in particular must be a focus for interventions. The Momentum initiative provides free education and training projects for up to 6,500 long-term unemployed people. The programmes will include on-the-job training in the form of work experience modules as well as the development of workplace skills required to obtain and retain employment. The initiative is administered by FÁS and funded by the Department of Education and Skills through the national training fund, NTF, and co-financed by the European Social Fund, ESF.


In line with the commitments made in Pathways to Work, eligibility for the Momentum initiative is targeted towards the long-term unemployed. In particular, applicants must meet the following criteria: they must been unemployed and on the live register for 12 months, 312 days, or longer; they must be in receipt of jobseeker's allowance or benefit from the Department of Social Protection or have credited contributions for 12 months or longer; and they must be actively seeking work. A person who was unemployed for 12 of the previous 18 months may be considered eligible for the initiative; therefore, a person who was engaged in temporary self-employment but was otherwise on the live register for 12 months during that 18-month period may qualify. A person who was previously self-employed may apply for a means-tested jobseeker's allowance payment if he or she does not qualify for a jobseeker's benefit payment.


Access to Momentum courses is strictly through referral from the Department. Case officers must determine suitability and agree the most suitable course for a person to progress on the pathway to employment. The Momentum initiative represents only a small percentage of the 450,000 State-funded places provided in 2012 in further education, higher education and training: 75,000 FÁS training places in 2012; 180,000 further education places; 162,000 full-time higher education places through universities and institutes of technology across the country; more than 40,000 training places through Skillnets, including 8,000 for the unemployed in partnership with private employers; and more than 6,000 free part-time higher education places in 2012 under Springboard, with additional places to be announced this year. Eligibility for many of these interventions is not contingent on the receipt of a social welfare payment or on signing for credit contributions. In line with the commitments in Pathways to Work, the long-term unemployed associated with the live register are a particular focus of this initiative.

Photo of Tom HayesTom Hayes (Tipperary South, Fine Gael)
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I thank the Minister for the information he has provided, which is quite helpful. There are many people who, if they were retrained, could set up their own companies. They have a background in working, having been self-employed, but are going through a difficult period. If the rules could be changed a little to allow some of them from each area to join these schemes on a trial basis it would make a great impact. I thank the Minister for saying that he will talk to the Minister for Social Protection about this.

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I have a note which might help the Deputy. Self-employed workers are liable for PRSI at the Class S rate of 4%. Class S contributions provide cover for long-term benefits such as the State pension, contributory pension and widow's or widower's pension. In certain cases a self-employed person who had insurable employment in the relevant year, currently 2008, and has paid sufficient class A contributions may qualify for a jobseeker's benefit payment provided all the contributions of the scheme are satisfied. A self-employed person who has paid insufficient class A contributions may instead qualify for jobseeker's allowance. This is a means-tested payment, and in assessing a person's means for the purpose of this allowance, account is taken of all income. The Minister is saying that if one examines the particulars of individual cases one may find the people concerned are entitled to all or some of a benefit or allowance and would as a consequence be eligible for some of the schemes. I understand the Deputy's general point that it is difficult for people who have been self-employed, whose companies have become insolvent and who are now unemployed to access the schemes. I will draw the Minister's attention to the points he makes and ask her to take his views into account if she is reassessing the criteria for eligibility.