Written answers

Wednesday, 2 December 2009

Department of Enterprise, Trade and Employment

Departmental Programmes

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)
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Question 45: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the number of participants in the short time training scheme; if she has given consideration to adopting an enterprise-led Government supported short time working programme similar to that in Germany; and if she will make a statement on the matter. [44516/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I established a short-time working training programme after the April 2009 Budget, which is training people who are on systematic short time for the days they are not working. The training lasts for a year and individuals retain their social welfare entitlements while on the programme.

The number of people currently participating on this Programme is 156. I understand from FÁS that they are in the process of filling the remaining places up to a total of 277.

My Department has examined the German approach to Short time working measures. In Germany these measures allow companies to temporarily reduce or suspend activity and prevents individuals from being made redundant by their employers during difficult trading periods.

Under the German schemes employers can in the case of a temporary, unavoidable loss of employment due to economic factors, apply to the State for a subsidy. Under the scheme the State pays 67% of the lost wages for workers with dependent children and 60% for those without. These measures will cost the German Exchequer approximately €2.1 billion this year.

In examining the German scheme, it should be noted that Irish employees on short time working are entitled to claim Job Seekers Benefit or Allowance for the days they are not working.

The Government also recognised the need to implement a scheme aimed at supporting vulnerable but viable enterprises and importantly retain jobs in these difficult economic times. We therefore earlier this year launched the Employment Subsidy Scheme. The scheme provides a subsidy of €9,100 over 15 months to qualifying enterprises in order to retain a number of employers.

The Government recently announced that there will be a second broader call for applications with extended eligibility criteria, which will be open to all firms (except those in the agriculture and fisheries sectors) who employ a minimum of 10 employees and are facing financial difficulty. Enterprise Ireland will continue to manage the scheme.

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