asked the Minister for Labour the estimated net cost to the Exchequer (a) per person involved and (b) as a percentage of gross expenditure of the following National Manpower schemes, when savings on unemployment payments, returns to the State by way of PRSI, PAYE and VAT and European Social Fund assistance are taken into account: (i) Teamwork (ii) social employment scheme (iii) enterprise scheme (iv) community enterprise programme (v) employment incentive scheme (vi) work experience scheme; and if he will make a statement on the matter.
Written Answers. - National Manpower Schemes.
122.
Due to the sensitivity of the results to the underlying assumptions there are significant difficulties and hazards in measuring the net cost of Manpower programmes. The enclosed table contains the best estimates available to the Department. The data are presented on a "man-year" basis to take account of the differing lengths of programmes.
These estimates do not take account of the following factors: (i) Deadweight: the extent to which activity funded by the programme in question would have been carried out in the absence of the programme; (ii) Displacement: the extent to which activity funded by a programme displaces economic activity elsewhere in the economy; and (iii) Survival rates: the rate at which participants leave schemes prematurely.
These factors, together with changes in the profile of participants, can have a very significant impact on the net cost of a programme. My Department are currently engaged in a systematic evaluation of all manpower programmes and, as this proceeds, our knowledge of the full costs and benefits of programmes will be enhanced.
Particular problems arise in relation to providing unit costs for the community enterprise programme. In the case of jobs in business directly supported by the programme, the Exchequer funds are paid back through taxes etc. within three and a half years and thereafter the Exchequer gains from the business subject to displacement, etc. considerations. In the case of jobs in business indirectly supported by the programme, the gross cost per job is less and Exchequer payback in gross terms will be over a shorter period.
Net Exchequer Costs of Programmes (£)
|
Man-year costs |
Teamwork |
S.E.S. |
Enterprises |
E.I.S. |
W.E.P. |
|
1. Gross unit cost |
4,037 |
4,500 |
2,274 |
1,684 |
1,794 |
|
5. Net unit cost (gain) |
784 |
824 |
(2,127) |
(2,255) |
652 |
|
6. Net as % gross |
19% |
18% |
(94%) |
(134%) |
36% |