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Dáil Éireann díospóireacht -
Tuesday, 11 Jul 1972

Vol. 262 No. 7

Ceisteanna—Questions. Oral Answers. - Redundancy Figures.

21.

asked the Minister for Labour the reasons for the increase from 329 in 1970 to 696 in 1971 of those declared redundant in the agricultural industry; the success of the efforts made to find alternative employment for those concerned; and the measures necessary to improve the position.

22.

asked the Minister for Labour the reasons for the increase from 117 in 1970 to 294 in 1971 of those declared redundant in the woodwork and furniture industries; the success of the efforts made to find alternative employment for those concerned; and the measures necessary to improve the position of the industry.

23.

asked the Minister for Labour the reasons for the increase from 199 in 1970 to 558 in 1971 of those declared redundant in the transport and communications industries; the success of the efforts made to find alternative employment for those concerned; and the measures necessary to improve the position of these industries.

24.

asked the Minister for Labour the reasons for the increase from 445 in 1970 to 1,224 in 1971 of those declared redundant in the textile industry; the success of the efforts made to find alternative employment for those concerned; and the measures necessary to improve the position of this industry.

25.

asked the Minister for Labour the reasons for the increase from 290 in 1970 to 756 in 1971 of those declared redundant in the building and construction industries; the success of the efforts made to find alternative employment for those concerned; and the measures necessary to improve the position of those industries.

With your permission, a Cheann Comhairle, I propose to take Questions Nos. 21, 22, 23, 24 and 25 together.

The reasons why the figures for redundancies show increase in 1971 vary from case to case, but they include the following factors:

(a) the reduction from four years to two years in the qualifying period for statutory redundancy payments as from the 1st September, 1971,

(b) the raising of the pay limit for compulsory social welfare insurance from £1,200 to £1,600 in May, 1971,

(c) the general trade recession in many countries, and particularly in Britain, in the textile and other industries which affected our export markets and our general economic activity,

(d) the failure of some firms to survive in conditions of growing competition and declining demand for certain products,

(e) the fresh impetus to the reorganisation and rationalisation of industry in preparation for the EEC, and

(f) the increasing numbers moving from agriculture to other employment.

The success of the efforts made to find alternative employment for redundant workers varies considerably. The rate of success in some cases is as high as 90 per cent, in large population centres where alternative employment is easier to come by. In smaller towns and rural areas, however, where jobs are not so plentiful the placement rate is lower.

Progress in placing redundant workers is also affected by the ages of those involved and by their willingness or otherwise to move to other areas for alternative work.

Precise figures are not available of redundant workers throughout the country placed in alternative employment either on an industrial group or area basis but the overall picture is that a substantial number of them are re-employed before their entitlement to weekly redundancy payments expires.

The House is already aware of the Government's vigorous industrial development and expension programme aimed at the creation of new jobs. They are also aware that additional funds were made available last October to stimulate employment on public projects and that the capital budget has been substantially increased this year. In addition training facilities are being expanded so that redundant workers may have the opportunity of retraining for new jobs if suitable alternative work is not available for them immediately. Further, as an encouragement to workers to avail themselves of retraining facilities, I arranged some time ago that they may now continue to draw their weekly redundancy payments as well as the AnCo training allowance while taking part in AnCo training courses. The National Manpower Service is also being expanded to help redundant workers and job-seekers generally to find suitable jobs.

Is the Minister aware that on average redundancies went up, from 1970 to 1971, by 100 per cent and that all the industries referred to here were in excess of 100 per cent and, therefore, the general reasons which he gave are not entirely relevant to these particular industries? Would he not consider it would have been helpful if he had given a specific reply in relation to the specific industries which were mentioned in the question? Would he further consider the value of having a sample survey done on the number of redundant workers who subsequently find employment to see how effective the manpower services are in finding jobs for redundant workers?

I thought I gave the Deputy a fairly adequate and lengthy reply.

The Minister gave me a long reply.

I gave a full reply and I think on reflection when the Deputy reads it he will find there is nothing left out. I gave genuine reasons——

Excuses.

——for redundancies. It would have been foolish to believe that, for instance, the change in the qualifying period from four to two years would not affect the figures.

I quite accept that that would make a difference but what I was asking the Minister was whether he was aware that in all the industries I mentioned, the increase in redundancy was above average. Would he not agree that some special explanation should be given in the case of these specific industries?

Would the Minister not further agree that if his argument is correct, the numbers given as being redundant on the previous year should have been doubled?

Not necessarily.

You cannot have it both ways.

That would indicate that there was no change last year.

It is still nothing to be proud of.

We will always have redundancies and the more industrial development we have, the more redundancies we will have.

That is absolute nonsense. If these are the ideas of the present Government, they should get out.

It is proven. In England when they had full employment, they had very many redundancies.

26.

asked the Minister for Labour the number of workers who have availed of the resettlement assistance scheme under the Redundancy Payments Acts in each year; the total cost of the scheme in each year since its inception; and if he will make a general statement of the success of the scheme in achieving its objectives.

Grants under the resettlement assistance scheme were paid as follows:

£

1968

17 cases

cost

383

1969

37 cases

cost

632

1970

187 cases

cost

4,341

1971

168 cases

cost

4,131

1972

526 cases

cost

5,357

(first six months)

Payments under the scheme include grants for transfers, interviews for jobs or training, lodging allowances and visits to home.

The scheme originally applied to unemployed and redundant workers over 18 who were insurable under the Social Welfare Acts or whose earnings did not exceed £1,200 per annum. The scheme was availed of to a very small extent in the first few years. In October I widened the scope of the scheme to include all workers, including emigrants, without regard to age, insurability or level of earnings, who seek new employment through the National Manpower Service.

Travelling expenses are also payable now under the scheme to persons undergoing approved training courses.

There has been a considerable increase in the number of applicants under the revised scheme, including 130 people who have moved to new areas. I am satisfied that the scheme is making a significant contribution to the encouragement of geographical mobility of workers.

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