Thursday, November 26, 1998 Jobless face dole cut By TOM ALLARD The unemployed face a cut in their benefits if, after registering, they do not seek assistance almost immediately from the Job Network, under reforms to be put to Cabinet by the Federal Government's employment ministers, the Herald has learned. The reforms to the ailing Job Network scheme, to be announced before Christmas, will also include measures to prop up job agencies, many of which are in a grave financial position and face closure. Agencies will receive an additional "service fee", the role of Centrelink will be downgraded and it will be made easier for the short-term unemployed to get job search assistance from agencies. Substantial additional funding is likely to be needed to implement the changes, the second major revamp of the troubled Job Network program since it was introduced just over six months ago. Following lengthy discussions with Job Network members, the Minister for Employment, Mr Reith, and the Minister for Employment Services, Mr Abbott, are close to finalising the reforms. They centre on two objectives: increasing the number of people using the Job Network and providing financial relief to the cash-strapped agencies. To achieve the first, the ministers want to increase sanctions on the unemployed, requiring them to commit to "activity tests" almost immediately upon registering as unemployed and being assessed by Centrelink. In an expansion of the Government's "mutual obligation" principle, these tests will require the unemployed to use the Job Network or face a cut in payments. They will also be given the option of joining a work-for-the dole scheme or a similar training program. At present, only those who have been unemployed for more than six months are required to undertake programs under threat of lower benefits. The tougher penalties are intended to solve one of the main flaws in the Job Network - people are not taking the next step after registering at Centrelink. To further improve the flow of referrals to the Job Network, agencies will be allowed to register unemployed people who are not on benefits. At present, these people must go through Centrelink first. The ministers want to address the financial plight of many agencies by offering all agencies a "service fee" in recognition of the large amount of unpaid work they do for the unemployed. Job Network organisations have warned that up to one-third of the 310 or so agencies face closure. Another measure to increase funding for agencies is to relax the criteria restricting the unemployed from using "Flex 2" job search services such as the drafting of r�sum�s and interviewing skills. These services earn agencies up to four times the amount the $250 on average they receive for simple "Flex 1" job-matching - successfully placing people in jobs advertised on the Job Network database. Cabinet is expected to discuss the reforms shortly.
