I wish to share my time with Deputies Joe Walsh and Martin.
Adjournment Debate. - Student Summer Jobs Scheme.
Is that agreed? Agreed.
I am glad of the opportunity to raise this vital issue which is causing mayhem throughout the country as the deadline of 31 May for applications for this scheme draws closer. Having completed seven years in the third level system, I know only too well what it is like to live as a student. I know the importance of gathering a few pounds during the summer holidays to make ends meet during the winter.
I only became aware of the student jobs scheme last summer as it is not advertised in the Northern colleges. It is a brilliant concept and as a county councillor I advocated it strongly over the summer and throughout the winter. Its immediate benefits were obvious, not only for students but for the community at large. This year I anticipated great things happening as various community and voluntary groups were primed to have students on board, but what happened? In reality, very few people are eligible for the scheme which was initially a replacement for social welfare payments. Students on the scheme last year, who were relying on £800 to pay their rent and maintenance costs for the coming year, are told they are no longer eligible.
Without meaning any disrespect to anyone, when one looks at the complexity of the four page application form it is a good job these are for third level students. Those who received the £200 extra last year because both their parents were on social welfare are being told this year that they do not really need it.
As originally conceived, the money from the scheme is not a reward for work but, as the Department of Social Welfare said, "a means assessment and subsequent allowance with compulsory community work". It cannot, therefore, suddenly be deemed to be unnecessary for the 3,375 young people and their families who qualified in previous years.
While officially the scheme is reserved for those third level students who are not entitled to receive unemployment assistance during the summer months and who satisfy a means test, two questions are being asked of me and of other Deputies. Who is entitled to the scheme? Why are people who want to work, and who have a scheme place, being told to go on the dole instead? That is a disgraceful ethos to promote for our young people.
In reply to a recent question I posed, the Minister for Social Welfare complained about the upward trend in the number of students participating in the scheme since its inception. What is wrong with opening up a source of employment that has positive repercussions for the students' local communities? They wish to see improvements in their localities but cannot obtain alternative employment. They want to spend some of their time out of college in their home environment rather than having to work abroad to pay for their studies.
Those who would ordinarily have received full unemployment assistance and a rent allowance in previous years will be £350 worse off this year if they are lucky enough to qualify for the student jobs scheme. Many who were on the scheme last year are not eligible this year. In addition, many areas that benefited from student work last year will be without that support this year. Who are the winners?
I fully support the case made by the new Deputy for Donegal North-East for students, particularly those who are totally reliant on State benefits. The poorest of the poor are being denied £200 on top of a new incremental increase this year. The Minister should re-examine this excellent scheme which does away with the mentality of the students' dole. The scheme ensures that students get off on the right foot by doing useful community work. The sponsors are pleased with them, it is a good scheme and should be promoted.
From the educational perspective, I am disappointed that this year's scheme represents a further cutback on last year's one. Over 18,000 students in the further education sector are essentially being excluded from the scheme and have not been facilitated in applying. This sector of our education system is an important one because many at third level are full-time students. However, the new definitions of third level and further education are too rigid in terms of applying this scheme. Very often students in further education will progress to third level. For example, in previous years leaving certificate students were entitled to apply but that was cut out last year.
I am also concerned about the 18 years of age rule. I tabled a question on Tuesday about a case in Cork where the student will be 18 on 5 June. Because the applicant must be 18 on 1 June that student was excluded. The Department said no, but the Minister said he would examine ways in which somebody in that situation could be facilitated. The Minister should agree to allow them access to the scheme because they are bona fide third level students. That some may be four days under the age limit is not a justifiable reason for excluding them from the scheme.
I thank Deputies for giving me the opportunity to speak on this topic. There are no cutbacks in the students summer jobs scheme. A sum of £3 million was allocated towards the scheme in 1994 and a sum of £6 million was initially provided for the scheme in 1995. Arising from the improvements I made to the scheme last year, I negotiated an additional £4 million to cover the increased demand that arose from those improvements. This year a sum of £10.2 million has been allocated for this scheme.
The number of students participating in the students summer jobs scheme rose from 4,400 in 1993 to just over 16,000 last year and I am determined to ensure that those students for whom the scheme is intended find a place, if they cannot find other work. The scheme has proved to be highly popular with sponsors who have offered an increasing number of jobs to students over the years. The number of jobs on offer has increased from 9,000 in 1993 to over 21,000 last year. Various surveys carried out by my Department since the scheme began, show a very high level of satisfaction with the scheme and its operation among both the third level student population and the various sponsors. I have seen many examples throughout the country of the high quality work carried out by the students. Both students and sponsors deserve the highest praise and encouragement for their commitment to the scheme and I am strongly committed to its continuation.
I made significant improvements in the scheme in 1995 by increasing the amount payable per student from £520 to £600 and this support has been maintained this year. I also allowed third level students with even a minimum entitlement under the means-tested unemployment assistance scheme to take part. Up to then, a person had to have a minimum entitlement to £15 before they could qualify for the scheme. That restricted the numbers considerably. I abolished that requirement last year so that if a student is now found to have an entitlement of only £1 per week he or she will receive the full £600 for the duration of the scheme. Most third level students participating in this scheme are benefiting more than they would have if they were still entitled to unemployment assistance.
These changes resulted in a very significant increase in the number of students participating in the scheme — in 1994 9,200 students took part, while last year the number increased to just over 16,000. When I found that the budget allocation of £6 million was inadequate to meet the demand last year, I arranged for additional resources to bring the total amount available for the scheme to £10 million. A sum of £10.2 million has been allocated for this year's scheme. There has, therefore, been no financial cutback in the scheme. However, in order to ensure that the greatest number of eligible students could participate, I have made a variety of changes to better target the scheme this year, including dropping the bonus payable to some students, which was found to be anomalous.
The underlying purpose of the scheme when it was introduced in 1993 was to provide income support for the less well off third level students who were disqualified by the then Fianna Fáil-led Government from receiving unemployment assistance during the summer months where they could not find work. The primary focus of this year's scheme is, therefore to provide places for students who have no other means of income support. Students who are entitled to receive unemployment assistance, such as mature students and students who have completed their courses, can qualify for unemployment assistance if they satisfy a means test and are genuinely looking for work. This provides them with the necessary income support during the summer months and they are not, therefore, eligible for this year's schemes.
I reiterate and emphasis that there are no financial cutbacks in this year's scheme. The same amount of money is being provided as was available in 1995. I am refocusing the scheme this year to ensure that the maximum number of eligible students who need income support from my Department, and who would get it but for the abolition of their unemployment assistance entitlement by a Fianna Fáil-led Government, are allowed to participate.
I want to address some of the points made by the Deputies opposite in their contributions. Deputy Keaveney said that few people will be eligible but, based on the rate of approvals to date, 16,000 people will participate in this year's scheme. That is on par with the numbers approved last year.
I take the complaint that the forms are too complex with a grain of salt. We are talking about third level students who have gone through primary and secondary school to third level education and who at least have their leaving certificate. These students would not be in college unless they were capable of reading. To argue, therefore, that the forms are too complex is stretching the point.
The point made in relation to the 18 years olds is valid. We are currently examining the possibility of enabling people who turn 18 during the course of the scheme to take up the scheme at that point and work through the full 12 weeks from that date. In that way they will not be at any loss.
Is that now the official position?
Yes. On the occasion when I replied to the Deputy's question — I have had a number of other questions since then — we were examining the position to find some kind of solution. That will now be the position. Few people have been declared ineligible on that basis but we intend to include them.
In relation to the 18,000 students on PLC courses referred to by the Deputy, we are allowing those engaged in courses of more than one year to participate in the scheme. The Deputy will appreciate that although we have increased the allocation from £6 million last year to £10 million this year, to include a further 18,000 on top of the 16,000 will require at least another £12 million to £14 million. Those resources are simply not available.
I would like to enable every student to participate in the scheme but clearly there are resources implications. We are targeting the scheme at third level students who no longer have a right to unemployment assistance. I believe that is the fairest way of allocating the resources available to us.