The report prepared by Goodbody economic consultants which I pub lished in March of this year examines the range of issues associated with the interaction of secondary benefits and the incentive to take up employment and training opportunities.
The report sets out the background to the evolution of arrangements for the retention of secondary benefits by long-term unemployed people who take up work or who engage in certain labour market programmes. It contains a number of recommendations on how these arrangements might be refined to deal with inconsistencies and anomalies which have arisen.
Recommendations relating to issues which are outside the remit of my Department, including those related to medical card and the local authority differential rents scheme, are being pursued by the Departments concerned.
Other wider issues, such as those relating to the question of information provision, will be the considered by the interdepartmental steering group which was established to oversee the study undertaken by Goodbody economic consultants.
The key issue of direct concern to my Department relates to the rent and mortgage interest supplements paid under the supplementary welfare allowance scheme. The Partnership 2000 agreement contains a commitment to consider ways of dealing with the employment trap arising from the withdrawal of these payments once a person takes up full-time work of 30 hours or more per week. Following on the publication of the Goodbody report, my Department has initiated discussions with the social partners on this issue. Two consultative meetings with the social partners have been held and a further meeting will be held tomorrow.
These discussions are aimed at developing cost-effective solutions to the employment trap identified in the Partnership 2000 agreement which can be considered in the context of the next budget.