Dáil Éireann debate -
Tuesday, 3 Dec 1996

Vol. 472 No. 3

Written Answers. - Jobstart Scheme.

Michael McDowell

Question:

27 Mr. M. McDowell asked the Minister for Enterprise and Employment the savings, if any, which will accrue due to the slower than expected take-up of the Jobstart scheme; and if he will make a statement on the matter. [23200/96]

Joe Walsh

Question:

35 Mr. J. Walsh asked the Minister for Enterprise and Employment the plans, if any, he has to encourage participation in the Jobstart scheme; and if he will make a statement on the matter. [22283/96]

Noel Ahern

Question:

37 Mr. N. Ahern asked the Minister for Enterprise and Employment whether the £80 per week subsidy scheme to employers recruiting long-term unemployed persons applies to newly created jobs or all vacancies filled by the long-term unemployed; if any examination is carried out where vacancies are created as to the reason the first employee left; the safeguards, if any, which exist to prevent the scheme being abused by employers who harass employees to resign in order to replace them with cheaper long-term unemployed workers; and if he will make a statement on the matter. [23012/96]

Joe Walsh

Question:

52 Mr. J. Walsh asked the Minister for Enterprise and Employment if he will give a breakdown by age, sex and marital status of the total number of participants in the Jobstart scheme who have gone on to employment and self-employment. [22273/96]

Minister for Enterprise and Employment (Mr. R. Bruton)

I propose to take Questions Nos. 27, 35 and 37 and 52 together.

Jobstart is a recruitment subsidy scheme aimed at enticing employers to take on those who are three years or more unemployed and is being introduced against a background where such persons are often by-passed when it comes to filling vacancies. Accordingly the programme is not applicable to those who become self employed.

Under Jobstart employers can be paid a recruitment subsidy of £80 per week for one year when filling new or existing vacancies with an eligible unemployed person. In order to prevent abuse of the scheme, a written declaration is made by all employers when applying for approval to recruit under Jobstart that the proposed rate of pay and conditions of employment are in line with prevailing pay and conditions for other comparable employees in the company; the company/organisation has had no redundancies within the previous 26 weeks, that they will not dismiss/make redundant an existing employee in order to recruit an employee under Jobstart and that they will undertake to notify FÁS immediately of any redundancies arising in the company/organisation during the Jobstart period; where applicable, trade union agreement within the company/employment location has been given, in respect of jobs which are the subject of the application; they will permit such inspection as the Minister for Enterprise and Employment or FÁS may consider necessary for the effective administration of the programme.

As Jobstart has only been in existence for a short time, it is too early to make any pronouncement on its success or otherwise. Past experience has shown that recruitment incentives require a lead-in time before becoming established.

However, the take-up rate to date has been disappointing and steps have been taken to raise the profile of the programme and improve its promotion on the ground by actions such as arranging high profile regional launches and advertising on local radio, local magazines and newspapers and local cable television. In addition presentations have been organised for regional/local employer bodies and brochures mailed to companies.

All of these activities are being arranged by FÁS as part of its operational responsibilities for the delivery of Jobstart. A saving of £800,000 is anticipated due to the slow take up rate of the programme.

Also in an effort to boost participation in the programme, I recently met the various employer organisations, including IBEC, ISME and the SFA, and ICTU and the INOU, to discuss how best they could assist in promoting this programme. All of these organisations reaffirmed to me their full support for the programme and agreed on a range of further measures to promote it.

The promotion and administration of Jobstart is an operational matter for FÁS as part of its responsibilities under the Labour Services Act 1987, as is any costs associated with these activities.

Data on the marital status of employees engaged under Jobstart are not available as such information is not required to determine eligibility of potential employees or payment of the grant.

The total number of participants on Jobstart as of 27 November 1996 was 455. The most up to date breakdown by age and sex of those employed under Jobstart is that of 15 November 1996, the details of which I am giving in the table which I am circulating in the Official Report.

Table — Jobstart (Employed by Age/Sex)

Age	Male	Female	Total
25	17	6	23
25-34	53	11	64
35-44	60	29	89
45+	130	84	214
Total	260	130	390