Dáil Éireann debate -
Thursday, 30 Mar 2000

Vol. 517 No. 2

Written Answers. - National Minimum Wage.

John Gormley

Question:

66 Mr. Gormley asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether the minimum wage of £4.40 per hour could have a negative impact on those on rehabilitive placement in supported employment or Rehab employment as productivity with or without support can vary considerably from 10% upwards and employers will now be less inclined to employ these people; and if she will make a statement on the matter. [9417/00]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I do not expect the introduction of the minimum wage to have a negative impact on people in rehabilitative employment.

The employment support scheme, which is currently operated by the National Rehabilitation Board, provides a wage subsidy to employers in respect of people with disabilities whose productivity levels are between 50% and 80% of normal performance. This subsidy covers the shortfall in productivity. The scheme allows for pro rata increases in the subsidy as a result of wage increases. There should therefore be no disincentive to the employment of people with disabilities in enterprises to which the minimum wage applies.

As part of the Government's strategy to encourage the employment of people with disabilities in the future, my Department has committed, in the Programme for Prosperity and Fairness, to vigorously promote the employment support scheme following its forthcoming transfer from the NRB to FÁS and to increase funding for the scheme over the period of the partnership agreement.

As regards Rehab employment, a separate subsidy is paid in respect of people in a sheltered employment programme under the pilot employment programme for people with disabilities. This subsidy, which is currently paid through the NRB, was increased from £8,520 per person per annum to £9,000 per person per annum from 1 January this year on the basis of a submission from the Rehab group which focused on wage increases.

I would also like to add that, in the context of the wider labour market, the Employment Equality Act outlaws discrimination against people with disabilities in relation to access to and conditions of employment.