THE Government's "Jobstart" programme, which provides an £80 a week jobs subsidy for employers taking on long term unemployed persons, has been attacked by Fianna Fail. However, SIPTU has welcomed assurances from the Minister for Enterprise and Employment, Mr Richard Bruton, that the subsidy would not be used to provide "a low pay charter for employers".
The Fianna Fail deputy leader, Ms Mary O'Rourke, accused the Government yesterday of "serious deception" in its Budget proposals. She said it would cost £20 million a year to provide jobs for 5,000 long term unemployed people along the lines proposed. Instead the Government was allocating £1 million this year.
She said she agreed with reservations expressed by SIPTU on Monday that the subsidy could "foster a culture of low pay", especially as employers were not being asked to contribute matching funding.
However, Mr Norman Croke of SIPTU's hotels, restaurant and catering branch, welcomed the Minister's assurances on Monday night that FAS would be monitoring the scheme. Given that tourism would continue to be a major area of job creation in the economy, he said, it was important to maintain the highest possible standards.
"Proper pay and conditions, coupled with training initiatives are essential to maintain morale and guarantee the highest quality service. This is the best way of ensuring growth and of meeting the Government's target of 35,000 new jobs for the industry.
A spokesman for the Minister said yesterday monitoring procedures were still being devised. The scheme is to operate from July 1st and up to 2,000 long term unemployed could the recruited by the end of the year.
The net allocation of an extra £1 million would be sufficient to meet this year's requirements, he said, when allowance was made for the claw back from social welfare payments.
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