THE £80 a week employment subsidy announced in the Budget is to be introduced from July 1st. It will go to employers willing to recruit people who have been on the dole for at least three years.
Up to 5,000 jobs are to be funded under the scheme, which will be financed through FAS. It will be phased in over the next two years, with 1,500-2,000 being sanctioned in 1996.
The details of the scheme were announced yesterday by the Minister for Enterprise and Employment, Mr Richard Bruton. It was "specifically targeted at people who are long term unemployed" there "will be no requirement for additionality, which undermined previous efforts in this area".
In previous schemes employers were required to show that the people taken on through employment subsidies were additional to existing staff. While dropping this condition may make it more attractive for employers to take on the long term unemployed, it may also lead to some displacement of existing staff.
Under the new scheme people will have to be employed for 52 weeks before the employer qualifies for the subsidy. It was unclear last night how long employers would have to wait for payment of the subsidy. A spokesman said payments would be at regular intervals and probably begin before a full year had passed.
Earlier in the day the subsidy was criticised by the Fianna Fail deputy leader, Ms Mary O'Rourke, and Father Sean Healy of the Conference of Religious in Ireland. Both expressed concern that only £1 million additional funding had been set aside for the scheme this year and that it could reduce pay in some sectors.