Sunday, 14 June 2009

Draft Action Programme - Getting Us Back to Work

This is a briefing paper prepared by The Job Seekers Union. It calls on the Government to take steps to stimulate a return to work for the hundreds of thousands of unemployed people in Ireland. We welcome people's comments and observations. The purpose of this draft action programme is to stimulate public debate with the view to formulating a more comprehensive strategy at a later stage. We welcome input and advice from all quarters regardless of background or belief. The Draft Action Programme is also available as a PDF download.

The Job Seekers Union is a voluntary organisation established by unemployed people to help themselves survive the unemployment pandemic that is sweeping across Ireland. The primary aim of The Job Seekers Union is to get people back to work.

There are currently over 400,000 people out of work in Ireland. In contrast there are very few vacancies. The reality for most jobless people is they are not going to find work in the current economic environment unless something significant changes.

The Job Seekers Union calls upon the Government to take the following steps:

1. Stimulate the Flow of Money in the Irish Economy:
a. Establish a National Enterprise Fund to create a dynamic lending environment by purchasing a substantial portion of bona fide loans made by the Banks to private sector businesses. This would ensure a constant source of working capital flowing to the Banks for onward lending to business. The effect would be to stimulate business activity and create a positive employment environment. Since this is based on bona fide loans which are repayable, it would not be a cost to the tax payer.

b. Establish a Domestic Debt Consolidation Agency to support re-structuring of personal debt thereby reducing domestic repayments and increasing disposable income. This doesn’t increase the amount of debt in the economy, but merely re-structures it to take advantage of lower interest rates.

c. Establish National Debt Re-Structuring Fund to purchase a substantial proportion of re-structuring loans made by banks to domestic families to ensure Banks have the funding to available to consolidate domestic debt. Since this is based on bona fide loans which are repayable it would not be a cost to the tax payer.

d. Introduce/enforce legislation to ensure business to business debts are paid in a reasonable time (60 days); unpaid debts over a certain period (90 days) to incur penalty interest payable to creditor.

2. Establish a Patriotic Savings Fund and encourage individuals and corporations at home and overseas to invest in Ireland

3. Promote Consumer Spending
a. Introduce positive measures to stimulate domestic spending:
i. Reduce VAT rate to 17.5% to level the price playing field across the Island of Ireland
ii. Aggressively market the concept of ‘patriotic consumerism’ to encourage spending in the Domestic market and on Irish produce
b. Introduce legislation to allow private tenants to renegotiate leases and take advantage of reduced rent levels. This would increase the disposable income of tenant households.
c. Encourage Public Sector to help stimulate economic activity through patriotic purchasing
d. Introduce a Home Improvement Grant scheme to stimulate the building sector
e. Establish a National Scrappage Assistance scheme for capital, white and brown goods to stimulate economic activity through replacement with environmentally friendly products

4. Protect existing jobs and promote job retention:
a. Abolish 60% employer redundancy rebate which is currently compensating/encouraging employers to make staff redundant
b. Introduce legislation to allow for wage re-structuring. In this way employers and employees could agree to replace a proportion of ‘Fixed cost wages’ with an equivalent productivity payment or equity participation. Support this with a Wage Re-structuring Grant that rewards employers and employees for improvements in productivity performance.

5. Promote Job Creation:
a. Support private sector organisations wanting to increase their work force by grant assisting salaries/wages for first 12 months for created new jobs.
b. Give income tax relief for bona fide expenditure on domestic services such as cleaning, gardening, child minding and so on
c. Reduce the Back-to-Work qualifying period 6 months on Job Seekers Benefit/Allowance. Continue benefit support for a Back to Work period of 24 months to allow new self employed people to establish themselves.
d. Introduce legislation to allow business tenants to renegotiate leases and take advantage of reducing rent levels and thereby reduce overall cost.

6. Reduce minimum wage to €7.00 to improve Irish competitiveness and encourage job retention/creation

7. Replace standard Job Seekers Benefit/Allowance with a Tiered Payment Plan that encourages participation in ‘Good For The Country Activities’ such as self employment, community employment schemes, training, and voluntary work.
a. Start basic payment at €100 per week; bring it up to €200 for participation in ‘Good For The Country Activities’.

8. Strengthen the concept of Local Community:
a. Promote local community activities; encourage people to get involved:
i. Garda Reserve/Neighbourhood Watch
ii. Sports and Social Clubs
iii. Neighbourliness

9. Establish of a new Community Employment Board:
a. Set up Job Clubs/Networks in every town across the country
b. Identify local community based projects capable of getting people back to work locally
c. Set up local Community Co-operatives to undertake the local projects identified above and offer local employment to people
d. Pay people working on the Community Co-operative schemes 50% premium above standard Job Seekers benefits

10. Increase Capital Spending to stimulate economic activity:
a. Accelerate school building programme, improvements in transport infrastructure, improvements to communications infrastructure
b. Divide public tenders into smaller tranches to allow Irish domestic businesses to win them
c. Encourage Bartering as a non-cash way of increasing economic activity

11. Encourage innovation
a. Establish Enterprise Centres across the Country to offer free start-up advice, serviced office and workshop facilities.
b. Relax legislation, bureaucracy and red tape to allow people to start home industries such as baking, back-yarding, jam making, sandwich preparation, sewing, car maintenance and so on.
c. Encourage Banks to provide zero interest Start-Up Loans to individuals to set up small businesses including self-employment and help contribute to the investment cost of premises, equipment, transport, furniture and other tools. Include these loans within the gambit of the National Enterprise Fund above.

12. Encourage re-training, higher level education:
a. Introduce a Re-Training/Education Allowance as an additional payment to encourage Job Seekers to pursue training. Introduce a once-off Qualification Payment for successful completion of a training programme.
b. Encourage participation in Sales and Customer Service Training to promote overall economic activity and stimulate a service led recovery.

13. Establish a National Volunteer Scheme and pay additional benefits to encourage participation in do-good activities at the national and community level

14. Sell Ireland overseas:
a. Develop an ‘Irish’ brand identity
b. Tidy up the Country, promote Ireland as the Clean and Green part of Europe
c. Introduce Grants to encourage investment in tourism
d. Target the Irish Diaspora

15. Encourage inwards tourism
a. Abolish Airport Taxes for non-residents
b. Reduce employers PRSI on inward tourism and domestic tourism activities
c. Reduce employers PRSI on export oriented activities

16. Balance Economic Activity Across the Regions

17. Promote the concept of the ‘Island of Ireland’ and encourage cross border activities

18. Stimulate Green Economy
a. Establish ‘Green Grant’ scheme to encourage and support, and give a fiscal advantage to all environment friendly and energy efficient activities
b. Introduce heavy penalties for pollution, litter and environmental damage

19. Invest in and Promote Public Transport; encourage private enterprise to provide public transport
a. Establish a National Transport Board to consolidate all public transport activity
b. Establish a Dublin Transport Authority to consolidate all public transport in Dublin
c. Encourage Car Free areas in our cities and major towns

20. Extend recycling activities to encourage economic activity and support the National Scrappage Scheme

Copyright © The Job Seekers Union, 2009

4 comments:

  1. I think your 20 point plan is very good. Looking at point number 8 of the plan I find it very good as I do my own volunteer in my area. When I was 65 I could not get a full contributory pension. So I was told to go on job seekers allowance. The possibility of getting a job for a guy over 65 years is far-fetched.

    On tuesday ever week we have collection day either refuse or recycling. So I go out and edge all the over grown pathways in my area for 2hours. But if I were to get a small increase in my alloiwance I would gladly work 4 days a week.

    One day while working the local litter warden stoped to talk to me and said I was doing
    a great job. As I was only using my own shovel and brush. He said to me that if I could orgnise a committee he may be able to get us gear such as (lawnmower, strimmers, clippers) and so on.

    This he said would come under the rejuvenation fund. I don't know what that is but there must be some funds both at local council and at goverment level - GEORGE O HERLIHY

    PS: Keep up the good work

    ReplyDelete
  2. Looking at this, I wonder what people think about point no 6 "Reduce minimum wage to €7.00 to improve Irish competitiveness and encourage job retention/creation"? I think this point in the programme needs to be clarified in case some might get the wrong idea. The emphasis must be placed on it as a measure to stimulate economy and increase social protection, otherwise it would be counter productive. It's a subject I might return to, but for now I think it's important to say that it should not be taken in isolation. It must be considered against the backdrop of the programme as a whole.

    ReplyDelete
  3. To All at Job Seekers Union,

    Congratulations on brilliant 20-point plan identifying key areas towards a return to work or even general improvement for many unemployed people. The points outlined below from the Draft I would have particular interest and have added my viewpoint in parenthesis {}.

    Encourage innovation (Brilliant ideas below)

    a. Establish Enterprise Centres across the Country to offer free start-up advice, serviced office and workshop facilities.
    b. Relax legislation, bureaucracy and red tape to allow people to start home industries such as baking, back-yarding, jam making, sandwich preparation, sewing, car maintenance and so on.
    c. Encourage Banks to provide zero interest Start-Up Loans to individuals to set up small businesses including self-employment and help contribute to the investment cost of premises, equipment, transport, furniture and other tools. Include these loans within the gambit of the National Enterprise Fund above.

    {I would request urgently the Government to encourage entrepreneurial spirit by having an Enterprise Allowance available to anyone who undertakes a new enterprise no matter how small it may appear initially. I do not understand why people who have been made redundant (through no fault of their own) to be able to avail only of Job Seekers Allowance. Even the name implies that one must aspire to employment for others, and not even give a consideration to setting up one's own business. All individuals have many inherent skills which could be applied towards developing small (to begin with) enterprises if the "wherewhthal" was available for them. Together with getting the economy moving, the empowerment and self-esteem for those individuals would be amazing.}

    12. Encourage re-training, higher level education:

    a. Introduce a Re-Training/Education Allowance as an additional payment to encourage Job Seekers to pursue training. Introduce a once-off Qualification Payment for successful completion of a training programme. {I see the National College of Ireland is running a scheme on the basis of degree level courses being made availabe to unemployed individuals, this should be pursued rapidly by Government}
    b. Encourage participation in Sales and Customer Service Training to promote overall economic activity and stimulate a service led recovery. {I strongly agree with this as the quality of service available in restaurants and stores leaves much to be desired. We have a great country but the initial impression of this country is portrayed to tourists when they walk into a restaurant, store and general services which are not always the best and brightest}


    13. Establish a National Volunteer Scheme and pay additional benefits to encourage participation in do-good activities at the national and community level {Excellent idea as people were so involved with reaching the top of their field of employment volunteerism and the care and concern for neighbour became a "thing of the past"! It's well time to return to the care of elderly and less priviledged in our areas.}

    14. Sell Ireland overseas:

    a. Develop an ‘Irish’ brand identity
    b. Tidy up the Country, promote Ireland as the Clean and Green part of Europe
    c. Introduce Grants to encourage investment in tourism {Excellent - signage in both city and country roads appalling standard, if at all. I have known a local to drive around the south city three times in an effort to get out of town, no signage whatsoever, and all one-way streets, what is a tourist to do? if a native of the city gets "locked in" trying to get out of town..... As for the country roads, another story, much sign posting in some areas and one could travel twenty miles without a sign in other areas. This should be a major area of concern.}
    d. Target the Irish Diaspora

    ReplyDelete
  4. Thinking about point six and the question of the national minimum wage has got me wondering. Should we not also be considering the introduction of a national maximum wage?

    I've given a more in-depth view on this issue, elsewhere on this blog [The Case for a National Maximum Wage] but here I'd just like to suggest the following an amendment to point six of the Draft Action Plan:

    "A review of the national wage structure to take account of new realities, for the purpose of making the Irish economy more competitive internationally and stimulating local demand. For an economy that serves the needs of the people with social protection as it's primary concern. For a national minimum wage that reflects these aims accompanied by the introduction of a national maximum wage."

    ReplyDelete

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