Vol. 546 No. 3
25 Mr. Browne (Carlow-Kilkenny) asked the Minister for Social, Community and Family Affairs the reason for the delay in paying those who took part in the student summer jobs scheme; and if he can justify a delay to Christmas for payment for summer work. [31959/01]
The students summer jobs scheme was first introduced in 1993 to provide income support for less well off students who were disqualified under social welfare legislation from receiving unemployment assistance during the summer months. The scheme operated this year from 1 June to 30 September and approved students were allowed undertake 200 hours work at £3, 3.81, per hour, giving a possible total tax free payment of £600, 761.84. In order to focus resources where the need is greatest, students who came from a household which is dependent on social welfare payments were entitled to an extra £1, 1.27 per hour worked, providing for a maximum payment of £800, 1,015.79, in their case.
The scheme is operated through sponsors who are approved by my Department to carry out work under the scheme and it is up to each sponsor to recruit qualified students under the scheme. Payments in respect of work done are normally made directly to the sponsors who then reimburse the students involved. Payment arrangements for students are a matter to be decided between the sponsor and the student. Sponsors are advised that they have an obligation to pay the students on a weekly basis. However, with the consent of the student, alternative arrangements can be made. Some students may indicate a preference for payment in a lump sum at the end of the scheme. Students are always advised to discuss the working arrangements and payment arrangements with the sponsor before commencement of any work.
Many sponsors pay the students from their own funds and then claim reimbursement when the scheme is finished. For accounting and audit purposes each reimbursement form must be signed by two officials from the sponsor organisation and must be accompanied by a signed declaration from the student verifying the hours worked. This information is also necessary in order to pay the extra payment due to some of the students.
Sponsors were requested this year to submit claims for reimbursement before 12 October 2001. However, some sponsors did not comply with this deadline and this has contributed to the delay. In addition many of the reimbursement applications were found to be incomplete this year and were returned for clarification, thus causing further delay. A particular problem arose this year due to the need to upgrade the payments system in preparation for the introduction of the euro. Payments could not be issued during the course of the upgrade, which was done in November, when many student summer job scheme payments are paid. A backlog arose as a result, and this is now being cleared. I regret the delays which occurred. My Department is working hard to ensure that all outstanding payments are issued as a matter of priority.
(Carlow-Kilkenny): Would the Minister accept that a summer scheme set up to give students money is a total shambles if they have still not got their money? It is a scheme with no pay, the equivalent of a pub with no beer. It does not matter who is to blame. Would the Minister accept that it is absurd to have a three week close-down in the payments section to prepare for the euro while students wait for their money?
As I explained earlier, owing to circumstances beyond our control, there have been some delays. However, a large proportion of students have already been paid and were paid early. It was because of the extra payment, which was a new feature this year as a result of changes we made whereby approximately 1,163 students got an extra payment of £1 per hour, that there were certain difficulties. The same practice was followed as in previous years. These complications arose in November. It would be quite normal that payments would be made even as late as November. However, every effort is being made to ensure that payments will be made before Christmas.
(Carlow-Kilkenny): Would the Minister consider putting another advertisement in the papers with two photographs of himself apologising to the people.
That is a very good idea.
(Carlow-Kilkenny): Writing would be far cheaper but that would not get publicity. How many students are still awaiting payment?
I have statistics in relation to the overall scheme. I am not altogether sure whether I have the statistics relating to the issue in question. A total of 3,251 sponsors offered 15,000 jobs. More than 6,000 students were approved, 1,800 sponsors have claimed reimbursement to date, 1,163 students have been identified as being entitled to the extra payment of £1 per hour, and the payments are now being processed. I would hazard a guess that a number of the students have already been paid but perhaps the Deputy would put down a separate question to get that information.
(Carlow-Kilkenny): Will the Minister ensure that these students will be paid before Christmas?
All efforts are being made—
(Carlow-Kilkenny): Not efforts; they must be paid.
—to ensure that they will be paid before Christmas.
Before next summer.
