Written answers

Tuesday, 2 November 2010

Department of Social and Family Affairs

Employment Support Services

9:00 pm

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)
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Question 78: To ask the Minister for Social Protection if his Department has been contacted by the Department of Enterprise, Trade and Innovation to resolve the outstanding issues that exist regarding work placement and internship schemes; the way they impact on jobseeker's payments; the steps he will take to resolve these issues; and if he will make a statement on the matter. [39970/10]

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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The Government is currently examining ways of providing further support to graduate retention in the economy, with policy matters in this area being primarily the responsibility of the Minister for Education and Skills. The main existing employment support mechanism for graduates is the work placement programme administered by FÁS. A key element of the programme is that the customer retains their social welfare entitlement. This facility has also been extended to the IBEC gradlink programme. While on either programme a person must be genuinely seeking work and must take up an offer of paid employment if one arises. In this way participants may continue to satisfy the social welfare criteria of being available for and genuinely seeking work.

However, if a participant is paid a top-up by their employer this constitutes reckonable earnings from employment. On this basis they can no longer be considered unemployed. Additionally, in relation to those in receipt of a means tested social welfare payment, such income would fall to be assessed as means. The distinction between employed and unemployed is of crucial importance in the design and administration of any such scheme. Design of a scheme that permits retention of social welfare benefits while a person is in receipt of wages or non-pecuniary emoluments must take cognisance of substitution and replacement effects, while remaining attractive to both interns and hosts. On this basis careful control and demarcation is essential in schemes of this nature. Payments by employers also raise fundamental issues in relation to employment rights, taxation and social insurance. These matters are informing ongoing policy discussions in relation to internships.

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