The Forum for Political Dialogue met between 1996 and 1998 in Belfast as part of the negotiations that led to the Good Friday Agreement.
The Northern Ireland (Entry to Negotiation, etc) Act 1996 provided for a Forum constituted by delegates elected in elections under the same Act to consider and examine issues relevant to promoting dialogue and understanding within Northern Ireland. The Forum met at the Interpoint Centre, York Street, Belfast from 14 June 1996 to 24 April 1998.
To see the full record of a committee, click on the corresponding committee on the map below.
Motions and amendments, Business, Murder of Bernadette Martin, EU peace and reconciliation programme, Long-term unemployment, Local Government: environment functions
Note
DRAFT REPORTS
ACKNOWLEDGEMENT
The Committee wishes to express its sincere thanks
to all who provided submissions or contributed in any
other way to this initial investigation into long-term
unemployment.
FOREWORD
In the time available, the Economy Committee has
examined evidence submitted to it by a number of
local authorities and other relevant organisations.
While realising the importance of each of the key
issues considered in Part III of this report the
Committee recognises that the generation of new job
opportunities through investment is essential.
Having considered various options for dealing with
the problem of long-term unemployment we now
bring forward these initial conclusions.
It is the Committee's intention to further deliberate
and consult prior to completing a final, and more
detailed report, in the early Autumn.
REVIEW OF LONG-TERM UNEMPLOYMENT
CONTENTS
Page
I. INTRODUCTION 1
II. EVIDENCE 3
III. KEY ISSUES 5
1. INVESTMENT 5
2. TRAINING 7
3. SINGLE INTEGRATED PROGRAMME 9
4. BENEFITS TRAP 11
5. SKILLS 13
6. SELF-EMPLOYMENT 15
7. COMMUNITY LED INITIATIVES 16
8. SPECIAL NEEDS 17
9. CHILD CARE PROVISION 18
IV. SUMMARY OF RECOMMENDATIONS 19
Appendix A - Membership of Committee
REVIEW OF LONG-TERM UNEMPLOYMENT
I. INTRODUCTION
1 The Economy Committee (Standing Committee E) of the Northern
Ireland Forum for Political Dialogue was set up with the following
Terms of Reference:-
"To examine issues relevant to the performance of the
Northern Ireland economy and report to the Forum at
periodic intervals."
2. Having begun its work of examining issues affecting the performance of
the Northern Ireland economy the Committee focused on long-term
unemployment as one of a number of key areas identified as worthy of
consideration.
3. There are areas within Northern Ireland where unemployment has
become a way of life over a number of generations. In such areas there
is simply not enough employment for the people who live there and the
number of school leavers each year exceeds the number of jobs
available for them. There are, in such areas, families where for
generations heads of households have been on long-term unemployment
and this has inevitably become a way of life for too many people.
1
4. In its 1996/97 Operational Plan the Training and Employment Agency, in
line with its commitment to improving service to its customers, set itself
an objective to examine the needs of the long-term unemployed and
review existing provision.
5. In March 1997 the Agency issued a document discussing the economic
context of its work in relation to the long-term unemployed and offering
for discussion approaches for the recovery and reintegration of the
long-term unemployed into the workforce.
6. The discussion document seeks views on how best the Agency can
utilise its resources and provide appropriate measures to make maximum
impact on long-term unemployment.
7. Having identified long-term unemployment as a key area for
consideration and wishing to provide a response to the Training and
Employment Agency's consultation document, the Economy Committee
brings forward this initial response.
2
II. EVIDENCE
1. As part of our review we sought comments on the long-term
unemployment consultation document from a wide range of
organisations with an interest in the economy including the 26 District
Councils. These organisations were also requested to make brief written
submissions to the Committee on measures to address the problem of
long-term unemployment.
2. Responses have been received from the following organisations:-
(a) District and Borough Councils
Ballymena Borough Council
Banbridge District Council
Coleraine Borough Council
Cookstown District Council
Craigavon Borough Council
Down District Council
Larne Borough Council
Lisburn Borough Council
Moyle District Council
(b) Other Organisations
Bryson House
Confederation of British Industry (Northern Ireland)
Enterprise Ulster
Fermanagh Community Work Programme
3
Lenadoon Community Forum
Northern Ireland Committee of the Irish Congress of Trade
Unions
Northern Ireland Federation of ACE Schemes
Strabane and District Community Work Programme
4
III. KEY ISSUES
1. INVESTMENT
1.1 Attracting new investment must continue to be a priority if an effective
attack is to be made on the persistent and costly burden of long-term
unemployment. The creation of additional job opportunities is
necessary to ease current high levels of unemployment and, in
particular, long-term unemployment. Much good work has already
been done by both the statutory agencies and by individuals to attract
new investment, with success often coming through personal contacts.
1.2 Greater assistance should be made available to industry as an incentive
to provide secure employment for the long-term unemployed. This
could perhaps take the form of additional 'tax breaks' as opposed to
direct employment grants which often in the past have failed to secure
long-term employment. This will involve a range of complementary
measures including training, skills audit, work experience and work
placement, and suitable remuneration. The Committee notes the
Chancellor's announcement in the Budget Statement that assistance is to
be offered to employers who take on a long-term unemployed person.
1.3 The Industrial Development Board (IDB) could consider the possibility
of offering grant assistance to any indigenous or potential inward
investor with the proviso that, where possible, a percentage of the new
workforce should be drawn from the ranks of the long-term
5
unemployed. The Committee plans to consider the work of IDB and
LEDU in more detail in a future report.
Recommendation
1.4 The Committee recommends, therefore, that both individuals and
the statutory agencies should continue and enhance their efforts
to attract both inward and indigenous investment and that
Government should offer greater assistance to the business
community as an incentive to provide secure employment for the
long-term unemployed.
6
2. TRAINING
2.1 As most new industries are likely to involve new technology, the
long-term unemployed will require suitable training or re-training to
prepare them to take up jobs of this type with established or new
companies which have been encouraged to invest in areas of high
unemployment.
2.2 Primary responsibility rests with Government in partnership with
employers to train the long-term unemployed to the required standard so
that they can avail of the opportunities which new investment can bring.
Regular re-training can in itself be a major contributor to the problems
of the long-term unemployed.
2.3 There is a continuing need to finance a variety of approaches for the
training of the long-term unemployed. Participation in both full-time
and part-time education should be encouraged as well as skills refresher
courses for those whose unemployment is not due to a declining
industry. Government Agencies, in consultation with education and
training institutions, should simplify and standardise rules to assist
unemployed people undertake education and training.
2.4 For those suffering the effects of long-term unemployment,
Government should expand the provision of motivation courses and
training in interviewing skills and CV completion. The Committee notes
that currently these are only available in selected areas. Those who are
7
willing should be offered training in skills/topics relevant to new
industries or industries that are planning to expand.
2.5 Voluntary placement schemes should be developed to allow new
graduates to expose themselves to industry and its demands and
enhanced investment and greater effort should be made by Government
to allow existing training schemes to provide tailored training,
co-designed by and for local industry.
2.6 The commercial sector should be encouraged to form partnerships with
the voluntary sector and share in the support and mentoring of people
as they make their return to the world of work.
2.7 Learning support units should be set up to offer additional support and
assistance to slow learners and low achievers in reaching their targeted
outcomes. Second chance educational opportunities could address the
basic needs of those people for whom the educational system has failed.
Recommendation
2.8 The Committee recommends that adequate finance be made
available to provide the appropriate training and assistance to
bring the long-term unemployed up to the required standard to
enable them to seek suitable employment.
8
3. SINGLE INTEGRATED PROGRAMME
3.1 The T&EA, in its consultation document on Long-Term Unemployment,
states that in developing its existing programmes and services for the
long-term unemployed, a multi-levelled and multi-disciplinary approach
will be required.
3.2 Commenting on the need for a single co-ordinated policy, Craigavon
Borough Council has stated that "the approach in the past would appear
to have been fragmented". They would encourage the T&EA and
Central Government "to take an integrated approach towards tackling
the long-term unemployment issue, insofar as this recognises the need
to have a single policy dealing with the related social and economic
programmes".
3.3 Bryson House in their response to the Committee also recognise that
"any programme that is going to aim to tackle such a diverse range of
issues must be multi-layered and encompass opportunities for all at
differing levels of entry".
3.4 A single integrated programme approach is dependent on providing the
access, guidance and learning opportunities to meet the individual needs
of the unemployed at the appropriate time, place, pace, and cost. The
programme should include a flexible process relating to the needs of the
unemployed person and building on their strengths progressively to
assist them in gaining qualifications and employment. Progressive
9
assistance of this type is already available to some of the long-term
unemployed through the Jobskills Programme.
3.5 The Committee believes that the level of long-term unemployment can
be reduced through a concerted and co-ordinated approach by
Government, the community/voluntary sector and the private sector.
The development of local partnerships involving all the key players is
also to be encouraged. There is a need for greater complementarity
with various schemes being co-ordinated under one over-arching body.
Recommendation
3.6 The Committee recommends that Government take an integrated
approach towards tackling the long-term unemployment issue by
co-ordinating policies into a single integrated programme.
10
4. BENEFITS TRAP
4.1 The interaction of benefits and wages is a factor that has to be taken
into consideration when framing policies for the long-term unemployed.
This is particularly important in Northern Ireland where families are
generally larger and wages lower than in the rest of the United
Kingdom. The question of transition from the receipt of benefits to the
receipt of wages also needs to be tackled.
4.2 As the benefit system generally operates at the "family unit" level it is
necessary to deal with the household and not simply the individual. The
Committee feels that the major issue of redesign of the benefits system
must be addressed to ensure that, as far as possible, people in work or
on employment schemes are paid more than the total benefit income to
which their household would otherwise be entitled. People are likely to
be discouraged from working if their earnings do not exceed these
thresholds.
4.3 While accepting that there is a need to redesign benefits the Committee
also feels that steps should be taken to ensure that those in employment
receive adequate wages. People entering employment with very low
wages should continue to be entitled to receive sufficient benefit
payments to bring them up to a 'living wage' which should always be at
a level higher than the overall level of benefits paid to the unemployed to
provide an inducement to work.
11
4.4 In the context of this section the Committee supports the Government's
approach under its new "Welfare to Work" initiative which is designed
to give new hope to the long-term unemployed. It is hoped that this
may go towards alleviating the problem of long-term unemployment.
Recommendation
4.5 The Committee recommends that the benefits system should be
redesigned to ensure that the long-term unemployed are not
discouraged from working because of a 'benefit trap' resulting
from a disparity between benefits and wages.
12
5. SKILLS
5.1 Despite the level of unemployment that exists in Northern Ireland,
vacancies are often difficult to fill. There may be a number of reasons
for this such as low pay, poor reputation, dirty working conditions,
unfriendly environment, poor management etc.
5.2 However, there appears to be a gap between the requirements of local
industry and the quality and variety of output being delivered by the
Education sector and there is, therefore, a need to establish and create
meaningful linkages and joint ventures between education and industry.
Education and training need to be matched by policies which ensure that
there is a demand for the skills being developed.
5.3 Areas that need to be addressed if the skills gap is to be closed include
improvements in identification of skills needs, improved information
flows and improved counselling and guidance. There is also a need to
address core skills deficiencies eg literacy and numeracy at the earliest
possible stage.
5.4 Under-achievement in education also needs to be addressed if the flow
into long-term unemployment is to be reduced. The extent of
under-achievement within Northern Ireland remains high and a
concerted effort within the educational system is required to reduce it.
One area that needs to be considered in relation to this is the retention of
selection at the age of eleven.
13
Recommendation
5.5 The Committee recommends that the problem of
under-achievement in education be addressed and that greater
linkages be established between education and industry.
14
6. SELF-EMPLOYMENT
6.1 It is recognised that LEDU through its 'Self Start' programme offers a
range of support for people who wish to become self-employed.
However, more could be done to promote the option of
self-employment as a means of reducing the numbers of people who
have been unemployed for long periods of time and further
consideration should be given to the introduction of additional incentive
packages for those who are prepared to become self-employed.
6.2 People must also be made aware of the full implications of moving into
self-employment and have possible pitfalls explained to them. Schemes
are needed to offer training to those interested before they become
self-employed and to help those who do establish their own businesses,
particularly during the first three years which normally proves to be the
most difficult period.
6.3 Suggested help packages could take the form of tax relief or financial
assistance to help pay for the professional assistance of an accountant,
for example.
Recommendation
6.4 The Committee recommends that training and financial assistance
(including risk capital) should be available to assist long-term
unemployed people who have the ability and opportunity to
establish their own business.
15
7. COMMUNITY LED INITIATIVES
7.1 Several District Councils have introduced schemes to assist long-term
unemployed members of the local community. For example, Larne
Development Forum, in consultation with the local Social Security and
T&EA Offices, has set up a Jobseekers Action Point. This is a
community led initiative which has been established to provide
counselling, guidance, and advice on jobseeking and other options, to
unemployed people, with a particular focus on those 'longer term'
unemployed clients.
7.2 Partnership between District Councils, Community Work Programme
managers and local community group providers could have a favourable
impact on the provision of work experience for the long-term
unemployed as well as empowering local communities.
Recommendation
7.3 The Committee wishes to highlight community led initiatives as
making an important contribution to the reduction of long-term
unemployment.
16
8. SPECIAL NEEDS
8.1 In taking an integrated approach towards tackling the long-term
unemployment issue account should be taken of the special needs of
groups within the long-term unemployed, for example, older people, the
disabled, ex-prisoners etc.
8.2 There must also be special targeting of areas of social need. Any new
programme must match local regeneration needs with wider economic
strategies and policies.
Recommendation
8.3 The Committee recommends that account should be taken of the
special needs of groups within the long-term unemployed.
17
9. CHILD CARE PROVISION
9.1 The availability of child care facilities has a direct impact on long-term
unemployment. Indeed, one of the factors affecting those wishing to
undertake training and returnees to work is the lack of provision of
affordable child care. This needs to be addressed and may in itself
create additional new employment opportunities. The Committee was
glad to note the assistance which the Chancellor announced in his
Budget proposal for a National Childcare Strategy.
Recommendation
9.2 The Committee recommends that consideration be given to the
provision of affordable child care to enable unemployed parents to
return to work.
18
IV. SUMMARY OF RECOMMENDATIONS
1. Both individuals and the statutory agencies should continue and
enhance their efforts to attract both inward and indigenous
investment.
2. Government should offer greater assistance to the business
community as an incentive to provide secure employment for the
long-term unemployed.
3. Adequate finance should be made available to provide the
appropriate training and assistance to bring the long-term
unemployed up to the required standard to enable them to seek
suitable employment.
4. Government should take an integrated approach towards tackling
the long-term unemployment issue by co-ordinating policies into a
single integrated programme.
5. The benefits system should be redesigned to ensure that the
long-term unemployed are not discouraged from working because
of a 'benefit trap' resulting from a disparity between benefits and
wages.
19
6. The problem of under-achievement in education should be
addressed.
7. Greater linkages should be established between education and
industry.
8. Training and financial assistance (including risk capital) should be
available to assist long-term unemployed people who have the
ability and opportunity to establish their own business.
9. Full recognition should be given to community led initiatives
which make an important contribution to the reduction of
long-term unemployment.
10. Account should be taken of the special needs of groups within the
long-term unemployed.
11. Consideration should be given to the provision of affordable child
care to enable unemployed parents to return to work.
20
APPENDIX A
MEMBERSHIP OF
STANDING COMMITTEE E
(THE NORTHERN IRELAND ECONOMY)
Ulster Unionist Party - Mr D Nesbitt - Chairman
Mr R Stoker
Mr J Clarke
Mrs M Steele
Democratic Unionist Party - Mr St C McAlister - Vice-Chairman
Mr S Wilson
Rev E Smyth
Mr M Carrick
Alliance Party - Mr S Neeson
Mr S McBride
*Mr P Osborne
UK Unionist Party - Mr C Wilson
*Mr P Roche
NI Women's Coalition - Ms M McWilliams
*Ms N Heaton
*Ms P Sagar
Labour - Mr M Curran
*Mr W White
Ulster Democratic Party - Mr G McMichael
*Mr D Adams
Progressive Unionist Party - Mr H Smyth
*Mr B Hutchinson
*attend the Committee on behalf of the party under Rule 14(4)(a) of the
Forum Rules of Procedure.
2