Trevor Sargent
Ceist:6 Mr. Sargent asked the Minister for Social, Community and Family Affairs the involvement, if any, his Department will have in the employment action plan. [10131/98]
Other Questions. - Employment Support Services.
The employment action plan has been prepared in the context of the adoption by all member states of the 1998 EU employment guidelines. It details the integrated range of initiatives which are being pursued by the relevant Departments and Government agencies. These have the aims of boosting job creation, tackling unemployment, alleviating poverty, strengthening equal opportunities, developing entrepreneurship, reducing early school leaving, promoting better provision of child care facilities and providing increased opportunities for people with disabilities to access employment.
My Department will have a key role in the implementation of the plan. In particular, the plan details the measures designed to ensure unemployed people will have real incentives to take up training and employment opportunities.
These measures include, for instance, the expansion of the back-to-work allowance scheme from 22,000 to 27,000 places, in line with the recent budget. More than £140 million will be spent this year on this very successful scheme, which has been applauded by employers and employees, and on the area enterprise allowance for self-employed people. There is also reform of the family income supplement scheme which, from October of this year, will be calculated on the basis of net income rather than on gross income, thus providing a greater incentive to workers in low paid employment to remain in work. Also, the development of the back-to-education programme encourages unemployed people to acquire the self-esteem, education and skills required to participate actively in the labour market.
The plan sets out a two pronged approach to tackling unemployment. On the one hand, it maintains a strong focus on the needs of the long-term unemployed and underlines the necessity for continued efforts to enhance the employment prospects of this group. The back-to-work allowance and back-to-education schemes are clear examples of effective measures in this area. On the other hand, the plan recognises it is equally important that a preventive strategy is adopted to ensure the drift into long-term unemployment is tackled early and effectively. My Department will co-operate closely with FÁS and the local employment service in encouraging young people into employment and training.
The employment action plan details how in excess of £1 billion will be spent this year with the aim of giving people the opportunity to secure sustainable employment. It represents a clear demonstration of the Government's intention to ensure all sectors of the community are enabled to participate and share in the fruits of our economic growth.
I thank the Minister for his reply and the many worthy objectives in the employment action plan. However, given that we are debating today the Employment Equality Bill which deals with the rights of people in employment, is the Minister satisfied the budget for this initiative, which I understand is about 1 per cent of the total budget, is adequate given the extent of unemployment? Unemployment is the biggest issue in the lives of those whom it affects.
Does the Minister foresee the action plan involving, as has been reported, withdrawing unemployment assistance from anyone who turns down offers of work, even very low paid work? Given the absence of a minimum wage, many of those people will be offered very low paid jobs. Can the Minister allay those fears?
I can certainly allay the fears of anyone who is under a misapprehension. The plan, in effect, gives a commitment that we will devote substantial resources to enabling the long-term unemployed to acquire skills, education and self esteem. The element of my Department's budget devoted to employment and unemployment in 1992 was only 1 per cent with regard to proactive measures. Following budget changes which I made it is now up to 16 per cent. It has become progressively bigger over the years. Mine is not only an income supplement but a proactive Department, which complements the work undertaken by FÁS and the local employment services.
The idea of the plan is to introduce systems which would interact with all people under 25 years of age and who have been on the register for six months with a view to offering them a job or other employment support. This approach would be gradually extended on a phased basis to those aged over 25 years who have been on the register for 12 months.
The determination of the stipulation "genuinely seeking work" is one of the issues relevant to my Department. I am in the process of finalising regulations in this regard which, in effect, will only put into writing what has been the practice over the years. I have had wide consultations in this regard and I hope to introduce them in the near future.
I appreciate the Minister's efforts. The practices in the past have varied and I am not aware if there is any consistency. Can the Minister provide further details on what the plan will offer the long-term unemployed over the age of 25 years? He mentioned that they will have had to be unemployed for 12 months and that the emphasis was on those under the age of 25. Can he indicate whether he will make recommendations to Cabinet — the issue relates to other Departments — on work sharing, shorter working weeks, the recommendations on a guaranteed basic income scheme, which we are awaiting, and interim measures in that direction? Is this latter aspect being pursued in the proactive part of his Department?
The general thrust of the plan is broken down into a four pillar framework based on improving employability, developing entrepreneurship, encouraging adaptability and strengthening equal opportunities. Since the Government took office the unemployment figures have dropped from 254,000 to approximately 231,000, which is effectively the lowest figure since 1990.
With regard to the issues in this plan which are relevant to my Department, we will look at tax and welfare wedges and the removal of employment disincentives. On the issue of people aged under 25 years, we are looking at the development of the youth progression programme and its extension to the older cohorts. We will offer training, education, community employment or a job. Similarly, we will strengthen the back to work allowance scheme and the area enterprise allowance scheme, which are very successful. The plan is a statement of the Government's intent to address the problem of long-term unemployment, which we acknowledge continues to exist.
I understand approximately 60,000 people are to be interviewed under the employment action plan, which I welcome because young people who are unemployed deserve the opportunity to be interviewed. Who will interview them and will the interviewers have special training?
The question of interview is a matter for FÁS and the local employment services. That will be driven by the Department of Enterprise, Trade and Employment. There will be sufficient staff; this plan would not have been published if there had been any problems regarding the availability of staff.