Written answers

Wednesday, 2 December 2009

Department of Enterprise, Trade and Employment

Employment Support Services

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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Question 69: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps, in view of the continuing level of unemployment indicated by the live register figures, she will take to address the continuing employment crisis; her plans to provide new training opportunities for those who have lost their jobs and to encourage the creation of new employment opportunities; and if she will make a statement on the matter. [44599/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The Central Statistic Office released this morning the Live Register figures for November. According to the Live Register there were 413,500 people claiming unemployment benefits at the end of October 2009. This is 1,100 (0.3%) higher than October 2009. The Live Register is 146,300 (55%) higher than this time last year. Positively, the year-on-year increase for November is continuing to decline from its peak of 197,800 and furthermore the Seasonally Adjusted figure for November is 423,300, which is a monthly increase of 800 from October.

A key priority for the Government is to support those most vulnerable to detachment from the labour market through the adoption of active labour market policies. In order for the Government's labour market policies to be effective, it requires a sustained, co-ordinated, integrated approach to jobsearch, training, education and work placement supports.

This is why I have doubled the provision of training and work experience places managed by FÁS to over 130,000 and I have increased the referral capacity of FÁS Employment Services from the Department of Social and Family Affairs to 147,00 persons in 2009. I have also introduced a number of labour market activation policies that will provide support to those who need it most.

The Work Placement Programme is aimed at providing 2000 six-month work experience placements for young people, graduates and other unemployed persons, who have finished college or have limited experience of the workplace. There are 1,000 places ring fenced for unemployed graduates who before this year have attained a full award at level 7 or above on the National Framework of Qualifications and who have been unemployed for the last three months. To date, 122 participants have been placed and have started on the programme, 87 graduates and 35 non-graduates. Participants on the programme retain their existing social welfare entitlements for the duration of their placement.

FÁS are also managing the short-time working training programme, which provides training to people on systematic short time for the days they are not working. The training will last for a year and individuals will retain their social welfare entitlements while on the programme.

An additional 400 places have been provided in the Community Employment Scheme bringing the total number of places to 22,700 this year. My Department and the Department of Education and Science are jointly funding the provision of 1,500 part time third level places at undergraduate level for the unemployed. The Department of Education and Science are also funding 1,000 part time places at postgraduate level. Individuals participating in either programme will retain their social welfare entitlements.

The Government has also introduced specific initiatives, which will enable approximately 4,000 redundant apprentices to progress their apprenticeships or receive training.

The Government is taking specific measures to ensure that job retention and creation is optimised to its full potential. Enterprise Ireland have prepared a new recovery strategy to identify the actions that are being undertaken to help clients in 2009. This strategy refocuses Enterprise Ireland's efforts in facilitating entrepreneurship and the enterprise environment in national, local and rural communities, developing existing clients in all regions and thereby protecting existing jobs. Enterprise Ireland are also committed in driving the creation of innovation-based start-ups.

The Employment Subsidy Scheme has been introduced to support the maintenance of vulnerable jobs and prevent people from being made redundant in this challenging national and global economic environment. Given the low level of interest in the original Employment Subsidy, I have decided to have a Second broader Call for applications with extended eligibility criteria open to both exporting and non-exporting firms. The Second Call will be open to many companies that were not eligible to apply for the First Call. Enterprise Ireland will again manage the Scheme.

The Enterprise Stabilisation Fund was launched earlier this year. The Fund is an initiative aimed to support viable but vulnerable exporting companies who are experiencing difficulties because of the current economic climate. Client companies of Enterprise Ireland, IDA, Udaras Na Gaeltachta and Shannon Development across all sectors within manufacturing and internationally traded services are eligible to apply.

To support the development of high potential start up companies, Enterprise Ireland offers the "Innovative HPSU offer" where Enterprise Ireland provides a financial contribution towards the Company's business plan to develop products, services or processes which are technologically new or substantially improved. Enterprise Ireland also supports start-ups with high potential to scale up, meaning that in the future as the business grows there are likely to be significant gains in employment.

On a daily basis, IDA is working with its client companies making every effort to keep those clients operating in Ireland while minimising the job losses encountered. Despite the economic downturn, Ireland continues to be an attractive location for FDI. To date in 2009 there have been 47 IDA announcements with a combined investment of €622.5m and the potential to create 2,560 jobs.

In addition, during 2009 the County and City Enterprise Boards have reported a significant increase in the number of informal queries from members of the public in relation to setting up their own businesses over the last few months with many Boards providing additional Start Your Business Courses and increased levels of mentoring for owner managers who are experiencing trading difficulties in order to meet the demand out there. The overall priority for Capital expenditure by the Boards is on the development of sustainable growth-orientated micro-enterprises, which, over time, can develop into strong export entities.

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