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TX: 16.03.06 - Remploy

PRESENTER: LIZ BARCLAY
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BARCLAY
Now the government has just announced a review of Remploy, the employment organisation which employs almost nine thousand disabled people, five and a half thousand of them in factories. Remploy is fully funded by the Department of Work and Pensions and has been operating since the Second World War. Our political correspondent Gary O'Donoghue has just hot-footed it back from a government briefing.

Gary, why a review exactly?

O'DONOGHUE
Well ministers believe now really that the factory business of Remploy, particularly, is unsustainable, that's backed up by an independent report last autumn which suggested that each job in Remploy was costing the government something like £18,000 a year to subsidise. And I understand that there's likely to be a substantial overspend on the Remploy budget this year. So they believe the costs are spiralling out of control and that this really isn't the model to go forward with, in terms of employing disabled people.

BARCLAY
So the Department of Work and Pensions though presumably would say this review is to make sure that disabled people are getting the best possible service?

O'DONOGHUE
Yes, I mean the Department of Work and Pensions stress that there are no jobs at risk at this stage but certainly there's a suspicion among the unions that this is something more fundamental. And they say they welcome the review, particularly because they believe there's a large amount of money being wasted on senior management in the organisation.

BARCLAY
Well Gary obviously this is something that will develop over the next few days and you'll keep an eye on it for us, thank you for joining us.




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