Vol. 407 No. 5
1 Mr. Quinn asked the Minister for Labour the total number of new persons placed in employment under the employment incentive scheme for the period January to March, 1991; and the total number of new persons placed in employment for the same period since the operation of the scheme in each preceding year.
There were 1,043 persons on the employment incentive scheme at the end of March 1991. The figures for the three previous years since FÁS assumed responsibility for the scheme are as follows:
|
March 1988 |
1,784 |
|
March 1989 |
1,410 |
|
March 1990 |
1,728 |
The level of intake in specific months is a day-to-day matter for FÁS.
Is the Minister satisfied with the way in which the scheme is now operating?
As the Deputy will recall, in 1989 we changed the scheme to try to help early school leavers and the long term unemployed. At that stage we tried to move away from just an economic aim to encourage employers to recruit the disadvantaged groups. We increased the number of weeks for which employers received payment from 24 to 39 and adjusted the payments for the longer-term unemployed. With the recruitment drive that followed the number increased but has gone back again to the previous plateau. I am still uncertain as regards the numbers involved. This is a matter that requires continuing consideration. There is not a great interest by some employers in the scheme but others use it all the time.
In view of the fact that over 100,000 people are now on the live register for one year or more and in some cases for over three years, is the Minister satisfied that a direct intervention mechanism such as the employment incentive scheme which is directly available to him succeeds in taking from the live register only 1,500 people or fewer? Has the Minister any plans in this regard to deal with the problem of the long term unemployed?
A number of intervention schemes are used. This scheme is a direct subsidy to employers. It operates on the basis that for 39 weeks an employer receives £60 a week if he takes on a long term unemployed person. Last year we started a number of new schemes through FÁS targeting 1,000 firms, but the number of employers who use the scheme is still disappointing. Recently we have been trying to see precisely what attractions we can provide to get employers to use what is from their point of view a good scheme. Numerous schemes have been used over the years but it is still very difficult to generate enough activity in this area. However, we are trying to improve the scheme. It is disappointing that even though employers receive £60 per week when they employ a long term unemployed person, they still opt to take somebody straight from the school system and thereby receive no subsidy at all.
