Vol. 515 No. 4
16 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs if his attention has been drawn to a number of concerns in relation to the summer jobs scheme and in particular to the views of the Union of Students of Ireland; and if he will consider these concerns. [6268/00]
The students' summer jobs scheme will operate this year from 1 June to 30 September during which approved students will be allowed to undertake 200 hours work at £3 per hour. The scheme is, therefore, essentially the same as last year with the exception that this year students will be allowed to undertake work in September which was precluded under the 1999 scheme.
The Union of Students of Ireland has over the years raised various issues about the operation of the scheme. These issues mainly concern the number of hours available to students, the rate of pay and the application of the means test for qualification under the scheme.
The scheme was not designed to compete with jobs on offer in the open labour market. It is a scheme based on community work and I am satisfied that the rate of pay on offer adequately reflects the nature of and conditions attaching to the type of work being undertaken by the students. I am also conscious of the tightening labour market and the greater availability of work during the summer in the open labour market. For this reason, I do not propose to increase the number of hours available to students under the scheme.
Demand for places under the scheme has been steadily declining over the past three years. In 1999, for example, 9,200 students participated in the scheme. This was a reduction of 32% on the participation level in 1998. This declining trend has been evident since 1997 and I expect it to continue again this year due to the availability of jobs in the summer months, especially in the services and tourism sectors.
The Union of Students in Ireland has also raised the issue of the abolition of the means test. The primary aim of the scheme is to provide financial help to those less well-off students who are unable to get summer jobs and who are not entitled to claim unemployment assistance during the summer holiday period. The abolition of the means test would change the whole nature of the scheme and would impact adversely on the resources available to help those students who need it most. The focus of the scheme will, therefore, remain on students from low income families.
The scheme has been very successful in recent years and has helped both local communities and the students themselves. In recent years, however, improving economic conditions have reduced the demand for places under the scheme. In spite of this, I intend to continue to operate the scheme for as long as it appears to have a worthwhile role to play in local communities and for the less well-off students in terms of providing them with an income and with valuable work experience which they would not otherwise be able to acquire.
Does the Minister accept that this has been a good scheme and does he think it would be wise to discuss its future with the Union of Students in Ireland who represent the students concerned? Am I correct in saying that the rate of pay has not been increased since 1995 when it was set at £3 per hour? The world has changed since 1995 and, in view of the impending introduction of the minimum wage, does the Minister agree there is a case for increasing the rate of payment to the minimum wage level?
I do not have the figures in regard to the most recent increase of the rate of payment and the Deputy could be correct in what he is saying. I will obtain the figures and communicate them to him.
This scheme was designed to assist low income families and students. I hear a great deal of public comment to the effect that all students should qualify for the scheme but that is not what the scheme was designed for. It was designed for students who did not qualify for unemployment assistance in the summer because they were not available for full-time work. It worked well in times of high unemployment, when there was more deprivation in our society. Times have changed and with labour market shortages, particularly in the tourism industry which is crying out for staff, students are able to avail of better opportunities than those provided by the scheme. The figures speak for themselves. In 1996, 15,700 took up jobs under the scheme compared to 9,200 in 1999, which was a reduction from 13,600 the previous year. This is a phenomenal reduction due to shortages in the labour market which mean there are more opportunities for students to get work at a better rate of pay and in many cases in better conditions.
The Minister seems to be agreeing that circumstances have changed. However, does he accept that he should be prepared to change his response? Does he agree he should meet the Union of Students of Ireland to discuss their proposals for the scheme? Does he accept there is a community demand for this scheme which is unfulfilled? Does he agree that a review of the hourly rate – students should receive the minimum wage – the number of hours and the means test is justified? Will the Minister discuss these issues with the Union of Students of Ireland? It produced a good briefing paper on this issue in the past week, which I recommend the Minister should read.
I am not aware of any request by the Union of Students of Ireland to meet me. I have no problem with it meeting officials of my Department and subsequently, if necessary, meeting me. The Government has decided to renew the scheme as it is. As a result of representations from Senator O'Toole, we have agreed to extend the scheme to September, as previously stated. However, at the moment no further review is necessary. I accept that many people feel the hourly rate should be increased, given the introduction of a minimum wage. However, this is not paid employment, it is a summer jobs scheme.
It is not a slave labour scheme either.
