The purpose of this Bill is to amend the Employment Gurantee Fund Act, 1980, so as to permit a further Exchequer contribution of £10 million to the Employment Guarantee Fund.
You will recall, a Chathaoirligh, that the second National Understanding for Economic and Social Development provides for a Government contribution to a new Employment Guarantee Fund. The previous Government were committed to making £10 million available for that purpose and, as I announced in Dáil Éireann on last Thursday 9 July 1981, this Government are prepared to fulfil that commitment.
While the text of the Second National Understanding speaks of a new Employment Guarantee Fund, no practical purpose would be served by setting up an entirely new fund, rather than extending the existing fund, and there would be considerable administrative complications in doing this. I am satisfied therefore that the best way of fulfilling the commitment under the second national understanding is to provide further resources for the existing fund.
It is proposed to amend section 4 of the 1980 Act so as to increase the limit on the amount which may be paid into the Employment Guarantee Fund out of moneys provided by the Oireachtas from £10 million to £20 million. Amendments to section 7 of the 1980 Act are also required so as to provide for:
(i) an increase of the limit on aggregate payments out of the Employment Guarantee Fund from £20 million to £30 million;
and
(ii) the winding-up of the Employment Guarantee Fund when the aggregate expenditure from the fund reaches £30 million, instead of £20 million as provided for in the 1980 Act.
The Employment Guarantee Fund under the first national understanding comprised a Government contribution of £10 million and an employer contribution —also of £10 million. This latter contribution was collected by means of a 0.35 per cent surcharge on the employer social security contribution for the period 6 April 1980 to 5 April 1981.
The £20 million which accrued to the Employment Guarantee Fund under the first national understanding has all been allocated for a very wide variety of job-creation projects. There are 33 such projects and employment created as a result of these projects will amount to 2,800 man-years of employment approximately. Of these, 1,800 man-years arose in 1980 and 1,000 man-years will be achieved in 1981. Employment arising from the further Exchequer contribution to the fund of £10 million will be additional to this.
Unfortunately, there will be no employer contribution to the Employment Guarantee Fund under the second national understanding. This is a response which I very much regret. Therefore, the Government will alone contribute. I should, however, point out that the employers will voluntarily contribute 0.2 per cent of payroll towards financing a further new scheme of aid for industries in certain sensitive and vulnerable sectors. This scheme, which will be known as the Employers' Employment Contribution Scheme, replaces the Employers' Temporary Subvention Scheme funded from the Employment Guarantee Fund. It received the approval of this House on 27 May 1981. It operates independently of the Employment Guarantee Fund and is administered by the employer organisations themselves.
I gave an undertaking in the Dáil that, in deciding on the uses to which the furthe sum of £10 million for the fund will be put, the Government will consult with employer and trade union representatives. I repeat that undertaking here. The involvement of the social partners in the allocation of the original £20 million accruing to the Employment Guarantee Fund under the first national understanding was a very constructive development and was welcomed by both employers and the trade union movement. I would like to pay tribute to the employer and trade union representatives who participated in this work. Indeed, I might point out that my colleague, Senator Fintan Kennedy, was a member of that committee and, as I understand it, he attended a great many meetings of that committee. That is the kind of contribution which was made and for which the Government are indeed most grateful.
I am confident that this Government will have fruitful dialogue with the social partners on this and other matters. There are many features of the common programme agreed by the two parties represented in this Government which meet concerns felt by employers and workers. In particular, this Government are committed to the concept of planning for economic and social development. Effective planning is assisted by the co-operation of employer and trade union organisations and I hope that this co-operation will be forthcoming.
Accordingly, I recommend that this House approve the Bill and, with the co-operation of Members, I hope we will be able to obtain all Stages today. As it is a Money Bill we had to have the Seanad meet. We would be grateful to have all Stages passed so that the necessary consultations can take place now between the employer-trade union organisations with the Government and we will then proceed to expend the fund as expeditiously and as effectively as possible.