Phil Hogan (Carlow-Kilkenny, Fine Gael)

I must apologise for the fact that the Minister is not in a position to attend. I am here to reply on her behalf.

The Department of Social Protection has recently taken over full responsibility for the wage subsidy scheme as the previous FÁS employment services division joined the Department of Social Protection on 1 January 2012. This scheme plays a valued role in supporting employers to provide job opportunities in the open labour market for people with disabilities, and demonstrates the Department's commitment to increasing the employment of people with disabilities in a more mainstreamed work environment.

The wage subsidy scheme is available to employers who provide more than 21 hours of employment per week to disabled workers. The financial supports for employers are structured under three separate strands and companies could benefit under one or more of the stands simultaneously, as appropriate.

Strand 1 is a general subsidy paid to an employer in respect of a disabled person who has a productivity shortfall in excess of 20%, in comparison to an able-bodied peer. The rate of subsidy is €5.30 per hour and is based on the number of hours worked, giving a potential annual subsidy of €10,748 per annum based on a 39 hour week. Strand 2 is intended to cover additional supervisory, management and other work based costs that may arise when employing two or more eligible people with disabilities. Strand 2 is a percentage top-up of the wage subsidy and is based on the overall number of disabled employees employed under Strand 1. For example, three to six disabled employees get a 10% top-up of wage subsidy paid, seven to 11 employees get 20%, 12 to 16 get 30%, 17 to 22 get 40% and 23 employees and more get 50%.

Strand 3 is an additional grant for employers who employ 30 or more disabled workers with the support of the wage subsidy scheme. This element is a contribution towards the employment and expenses of an employment assistance officer, who is employed in a supportive role to assist the employees with a disability. The focus of the EAO's work concentrates on the personal, social, health or family circumstances of disabled workers which might inhibit them from remaining in employment. The grant for this strand is €30,000 per annum.

The Rehab recycling group in Galway has 34 employees for whom it receives a strand 1 wage subsidy of €5.30 per hour, subject to a maximum of €10,748 per annum in respect of each employee. The company also receives the maximum 50% top-up subsidy under strand 2. Nationally, the Rehab Group employs 192 people with disabilities, for whom it receives WSS funding. It is the only employer currently eligible to receive a strand 3 subsidy. This hourly subsidy rate of €5.30 per hour was originally index linked to the minimum wage. However, the hourly rate was not altered when the minimum wage was last reduced.

I would also like to stress that the wage subsidy scheme continues to be available as an incentive for employers who provide jobs for people with disabilities. I take on board what the Senator said in respect of redundancy and other issues, and I will ask the Minister for Social Protection to reply directly to her on that matter.