A slight easing of restrictions on participation in the community employment scheme has been proposed by the Government, in a move seen in part as a response to Fianna Fáil's poor showing in the recent elections.
Cutbacks to the scheme and other labour market programmes were cited by backbenchers at a party meeting this week as a major reason for its drop in support.
In a document given to the social partners last night, the Government proposes to extend the three-year time limit on people's participation in the community employment scheme "in exceptional circumstances".
The document, seen by The Irish Times, proposes to revamp the operation of the scheme. It places a question mark, however, over the continuation of two other job support schemes, the job initiative and social economy programmes.
Overall, it is proposed to maintain the combined numbers employed in the schemes at 25,000.
The proposals are likely to be viewed as a compromise between the hardline stance taken by the Minister for Finance, Mr McCreevy, who refused to provide increased funding for the scheme in the December Budget, and the demand for extra resources issued at the time by the Minister of State for Labour Affairs, Mr Frank Fahey.
Mr Fahey, supported by more than 30 Fianna Fáil backbenchers, had sought an additional 5,000 places in the community employment scheme. While this was not proposed in the document circulated last night, other proposals made by him are included. While a three-year time limit for participation would remain, this could be extended in exceptional circumstances, the document proposes.
Only those aged over 55 and living in urban areas of disadvantage, as well those in receipt of disability payment, could benefit, as other participants would be expected to have left the scheme and moved on to mainstream jobs within two years of joining it. The document says the job initiative scheme has not worked well as a means of enabling long-term unemployed persons to get back into the open labour market. There were 2,300 people employed on the scheme at the end of last year, mainly in the community and voluntary sector.
It is proposed that as participants leave the scheme, on reaching the three-year time limit, the resultant savings should be used to fund more intensive training or additional places on the community employment scheme. A fundamental reappraisal of the social economy scheme is also proposed.
Some 334 enterprises, employing 2,370 people, were being funded under this scheme at the end of last year.
The social partners are being invited to make written observations on the proposals before attending a meeting with Government departments in the coming weeks.