Campaigning for the Dublin South Bye-Election in Chuchtown, Dublin are (l-r) Fine Gael Leader Enda Kenny TD, candidate George Lee, Olivia Mitchell TD and Michael D'Arcy TD.

Fine Gael Leader Enda Kenny TD today launched what it termed a "rescue plan" for small businesses to help them through the recession and to support jobs. The Enterprise Spokesman Leo Varadkar TD said the Fine Gael measures could save an average small business around €50,000 a year. Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan TD and Minister for Social and Family Affairs, Mary Hanafin TD, this afternoon announcined details of a Work Placement Programme and a Short Time Work Training Programme, at Government  Buildings.

Speaking at the FG launch in the Merrion Hotel, Varadkar published A Fresh Start for Jobs in Small Business, a set of 18 proposals to support small businesses and save jobs. They include measures to support small businesses, tackle business costs such as rent, a freeze on Government charges, and concrete steps the Government can take to protect jobs.

“Small businesses are the backbone of the Irish economy. There has been a silent haemorrhaging of jobs from small & medium enterprises across the country. Yet the Government has failed to produce any concrete measures to support SMEs and stem the tide of rising unemployment.

“That is why Fine Gael is launching its SME rescue package, which includes 18 specific measures to help small firms survive the recession, retain jobs and hopefully create new ones. Our proposals include:

• Offer employers a PRSI exemption for new staff recruited over the next two years, or an alternative of a €6,000 wage subsidy per employee over the same period;

• Reduce local authority rates and freeze Government charges;

• Reduce energy costs;

• End upward only rent reviews to ensure that businesses can benefit from market rates;

• Abolish the €10 travel tax and reverse last year’s VAT hike;

• Ensure prompt payments to businesses from Government and creditors;

• Make it easier for Irish SMEs to win public tenders.

“The SME sector employs more than 800,000 people. This sector contributes billions to the economy in taxes and PRSI, but is being very badly hit in the recession. After years of rising costs mostly imposed on them by the Government, SMEs must now contest with falling demand for their goods and services. In recent months, the Government has made the situation worse. The decision to increase VAT has driven consumers North, which has severely impacted on the retail sector.”

Ministers Coughlan and announced details of the Work Placement Programme and a pilot Short Time Working Training Programme. Both of these activation programmes, which are aimed at assisting the unemployed and those on a reduced working week, were contained in last month’s Emergency Budget.

Speaking at the launch the Coughlan said, “With the increasing numbers of people who are unemployed this Government is continuing to develop and put in place new programmes that will enhance the work experience and training opportunities for these individuals. Today we are announcing the details of two such initiatives, the Work Placement Programme and a pilot Short Time Working Training Programme, both of which demonstrate our commitment in Government to assisting and activating the unemployed and those individuals who are on a reduced working week.”

Hanafin said "this is an exciting and innovative way of using social welfare payments to provide young people with the valuable experience needed to benefit fully from an economic upturn. These placements will encourage our graduates and young people to use their skills and to give them the hope and optimism which they need in these current difficult times.

Traditionally social welfare payments for jobseekers were conditional on the recipient actively seeking work. These new schemes waive that requirement and see us move from welfare for unemployment to welfare to
work."

The Work Placement Programme is a six-month work experience programme for an initial 2,000 individuals who are currently unemployed. Under this programme there will be two streams each consisting of an initial 1,000 places. The first stream is for graduates who before this year have attained a full award at level 7 or above on the National Framework of Qualifications and who have been receiving Job Seeker’s Allowance for the last six months.

The second stream will be open to all other individuals who have been receiving Job Seeker’s Allowance for the last six months. Under this stream 250 places are being ring fenced for those under 25 years of age.

Participants on both streams of the Work Placement Programme will continue to receive their existing social welfare entitlements from the Department of Social and Family Affairs for their duration on the programme.

The pilot Short Time Working Training Programme will provide two days training a week for 277 workers over a 52-week period. Under this scheme, workers who are on systematic short time working for 3-days a week and receiving social welfare payments for the two days they are not working will receive training for these two days. Participants on this programme will continue to receive their existing social welfare entitlements from the Department of Social and Family Affairs.

The Tánaiste stated, “From 2nd June FÁS local offices will be taking applications from people who are interested in either the Work Placement Programme or the Short Time Working Training Programme with a view to placing them or commencing their training within a period of weeks.”

She continued, “Both of these programmes build upon the recent Government responses to the rising numbers of unemployed in the country. I have almost doubled the capacity of the job search services within FÁS from 6,500 to 12,250 persons per month, bringing the total number of places for referrals by the Department of Social and Family Affairs to 150,000 per year.”

“Through significant redeployment of resources, the number of activation, training and work experience places available through FÁS is 128,000, which is almost double the 66,000 places available at the end of last year. The majority of these additional places are being provided under FÁS Training Initiatives Strategy and are short courses.”