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Dáil Éireann debate -
Wednesday, 14 Nov 1990

Vol. 402 No. 6

Adjournment Debate. - Labour and Energy Matters.

The House will now hear one minute statements on matters appropriate to the Minister for Labour and to the Minister for Energy. I propose to call on: (1) Deputy Jimmy Deenihan and (2) Deputy Jim Higgins to make one minute statements appropriate to the Minister for Labour, to be followed by statements appropriate to the Minister for Energy by Deputy Eric Byrne.

A number of individuals and agencies involved in emigrant services have been in contact with me concerning the distribution of the £500,000 DÍON fund. The agencies were promised funding from mid-July, however, they are still waiting, in despair at this stage. Because of the shortage of finance the resources of the agencies are being stretched to the limit. They cannot plan their programmes properly, they are finding it increasingly difficult to get credit from the banks and vital services for emigrants wil have to be curtailed and in some cases abandoned if funding is not made available immediately. A sum of £500,000 was made available in January's budget for emigrant services. We have now reached mid-November and not one penny of this money has been made available for emigrant groups. This is disgraceful and very unfair for the agencies providing the services and also those unfortunate emigrants who benefit from the services.

The social employment scheme was introduced by the Labour-Fine Gael Government as a way of keeping alive the will to work for thousands of people who found themselves on the dole queue. It has worked well and it has kept alive their sense of pride and dignity. Local authorities, local communities and local services, such as schools and so on, have benefited enormously.

I want to congratulate the present Minister for introducing an amendment to the scheme to give child dependant allowance as well as married allowance, which was an excellent idea. Unfortunately, a person having worked in a social employment scheme for 12 months must opt out immediately and cannot re-enter the scheme, except in extreme circumstances, for another 12 months. There is a lot of work to be done and many people willing to do it. There are so many people on the dole and so much dole money paid out that I would like to see a refinement of the scheme where people would be able to get back in benefit on the scheme within a much shorter period.

The Minister is aware that there are in Dublin over 100,000 dwellings in 350 non-gas housing estates, including St. Anne's, KCR, Terenure, with 132 houses not linked into the Dublin Gas grid. These residents want the option to change over to gas, particularly since the Minister, Deputy Harney, has banned the marketing, sale and distribution of bituminous coal. These residents represent a huge potential market for Dublin Gas. The reason I am raising this issue tonight is to ask the Minister when these potential customers will be brought into the gas grid. I would caution the Minister and Dublin Gas that, while recognising the capital cost to Dublin Gas in laying and extending the pipeline, they should not overcharge for the gas installation, which is the case at present — it is estimated to cost £1,000 per house in a non-gas estate. In an estate in Drimnagh which already has natural gas, an elderly widow was charged £570 for the gas connection plus £360 for a gas coal-effect fire, giving a total of £930. We now have a golden opportunity to properly market and sell this, our finest non-imported energy supply which is so clean and environmentally friendly.

The Minister for Labour and the Minister for Energy have five minutes to reply. They may utilise that time as they see fit.

There are approximately 300,000 residences in the Dublin area. Of these, about 200,000 are within areas covered by the gas grid, although not all are connected to the grid. Bord Gáis Éireann have recently compiled a register of non-gas estates in the Dublin area which will be considered for connection to the gas grid in due course. The register comprises some 350 estates involving approximately 100,000 houses.

A programme will be set up by BGE early in 1991 for the connection of these non-gas estates. When this is available, the board will be in a position to indicate the time scale involved in connecting up particular estates. A project of that scale and cost will require detailed planning and co-ordination and the installation of the mains will take place over a four to five year period.

Bord Gáis Éireann are, of course, obliged to earn a commercial return on their capital investment. They will, therefore, be surveying every estate to ascertain the level of take-up for gas in each case, and to explain to residents the costs involved for them in changing over. Only those estates which would provide a satisfactory return on the board's investment will be connected up.

Of those dwellings in areas served by the gas grid, I understand from the board that only about 30 per cent currently use gas central heating. This leaves a significant market for expansion within the area of the existing grid. The board will continue to give priority to targeting this market, which would require comparatively little capital expenditure to connect up and which would provide a more immediate return on investment.

I would like to thank the two Deputies who raised the questions. In reply to Deputy Jimmy Deenihan grants from my Department's Vote to non-statutory bodies providing welfare services for Irish emigrants in Britain are normally paid in December each year following recommendations from DÍON. Last year, because of the increased Government allocation from £250,000 to £500,000 grants were distributed in two instalments: the first in July and the final one in December. This was an exceptional measure. For this year the committee reverted to their previous practice.

With the increase in their allocation DÍON have been able to fund a wider range of organisations. This has led to an increased number of applications, many of which would not have applied to DÍON before, thereby necessitating more work for the committee in processing and vetting the new applications. DÍON have also moved from the funding of organisations towards grant aiding innovative and research projects aimed at quantifying and assessing the emergency needs of Irish emigrants. This calls for greater appraisal by DÍON of individual applications. In view of the fact that the members of DÍON act in a voluntary capacity and in their own time, I am fully satisfied that they are doing their best to process applications as quickly as possible.

Despite the increased volume of work I understand that DÍON will be forwarding to me shortly their full list of recommendations for the 1990 grants. On that basis I expect to announce payment of the grants before the end of the month. I do not disagree with the Deputy's point and I will consider the matter for next year.

Payment should be made early in the year.

In reply to Deputy Jim Higgins, the social employment scheme is the principal manpower intervention to assist the long term unemployed. In order to participate on the scheme a person must be over 25 years of age and either in receipt of unemployment assistance or registered as unemployed for over 12 months and in receipt of unemployment benefit. Participants are given work related opportunities, albeit on a part-time basis, on a wide variety of projects organised by local authorities or by voluntary sponsors. Participation on the scheme lasts for a maximum of 52 weeks at any one time.

With limited financial resources available for the scheme, any reduction in the qualifying period for re-entry to the scheme would have the effect of reducing the number of opportunities available for persons who had never participated in the scheme. I am sure the Deputy will agree that it is better to give opportunities to as many long term unemployed people as possible rather than reduce the numbers benefiting from the scheme. Over 11,000 people are currently participating in SES projects throughout the country.

I was pleased to have been in a position earlier this year to increase the rates payable to participants. I acknowledge the Deputy's comments in relation to participants.

The availability of the child dependant allowance has proved very attractive to older unemployed people and they are now participating in the scheme in increasing numbers. At present around 50 per cent of participants have adult and child dependants.

I am satisfied that participation in the scheme is very worthwhile for participants and helps them to improve their prospects of obtaining employment when opportunities become available. There is the added bonus that the projects on which participants work are of significant benefit to local communities.

In all the circumstances, I repeat that it is preferable to provide opportunities for as many long term unemployed people as possible and I do not intend to advise FÁS to reduce the qualifying period of one year before a participant can become involved in an SES project for the second time.

During the course of the discussions on the new programme of economic and social development this issue is being raised again, particularly in regard to local authority employment. The argument is whether local authority employment, in some form or another, might be better in the long run than the social employment scheme but it has not been costed yet. There will be some further movement in this regard over the next few months.

The Dáil adjourned at 9.45 p.m. until 10.30 a.m. on Thursday, 15 November 1990.

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