They claim that their policies would give rise to "a climate in which enterprise can flourish". What this means can be seen from the lessons of what has happened elsewhere. Nobody should be fooled — looking after number one means an abdication of responsibility for the unemployed.
The development of special intervention measures can be justified both on grounds of equity and because they make better use of economic resources. The implementation of the social employment scheme over the last 12 months has shown how it is possible to break the vicious circle in which the long term unemployed get trapped at the bottom of the jobs queue simply because they are long term unemployed.
The social employment scheme has made a marked contribution to growth in employment in the over 25 age group. There has been a slowing down in the increase in unemployment among older workers over the past 12 months. At present 9,500 persons are employed on more than 2,200 projects. We will attain our target of 10,000 persons on the scheme by the middle of the year, in fact, by the end of June.
Approximately a third of the projects now in operation are sponsored by voluntary organisations. These organisations cover a wide variety of activities from community welfare work, sport groups to arts and theatre projects of various kinds. The remaining 70 per cent of projects are sponsored by public sector bodies. These include local authorities, schools and health boards. I would like to acknowledge the debt which we owe to all the sponsors who are helping us help unemployed people. The high standard of the projects is impressive and the scheme has already been credited in many communities with counteracting many of the adverse effects associated with long term unemployment.
Concern had been expressed in some quarters about the possible non-availability of prospective participants for certain projects. I recently secured Government approval for a number of changes in the eligibility criteria with a view to increasing the number of potential beneficiaries. These changes ensure:
(1) that all over 25s on unemployment assistance can participate; previously a 12 month period on the live register was also required;
(2) that people over 25 on unemployment benefit for at least 12 months can participate; previously the scheme applied only to those on unemployment assistance; and
(3) that an extra £15 a week will be provided for those who had previously been receiving an allowance for an adult dependant as part of the social welfare payment.
The relaxation of the eligibility criteria should increase the participation of married women, whose difficulties in qualifying for the scheme delayed the implementation of some projects. The payment of the new allowance will ensure that participation in the scheme is financially attractive to the married person with up to three child dependants and will ensure that more people can take part.
I have already indicated that my intention is to ensure that information on model projects is widely disseminated. This should enable worthwhile projects to be developed on a flexible and sensitive basis and avoid an uneven response in different areas of the country.
Unfortunately, the full potential of the scheme has not as yet been tapped. The sponsorship role for local authorities should ensure that the scope for intervention to meet the needs of the long term unemployed is not dependent on the expectation of a spontaneous response from voluntary bodies at local level. Outside of the Dublin area, local authorities now have over 5,000 people working on the scheme. Urban unemployment is most keenly felt and Dublin has the highest concentration of the older long term unemployed workers. The social employment scheme is working in local authorities all over the country. It can work in Dublin. I again appeal to all concerned not to delay its implementation further. We owe it to the unemployed to make it work.
With regard to the general unemployment situation the most recent live register figure for the numbers unemployed is 232,256 people. This figure is unacceptably high. It is attributable to the major upheaval being experienced in international markets, redundancies arising from increased automation and the increase in the Irish labour force.
Let me turn to investment in training. The State's role in manpower training is one of the prime targets of the advocates of "free market" doctrines. What they seem to disregard is that investment in the skills and knowledge of our people is no less important than investment in new industrial processes. The State's involvement in the provision of training arises from one simple fact: left to their own devices employers would not supply sufficient quality or quantity of training to meet either their own requirements or those of the economy generally.
Continuing high levels of unemployment presents a particular challenge to AnCO. The building on experience programme has been specially tailored to the needs of the adult long term unemployed. Its combination of formal training and practical experience in a work environment enables participants to reassess their career potential and employment opportunities. The programme is now fully operational in most of AnCO's training centres and external training agencies. It is expected that 3,000 will participate in 1986, and the placement rate to date has been 57 per cent.
I regret that the level of training for the over 25s will fall below the 1985 level. This is primarily due to the revised guidelines for the European Social Fund which removed support for the over 25s who are less than one year unemployed. Nevertheless, I have, with the Government's agreement, directed AnCO to carry out £1 million of enterprise training for those over 25 who have been unemployed for less than one year without matching ESF contributions. I am examining the position of such training in the future.
The overall strategy of the AnCO enterprise training programme is supportive of small business with its emphasis on identifying, encouraging and training potential entrepreneurs. Trainees are assisted to develop prototypes, test product ideas, marketing potential and similar activities. Research and development on open learning systems for entrepreneurs are being intensified. Up to 3,500 will avail of enterprise training in 1986. Enterprise training programmes result in a high rate of job creation, particularly through multiplier effects.
The technical assistance grants scheme is being reviewed by my Department and the Department of Finance in order to ensure that its increased Exchequer allocation is utilised in the most effective manner. The technical assistance grants scheme was one of the first casualties of the new guideline for the European Social Fund. The review is nearly complete and will help to ensure that grants available under the scheme will be devoted to priority areas. AnCO, working in conjunction with the Youth Employment Agency, continued the expansion of community training workshops in 1985. There are now 75 workshops countrywide including 24 specially designed for young travellers. The priority status of youth training has ensured that activity levels in 1986 will be maintained at the 1985 level.
During the year, AnCO participated actively in the development of the social guarantee for young people and introduced the skills foundation programme as their special contribution to the transition from school to work of those leaving school at the end of junior cycle. Over 2,000 early school-leavers will be accommodated on the programme in 1986.
I would also like to refer to two other youth programmes for which AnCO is responsible. First, AnCO will introduce this year a programme of structured training linked with employment to aid young people in jobs which offer little or no training or career prospects. The youth traineeship initiative is being introduced on a pilot basis. Second, I would also like to refer to the work carried out by AnCO apprentices on St. Anthony's Franciscan Monastry in Louvain. Ireland can feel justly proud of the renovation that has been carried out to this old building, parts of which date back to the early 1600s.
CERT Limited will continue to provide training opportunities for young people wishing to enter the hotel and catering industry and an in-company training and advisory service to the industry itself.
In 1986, over 1,400 young people will pursue craft training under CERT programmes in designated colleges throughout the country. In addition, over 600 young persons will be given short 13 week basic skills training courses facilitating their entry into the industry. CERT have also established a training centre which will operate for two years in the inner city of Dublin.
In 1985, CERT achieved a placement rate of 100 per cent for trainees completing craft courses while 84 per cent of those completing the short courses were placed in employment immediately on completion. There is every reason to believe that this type of placement rate will continue to be achieved in 1986.
Local community based responses have an important role to play in alleviating unemployment and contributing to job creation. There is a growing realisation of the importance of local communities and their potential for stimulating viable self-sustaining employment to supplement mainstream job creation measures.
During 1986, the Youth Employment Agency will be focussing greater attention on the area of job creation, particularly community enterprise. The community enterprise programme is being developed as the agency's main job creation programme and efforts will be made to improve the quality of training and advice available to the young self-employed, co-operative and community business ventures.
Issues of quality and survival are critical to the ultimate success of job creation programmes including the youth self employment programme, the community enterprise programme and also the enterprise allowance scheme. The agency plan to take a number of initiatives in 1986 to try and improve the quality and survival of projects including improved training and advice supports for young self-employment and community groups.
The most recent school-leavers survey study conducted by my Department has again highlighted the importance of educational qualifications in determining employment prospects, as well as the difficulties which unqualified school-leavers face on entering the labour market. A recent survey by the Youth Employment Agency shows that the employment experience of low achievers in the educational system does not improve over time. In fact, the gap between low and high achievers widens.
The social guarantee commits the EC member states to do their utmost to ensure that all young people leaving compulsory education can benefit from a period of full time training and/or initial work experience of at least six months' duration, and is clearly designed to lessen the disadvantages which, at present, confront those present, confront those leaving the educational system without any formal qualifications. The Youth Employment Agency are entrusted with responsibility for implementing the guarantee and priority attention is being given to early school-leavers who experience particular difficulty in obtaining and maintaining employment. The agency will be presenting their first report on the implementation of the guarantee later this year. The significant progress which has been made already is largely due to the degree of linkage and co-operation in the activities of the manpower agencies.
I now propose to deal with some of the special measures for temporary employment, work experience, self employment and job creation which are administered by the National Manpower Service.
The Teamwork scheme offers valuable work experience to a category of the unemployed — the registered unemployed aged 20 to 24 years who now account for 70 per cent of youth unemployment. Because of this factor and of the significant improvements-achieved in the operation of the scheme, the Government recently agreed to allocate a further £2 million to the scheme.
The sum of £7 million now available this year will enable the provision of 1,547 man years of employment and the involvement of approximately 2,500 young people in the scheme. Approximately 80 per cent of young persons recruited for Teamwork are taken from the live register.
The enterprise allowance scheme is designed for unemployed people with a worthwhile idea for self-employment. In lieu of their social welfare payments, they may opt for a special weekly payment while setting up their own enterprises. In some circumstances, they may qualify for a lump sum payment to acquire assets. The scheme provides for a weekly payment of £30 for a single person and £50 for a married person.
More than 12,000 people have availed of the scheme to date to establish small enterprises. Almost one quarter of participants on the scheme are under 25 years of age illustrating the enthusiasm of our young people to grasp an opportunity to take their place in the economy. The youth employment levy plays a major role in the funding of this scheme. Payments in respect of the under 25 year olds are funded from the levy.
In 1986, we are budgeting for 5,150 man years of activity under the scheme at a cost of £11.1 million.
The employment incentive scheme has been in operation since 1977 and since then notified recruitments under the scheme have reached 55,250. Expenditure on the scheme in the first four months of 1986 amounts to £1,368,000 which represents payment for 1,712 recruitments.
About 79 per cent of recruitments under the scheme are young people and the remaining 21 per cent are over 25 years of age. Approximately 50 per cent of the over 25s are long term unemployed. Recruitments under the scheme in general average about 57 per cent male and 43 per cent female. The main areas of employment are services and manufacturing with 64 per cent and 21 per cent of recruitment respectively. Recruitments in construction total 9 per cent; hotel and catering total 3 per cent; and others, including agriculture and horticulture, total 3 per cent.
In the context of the Government's announcement last October of a series of measures to combat unemployment, the scheme was extended to increase to four the number of jobs which an employer may have assisted under the scheme.
There has been an increase of approximately 34 per cent notified recruitment in the first three months of 1986 over the same period in 1985.
Assistance to self employment and the employment by firms of graduates is also provided by the Youth Employment Agency's youth self employment programme, scientists and technologists employment programme and marketplace.
The work experience programme continues to be an effective measure in assisting the young people to overcome the "catch 22" situation of "no experience — no jobs" and in alleviating the youth unemployment situation.
In 1985, 65 per cent of the participants succeeded in securing employment on completing the programme and this pattern is continuing during 1986. As well as being an effective employment intervention tool, it is also a popular programme with young people who have come to regard it as the best avenue to gaining a foothold in the world of work. A provision of £4.550 million, which is funded from the youth employment levy, is allocated for activities in 1986.
The National Manpower Service now provide the gateway for the unemployed to the wide range of training courses, work experience places, special employment schemes and opportunities for enterprise development.
The service is also actively engaged in helping to implement the social guarantee. Staff are being redeployed to those areas where there is greatest need for their services.
A further stage in the process of steamlining manpower office activities and improving efficiency will be achieved with the computerisation of all offices within two and a half years. The records in the Dublin area are already computerised. An extensive retraining programme has been developed for NMS staff to help them adjust and to keep up with the changing role of the service in the mid-eighties.
I have dealt in depth with the employment and training schemes administered by my Department and their associated agencies because I believe that the extent to which Government's intervention measures are contributing to economic and social development is not appreciated. On average, 45,000 people will participate in employment and training schemes on any one day in 1986. The skills of many of these participants are being improved and their career prospects enhanced. Many people have been assisted to start their own businesses or to become self-employed. Many others, through the marginal wage subsidy scheme, are now in jobs which they would not otherwise have. Community facilities have, in many cases, been improved and this can be readily seen in towns and villages in Ireland. A start has been made with getting the community involved in its own development through job creation programmes. The State investment has been substantial. When account is taken, however, of European Social Fund receipts and what would otherwise be paid in unemployment compensation, I believe that the State and the community get good value for money. Nevertheless I accept that our policies, programmes and institutional arrangments which have grown up piecemeal in the last 20 years need to be stated in a more coherent fashion and this will be done in the White Paper on Manpower Policy.
When introducing the Estimate last year I said that I could see certain danger signs that could affect our income from the ESF in the years ahead. I pointed to the increasing competition for limited resources, the impact of the accession of Spain and Portugal and said that organisations which benefit from the fund would have to take account of these changed circumstances. The fund has always been of great importance to Ireland and we have managed to obtain a far higher percentage share of the fund than we would be entitled to on a strict per capita population basis.
To an extent the fears I expressed have been realised. The general EC budgetary problem has resulted in a shortage of money for the social fund. The demands of Spain and Portugal on the fund in 1986 have turned out to be greater than anticipated with the result that our share and the shares of the other member states have been reduced. Our share has declined from 12.2 per cent, or £192 millions, in a Community of 10 to approximately 9.5 per or £169 millions in a Community of 12. I consider our 1986 share to be very satisfactory in the circumstances but the way the new criteria have been applied by the EC Commission has created some problems.
The shortage of money in the ESF has obliged the Commission to enforce strict criteria and limits on the types of programmes and the categories of persons who may benefit from the fund. The emphasis is now on programmes which lead directly to employment and, in the case of unemployed persons over 25, these must be unemployed for at least a year to qualify the ESF assistance. The introduction of these stricter rules and criteria may mean that certain training programmes which have been assisted by the ESF in the past may not qualify in the future.
The whole of Ireland including Northern Ireland along with Portugal, Greece, the Mezzogiorno of Italy, certain regions of Spain and the French overseas departments, are designated as a region of absolute priority in the special fund. The regions of absolute priority benefit from a higher rate of assistance than other regions and a minimum percentage of the fund budget is reserved for them. This minimum percentage was fixed by the Council at 44.2 per cent on the accession of Spain and Portugal but, in my view — I expressed this forcibly at the meeting — it is not enough in view of the needs and the unemployment problems in the priority regions. I intend to press within the Council of Ministers for an upward revision of this percentage figure. Our present position within the EC has been the subject of discussion, in this House and elsewhere, in recent months.
It is appropriate that we carry out a stocktaking of our benefits and disappointments in the Community with a view to pressing the rest of the Community to take account of our legitimate cause for concern. I want to see employment creation placed at the forefront of all EC agendas and to see a recognition of the problems of those member states and regions on the periphery of the Community. The recent fall in inflation levels and in oil prices has stimulated hopes of economic growth. It has also spurred member states to accelerate the completion of the internal market. While Ireland supports progress towards achieving the completion of the internal market we must bear in mind that the internal market with its implicit reduction in the protective tariff barriers and custom barriers that exist will not bring uniform or equal benefits to all member states. The strong industrialised countries in the centre of the Community stand to gain far more than the less developed countries. Some of those stronger countries are among those who wish to restrict spending on the Community funds.
I strongly believe that Community solidarity requires that the stronger economies should transfer resources to the weaker regions. If this cannot be done with the existing structural funds I consider that a completely new community facility should be developed to assist measures to stimulate employment. It is my intention to pursue this possibility vigorously in the Council of Ministers. These objectives are dependent on Community finances being put on a proper footing and this in turn requires that the own resources of the Community be increased in the near future. At present the own resources level is at 1.4 per cent of VAT revenue and related receipts. That will have to move closer to 2 per cent if we are to have the level of Community resources required to make the impact which I believe would be necessary if the internal market is to be completed.
The board of Ostlanna Iompair Éireann have made significant strides in returning the company to profitability and the hotels succeeded more or less in reaching break even point in 1985. This success confirms the Government's confidence in a vibrant public sector enterprise. The trade unions have made their contribution to the improved trading performance. They have demonstrated commitment to their members' jobs and flexibility in co-operating with management to secure the company's future. Their example could usefully be followed by other unions in other sectors of the economy.
The provision of over £3 million in 1986 represents the balance of a State commitment to ensure the future of a valuable State resource and an important part of our tourist infrastructure. With a trading profit of some £500,000 forecast for 1986, OIE have indeed come a long way in the last few years.
Our industrial relations performance in 1985, as measured by statistics for strikes and work days lost as a result of strikes, was reasonably satisfactory over much of the economy. There was a substantial reduction in the number of strikes compared with the previous year; the total was in fact the lowest recorded since 1967. In the private sector, the number of days lost due to strikes was the lowest since the compilation of separate statistics for private and public sectors began in 1976. The figure for the public sector, however, was significantly higher than in previous years due to the one-day stoppage of public service employees in October and stoppages by teachers.
Last year also saw a continuation of the steady downward trend in the incidence of unofficial strikes, the number of such strikes was the lowest since the compilation of separate statistics for official and unofficial strikes began in 1976. The number of days lost through official strikes was also the lowest recorded over the period. In recent years, we have seen a turn-around from a situation where about two thirds of all strikes were unofficial to a situation where little more than a third are unofficial. While, there is no cause for complacency, this is a clear reversal of a pattern that appeared for a long period to be firmly established.
The steady reduction in inflation throughout 1985 may have made the peaceful conclusion of wage round agreements somewhat easier. The continued decline in inflation to what are unprecedently low levels by the standards of the past two decades will clearly have a big impact on the course of wage bargaining in the coming year. We have lived with relatively high inflation for so long that our response to levels of price increase as low as 2 to 3 per cent is difficult to predict. If we ignore the fact that we are entering a new period of relative price stability and refuse to modify habits learned during periods of high inflation, the potential benefit of the improvement in competitiveness and employment will soon be dissipated.
Clearly, a new approach on the part of employers and trade unions is required in order to adjust to this new situation. A good deal of discussion and explanation is called for on the part of all involved in industrial relations, particularly those in positions of influence. We should be careful to avoid a repetition of slogans and generalisations from the past, since these often mask a refusal to assess realistically the facts of the present. The foremost consideration, of course, must be the need to take full advantage of improved economic conditions to maintain and expand employment.
Let me turn to industrial relations reform. Welcome as the improvement in aspects of our strike record is, we should not make too much of developments over the course of a single year. The general reduction in the number of strikes and days lost in the past few years is, without doubt, largely a consequence of the deep economic recession during that time. A similar trend has occurred in many other countries and in some of the cases the drop in conflict levels has been of a significantly greater magnitude than that experienced here.
The association of the decline in conflict with the economic recession raises the possibility that an improvement in economic performance could lead to increased industrial relations difficulties. This seems to me to be something of an unhappy reflection on our industrial relations. It involves a tacit admission that it is only the present levels of joblessness, closures and redundancies that are preventing a return to the high levels of industrial conflict we saw in the latter half of the seventies. That would be unacceptable. Our industrial relations need to be improved and the weaknesses in our system need to be corrected. This must be achieved by the patient and determined reform of structures and practices and not by depending on the continuance of recession.
I arranged for a copy of the proposals on industrial relations reform published by my Department in January of this year to be sent to all Deputies. The proposals comprise an integrated set of reforms dealing with trade dispute law, the official dispute-settling institutions, codes of practice, trade union rationalisation and the minimum wage-fixing machinery. I am proposing the replacement of the Trade Disputes Act, 1906, the cornerstone of existing trade disputes law, by a new Act which would recognise in a positive way the right of workers to strike and take industrial action. The Act would carefully delineate the circumstances in which the right to strike would apply and in doing so would seek to ensure that the rights and responsibilities of the parties to the industrial relations process were recognised. I am also proposing the establishment of a new labour relations commission which would be given general responsibility for the promotion of good industrial relations as well as for the provision of conciliation advisory and other services. I believe that such a body could do much to encourage and assist the many modest and gradual changes in individual employments from which any more general overall reform of our industrial relations must ultimately spring.
The proposals are currently under consideration by the FUE and ICTU. While further consultations are necessary and will be held, it is my intention to introduce the necessary legislation this year.
I turn now to trade union education. I consider it essential that we should have a well organised and well educated trade union movement. Towards this end it is important that trade union officials and representatives are given the necessary training to enable them effectively to carry out their functions. The provision of such training makes an important contribution to good industrial relations. With this in mind my Department provide an annual grant to the Irish Congress of Trade Unions towards the cost of its education, training and advisory services. The allocation for 1986 is £677,000.
I want to deal with the restructuring of the trade union movement. Trade union rationalisation can make an important contribution towards improvements in our system of industrial relations at both plant and national level. The present situation where a large number of trade unions represent a relatively small workforce and where multi-union employments are commonplace exacerbates our industrial relations problems. While responsibility for rationalisation of the trade union movement rests largely with the movement itself, there is nevertheless, a role for Government. The Trade Union Act, 1975, is the vehicle by which this role is effected. Its purpose is to facilitate amalgamations between unions by simplifying procedures and making grants available towards the costs involved. Grants are payable under the Act by my Department towards amalgamation expenses and I would like to see more trade unions availing of them.
In regard to worker participation, the legislation I am proposing for the extension of worker participation in State enterprise involves two separate initiatives. The first will extend the arrangements for the direct election of worker representatives to the boards of an additional range of State enterprise, on a basis similar to that provided for in the Worker Participation [State Enterprises] Act, 1977. The second initiative will give legislative support to the development of worker participation below the level of the board and will apply in State enterprises generally. This is a new development which will provide a vehicle for information exchange and consultation involving the workforce, middle management and boards of directors. It is intended to ensure that employees receive information about the enterprise for which they work as well as an active voice and an opportunity for influence in the affairs of the enterprise. I expect to be in a position shortly to circulate this legislation.
Regarding flexibility and the change process since I came into office, I have taken a clearcut stance on the role of legislation in the employment field. Undoubtedly the relevance or reasonableness of some forms of regulation can be questioned on the ground that the concerns which originally inspired them are no longer well founded. At my request an independent survey of employers' attitudes towards protective legislation and related procedures was undertaken in recent months. Hitherto there has been a lack of systematic study in this area. I propose to publish the results of this survey when it is completed and I look forward to a more informed debate on the merits of regulatory measures.
I recognise that the improvement of working conditions and the better management of the production apparatus need not rely entirely upon detailed regulation, but certainly requires a pragmatic and flexible approach to current problems. In fact in many employments the difficulties experienced in the current recession have highlighted the need to secure co-operative attitudes and some degree of common purpose and commitment from employees. Some managements have found that substantial gains in terms of industrial relations and improvements in morale can be achieved by securing acceptance for changes in the host of subtle distinctions which have grown up around the different categories of employees within the firm. Trade union interest in non-pay issues is increasing and can, with adequate planning and consultation, be tapped to boost the ability of a firm to react quickly and flexibly to new technology.
I turn to equal opportunity now. One mistaken notion which has apparently taken root in the private sector is the idea that equal opportunity in employment as a social policy objective is no longer an issue, since most forms of overt sex discrimination have been effectively removed. Indirect discrimination is a much more intractable problem, however, which employers will need to take into account in order to tackle practices based on requirements which, while applied equally to both sexes, have an unfavourable impact upon women.
In the proposals for amending legislation on employment equality which I intend to bring forward this year, I hope to remove some of the obstacles which have limited the progressive development of the twin concepts of equal pay for work of equal value and indirect discrimination in our equality case law.
The existence of the anti-discrimination legislation, however, is not enough in itself to achieve equal opportunity in employment. I fully endorse the need to take positive steps to redress the effect of past discrimination. Outdated attitudes still influence decisions about recruitment, selection, training, promotion, work organisation etc.
I have established a working party drawing upon Government Departments and the Employment Equality Agency to monitor progress in the application of equal opportunity initiatives in line with the Government guidelines conveyed to all public sector bodies in November of 1984.
In the coming year I propose to reinforce Government policy on the adoption and implementation of equal opportunity standards by asking public sector bodies to consider taking advantage of the positive action provisions in the equality legislation and to develop special training courses for women who require more motivation and career objective in order to progress. AnCO have already established expertise in operating career development programmes within their organisation and can be contracted by other public and private sector companies to undertake similar programmes.
I turn now to work safety and health system. Earlier this year I announced that the Government had approved the drafting of a framework Bill concerning safety, health and welfare in all workplaces to give effect to the main recommendations of the Commission of Inquiry chaired by Mr. Justice Barrington. I hope to be in a position to introduce the legislation in the Oireachtas in the autumn of this year.
In contrast with the limited scope of existing safety measures, the proposed legislation will apply to all employers, employees and the self-employed and to both the public and private sectors. The overall objective will be to provide for the best possible standards of occupational safety and health in all workplaces. The legislation will set out general duties of care for employers, employees and the self-employed as well as for manufacturers, suppliers and designers of plant and equipment for use at work.
I believe that my Department can play a positive role in redressing some of the serious deficiencies in our health and safety system. In the interests of pressing forward with the implementation of the Barrington Commission's recommendations I established an Interim Board for Safety and Health. They will consider and report on the rationalisation of the existing system of occupational safety and health and the transitional arrangements which may be necessary for change over to the new system proposed by the commission.
With regard to employment protection, the Redundancy Payments and the Protection of Employees (Employers' Insolvency) Schemes are the responsibility of my Department. The large number of redundancies during the last two years has made a heavy demand on the resources of the Redundancy and Employers' Insolvency Fund. The Protection of Employees (Employers' Insolvency) Act, 1984, continues to create a drain on the fund. Accordingly, with the consent of the Minister for Finance, I increased the employers' contribution rate to 0.6 per cent of PRSI with effect from 6 April 1986.
In the course of 1985 a total of £4.06 million was paid from the Redundancy and Employers' Insolvency Fund to approximately 4,000 employees whose employers were insolvent under the Protection of Employees (Employers' Insolvency) Act.
While the Act deals with situations where employers may be regarded as "formally" insolvent, for example, a company in liquidation or receivership, there are other situations where in many instances an employer ceases business and no formal winding up or termination process takes place. In many of these situations employees are left with outstanding entitlements due to them. I am particularly anxious to avail of provisions in the Act whereby regulations may be made to declare such employers insolvent for the purposes of the Act, so that the employees concerned may be paid their outstanding entitlements from the fund. My Department have been examining this problem in consultation with the Attorney General and I hope to be in a position in the near future to make the appropriate regulations under the Act.
A review of the Unfair Dismissals Act, 1977, has been completed and I hope to be in a position to introduce amending proposals in the near future. In developing these proposals, I have been mindful of the need to ensure that while workers are given full protection in their employment, the Act will not operate in such a way as to discourage new recruitment.
The aim of the amending legislation will be to facilitate continued improvement in the standards of personnel management in this area, by ironing out some operational difficulties which have come to attention.
Let me turn now to the question of information. I am convinced that not only the representative organisations of employers and workers, but also the wide range of groups concerned with remedying the effects of unemployment at community level, have a decisive role to play in the shaping and execution of labour administration policy and in my Department's efforts to improve their own contribution generally. Our sensitivity to any defects, difficulties or abuses encountered in working conditions, or in gaining access to employment, is dependent on the qualify of these relations. The dissemination of information is a crucial factor in developing these contacts. That is why I think it is important that the Department charged with the central role in policy-making for the wide range of labour affairs should report regularly on their own direct responsibilities. Accordingly, a copy of the second annual report on my Department's activities is being made available to all Deputies.
I recommend the Estimate to the House.