Desmond J. O'Malley
Question:39 Mr. O'Malley asked the Minister for Enterprise and Employment if he will provide a progress report on the Jobstart programme. [2908/97]
Written Answers. - Jobstart Programme.
Eric J. Byrne
Question:48 Mr. E. Byrne asked the Minister for Enterprise and Employment if his Department collates information on the wages paid by employers to employees on Jobstart and similar programmes; if his attention has been drawn to concerns that the difference between the subsidy and the actual wages paid may be minimal; the proposals, if any, he has to remedy the situation in order to ensure that workers on the Jobstart scheme are paid the going rate for the job; and if he will make a statement on the matter. [2901/97]
I propose to take Questions Nos. 39 and 48 together.
Jobstart is a recruitment subsidy scheme which I introduced last summer in order to entice employers to fill new or existing vacancies with long-term unemployed persons. The overall thrust of the scheme is to increase the proportion of jobs in the economy filled by those unemployed for three years or more against a background where such persons are often by-passed in job selection.
While recruitment by employers under Jobstart during 1996 has been less than anticipated, I am pleased nevertheless that FÁS did place 669 long-term unemployed people under the scheme, which is approximately 55 per cent of the target that I set for Jobstart by the end of 1996.
Given that experience indicates that recruitment subsidy schemes generally require a lead in time before becoming established and taking into account that we are dealing with the hard end of the market, I am confident that over time Jobstart will have a considerable impact in improving the quality of life for those who are long-term out of work and providing them with a brighter future.
My Department does not collate information on wages paid to those recruited under Jobstart and other similar programmes, as responsibility for the delivery of these programmes rests with FÁS and other bodies. However, FÁS compile statistical records on Jobstart which include the monitoring of wages being paid to participants. At the end of December 1996, 82 per cent of the participants were being paid £120 or more. Of these 12 per cent were earning £200 or more, and 35 per cent were earning between £141 and £160. Accordingly very low wages are not a feature.
With regard to the going rate for the job, the general conditions under which the Jobstart programme operates include that the job is a normal job and must attract the going rate of pay in the company-organisation. The Jobstart premium is a flat rate contribution towards wages. Pay and conditions must comply with any employment regulation orders or registered employment agreements.
Where the £80 subsidy exceeds 50 per cent of the gross rate of pay proposed, it will be subject to special review before being approved. This will include a check to ensure that the employer is complying with any employment regulation orders or registered employment agreements.