Dáil Éireann debate -
Thursday, 20 Oct 1994

Vol. 446 No. 2

Written Answers. - Cost of Community Employment Programme.

Richard Bruton

Question:

60 Mr. R. Bruton asked the Minister for Enterprise and Employment the net cost to the Exchequer of the average participant on the community employment programme, taking into account savings in social welfare, additional tax, PRSI and so forth. [1819/94]

Minister for Enterprise and Employment (Mr. Quinn)

The gross cost of a participant on community employment CE, is estimated at £6,350. This cost is made up of the allowances paid to the participant together with the grants for supervision, materials and training paid to the sponsors of CE projects.

As a general rule it is estimated that the average net cost of a CE place taking account of social welfare savings is between 40 per cent and 50 per cent of the gross cost.

The tax position of CE participants depends on each individual's circumstances and tax allowances. However, it is likely that the amount of tax payable in respect of CE payments only would be small. Participants may of course have other income which would affect their income tax liability. Participants on community employment are insured for occupational injuries only with participants making a nil PRSI contribution and sponsors contributing 0.5 per cent PRSI. The sponsors' contribution would on average amount to £27 per year per participant.