Turia calls for return to subsidised work schemes

A Government minister wants to bring back fully subsidised work schemes, like those of the 1980s recession, to help people through today's crisis.

Associate Social Development and Employment Minister Tariana Turia said schemes such as the Project Employment Programmes (PEP), which were axed in 1985, should be brought back temporarily while the current recession lasts.

But Mrs Turia acknowledged the difficulty of re-introducing such programmes, saying colleagues were more interested in schemes promoting "sustainable employment".

"While I believe in that, I think that in times of really high unemployment, if we were to have make-work schemes then it's highly likely we will see what happened in the 80s where the crime rate will be lowered.

"So there will be savings to be made. And more importantly, it will give young people the opportunity to develop skills."

Mrs Turia, who has been given responsibility for Maori and Pacific employment, wants to create cadetships for young Maori and Pacific people in public and private sectors. She also wants to encourage more trade apprenticeships.

But she said those who could not get cadetships or apprenticeships would be much better on work schemes than on the dole.

"I would much prefer there to be the kind of schemes that were around in the 1980s at a time when there was very high unemployment," she said.

"Over this 18-month period when we are going to have high unemployment, it would seem to me to be a great opportunity to look at how we engage with young people and give them confidence to be able to apply for jobs in the future."

She said many youngsters who worked on PEP schemes in the arts 25 years ago had gone on to become successful artists.

She said people on the schemes should be paid wages and should be fully subsidised, as they were in the 1980s.

A former director of the Jobs Research Trust who ran schemes in that period, Vivian Hutchinson, said workers were paid for a 40-hour week on the gardeners' award, which was "just above" the minimum wage.

The Labour Government elected in 1984 abolished the schemes because of escalating costs and "abuses".

Mr Hutchinson said some councils employed a majority of their parks department workers through PEP schemes, displacing permanent gardeners.

He said it would be better for the Government to let contracts for councils to bid for work and social services that were needed, employing staff on normal wages.

"I think the Government should set a goal, or reinforce the goal of the Mayors' Taskforce for Jobs that no young person under 25 should be out of work or education."

HELPING HAND

PROJECT EMPLOYMENT PROGRAMME (PEP), PRE-1985
* Fully tax-funded jobs, mainly with councils and non-profit agencies.
* Workers paid gardeners' wages for 40 hours a week.
* Numbers peaked at more than 50,000.

TODAY
* Skills investment subsidies and taskforce green pay up to $325 a week for people such as the disabled who are disadvantaged in the job market.
* Enterprise allowance of up to $380 a week is paid to unemployed people starting businesses.
* Work and Income may also pay for clients to go to Outward Bound for three weeks or to the Army (Limited Service Volunteers) for six weeks.