Mary Coughlan (Donegal South West, Fianna Fail)

There have been protracted discussions on the jobs initiative scheme. I am aware there were several public meetings, particularly in the Senator's constituency, because of the impact the scheme has had. This was to have been a one-year scheme which would lead to employment. As a consequence, it was seen as a pathway through which people could obtain work.

The issue of income thresholds is an aspect of social policy. The current threshold is €298.40 per week. Lone parents, in particular, have been able to retain their full benefit plus their jobs initiative funding, but a difficulty is created if they progress beyond the threshold.

I have debated the scheme on many occasions with colleagues in both Houses. There were newspaper headlines to the effect that people would lose €60 per week, which is not the case. It is a tiered system whereby people on the scheme would move down through the levels to 50% of their benefit, as well as retaining their jobs initiative funding. The family income supplement would then bring them up to a more reasonable level. In other words, the losses referred to would not occur. Changing one aspect in the Department would have huge consequences for other schemes.

The disregard aspect could create an equity problem because people on other schemes do not have such a high disregard. The emphasis at the time was on encouraging lone parents, in particular, to go back to work and education, which is why the disregard was provided. Once the tier clicked in on the one-parent family allowance, it would automatically bring up the FIS. There would, therefore, still be the equity aspect. If one lost out on the lone parent allowance, one would be compensated through the family income supplement.

I had to decide whether to increase the disregard. However, on considering the consequences on other schemes, it did not appear the correct thing to do. My officials and I have had numerous discussions with FÁS. I would like to progress further the impact of other Departments and agencies on social welfare benefits, in particular. Even though we were providing an increase in the jobs initiative scheme, it had a negative effect on people who are dependent on my Department.

This provision does not satisfy everyone. As a result of our discussions, FÁS will be talking to the partnership groups – including the Tallaght partnership group. I have written to these groups and to my colleagues in the Dáil – I can also write to Members of this House – indicating how matters will be organised. It is not a perfect solution. Some people may lose between €5 and €10. They will retain the rent supplement, including scheme funding, medical cards or any other secondary benefits to which they are entitled. Family income supplement is not taken into consideration for many other secondary benefits. It is the best way to address this specific issue.