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Dáil Éireann díospóireacht -
Wednesday, 26 Mar 1980

Vol. 319 No. 4

Estimates, 1980. - Employment Guarantee Fund Bill, 1980: Committee and Final Stages.

Sections 1 and 2 agreed to.
SECTION 3.
Question proposed: "That section 3 stand part of the Bill".

This section says that the Minister shall apply the moneys standing to the credit of the fund for the purpose of defraying expenditure on projects or schemes that in his opinion will result in the creation of additional employment or the maintenance of existing employment. I would think that under this section the Minister could apply the moneys contributed by the employers to what was the employment maintenance scheme for the retention of jobs in the textile trade. I would suggest that there is another problem for Irish industry that is rearing its head at the moment and to which he should immediately apply his mind by spending some of the funds under section 3 of this Bill. I refer to the rumours of an increase in the bank rate, as it will affect industries here over the coming year. The Minister should apply further moneys from the fund under this section to subsidise the firms affected by the increased bank rates if this happens.

It is appalling that with the rate of inflation running at perhaps a minimum of 20 per cent this year, without any extension of the 100 per cent stock relief in previous years which had been cut back to 75 per cent in the 1979 budget and was not increased to 100 per cent in the 1980 budget, many medium-sized businesses giving good employment could be in very serious trouble within a short time, thus adding to the already increasing number of unemployed. My hands are somewhat tied with regard to the following but there appears to have been an authentic leak yesterday regarding an application by the commercial banks to the Central Bank for an increase in interest rates. The Minister should step in immediately and see that the increase is not granted.

The Deputy is not in order in raising this matter.

I am discussing under section 3 the application of the fund which would be created by this Bill.

The Deputy is taking a wide view of the relevancy of a hypothetical matter relating to banks.

It may not be hypothetical by the end of the week and I suggest that the Minister should apply funds for this purpose. It is ludicrous to suggest that a business could be capitalised for the sum of £25,000; that amount would hardly buy a three-bedroomed semi-detached house at present. An increase in overdraft rates of 2.5 per cent or 3 per cent will certainly mean the bankruptcy of small and medium businesses. I do not wish to incur the wrath of the Chair but I hold that I am entitled to raise this point under this section. The Minister must stop this application or agree to subsidise interest rates either from this fund or with money from some other source. These businesses must be enabled to continue.

The Minister has very wide powers under this section to apply the money, half of which will be contributed by the employers and ultimately by employees because whatever the employers pay them will be lessened by the amount they must contribute to this fund, to purposes which in his sole opinion will create employment. There seems to be no check on whether or not this is the wisest application of the moneys. All that is necessary for the purposes of the Act to be served is that the Minister believes he is spending money on projects that will create employment. It is not necessary for the purposes of the Act to be served that employment be created as long as the Minister had at the outset the subjective opinion that employment creation would result. We have had experience of the application of moneys for vaguely defined purposes, which moneys were used in a manner quite different from that intended. I do not have to go back beyond 1970 to recall that to mind. It behoves us in voting moneys to define the purpose rather more closely and I wonder whether the words "in his opinion" should be deleted. Should it not be necessary for the purposes of the Act to be served that the expenditure of the money will actually create employment? Should the Minister's subjective opinion be sufficient to satisfy the terms of the Act? There may be some reason for this provision and if so, the Minister should justify it. He should explain this mitigation of the severity of the section in regard to the requirement that the money expended should actually create jobs.

The Minister should remember the prospects for employment creation in agriculture. I understand that the way the money is to be spent is being agreed at a conference of employers and trade unions, together with the Minister. Agriculture is not represented in this forum, except in so far as some people in agri-business are represented by the unions. Primary production is not represented at all, yet there are considerable opportunities for employment creation in agriculture. There are many openings for well-paid, skilled jobs, particularly in the dairy industry. We need to train people for such jobs and the agencies concerned, such as the Farm Apprenticeship Board, are grievously under-funded. Some of this money should be used in the area of agricultural training. I would draw the Minister's attention to the fact that contributions to the fund will be made by farmers who are employing people and it is only fair that some of the money should go back into agriculture to create other jobs. There are serious skill shortages in agriculture and I hope the money will be used to relieve the situation. Perhaps this matter would come under the section, although I have not a formula in mind.

The fund should be more strictly related to the creation of productive employment. I understand that the fund is to be used for many purposes which are creative of employment, but are not strictly productive in that they will not lead to other jobs apart from those directly created and therefore do not qualify for the description "productive" employment. The fund should be oriented much more towards creating jobs which will lead to the autonomous creation of other jobs. For instance, the creation of a job in a factory leads immediately to the creation of other jobs in downstream processing in servicing the factory and, perhaps, in building. The creation of a job in some project of a purely amenity nature which is not related to tourism does not lead to the creation of further autonomous jobs. Since this money will be collected from people who are already in viable jobs and is, in a sense, a tax on existing productive employment, it should be used to create more productive employment.

I have already argued that in an open economy like ours the creation with public funds of jobs which are not productive does not have the same justification as it might have had in, for instance, the United States in the thirties which had a largely self-sufficient economy where money spent on job creation generated more demand in the economy and contributed to getting out of a recession. A substantial proportion of money spent on imports and, therefore, in the creation of further jobs outside Ireland. Therefore, there is a much greater onus on a person engaging in this type of State-supported job creation to ensure that in an open economy such as ours the moneys are used for productive employment and employment of a character which generates other outside employment.

During my contribution to the Second Stage debate I asked the Minister to give us a breakdown of the £20 million being provided by way of this Bill but he omitted to give us this information in his reply.

I appreciate that in addition to the creation of employment the Bill is designed for the maintenance of existing employment, for the provision of sporting and recreational facilities, for the employment of an additional 1,000 people in the public sector, for environmental improvement schemes and for tourist amenities, but I should like the Minister to give us a breakdown in respect of each activity so that we might know how much money is being provided in each case.

I should like to hear also whether the money being allocated towards the maintenance of existing employment represents more or less than what has been provided in the past for the employment maintenance scheme. This scheme is of immense importance for the textile, clothing, footwear and tannery industries. In the past the scheme has been responsible for a number of such industries being able to continue, but there are problems in many of these industries as a result of imports from third countries. The tannery industry is in a precarious position. Because of this situation I should like the Minister to tell us what is the level of support that the industries concerned may expect from this fund.

In his statement introducing the Second Stage the Minister was explicit regarding a number of projects that would be financed by way of this scheme. He mentioned in particular the airport at Waterford and also the provision of a dredger to be built by the Ross Company for Waterford Harbour Commissioners. I am a member of that harbour authority and we were led to believe that the provision of a pilot launch was to be included in that project. I should like to assure the Minister that the wish expressed by him that the harbour commissioners put up a satisfactory sum of money to complement the amount coming from this fund is being met. But I should like to hear whether the pilot launch project is included in the dredger project.

Regarding Deputy Barry's query, the criteria for the allocation of moneys from this fund are fixed by the tripartite committee whose job it is to recommend the projects or schemes that should be aided from the fund. The criteria have been fixed already. To that extent, even if I were to agree with what Deputy Barry was proposing in relation to bank interest the Deputy should see immediately that there would be limitations on the freedom of action I would have in respect of this fund in regard to taking such action. As I indicated on the last occasion, of the total of £20 million available under this fund there has been committed already more than £18 million. Deputies will be aware that the fund is for a sum not exceeding £20 million. Therefore on the second leg the remaining resources of the fund would not be suitable for planning in the manner suggested by Deputy Barry.

Deputy Bruton, perhaps understandably, seems to interpret the insertion of the words "in his opinion" as being intended to give to the Minister sole discretion, discretion which he might or might not use or abuse. The Deputy seemed to suggest that he was concerned about the possibility of Ministers not being readily accountable. That is not the purpose of the words referred to. Indeed, the opposite is the reason. To leave out the words "in his opinion" would leave the section reading: "projects or schemes which will result in the creation of additional employment or the maintenance of existing employment". That would mean that before any funds could be committed it would be necessary to establish beyond doubt that the moneys concerned would guarantee either the maintenance of existing jobs or the creation of jobs. In other words, jobs would have to be created before the money could be paid out. This would mean that whether what was involved was the New Ross dredger or anything else moneys that could be made available immediately would not be made available until work had been realised. I do not think that is what either Deputy Bruton or anybody else would wish for.

Almost all of the projects we are talking about are dependent totally on fund support for their implementation and in many cases will not get off the ground unless moneys from the fund are applied as soon as possible. I trust that this clarification satisfies Deputy Bruton and that he will realise that the application of the formula suggested by him would result in work being delayed, being carried out very cautiously or being abandoned.

Another point is that if the words "in his opinion" were to be deleted, it would mean that, for instance, where the number of jobs that had been included in the application of that firm, project or whatever—and there is a wide variety of projects from, say, airport construction, to dredgers, to new jobs in extensions in factories—had fallen short, they would be obliged to pay back to the fund what they have not achieved. That possibility might seem to be desirable in any event but to have it there as a rigid obligation I should think is something this House would not want. It is important to recognise that, in this area, we are dealing with projects that are for the purpose of creating extra jobs, or maintaining jobs, in areas where otherwise they would not be so created or maintained; by definition that almost means where there was a shortage of capital for that purpose and, therefore, assistance is needed. In other words, where there is either a problem obtaining or its potential we must recognise that the application of rigid criteria which would be the consequence of Deputy Bruton's amendment is not what the fund was set up for and not what the House would wish.

I hope that explanation will indicate that it is not a matter of conferring authority on the Minister. Let me stress that it is the Minister who regulates the application of the fund but he is chairman of the committee; the decisions are recommended to him by the tripartite committee, and are acted on by him, as requested by the committee. It would be a rather strange exercise in understanding, of which this is part, if a Minister were to take unto himself the prerogative to decide how he thinks moneys should be spent out of the fund and to apply them, or to ignore what the partners to the tripartite committee were to decide. I can assure the House that that is not my intention nor do I think it would be the intention of any Minister. So these words are there for that reason alone, not so that the Minister would enjoy any undue discretion which he might reasonably or unreasonably exercise.

The question was raised by Deputy Bruton of productive employment. Ideally—and I have mentioned this not merely in this context but elsewhere—the jobs to be created would not be just productive in themselves but would generate others by way of spin-off from what is being done in those jobs. On that we are on common ground. Let that be said without any doubt. In fact that has been recognised to be the essential theme of my approach as Minister for Finance in relation even to public expenditure allocations, through the IDA, CTT, and so on. I remain firmly convinced that this is the best guarantee of continuing employment, by investing in infrastructures of one form or another, or productive employment of the kind mentioned by Deputy Bruton.

But there are other possibilities which were mentioned by Deputy P. Barry the last day. There are other cases of jobs that are not necessarily productive in the sense that Deputy Bruton has been suggesting. Obviously, from what he said this morning, he would not regard jobs in the public sector as being productive in that sense. They are not excluded from the scope of this fund. For instance, he would not regard environmental improvement works as being productive in that sense, and they are not excluded. He would not regard perhaps the provision of tourist and recreational amenities as productive, and they are not excluded. In that narrow interpretation I doubt that he would regard sports and recreational facilities of the kind passed by the committee, in principle at least, as productive, and they are not excluded. It is important to maintain a balance here and that is what the committee have decided to do. But the determining criteria will be used to support the creation of new jobs which would not be created in the normal course, the maintenance of existing jobs which would otherwise be discontinued or the bringing forward of permanent jobs which otherwise would not be commenced until later. These are the criteria decided by the standing committee themselves. While paying due regard to the desirability of productive jobs in that sense they have not excluded—as events will indicate—jobs in other areas as well.

Deputy Deasy asked me to give an indication of the areas in which jobs have been provided. Some of these have not been finally decided and it is important to recognise that discussions go on between the committee and the promoting concerns. So, subject to that—and I do not suppose the House wants to take on itself the role of being, shall we say, the analysing committee or go into details in respect of each project—I can say, for instance, that there are 1,000 jobs in the public sector. These do not pose problems as far as disclosure of details are concerned.

There is, for instance, provision of tourist and recreational amenities, 110 man-years, at a cost of £804,000; provision of amenities, modifications and maintenance of Sugar Company buildings and yards, 65 man-years, at a cost of £300,000; project to continue 150 seasonal machine drivers in the employment of Bord na Móna for six months at a cost of £350,000. Then there are county development team projects for bog development—touching on something Deputy Bruton was talking about—150 jobs at a cost of £600,000. Then there is the provision of clusters of small workshops for non-grant-aided industry in the west, 50 jobs at £75,000; environment improvement projects, 250 man-years, at a cost of £1,700,000.

What was that last one?

Additional environmental improvement projects of a wide variety which involve 250 man-years, the cost of which is £1,700,000.

The total involved in that package—and there is also the Department of Education's temporary grant scheme for youth employment, of which the House will be aware, involving 225 man-years at a cost of £1 million —something of the order of £4,800,000. Not all of those, as yet, are under way. But they had been sanctioned in principle for some time by the committee before I became a member.

The best I can do about the remainder is to give an indication of their nature. For instance, there is the scheme to pay temporary supplementary premiums under the employment incentive scheme; an apprentice training scheme in the engineering industry involving 200 jobs; the airport scheme at Waterford, involving 82 man-years; a training scheme for industrial relations personnel; recruitment of extra staff by Aer Lingus; some archaeological surveys that have been recommended by the committee; recruitment of extra staff by RTE. Then there is the temporary scheme of assistance in place of the employment maintenance scheme for textiles, clothing and footwear. Most of those to which I have referred do not involve very considerable expenditure. For instance, the RTE one represents 35 man-years at a cost of approximately £135,000. The total under that heading comes to £5 million. I announced in the House the last day that the scheme for sport and recreational facilities, which has been adopted by the committee but in respect of which each project must now be presented by the Minister of State at the Department of Education, after consultation with Cuspoir, will then be considered and sanctioned by the committee. The amount involved is £3.5 million.

The rest of the total is in relation to particular companies and I do not think it would be appropriate for me to give the names of the applications submitted by the FUE, as partners in the committee, who have submitted proposals from their members. About six of those are under consideration. I can make one exception, the project for an airport at Sligo which has been suggested by the FUE and a local development team. That is at an advanced stage of consideration and in the near future I hope the tripartite committee will be able to give it a boost.

If all the applications in respect of the FUE are included the aggregate amount would be £18.3 million, leaving a balance of £1.7 million. I will give the House as much information as I can but I am sure Deputies would appreciate that, as I have indicated, there are instances in respect of which it would not be appropriate for me to give details because they are still under consideration.

Deputy Bruton showed concern about an agricultural training programme. All State-sponsored bodies were notified of the existence of this fund and were invited to send in applications, but as far as I can ascertain there have not been any applications for grants for the type of scheme suggested by Deputy Bruton. Deputy Deasy referred to the employers' temporary subvention scheme. It will be simply a substitute for the employment maintenance scheme, at the same rate, £5 per week, for the first six months and £4 per week for the remaining three months. Under this scheme plans would be prepared by applicant industries indicating the programmes envisaged. On this occasion it may be possible that some industries might not submit applications and that some participating in the existing scheme might decide not to continue in the new one. However, as far as possible the new scheme will substitute exactly for the existing scheme.

I thank the Minister for his detailed reply. I can understand his reluctance to give names and I agree he should not do so. Indeed, I suggest that if he is circulating details to Deputies he should still withhold the names. I would be afraid that if I had this information I might be tempted to divulge a name.

Is the Deputy thinking of involving his own company?

Not yet, but perhaps at some future time. I sympathise with both Deputy Bruton and the Minister on this question of accountability. We all know of Deputy Bruton's campaign for greater accountability for the expenditure of public funds. He is concerned that there should not be a repeat, for instance, of the situation involving the £100,000 for Northern aid ten years ago. Here we are dealing with risk money. This scheme replaces the employment maintenance scheme and it is involved in the most risky side of industry. Therefore, it is nearly certain that some investment by the fund will be lost, some possibly for very good reasons.

The Minister gave a figure of £18.3 million investment in terms of man-years. I suppose a man-year means employment for 52 men for a week or one man for 52 weeks. Employment in such work as the building of the airport will be temporary—it will involve job experience rather than a job which a person can go into at 18 years of age and retire from at 65 years. That type of job will not be common in the future anyway because, as the Minister has said, it is likely that the type of livelihood will be changed two or three times during a normal working life. I can understand the argument about the difficulties of people who cannot get jobs because they have not got experience and who cannot get experience because they have not got jobs.

I suppose some of the money will be spent in giving experience to people who have not got jobs, and in this respect I strongly urge that an interest be taken in tourist development. Last year particularly in the outlying areas, tourism was not as good as had been hoped for and many small hotels and guesthouses had to carry themselves through the winter on high interest overdrafts. I approve of any money spent in trying to attract tourists to remote places but I am not sure if employing 100 students working together four man-years represents the type of experience that will fit them for jobs in other walks of life.

On the subject of education, I do not understand the form of educational activities on which it is proposed to invest £1 million for 225 man-years. This roughly would give employment at £4,500 a year, or £80 a week. If we are speaking about teachers the amount seems very low.

It is not. It refers to the temporary youth employment scheme and it involves community work in some form or another.

That is an instance where they build pavilions for sporting clubs and so on. There does not seem to be any material involved in the £1 million because approximately £80 would be the wages paid to each individual. The labour element in building is 20 per cent to 25 per cent. The sum does not seem to tot up. Perhaps the materials are being supplied out of a different fund? I should like the Minister to clarify that point.

I should not have thought that RTE or Aer Lingus were the kind of people employers should be subsidising. That should be a matter for the Government. I think the answer in this case is that this was one area where jobs were being created. The Minister referred to about half a dozen companies on whose behalf applications were submitted by the FUE. I presume they are in some difficulty at the moment.

Not necessarily.

Perhaps some of them are in difficulty. The Minister referred to a sum of £18,250,000 and that leaves about £1,750,000 available from the fund as it is constituted.

I should like to make it clear that the FUE applications would be included in the £18,290,000.

I understand that. I realise that the balance of £1,750,000 would not go far towards subsidising the interest rate to which I referred earlier. I am disappointed the Minister did not take this opportunity to say something about interest rates and about the damage to industry if they increase. When Deputy O'Donoghue was Minister for Economic Planning and Development he said in the summer or autumn of last year that they had to increase interest rates. He used that phrase as if he were responsible although I would have thought it was a matter for the Government. It was not denied afterwards that he used the phrase. I think the Minister has some kind of influence at least——

The Deputy is going into matters that do not arise on section 3. We cannot continue on that line.

I accept that and I will not pursue the point. I am not trying to take advantage of the rules of the House. This is an extremely serious situation for many medium-sized industries. There will be bankruptcies and unemployment if the interest rates increase.

The Chair accepts the point but would ask the Deputy not to pursue that line. If he does so every other Deputy will ask for the same privilege.

The Minister said that the tripartite committee will make recommendations to him on the matter. I hope he will bring the points I have raised to their attention.

I should like some information from the Minister on the matter of training for agricultural workers for relief milking. Will the Minister tell the House if any applications have been made by these people or by the Farm Apprenticeship Board? Will they qualify under the scheme?

The answer to the Deputy's first question is no. I cannot answer the second part of the question until they submit an application.

Would they get favourable consideration?

I see no reason why they would be excluded. There are other training programmes from other sources included in the schemes that have been applied.

Is there any representative of the agricultural community on the board?

Why is that?

I am not going to be drawn into a discussion of the national understanding, of its basis and the partners concerned. It has been known for a considerable time that the partners to the national understanding are the partners involved here.

Public funds are involved.

Agriculture represents 50 per cent of the total workforce of the nation. It is the job of the Minister for Finance to ensure that all interested parties are taken into consideration and surely agriculture should be one of the partners. We cannot blame the Minister for the fact that his predecessor did not do this but I am asking him if he is prepared to include agriculture.

The arrangements had been established and settled when I took on this responsibility. Many of the details I have indicated to the House were well under way. The House will see from the figures I gave that most of the funds have been committed at this stage. Therefore, what we are talking about is a rather academic question at this point.

Surely the fund will continue? The existing projects are not the only projects that will be funded under the statutory authority conferred by this legislation.

They expire on the termination of the fund itself. It is not intended to continue it.

Is it not possible for the fund to be replenished constantly?

Anything is possible but that is not the intention in the legislation we are discussing. The commitment on behalf of the employers was to raise a certain amount and obviously when that amount has been raised and applied that is the end of it.

The question of the fund would arise more relevantly on the next section.

I accept that but I think the relevance of any discussion on this section to schemes that might be useful or within the purpose of the legislation depends on whether all the money is already committed or whether it is possible for the powers conferred by this measure to be used subsequent to the expenditure of the money already committed. We cannot discuss the application of the purposes of the fund without knowing how long the fund will last. I wish to discuss the duration of the fund in so far as it is relevant.

The Minister has replied to that question.

He may have replied to the question to his own satisfaction and that of the Chair but he has not replied to the question to my satisfaction.

I replied to some of the queries raised by the Deputy but he was not present to hear the answers.

I know what the Minister said from the able report which my colleague, Deputy Deasy gave to me. I endorse what Deputy D'Arcy said. There is a point of principle here. Agriculture represents 25 per cent of the work force who are directly involved and another 15 per cent who are indirectly involved. Agriculture is not represented as a party to what is described as a "national"—I put that word in inverted commas—understanding. How one can have anything that can truly be described as national which excludes agriculture defeats my understanding. It is no wonder applications have not come from any of the agricultural agencies in areas in which there is undoubtedly a great demand for increased training and job creation when agriculture is not represented on the body that is concerned. Obviously the people in the committee had a better way of communicating back to their various units the opportunities that existed for applying for money. When agriculture was excluded they were not privy to the various moneys available in the same way as people outside agriculture. It is not surprising that they did not apply for the money.

In the event of any similar fund being created or this fund being prolonged beyond the limit of the projects already committed the Minister should make it his business as the contributor of half of the fund, which is being raised from people who are not necessarily represented in the tripartite discussions, to ensure that other people are aware of the opportunities besides those represented in the tripartite discussions and applications are sought from such people. The Minister is responsible to the House for the money which is raised in the House and he cannot shrug off his responsibilities to some outside body and say that he has no responsibility.

I know that the Deputy accepts that the Minister does not intend to shrug off his responsibilities. I can assure him that his interpretation of my discharge of my obligations is correct. I do not like engaging in those kind of academic notions that the Minister might or might not do something. The Deputy should not imply that I am trying to shrug off my responsibilities when it is well known that I am not.

While there is a great deal of validity in what Deputy Bruton has stated, the scheme is so new that it is obvious that a number of organisations did not realise that it was in existence.

Question put and agreed to.
Section 4 agreed to.
SECTION 5.

I move amendment No. 1:

In page 3, subsection (1), line 12, to delete ", 1952 to 1979," and substitute ", 1952 to 1980,".

Amendment agreed to.

I move amendment No. 2:

In page 3, subsection (1), line 15, after "Acts" to insert "and the total of such contributions shall not exceed £10,000,000".

In relation to the setting up of this fund the proceeds shall consist of the employers' surcharge and the amount contributed by the Minister. Section 7 refers to the winding up of the fund and states that the fund shall be wound up when the aggregate expenditure from the fund reaches £20 million. That ends the Minister's responsibility. The employer is not paying his 0.35 per cent into the fund directly. Section 5 states he is paying it under section 6 (1) (b) (ii) of the Social Welfare Act, 1952, commencing on 6 April 1980 and this shall be increased by an amount which shall be known and referred to in the Act as the "employer's employment surcharge". There is no machinery in the Bill to prevent the Social Welfare Act benefiting by the 0.35 per cent after the employers have contributed their £10 million. I am trying to ensure that when the fund is wound up the employers will not continue to pay the 0.35 per cent.

That is not only the intention but the whole purpose of the section. I am certainly sympathetic to the purpose of Deputy Barry's amendment, fixing a limit of £10 million on the actual contribution by the employers to the fund. The yield of the surcharge follows as a direct consequence of the determination of the rate of surcharge. I am sure Deputy Barry recognises that one cannot legislate for a specific yield because one has to estimate.

I accept that.

While I agree entirely with Deputy Barry's amendment perhaps when I point out to him that the surcharge will apply for one year only, the contribution year commencing on 6 April next——

It does not say that.

It says for the contribution year.

Can the Minister give me an assurance that when it says for the contribution year it means that it must finish at the end of that contribution year?

The parliamentary draftsman advises that the way to confine it to one year is as indicated in subsection (1) where it states:

The employment contribution payable by an employer under section 6 (1) (b) (ii) ... shall, for the contribution year commencing on the 6th day of April, 1980, be increased ....

That apparently limits it to that year at 0.35 per cent. We are in agreement on this matter. I am going on the advice of the draftsman in this case. Should the surcharge yield more than £10 million the Government, in consequence of such increase benefiting the Exchequer, the Social Insurance Fund or on the disposal of any credit balance in the Employment Guarantee Fund, would be prepared to take this into consideration in fixing the rate of the employers' social security contribution on a future occasion. The expectation is that the 0.35 per cent will not reach the figure of £10 million rather than exceed it.

It is important that I should mention here that the commitment from the Exchequer is made as soon as this Bill is passed and that money will be earning interest until such time as the funds are discharged. Of course, that is available to make up whatever shortfall might arise from the employers' contribution. From the information available to us at this stage the 0.35 per cent is as accurate an estimate as one could make to make up the figure of £10 million. The Deputy will be aware that the initial suggestion was that it would be 0.5 per cent but it is now estimated that 0.35 per cent will be closer to the estimate.

If the Minister says that the draftsman assures him that the contribution year commencing on 6 April 1980 has the meaning in law of ceasing on 5 April 1981, I withdraw my amendment.

It would require further legislation to extend it beyond that date.

Amendment, by leave, withdrawn.
Section 5, as amended, agreed to.
Sections 6 to 9, inclusive, agreed to.
Title agreed to.
Agreed to take remaining Stage today.
Bill reported with amendment and passed.
Barr
Roinn