26 March 1998 Edition

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Is New Deal a raw deal?

By Ned Kelly

Community groups in West Belfast have claimed that Labour's `New Deal' for the unemployed is ``dishonest and opportunistic'' and fear that despite it being linked to the much trumpeted arrival of new fair employment legislation it seriously fails to address the equality agenda.

Community umbrella group, the Falls Community Council (FCC) launched a critical report into the impact of the British government's `New Deal' on Monday. Along with the West Belfast Partnership Board, who declined to become the lead agency involved in implementing the `New Deal', the FCC condemned the coercive element of the new `welfare to work' scheme.

The `New Deal', which is due to start on 6 April, will incorporate four options; subsidised employment, full-time education and training, an environmental task force and a voluntary sector option. People who ``unreasonably refuse'' to take up any option will initially be suspended from benefit but ultimately can have their benefit completely stopped. The package is being funded by the £3.5 billion raised from the privatised utilities windfall tax.

At the report launch, Partnership Board community representative Liz Groves highlighted objections to the ``sudden enforcement of the scheme, the high handed approach of the Training and Employment Agency (TEA) and the failure of the new scheme to promote a strategic policy.'' Eileen Howell, FCC director, reiterated the fact that this was a ``compulsory scheme as opposed to the voluntary Community Work Programme and the ACE schemes.'' She highlighted the fact that while these projects are still awaiting proper evaluation, and the New Deal pilot schemes will overlap its launch, there was no scope to incorporate lessons that might be learnt from earlier schemes.

Despite the positive aspects of the New Deal that promote counselling, promote employer involvement and access to new funds, the report stresses that these may not address the core issues of Catholic unemployment in the North. Where systematic discrimination has left Catholics twice as likely to be unemployed and the situation for the long term unemployed and ex-prisoners worse, there is a need for radical solutions, not schemes that have been transferred from Britain where the causes of unemployment are different.

In Britain, of 250,000 employers approached to take part in the scheme, only 4% have signed up. The counselling provided will do nothing to address the real needs of the young or the long term unemployed. The FCC report also raised the fears that companies might exploit the New Deal employees by substituting them for full time employees and just cyclically replacing one group of hopefuls with another.

Ideas such as the Neighbourhood Regeneration Work Programme, which intend to provide a three year work placement with a living wage and add to the growth of the community as a resource, developed in partnership with the community, aim to address many of the shortcomings of the New Deal by providing long term training, real money, and meeting community needs.

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