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March 26, 1998
(Human Resources and Employment)
Budget Highlights
Department of Human Resources and Employment
Investing in People
Strategic directions emerged from Program Review
which caused a shift in thinking in terms of the way we deliver
our programs and services. As a result, Government created the
Department of Human Resources and Employment on April 1, 1997.
Our new vision is to AInvest
in People". During 1997/98, work proceeded to facilitate the
transfer of Child Welfare and Community Corrections and Family
and Rehabilitative Services to Health and Community Services. On
April 1, 1998, Human Resources and Employment will start to
develop its two lines of business: Income Support and Labour
Market Services. The Department will focus on human resource
development, on removing barriers to employment, and on
establishing and strengthening linkages between human resource
and economic development.
Human Resources and Employment will link income
support and labour market initiatives to help clients move into
paid employment. Government has approved the development of a
long term plan to redesign the way the department delivers its
programs and services. The new model will focus on the
development of a simplified income support system designed to
eliminate disincentives to employment, implement a new
computerized payment and client tracking system, and refocus
staff resources to concentrate on active employment services. It
is anticipated that the new service delivery model will be fully
implemented by the year 2002.
During 1998/99 Government will implement a number
of initiatives designed to address the income support needs of
clients.
Effective May 1, 1998, an additional $3M
will be provided to increase the rates for regular
assistance (food, clothing, fuel, household maintenance)
and for Board and Lodging for all clients by 2%. This
rate increase will improve monthly allowances for some
32,800 individuals and families currently receiving
income support.
Effective May 1, 1998, $400,000 will be
used to provide a monthly $150.00 Cost of Living
Allowance for families with dependent children
residing in Coastal Labrador Communities. This allowance
is in addition to the 2% general increase. This allowance
is approved in recognition of the unique challenges faced
by families living in these communities where it is
recognized that the cost of acquiring basic items such as
food and fuel is well beyond the normal range experienced
in other communities throughout the province.
Government wishes to encourage self
reliance among those currently dependent upon income
support. In this regard, effective June 1, 1998, $500,000
will be provided annually to revise the earnings
exemption for families with dependent children to a
maximum monthly exemption of $150. Currently, most
families receiving income support reporting income would
lose 50% of earned income and the maximum exemption
allowed is $100. Under the new initiative, the first $150
earned will not be deducted from the monthly income
support allowance.
Government recognizes the many barriers
to employment faced by individuals and families receiving
income support. This is especially so for single parent
families. Many of these single parent families find that
they are often "worse off" financially by
accepting employment at the minimum wage. Government, as
part of its approach to removing disincentives to
employment, is interested in testing ways to correct this
situation.
Therefore, $500,000 will be used towards a
pilot project to explore income support supplementation for
single parents to secure employment. These funds will be used
in cooperation with the Single Parents Association of
Newfoundland. Approximately 100-200 single parents will be
assisted to secure employment and then be provided with
appropriate income supplementation to ensure that they are
"better off" by being employed. This pilot will
contribute towards government's commitment to the redesign of the
income support program.
In addition to initiatives related to redesign of
income support programs, the Department will be actively pursuing
the redesign of employment related programming to meet the needs
of both income support clients and other client groups.
Focus on Youth
Government recognizes the problems faced
by young people as they try to make the difficult
transition from school to work. In this regard, there
will be a major focus on youth and post secondary
students. Over $7.5M will be directed towards
youth programs, targeting post secondary students,
youth "at risk" of becoming dependent on long
term income support, and youth seeking a first job and
work experience. Over 2,500 jobs will be supported
through wage subsidy initiatives.
Within the youth component, $2.1M will
support student employment through the Student Work and
Services Program (SWASP). The program will be available
to private sector employers, Memorial University and the
College of the North Atlantic. About 1,750 student jobs
will be created.
Wage subsidy programs have been
demonstrated as an effective intervention which assists
individuals obtain employment, and in particular those
seeking a first job. The amount allocated for the general
wage subsidy programs, targeted at private sector and
non-profit enterprises throughout the Province, will be
increased. In 1998/99, $4.4 M will be provided to create
over 1,100 employment opportunities.
Persons with Disabilities
In the area of employment programming for
people with disabilities, Government has continued to
support the employment of persons with disabilities in
the Public Service in the Opening Doors Program.
Government entered into a partnership arrangement with
the Public Service Commissions of Canada to increase
employment opportunities for persons with disabilities.
This year we are pleased to announce an expansion of
these services. The Department of Human Resources and
Employment and HRDC have committed an additional $1M
over the next two fiscal years for the creation of new
public sector employment opportunities for persons with
disabilities in this province.
School Children's Food Foundation
Government
recognizes the importance of good nutrition to the overall
development of children. Hungry children cannot learn as well as
their well fed counterparts.
Government
will provide $1M to the School Children=s Food Foundation of
Newfoundland and Labrador. This funding will enable the
Foundation to work with School Boards, School Councils,
Community Agencies, and the private sector to further
advance the roll-out of a province-wide Program, and
provide for the sustainability of the Program.
1998 03 26 5:45 p.m.
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