Chch sees flaws in dole scheme

Press, 30 August 1989, Page 6

Chch sees flaws in dole scheme

More information about the Canterbury United Council’s work-for-the-dole employment scheme, now being considered by the Minister of Employment, is wanted by Christchurch City councillors. The council community adviser, Mr Alistair Graham, told the property and promotion committee recently of problems he saw in the scheme. More research was needed mainly on the real constraints facing employers, he said. The scheme had assumed that in the short-term at least unemployment was caused by the cost of wages.

“The main problem facing employers is redundancy,” Cr Maurice Carter said. Employers were not willing to take on staff they might have to pay redundancy money to later, he said. Mr Graham said the scheme would require substantial investment from employers, who would tender for labour from among the registered unemployed and indicating the subsidy they would need up to the level of the unemployment

benefit. More information was needed on whether employers would take up a partial wage subsidy.

The experience of the council’s job placement officer had been that the employment situation was tight and the scheme was unlikely to create many long-term jobs.

The scheme seemed to be complex and expensive to run. It was unclear whether the subsidy went with the job or the unemployed person.

The job opportunity programme, which the scheme proposed using, would have to be modified.

Other areas of concern included a suggestion that the scheme should become mandatory.

Mr Graham said when the scheme was first suggested he had pointed out the problems to its author, who had chosen to present it to the Government. The committee voted in support of job initiatives in principle but decided more information was needed about the the employment skills training scheme of the United Council.