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Seanad Éireann debate -
Thursday, 1 Jul 1976

Vol. 84 No. 9

Employment Premium Bill, 1976: Committee and Final Stages.

Question proposed: "That section 1 stand part of the Bill."

I should like to come back to the base date, which arises under this section. The Minister said the identical thing when we were discussing the Principal Act; that he would be flexible within a few days if an industry could show that they had let people off a few days before the 20th and that they would be brought in. I accept that, but I do not think that is much help now. In the light of what the Minister told us before on the Principal Act, I take it that the flexibility was perhaps three, four or five days. It does not help in the least in the case of an industry which since then—last autumn, last winter, this spring or this summer—finds itself in difficulties, lets off workers, but later on would like to reopen or to expand production and wishes to take on extra workers. In no way can it benefit from this Bill.

That is the problem. One has to take the number of workers the industry employed on 20th June last, or, if the Minister likes, perhaps on 15th, 16th or 17th June, 1975, and if they take on extra workers beyond that figure they can benefit from the premium, otherwise they cannot. For the whole of this year and the whole of the second half of last year, any industry that got into difficulties at that time and then wished to expand cannot benefit from premiums. That is still the position. When I heard that this amending Bill was being brought in I assumed, as a matter of course, that a new and more relevant, reasonable and up-to-date base date would be taken so that industries which in the past 12 months or so had problems would be in a position to benefit. It greatly limits the operation of the scheme by being worked in this arbitrary way.

I find the problem of the apparent average of 12 weeks during which premiums are being paid in respect of workers puzzling and I would be interested to know what the Minister has to say on it. I am not particularly happy about his point that he has the power to increase the premium from £7.50 next September. I am aware of that. One might wonder whether he will be able to get the money from the Minister for Finance, but that is another day's work.

A great part of the attraction of this scheme is that an employer can feel that, if he takes on extra workers beyond today's date, he will be paid the premium over a period. It is no great help in midstream, as it were, to alter the rate. It is the incentive that is important. The present position of an employer is that he knows that from the 17th September next the premium will be halved. Therefore, if there is to be any change made it should be made now. The Minister should not wait until September because by then the damage will have been done and employers will have assumed that there is only a relatively small time left for the £15 premium. The Minister, when he brought in the principal Act, at the very last minute brought in an amendment to include agriculture. This amendment, as we pointed out at the time, was framed in such a way that it was very unlikely that much use was made of it. As far as I remember, a farmer had to keep a man for the nine complete months before he was paid anything. We doubt if it will have much effect. I would be interested to know how many people in agriculture have received the premium.

In agriculture, about 32. As you know, the requirement in agriculture is that the person must be nine months in employment before he can qualify for it. Because we are anxious to provide permanent employment, we are anxious to avoid the scheme being simply a supplement to the seasonal nature of an employment. We insist on this requirement of a nine-months' period before a person can qualify.

I take it that the Minister now appreciates that we were right when we said that this nine-months' gestation period would mean that nobody would qualify. All right, nobody but 32 people in the entire agricultural industry have benefited by the premium. He might just as well have saved himself the trouble of this dramatic last-minute rush to the Dáil and Seanad last year to include agriculture. It had no effect at all. In any event, he has not answered my query, which I think is an important one, as to why the average period per worker has been as short as 12 weeks. I find it very puzzling. It would seem to subvert to a large extent the value of this scheme which is to provide, as the Minister said, permanent employment. It would appear that it is not providing permanent employment. According to his own figures, the average period in which the premium is being paid to workers is only 12 weeks per worker, and that is not permanent.

At the same time remember that, as the Senator says, it is our desire to provide permanent employment. Obviously the major proportion of an increase in employment in any year in agriculture is of a seasonal nature.

I am talking about the scheme as a whole. All right, 32 people got the premium in agriculture, but we do not know for how long. I am not worried about it. Once it is 32 we can forget about it. It might as well not be in the Bill. Taking the general provisions of the Bill relating to industry, the 5,000 people the Minister says have gained these premiums at a cost of under £750,000. That is an average of 12 weeks per man. That is something that has me worried.

What is the Senator's point?

According to the Minister's own figures about 5,000 people have been taken on and a premium paid in respect of them. He says that the State has paid out to date a little under £750,000. Now rapid calculation suggests that, if one takes an average premium of £12, the average period during which the premium is paid in respect of workers is only 12 weeks. The calculation is a relatively simple one, if the Minister's figures are right. The average period in which a premium is paid is 12 weeks, so that when workers come and go they benefit from the premium for a while and then cease to benefit.

The Senator is omitting the short-term worker whose premium is calculated pro rata.

This is news to me. At no stage during the discussions on this Bill last year was there any suggestion that short-term workers would get the premium. I am glad they do. I am not complaining, but it certainly was not revealed to us in the discussion in this House last year.

The Senator may take it that I am not misleading him when I say that over 5,000 people are in employment today as a result of this State programme, nor am I misleading him when I tell him how much we spent.

The position would appear to be that either these 5,000 workers are not permanent workers— a great number of them are on short time—or else they are temporarily re-employed for an average period of 12 weeks. The Minister's figure of 5,000 people permanently re-employed does not exist because not enough money is being spent. It would appear that the Minister does not know how many people are being permanently employed.

If the Senator wants a breakdown, we will attempt to provide a breakdown. I do not have a breakdown with me here today. I have the figures which I gave him.

It is a pity when we are discussing this Bill that we would not have the figures. I would be glad to get the breakdown. It would appear that the net result of this Bill since it came in 12 months ago is that 5,000 people have been re-employed for an average of 12 weeks each. That is the only figure we have.

Question put and agreed to.
Section 2 agreed to.
Title agreed to.
Bill received for final consideration and passed.
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