Speech by Minister Martin at the Launch of €10 million Wage Subsidy Scheme for the Employment of People with Disabilities

TUESDAY, 19^TH JULY

Director General, ladies and gentlemen,

It gives me great pleasure to be here today to launch this new initiative, the FÁS Wage Subsidy Scheme.

This development arises from a commitment under ‘Sustaining Progress’ whereby the Government gave a commitment it would develop actions aimed at enhancing employment opportunities for people with disabilities within the private sector; and, simultaneously providing scope for further development of sheltered enterprises. Together with other FÁS initiatives, this scheme represents a valuable contribution to the National Development Plan. It represents a holistic approach to the challenges faced by both employers and people with a disability, in increasing their integration into the open labour market. This is made possible by providing an incentive to both the employer, and potentially, the employee with a disability. A budget of €10 million has been established for the Scheme for 2005.

It would be nice to say that the employment participation rates for people with disabilities have increased with the economic prosperity experienced by this country over the last decade. Unfortunately, this has not been the case. National Census and Quarterly Household Surveys continue to show that the unemployment rate for people with a disability remains two and half times more likely than their non-disabled peers. Furthermore, people with a disability in employment are more likely to be in part-time, rather than full-time employment. More has to be done if we are to make significant progress among our citizens with a disability. Survey after survey has found that, from a whole range of perspectives, employees with a disability contribute to their organisations at least on par, and in many cases in excess, of their non-disabled colleagues.

There is every incentive for employers in the private sector to recruit suitably qualified jobseekers with a disability. This is a source of potential employees that is not being sufficiently tapped into, and considering the range of supports available, resulting in an unnecessary waste of human resources. It must be stressed that the majority of such employees in the open workforce are able to work at productivity levels equivalent to their co-workers and initiatives such as this Wage Subsidy Scheme are designed to assist disabled people.

The new FÁS Wage Subsidy Scheme offers financial support to employers outside the public sector to encourage them to employ people with a disability who work in excess of 20 hours per week, and whose level of productivity is below 80% of normal work performance. Under this Scheme, financial supports for employers are structured under three separate strands:

Strand I - is a wage subsidy payment provided to an employer, which compensates them for a productivity shortfall that may arise as a result of the employee’s impairment

Strand II - provides that where an enterprise employs more than two employees with a disability, an additional allowance will be paid to that employer cover additional management and supervisory costs

Strand III - Where an enterprise exceeds 30 employees with a disability, a grant towards the employment and expense of an Employment Assistant Officer will be available.

This new Scheme is available to all employers outside the public sector. Persons employed under this Scheme will be subject to the same conditions of employment as other employees, including PRSI contributions, annual leave, tax deductions and the going rate for the job.

While this Scheme provides a number of financial incentives for employers, it also provides a significant incentive for people with a disability. Thos who meet qualifying conditions are able to avail of Back to Work Allowance fromthe Department of Social and Family Affairs. This is a major asset of this Scheme. Previously, we were only able to offer incentives to either the employer or the employee - not both. Under this Scheme the potential exists for both the employer and employee to receive an incentive.

Under the 2005 Estimates process for the Public Services I have secured additional funding for the introduction and operation of the new Scheme on a three-year pilot basis. A budget of €10 million has been established for the Scheme for 2005. This comprises the current provision of €5million for the combined Employment Support Scheme and the Pilot Programme for the Employment of People with Disabilities, and an additional €5million.

Those currently employed under the existing Pilot Programme for the Employment of People with Disabilities (PEP) will continue to benefit under this new scheme. The existing Employment Support Scheme will also continue to operate until this new Scheme commences at the beginning of September 2005, when it will be absorbed into this scheme. All people currently on the Employment Support Scheme will retain their existing conditions.

Under the Government’s mainstreaming policy my Department, and FÁS, has made considerable progress in extending services to employers who are interested in recruiting or retaining an employee with a disability, and, in tandem with the business community assist them attain their rightful participation in the workforce. I am confident that this Scheme will represent a significant addition to the range of employer supports available.

Efforts will continue to be made to remove, or bypass, the remaining barriers facing individual’s access to, and retention in, employment. Those with a disability are individuals with different skills, talents and abilities. The only thing that distinguishes them, for one reason or another, is that they are unable to do certain things in the same way as the mainstream of society – often because of the barriers society places before them. They can often perform all the important requirements of a job, far outweighing the relatively inexpensive adjustments that may be necessary as a result of their impairment.

People with a disability have learned to overcome their own barriers, now it is time for employers to open their doors to utilise these skills and talents – particularly in the current economic climate.

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