Alan M. Dukes
Question:54 Mr. Dukes asked the Minister for Enterprise and Employment if he has satisfied himself that the taxpayer is receiving value for money from employment subsidies; and if he will make a statement on the matter.
Written Answers. - Employment Subsidies.
The effectiveness of all FÁS programmes, including employment subsidy schemes, is the subject of continuous evaluation by FÁS and by my own Department in order to determine that their stated objectives are being achieved, including the issue of value for money.
The employment incentive scheme (EIS) is the only subsidy scheme for which recruitment is ongoing at present. Following an in depth evaluation of the scheme by the ESRI during 1988, the eligibility criteria were amended in September, 1989 and the purpose of the scheme as it now operates is to encourage the recruitment of persons who are long term unemployed, early school leavers and other disadvantaged groups. Since September, 1988 over 7,100 people were recruited through the scheme.
The scheme is funded by the Exchequer and the European Social Fund.
The employment subsidy scheme (ESS) which closed for applications on 26 February, 1993 was introduced in February, 1992 for a period of one year only with EC agreement and financial assistance. The scheme provided for the payment of a subsidy to employers to provide full-time employment opportunities for people who had been on the Live Register for at least eight weeks. The subsidy is for one year provided that those recruited are retained in employment for 78 weeks. About 8,500 unemployed people were recruited under the scheme.