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Dáil Éireann debate -
Wednesday, 24 Mar 1999

Vol. 502 No. 4

Other Questions. - Employment Action Plan.

Jack Wall

Question:

10 Mr. Wall asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of people placed in jobs out of the 138 people interviewed and placed under the employment action plan; the number placed in training; and if she will make a statement on the matter. [8339/99]

Emmet Stagg

Question:

27 Mr. Stagg asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans, if any, she has to extend the employment action plan to those aged over 25 in view of the findings of the evaluation of the plan; and if she will make a statement on the matter. [8340/99]

Jack Wall

Question:

40 Mr. Wall asked the Tánaiste and Minister for Enterprise, Trade and Employment the follow-up work ongoing with the 256 people interviewed under the evaluation of the employment action plan but who have not been placed in training or employment; and if she will make a statement on the matter. [8338/99]

Emmet Stagg

Question:

47 Mr. Stagg asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason for bringing the evaluation of the employment action plan to Government before releasing it in the public domain; and if she will make a statement on the matter. [8341/99]

Michael Noonan

Question:

55 Mr. Noonan asked the Tánaiste and Minister for Enterprise, Trade and Employment if, in relation to the employment action plan whereby people under 25 who are unemployed for over six months are invited for interview, she will provide detailed information concerning the number called to interview who did not turn up, the number of those people no longer signing on, the number offered training and in receipt of training, the number offered training who did not take up the offer and the other information relevant to this policy initiative; and if she will make a statement on the matter. [8360/99]

Question:

61 Mr. Hayes asked the Tánaiste and Minister for Enterprise, Trade and Employment if, in relation to the employment action plan whereby people under 25 who are unemployed for over six months are invited to interview, she will provide detailed information concerning the number called to interview who did not turn up, the number of those people no longer signing on, the number offered training and in receipt of training, the number offered training who did not take up the offer and the other information relevant to this policy initiative; and if she will make a statement on the matter. [8359/99]

Nora Owen

Question:

82 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will provide detailed information concerning the employment action plan which is in place since September 1998 whereby people under 25 who are unemployed for over six months are invited to interview; the number called to interview who did not turn up; the number of those people no longer signing on; the number offered training and in receipt of training; the number offered training and did not take up the offer; the other information relevant to this policy initiative; and if she will make a statement on the matter. [8473/99]

I propose to take Questions Nos. 10, 27, 40, 47, 55, 61 and 82 together.

A total of 4,879 young persons were referred for interview to FÁS in the period 1 September 1998 to end January 1999 as part of the support measures in place under the employment action plan. Fifty eight per cent of these attended for interview while 1,671, or 34 per cent of those referred, did not attend for interview. Of those who did not attend, 652, or 13 per cent of those referred in this period, were still on the live register by end February 1999. Of those persons interviewed by FÁS, 35 per cent were placed in a job or training and a further 5 per cent were referred to a training programme.

Of those persons interviewed by FÁS and not yet placed in a job or on a FÁS programme, 20 per cent continue to receive FÁS supports following their first guidance interview. No further action was being taken in relation to the remaining 23 per cent of cases. Cases where persons drop out of contact or decline an offer of intervention are referred for review by the Department of Social, Community and Family Affairs.

Full details of the outcomes for persons referred for supports under the employment action plan are available from the regular monthly reports on the plan. The monthly report covering the end January position of the cumulative referrals to date is available in the Dáil Library. I am giving preliminary details in this reply from report number five which covers the period to end February and will be published next week.

I have recently received a report of the outcomes of the first cohort of 884 referrals, in September 1998, and their outcomes in the months subsequent to the referral process. This shows that by the end of the fifth month of operation of the employment action plan, 78 per cent of the original cohort of September referrals had left the live register and 66 per cent of these had left for identified positive reasons, namely, 42 per cent to a job, 16 per cent to a FÁS programme and 8 per cent to re-enter education. This indicates the progress being made in achieving the results set out in the plan.

The Minister is clearly working from more up to date figures than I am. I am working from the third progress report which covers the period up to the end of December. I doubt anyone in this category stays up late enough to watch "Oireachtas Report", now that RTE has slipped back into its bad old habits and has not adhered to its undertaking to show the programme by or around midnight. However, the relevant point from all the statistics the Minister read out is that only a third of those presenting to FÁS for interview have found a job or a training programme. Is that not a disappointing rate? Do we have any knowledge of what happens to the two thirds who turned up as opposed to those who absented themselves?

The idea of the interview is to assist people to seek and access an opportunity. Although FÁS has places available or positions are available in employment, an interviewee may not be interested in those. The idea is to help people enter the areas they want, because it will be more successful that way. It is early days and FÁS must continue to work with those who were not assisted in their first interview. Some of them are waiting for places on programmes or courses to start. Not all of them were able to access what they wanted at the initial interview. New programmes had to be put in place. We were waiting for certain decisions in the budget which allowed those programmes to get under way. A major difference will be seen as we move into summer. It will probably take another two or three months before we know what exactly are the trends although some are emerging. We want to ensure those who take up employment are still employed some months later and it is too early to say whether that is the case.

The most interesting statistic is that a high proportion of those contacted, 78 per cent, have signed off the live register for positive reasons, for example, to go into training, employment or further education. A small proportion of those contacted are not ready for employment or even for a training programme. One of the disturbing aspects which has emerged is the high numbers of people, in absolute rather than percentage terms, who have a poor standard of education and are unable to read and write. Since those are all under 25, it is an indictment of how we have treated them until now. We must examine the role of education in these matters, especially further education. Someone who does not have the capacity to read or write today will be like someone in a few years who cannot use a computer – they will be unemployable. We have a great deal of work to do. FÁS does not have the capacity to provide the assistance in some of those areas. We are exploring in association with the Departments of Social, Community and Family Affairs and Education and Science what opportunities we might put in the way of such persons. There are also a small number of people who have addiction problems and the assistance they require is a function of the Department of Health and Children. We are also engaged in discussions with health boards regarding ways such people might be assisted.

We have just dealt with the question on skills shortages. Does the Minister acknowledge the absurdity of a skills shortage on the one hand and, on the other, only a third of the people who present for interview to FÁS being placed? The Minister raised the possibility of using the big stick with these people on one or two occasions, but that does not sound credible if no programme or job exists for them or we are not managing to place them in jobs. Is my information correct that the number of placements in jobs is proportionately worsening and that the Minister is contemplating raising the ceiling of the 25 year age limit? Does she agree that, if that happens, matters will worsen further for the cohort on which this programme focused in the first place? Will the Minister plead with the Minister for Education and Science to provide some form of education for these young people who apparently cannot take up even unskilled jobs in the economy because of the poor quality of their education?

There is something ironic about a situation where there are jobs but people to take them cannot be found. There is no doubt huge numbers of jobs are being created in the economy, about 1,000 a week. It is one of the reasons so many work permits are being granted at present. An unprecedented number have been granted in addition to the 44,000 people who returned to the country last year, and this has resulted in net immigration.

Yet the Minister cannot get the agreement of the Minister for Justice, Equality and Law Reform for her work permits Bill.

Regarding education, we must stop more young people following the pattern of those currently being interviewed. They are a relatively small number of people but I regard it as a high number in absolute terms given the amount of money spent on their education and given their relative youth. The Minister for Education and Science has reduced the pupil-teacher ratio and has made provision for improved assistance to schools by way of remedial education. Perhaps we need to go further.

One of the difficulties is that the people concerned want jobs in certain areas and some of them do not want to go into areas where there are vacancies. One area in which there is difficulty encouraging people to pursue a career path is the hotel and catering industry. My colleague has referred on a number of occasions to the fact that positions are available and yet people seem reluctant to take up a training course in that important sector which will become more important as the tourism industry grows.

The challenge is to gear programmes towards providing people with opportunities which will lead to work. It is a major challenge on which we are spending an enormous amount of money. A huge number of people throughout the country are doing valuable work and yet not acquiring the skills they need for the jobs emerging. I hold discussions with FÁS and other interested parties on an almost weekly basis on this issue because the situation is unsatisfactory. It is not good for the economy, for the individuals involved or for the taxpayer. We will have the capacity when I make some new decisions shortly arising from various reports submitted to me. The new training allowance will encourage more people into training. There was a gap between what a person received in a training course and what he received in community employment. We all respond to the economics of our situation and tend to opt for that action which is made more beneficial for us. I want to see as many people as possible going into training to allow them access opportunities in the labour market. The allowance has been extended to people up to 34 who will receive 12 months' unemployment payments.

The Government has also decided to interview every unemployed person on the live register in two areas in the country so that we have a good profile of the whole cohort of unemployed people. One of the major difficulties in this area is that statistics are very bad and we do not know the qualifications and skills of the unemployed. We have chosen two areas, one urban, one rural, in which every person on the live register will be contacted and interviewed over the next ten months and will either be offered an opportunity or at least have their position discussed so that we will have good data on the remaining people on the live register.

Perhaps the Minister would tell us where those areas are or are they secret?

Does she agree that both she and the Minister for Social, Community and Family Affairs, Deputy Dermot Ahern, are taking great credit for the employment action plan? Every time statistics are issued, she says they indicate the scheme is working well. How many of those under 25 who have been invited to an interview to be assessed for a job or training have disappeared between the cracks in the woodwork and into the black economy? Where are they and what are they doing? Is it the case that many have temporarily left the live register out of fear that somebody will catch up with them and that they will receive an official letter inviting them to an interview?

Will the Minister give serious consideration to introducing, as has been done in the United States and other places, a mentoring programme for the cohort of young people who do not have the educational skills required to take up a job or undergo initial training? Has the Minister asked members of the business community if they would be willing to employ young people of low educational standard, monitor their progress and encourage them to pursue their education?

The two areas chosen were Ballyfermot in Dublin, including Cherry Orchard, and Kilkenny and the surrounding area. They were chosen because they have a FÁS training centre, employment opportunities and training programmes are available and new programmes can be put in place.

A range of programmes is needed. Some will have to ease their way back to the world of work. In their case, a full-time training course would not be suitable. For that reason a number of part-time programmes are available, particularly for those over 35 who have been unemployed for more than three years, but more needs to be done.

The recommendation from the community pillar of social partnership is being explored. The real economy and the social economy have to be separated. Voluntary organisations have a huge role to play in community development. Worthwhile work is being done in schools, for example. We have to decide what we are trying to achieve. Different things are being done with different groups. I had discussions recently with members of the working group and recommendations will be presented to Government shortly after Easter.

About 78 per cent of those who have been interviewed have left the live register for positive reasons, they are in a job, undergoing training or have returned to education. About 13 per cent of those who did not turn up for interview were still on the live register at the end of February, but they will be given a second chance. An attempt will be made to find out why they did not turn up. They may have been sick. FÁS will write to them again and they will be interviewed by the Department of Social, Community and Family Affairs. We want to help those who want to find work, part time or full time, or to access training. This data will be of enormous benefit in terms of the strategies being pursued.

It is incredible that unemployment has dropped so rapidly, from 16 per cent in 1991-92 to 6.8 per cent today, despite the fact that 44,000 have returned from abroad. It is a terrific achievement but we have to go further. Many remain unemployed but we are moving rapidly in the right direction.

Will the Minister review the FÁS apprenticeship scheme under which an employee has to spend 20 weeks away from his or her employer? Will she give serious consideration to nominating employers as trainers?

Is the Minister reviewing the LES and, if so, what is the outcome likely to be?

I have extended the LES to a number of areas. There will be further extensions shortly. The LES is doing a marvellous job with many of those on the live register. Those involved with the LES do not have to attend for interview. Some are involved in counselling and mentoring.

It is important that everything works together. There is a need for co-ordination and integration. I want to ensure the LES and FÁS work closely together. There are two employment offices in Clondalkin, which the Deputy and I represent, and this causes confusion. They both have a huge role to play. I do not intend to remove the LES. I want to ensure there is a system of support measures in place which work effectively.

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