Vol. 470 No. 4
9 Miss Harney asked the Minister for Enterprise and Employment if he will report on the re-launch of the job start scheme and its cost to the Exchequer; the number of employers who have made applications for inclusion in the scheme; and if he will make a statement on the matter. [19382/96]
Job start, launched at the end of May, was introduced by the Government as one of the measures to combat the difficulties faced by the long-term unemployed in getting back to work.
Under the Job start programme employers are encouraged to look positively at hiring an unemployed person by providing a direct cash subsidy. Employers are paid a recruitment subsidy of £80 per week for one year when filling new or existing vacancies with persons who are unemployed for more than three years. Also, workers employed under Job start may retain eligibility for secondary social welfare benefits subject to an income limit of £250 per week.
As Job start has only been in existence for a short time, it is too early to make any pronouncement on its success or otherwise. Past experience has shown that recruitment incentives require a lead-in time before becoming established.
I was disappointed with the initial take up, and I have arranged to have steps taken to raise the profile of Job start and improve the promotion of the scheme by actions such as: radio advertising at peak times; targeted newspaper and business magazine advertising; high profile regional launches with attached publicity. For example, on 29 September 1996, I relaunched the programme for Dublin north at a breakfast briefing with business people and FÁS personnel taking opportunities to address local business associations.
Last week I had discussions with the various employer organisations, including IBEC, ISME and the SFA, and with ICTU and the INOU, to discuss how best they could assist in promoting this programme. All of these organisations reaffirmed their full support for the programme and agreed on a range of further measures to promote it. The cost to date of additional promotions is £71,057.
As of 11 October 1996, 346 jobs had been approved for Job start, with 222 participants recruited.
Does the Minister accept this was one of the Government's central planks in their so-called "pro jobs budget"? Does he agree that only £1 million was given for apparently 5,000 jobs which meant that from the beginning this scheme would be a disaster? Does he accept there was never any intention to have 5,000 people recruited into this programme this year? The Minister said 346 jobs had been approved for Job start. Does he accept it is an expensive way to get 346 people back to work and that this disastrous scheme should be withdrawn?
I answer "no" to all four of the Deputy's supplementaries. I indicated repeatedly in the House, despite the Deputy's party's protestations that it would take time to build up this programme and the provision made was based on an assessment of how quickly we would build up to the ultimate target of 5,000. There is difficulty in promoting a programme as a lead-in time is needed. There is, and was, an absolute intention to make this scheme a success. I have had discussions with John Lynch, Director General of FÁS who is confident FÁS will achieve its target of 1,200 to 1,400 on the scheme at the end of the year. We will successfully build from this. Any scheme like this takes a great deal of promotion. We have introduced a preference and allocated a subsidy for people who have not received good opportunities in the labour market, who employers typically pass over. It will take time for that programme to succeed. That has always been recognised by me and I have repeatedly said so in the House.
What is the total number of long-term unemployed in this economy?
It is 150,000.
It is roughly 133,000——
It went up to 150,000.
——as measured by the live register. As measured by the labour force survey, it is around 104,000. The scheme we are developing is aimed at a particularly difficult key group to place, those who have been unemployed for three years or more. I am encouraged that the labour force survey figures published earlier this year, indicated that the number of long-term unemployed declined by 25,000 last year. We have been making an impact on the number of people unemployed for approximately one year, but we need a special scheme, such as this, to assist those who have been out of work for three years and for whom the probability of getting work is limited.
