Micheál Martin
Question:34. Deputy Micheál Martin asked the Minister for Jobs, Enterprise and Innovation if he has met the new chief executive officer of IDA Ireland; and if he will make a statement on the matter. [35669/14]
View answerIDA Staff
Questions (34)
Written answers
As Minister, I regularly meet with the CEO of the enterprise agencies on both formal and informal occasions and I have met with the new Chief Executive Officer of IDA Ireland on a number of occasions since he took up the post on 1 September 2014.
I will be leading a trade and investment mission to the East Coast of the United States during the last week of October and I will be accompanied on that trip by the CEO and other officials. In the course of the mission, I will be meeting with Chairpersons and Senior Executives of both IDA Ireland client companies and target companies.
I look forward to working closely with the CEO of IDA Ireland as he oversees implementation of a new strategy for the period 2015 – 2020, with a view to attracting more FDI into Ireland and its Regions as IDA Ireland seeks to build on the 2014 targets of 13,000 gross jobs created and 155 investments won for Ireland.
Social Welfare Rates
Questions (35)
Stephen Donnelly
Question:35. Deputy Stephen S. Donnelly asked the Minister for Jobs, Enterprise and Innovation his views on whether the lower social protections offered to self-employed persons are acting as a deterrent to entrepreneurship here and, if so, the steps that should be taken to address the issue. [39079/14]
View answerWritten answers
The issue of social protection cover for the self-employed and entrepreneurs has been raised with my Department and the Department of Social Protection in the context of the public consultation on the recently published National Policy Statement on Entrepreneurship and indeed the wider Action Plan for Jobs process. The Report of the Entrepreneurship forum, which led to the new National Policy Statement also considered a number of social protection issues, including this one, and recognised the complex nature of the factors involved in making changes in this area.
In September 2013, the Tánaiste published the report of the Advisory Group on Tax and Social Welfare on Extending Social Insurance Coverage for the self-employed. The Group was asked to examine and report on issues involved in extending social insurance coverage for self-employed people in order to establish whether or not such cover is technically feasible and financially sustainable. Self-employed persons are liable for PRSI at the class S rate of 4%.
The Group found that the current system of means tested jobseeker’s allowance payments provides adequate cover to self-employed people for the risks associated with unemployment. Consequently, the Group was not convinced that there was a need for the extension of social insurance for the self-employed to provide cover for jobseeker’s benefit.
The Group found that extending social insurance for the self-employed was warranted in cases related to long term sickness or injuries. To this end, the Group recommended that class S benefits should be extended to provide cover for people who are permanently incapable of work, because of a long-term illness or incapacity, through the invalidity pension and the partial capacity benefit schemes. The Group further recommended that the extension of social insurance in this regard should be on a compulsory basis and that the rate of contribution for class S should be increased by at least 1.5 percentage points.
There are positive and negative implications for job-creation and entrepreneurship of increasing the self-employed PRSI rate by 1.5% to fund the extension of Invalidity Pension entitlement to the self-employed on a revenue neutral basis. On the positive side, entrepreneurs would be provided with an additional safety net. On the negative side, higher marginal personal tax rates can act as a disincentive towards Job Creation and Entrepreneurship.
This recommendation will require further consideration in conjunction with the findings of the most recent Actuarial Review of the Social Insurance Fund which indicated that the self-employed achieve better value for money compared to the employed when the comparison includes both employer and employee contributions in respect of the employed person.
My colleagues in Government and I will reflect on the findings of the Advisory Group on this issue and will further consider the recommendations contained in the report. This discussion will feed into the Action Plan for Jobs process, which underpins the importance of fostering an environment that supports entrepreneurial activities and assists small businesses to expand, create jobs and contribute to national economic growth.
Low Pay Commission Establishment
Questions (36)
Thomas Pringle
Question:36. Deputy Thomas Pringle asked the Minister for Jobs, Enterprise and Innovation if he will provide an update on the status of the Low Pay Commission; when it will be established and when it is due to report back; and if he will make a statement on the matter. [39070/14]
View answerWritten answers
There is a commitment in the Statement of Government Priorities 2014-2016 to establish a Low Pay Commission (LPC) on a statutory basis as an independent body to make annual recommendations to the Government about the appropriate level of the minimum wage and related matters.
The Minister for Business and Employment is currently developing proposals to implement that commitment.
Issues being developed to this end include,
- the detailed role and mandate of the LPC
- its size and composition
- resourcing requirements and
- legislative changes to National Minimum Wage Act 2000.
In addition to establishing the LPC on a statutory basis and progressing the legislative process, consideration is being given to establishing the LPC on an interim administrative basis to ensure that the Commission is in a position to carry out its functions as early as possible.
Construction Contracts
Questions (37)
Joan Collins
Question:37. Deputy Joan Collins asked the Minister for Jobs, Enterprise and Innovation his plans to reintroduce direct labour on building sites, particularly on Government funded projects and then roll out to private building contracts. [39262/14]
View answerWritten answers
I have no plans to introduce legislation to require the use of direct labour in the construction sector, either in respect of Government funded projects or in respect of private building contracts.
As with all such processes, it is a matter for the parties to agree voluntarily between themselves the most appropriate manner in which a contract should be performed.
Unemployment Data
Questions (38)
Bernard Durkan
Question:38. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent to which economic and or unemployment black spots have been identified throughout the country; and if she will make a statement on the matter. [39640/14]
View answerWritten answers
The geographical distribution of the Department of Social Protection resources is matched to the variation in demand including unemployment black spots around the country.
Our labour market activation strategy, Pathways to Work, targets resources at helping the long-term unemployed and those at risk of becoming long-term unemployed. Targeting those most at risk of long-term unemployment, by definition, focuses resources on the worst-hit areas. The roll-out of the profiling system at our Intreo offices has enhanced this effect as one of the main variables in the profiling system is geographical location. In other words, if someone comes from an area of high unemployment, s/he will, all other things being equal, receive more targeted assistance.
In addition, the geographical distribution of places on employment programmes such as CE and Tús & training programmes has been highly correlated with unemployment rates for each region. Within the Tús programme there is a specific area-based approach to the allocation of places. Places on the Tús programme are allocated to community and voluntary organisations involved in the delivery of local services in urban and rural areas. The allocation is based on the numbers of eligible unemployed people in each local development company or Údarás na Gaeltachta area.
Other than through administrative mechanisms like those described, it is difficult to identify and target specific unemployment black spots at a very local level. The most frequent unemployment data come from the Quarterly National Household Survey (QNHS); as a sample survey, the QNHS provides reliable data at a regional, but not at a local level. Small-area statistics are collected in the Census, but these are available only at five-year intervals, and the unemployment concept underlying them does not correspond exactly with that used in the QNHS.
However, the Government’s policy of targeting resources at those most at risk of long-term unemployment overcomes this statistical deficit and ensures those areas that are most in need of assistance are prioritised. The Department works primarily at a local level and is acutely aware of the differentiated impact of unemployment across local areas. The Live Register figures by office are closely monitored and are an important consideration for the provision of our activation services.
I am satisfied that our approach to prioritise the support of individuals most at risk of long-term unemployment is effective in targeting unemployment black spots.
Job Creation
Questions (39)
Bernard Durkan
Question:39. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Social Protection the extent to which she expects job creation efforts in the future to focus on the long term and youth unemployed; and if she will make a statement on the matter. [39641/14]
View answerWritten answers
The Government’s primary strategy to reduce unemployment has been through policies to create the environment for a strong economic recovery by promoting competitiveness and productivity. Economic recovery will underpin jobs growth.
The Government also recognises the need to ensure that particular groups, such as the long-term unemployed and young people, share in the recovery and take up as many as possible of the newly-created jobs. This is the rationale behind the Government’s Pathways to Work strategy and the Youth Guarantee.
Pathways to Work includes a wide range of programmes and services to help jobseekers back to employment. These include programmes such as JobBridge, JobsPlus and Momentum introduced by this Government and schemes such as Community Employment and TÚS where we have significantly increased the number of places available. Pathways to Work 2015 also includes arrangements to increase the level of systematic engagement of the employment services with those who are out of work for long periods.
If job creation is to benefit the long-term unemployed (including those under 25), a greater effort has to be made to convince employers that the profile of skills and experience among people on the Live Register is not only very diverse but is also very deep.
As part of Pathways to Work 2015, the Government has mandated a set of actions designed to inform employers of the talent available and to incentivise them to access this talent. These include:
- Establishing a professional account management and sales capability within Intreo targeted at employers.
- Development and implementation of a communications campaign to promote greater take-up of employment supports/subsidies for the long-term and youth unemployed.
- Building on the protocol with IDA Ireland, Enterprise Ireland and the Local Employment Offices to further develop information sharing, common literature, early identification of employment opportunities, profiling, placement and encouragement the development of networks at local level to match enterprise agency client company needs with clients from the Live Register
- Engaging with Irish Recruitment companies, to ensure that they use JobsIreland.ie as part of their normal process for finding candidates.
- Improving services at Intreo Offices through the introduction of a new employer vacancy/job matching system in 2015.
In addition, the Labour Market Council Sub-Group for Employer Engagement has developed and recently launched the Employer and Youth Activation Charter, which commits employers to prioritising recruitment of candidates from the Live Register and to working with unemployed jobseekers and jobseeker support organisations to assist in developing the skills and competencies required to find employment. It is intended that the Charter will initially be signed by the 200 largest companies in the State who will then be able to use the skills of the unemployed/long- term unemployed.
The Labour Market Council has also supported the Department in a number of activities to build relationships with employers including briefings and consultations with employer stakeholder groups, job fairs, the production and distribution of employer-focused promotional materials, direct engagement with employers at national and regional level, the development and launch of new employer recruitment incentives and the design and implementation of bespoke training and recruitment solutions. This has, inter alia, served to raise employer awareness about initiatives, such as JobsPlus and JobBridge. In the case of JobsPlus, over half the persons recruited through this employer subsidy scheme have been out of work for more than two years.
With specific regard to youth unemployment, the Government will be implementing the Youth Guarantee to ensure that young people are supported and positioned to benefit from the recovery in employment. The Youth Guarantee will, inter alia, involve:
- earlier and faster engagement for young people under Intreo;
- new options under JobBridge for the most disadvantaged cohort of young people;
- new options under the JobsPlus recruitment subsidy scheme to accelerate the entry to work of young people.
When taken together, these initiatives will increase the potential for job-creation to lead to employment gains for the long-term and young unemployed.
Questions Nos. 40 and 41 withdrawn.
Respite Care Grant Payments
Questions (42)
Mick Wallace
Question:42. Deputy Mick Wallace asked the Tánaiste and Minister for Social Protection in view of the €1.5 billion which the work of carers saves the Exchequer each year, and in view of the return to stability in the economy, her plans to restore the 19% cut to the respite carer's grant; and if she will make a statement on the matter. [39520/14]
View answerWritten answers
The Respite Care Grant (RCG) is an annual payment of €1,375 for carers who look after certain people in need of full-time care and attention.
The Government acknowledges the critical contribution made by carers to society which is why income supports for carers in this country are among the highest in Europe - expenditure on income supports for carers generally has increased from €773m in 2012 to an estimated €806m in 2014. I would also point out that there is no payment equivalent to the RCG for carers in any other country in Europe.
The payment of the RCG for 2014 commenced in June, with automatic payments issuing to over 70,000 DSP clients at an estimated cost of €122 million for the full year in 2014. There is no conditionality attached to how the RCG is utilised, so carers can use the grant as they wish.
I have no plans to revise the rate of the RCG payment at present.