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Dáil Éireann díospóireacht -
Tuesday, 4 Mar 1997

Vol. 475 No. 7

Priority Questions. - Labour Force Survey.

Michael Woods

Ceist:

10 Dr. Woods asked the Minister for Social Welfare if his attention has been drawn to the results of the recently published labour force survey which shows that unemployment came down by only 1,000 in 1996 and long-term unemployment by only 300; the plans, if any, he has to assist long-term unemployed people in achieving employment or an adequate income; and if he will make a statement on the matter. [5723/97]

The figures quoted in the labour force survey report relate to the month of April 1996 and show that between April 1995 and April 1996 there was an increase of 46,000 in the number at work. This trend has been maintained and, over the past two years, in excess of 100,000 new jobs have been created. The number of people at work has grown to approximately 1.3 million, the highest in the history of the State. We have a growing population and net inward migration rather than emigration. Nonetheless, the level of unemployment is still a matter of great concern but I should point out that the drop in the year to April 1996 has been followed by further significant decreases. From August 1996 to January 1997 the numbers registered as unemployed decreased by 18,708. Moreover, the total number registered as unemployed at the end of January, 1997 was some 19,000 fewer than at the end of January 1996. More significantly, the seasonally adjusted figures also showed a significant decrease for that period.

My Department is adopting a pro-active, work-supportive approach to assist the long-term unemployed to return to work by providing them with a wide range of labour market initiatives as well as educational supports. In addition, a number of measures are in place to encourage employers to take on the long-term unemployed.

Is the Minister of State aware that, according to the Labour Force Survey, the number of long-term unemployed remained static over the past year? What specific measures are planned to tackle this problem?

As the Deputy will know, the Government already has in operation a number of schemes tailored to tackle the numbers of long-term unemployed. For example, a team of job facilitators are responsible for marketing the Department's pro-employment, education and training schemes among employers and the long-term unemployed at local level. In addition to the range of labour market measures operated by FÁS the Department operates a number of programmes to influence recruitment decisions in favour of the long-term unemployed, to provide them with direct work opportunities, including exemption from PRSI, the back to work allowance and another scheme introduced by my Department in June last under which child dependant increases continue for up to 13 weeks.

In addition, a range of programmes are operated under the area-based initiative scheme to assist the long-term unemployed resident in a partnership area to return to the workforce. There are also educational opportunities — the third-level allowance scheme which had some 3,100 participants and the vocational training opportunities scheme, availed of by some 4,300 people. Approximately 400 long-term unemployed are availing of second-level courses on a full-time basis. A special scheme was announced in the recent budget for this sector along similar lines to the third-level allowance scheme.

All of those schemes are in place, targeting the same people in a constructive, supportive manner, particularly the long-term unemployed. In addition, the numbers on the live register have decreased dramatically over the past 12 months to the extent already indicated.

My question related to the main problem, the number of long-term unemployed, which remained static. The Minister mentioned a number of worthwhile projects and schemes but these had already been in operation. I asked him what new measures are being taken to tackle the number of the long-term unemployed, which is not decreasing. How many people are claiming the pre-retirement allowance, or pre-retirement credits? Can the Minister indicate the change in those figures between 1994 and 1996?

I may not have all the information the Deputy requested but I will obtain it for him. The Deputy will also be aware that it is proposed to increase the numbers eligible under the back to work allowance scheme by an additional 5,000 in the current year, specifically targeting the long-term unemployed. That number has been increased from 17,000 to 22,000 and 1,000 places are preserved on pilot schemes for people with disabilities.

For example, easing conditions for requalification for unemployment benefit will particularly help casual and part-time workers, with an approximate 10,000 people expected to benefit under the revised arrangement. Also the Class A rate of employees' PRSI is being reduced by 1 per cent, from the current 5.5 per cent to 4.5 per cent.

I do not have in my brief the precise figures of those claiming pre-retirement allowances but I will obtain that information for the Deputy.

I understand the number of people who have taken early retirement under the pre-retirement allowance scheme is approximately 18,000. The question I asked was what was the change in those numbers between, say, December 1994 and December 1996. If the Minister does not have that information perhaps he would forward it to me.

I agree that the back to work allowance scheme has been one of the most successful schemes, and it has removed some 17,000 people from the live register and given them new opportunities. While welcoming the increased number of 22,000, will the Minister of State say when those in receipt of disability allowance will be eligible to take up the 1,000 options reserved for them?

It is hoped to implement that scheme as soon as possible. Preparations are well in hand to make that facility available in the near future.

Are the Minister and his Department satisfied that the campaign announced some months ago to control people who are working and taking social welfare benefit has been successful?

I presume the Deputy is referring to the campaign to eliminate fraud. As has always been the case, my Department has taken its responsibilities very seriously to ensure the elimination of fraud, with the obvious objective of protecting those in legitimate need of social welfare payments. To protect the latter's interests that scheme was enhanced over the past 12 months with beneficial effect. The first objective was to ensure that nobody legitimately entitled to a social welfare payment should fear investigation and, second, to have it clearly understood that defrauding the system is not acceptable. The decrease in the live register by some 19,000 in the past 12 months, in some measure, can be attributed to the success of that scheme.

I welcome the commitment of this and all Governments to tackling fraud within the social welfare system. While my attention has been drawn to the fact that many social welfare officers investigate fraud in certain parts of the west, does the Minister of State agree that small farmers in a disadvantaged area, some of whom are in dire financial circumstances, do not warrant such investigation? The Combat Poverty Agency report stated that counties Mayo and Donegal are the two most disadvantaged areas. Will the Minister ensure his officials are not going for the easy touch but rather pursuing those who are working and drawing social welfare? Those are the people we want to attack, not those who have a few acres of land in a disadvantaged area.

The focus of the Department has to be impartial and objective in pursuing investigations. Every effort is made to ensure an impartial application of the rules. The rules laid down for qualification for particular schemes are the criteria which investigating officers apply. That has been and continues to be the case.

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