Brian Hayes (Fine Gael)

I move amendment No. 1:

In page 4, before section 3, to insert the following new section:

"3.–The Minister shall, as soon as may be, after the passing of this Act prepare and lay before both Houses of the Oireachtas a report on the adverse financial effect to lone parents in returning to the workforce under the Fás Jobs Initiative Programme and to report on the number of lone parents who have seen a reduction in their weekly income as a result of recent wage increases under the Programme.".

Amendments Nos. 1 and 2 relate to the same issue which was also debated in the other House on Committee Stage. It has to do with lone parents. The relatively small increases in payment given to those participating in FÁS schemes such as the community employment scheme and jobs initiative programme have led to a dramatic reduction in the number of lone parents participating. I recently attended a meeting in my constituency where many lone parents spoke to me about this issue. They said it was not worth their while participating in schemes because they had lost so much in their total payment. This anomaly must be corrected. The Minister said in the other House that she was prepared to examine the issue by way of FIS, family income supplement. I have tabled these amendments to see how the situation can be ameliorated. I am sure the Minister will agree with me that these are very good schemes which help many women return to the workforce. If a financial disincentive is created, people will not be inclined to take up these jobs.

The second amendment deals with a particular problem. Up to now a person working under the jobs initiative scheme did not pay any PRSI. The recent €10 increase under the scheme means that the PRSI ceiling has been breached for the first time for those in this category. They are now paying PRSI for the first time. The matter has been brought to my attention by three separate groups in my constituency. In the past there were incremental increases in the PRSI ceiling, so why is there no increase this year? People on JI schemes will now pay PRSI for the first time. It was never the intention that this should happen. These people will find themselves in the PRSI net, which is another disincentive for those trying to get back to work. I am interested in hearing the Minister's views on amendments Nos. 1 and2.