A Cheann Comhairle, I should like to share one minute of my time with Deputy Richard Bruton who has an interest in this matter.
Adjournment Debate. - Craft Workers' Employment.
Is that agreed? Agreed.
For anyone becoming wholly or partially unemployed it is a major disappointment but for the 40 craft workers currently engaged in the workshops at Davitt Road, Rathmines, by the Employment Board for the Blind to have got notice that they are being put on a three-day week is a source of great stress and strain. These workers come from many parts of Ireland, including my own county, and they are accommodated in Dublin in flats and elsewhere. For the first time they find that their weekly wage has been reduced to £85.
It is not my role to offer criticism or praise to the Employment Board for the Blind. However, it has been strongly indicated that in 1989, when there was a major transition from Rathmines to Davitt Road, a period of five months elapsed without a board being in situ as a former board had been dissolved and the new board had not taken up their position.
Shortly after the new board had taken up their responsibilities, they announced a business restructuring plan for the workshops. Arising from that a variety of changes were proposed to be introduced, including borrowing a very substantial sum of money to pay for a mortgage on the premises. The national union concerned with the protection of the blind workers feel that the mortgage in question will certainly cause difficulties for the concern. The 40 blind workers have a tremendous potential in employment and skills and I appeal to the Minister of State to endeavour to defer the introduction of a three-day week. The craft in which these handicapped people are being engaged has been traditionally under the umbrella of the Department of Health and the health boards. I ask the Minister to initiate discussions with the Employment Board for the Blind and the union catering for the blind with a view to finding a formula whereby they could defer the introduction of the three-day week at least until after Christmas, and try to initiate proposals which would usher in a protracted and successful future for this necessary industry for our handicapped people.
Like Deputy Moynihan I am very disturbed at the threat of a three-day week for the 40 blind staff and the ten sighted staff at Blindcraft. It must be borne in mind that this is the only properly structured project for supported employment for people with a disability. It is sad that employment even at this centre has been declining from over 70 workers some years ago to only 40 at present. If they are put on a three-day week their pay, as Deputy Moynihan said, will be reduced to £85 per week. That is less than the subvention being given by each health board to the person in the centre living in their area. The subvention amounts to £147 and, as I said, if the workers are put on a three-day week they will be paid only £85, which is unacceptable.
I recognise that Blindcraft are in financial difficulties but one of the major reasons for this was the prolonged closure of 18 months which was partly due to the delay by the Minister in appointing the board. It was also due to the fact that the board had to withdraw their original plan for refurbishment. Those lapses in planning were not the fault of the workers who will now have to pay the price.
The Department have been pushing hard for a reduction in the subvention and for rationalisation but their view is short-sighted. It has to be borne in mind that under this proposal there will be extra unemployment benefit payments to the workers of £120,000 in a full year and a lower tax yield of £100,000. Therefore the loss to the Exchequer will outweigh the savings. I would ask the Minister to bear in mind that this project is unique. He should sit down with the board, the national league and the union involved and try to hammer out a deal. The introduction of a three day week should be postponed, as Deputy Moynihan has said, until at least after Christmas when a new structured proposal can be put forward.
First, I want to thank Deputy Moynihan for giving me an opportunity to address this very important issue. I also express my appreciation to Deputy Richard Bruton for his contribution.
The board for the employment of the blind were established in 1957 to provide employment opportunities for the blind. They operate the well-known blindcraft workshops which specialise in basketry and bed-making and employ 39 blind workers. For a number of years the board have experienced difficulties in the areas of sales, marketing and production. This has resulted in the board incurring increasing deficits on their operations.
In the current year the total subvention from my Department to the board amounts to £559,000 — £319,000 capitation payments from health boards and £240,000 additional funding paid directly by my Department. This level of funding, with every prospect of it increasing in future years, could not be sustained.
The problems were compounded by the poor condition of its former workshop premises in Rathmines. The Rathmines premises were sold in June 1989. Under the terms of the sale, the board were forced to vacate the workshops at Ardee Road in July 1990 and the retail shop in Rathmines in April 1991. The board experienced considerable difficulties in finding a suitable new premises. A complicating factor was the difficulty of transferring the blind workers out of the city to any of the outlying industrial estates. The Davitt road premises were purchased in July 1990. Because substantial refurbishment had to be carried out, it was not ready for occupation until August 1991. As a result, the workshop staff were idle for a period of 12 months with a consequent loss of production. I might add that throughout this period the staff who were at home continued to receive full pay from the board. This caused a further deterioration in their finances. There was a real prospect that the board would be forced to cease trading if corrective action was not taken. The board would have required a minimum of a further £138,000 this year to resolve their cash-flow problems which my Department were not in a position to provide. In order to ensure continued trading, the board drew up a "Restructuring/Business Plan" which called, inter alia for a significant increase in production and sales; production staff working a three day week, increasing to five days by 1994 as production and sales increased; shedding eight sighted staff who were surplus to requirements resulting in an annual saving of £102,000.
In view of the serious financial difficulties facing them the board felt that they had no option but to proceed with the introduction of a three day week from the week commencing Monday, 18 November 1991. While I accept that the board's operations will continue to require a measure of State support, I am, as indeed are the board, concerned at the increasing level of subvention required for the relatively low level of employment they provide. If the long term survival of the workshops is to be assured, it is essential that the board adopts a more commercial approach to their operations. This will involve some sacrifices in the short term and a willingness by management and staff alike to face up to their current difficulties. All our efforts must be directed at ensuring the long term survival of the board's operations and the employment they provide for blind people. My Department are working closely wih the board to identify suitable redeployment opportunities for the staff who are surplus to requirements.