Big cuts may leave some $l50 short

Press, 13 December 1985, Page 26

Big cuts may leave some $l50 short

PA Wellington Big cuts in work schemes for the unemployed, expected before Christmas, will leave some $l5O a week worse off, according to the Employment Network. The Government is expected to announce soon the phasing out of the Project Employment Programme and restructuring of other employment schemes.

A main concern was a proposal to phase-out all schemes where payments' were based on award rates, a network co-ordinator, Mr Robert Reid, said. These would be replaced by schemes where workers were paid allowances — a drop of $l5O a week for some people. Mr Reid said it seemed clear the Government planned cutting back the number of jobs available in work schemes, at a time when manufacturers were predicting huge layoffs next year.

The phasings-out of the P.E.P. scheme was foreshadowed by the Minister of Finance, Mr Douglas, in his June Budget. Fully subsidised schemes, such as P.E.P., would be phased out as new measures, like the job opportunities scheme, were implemented, Mr Douglas said. The Employment Network believes the job opportunities scheme may be the only work scheme left available for adult workers after the Government cuts. Under jobs schemes, employers receive subsidies of $75 to $l2O a week when taking on unemployed people. Schemes for younger unemployed, such as schoolleavers training and employment preparation schemes, the newly announced Access scheme, and the Young Persons Training Programme, are expected to survive the cuts.