DÁIL ÉIREANN
Sitting Time: 10:30      
Sitting Date: 08/12/2011

LEADER’S QUESTIONS

Deputy Finian McGrath: Since the election, the Tánaiste has always said that jobs were a key priority for this Government.  I am glad the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, is here for this discussion.
End of Take

We all accept it is a key priority.  This morning there was again talk of getting people back to work.  In the past few days Technical Group Members, for example, have come to the House to make suggestions on job creation, the tax issue and the provision of supports for small businesses.

On job creation and, more importantly, job retention, in the budget why did the Government cut 66.6% from community employment schemes?  It is a significant cut for many voluntary and community groups.  How can the Tánaiste say to them that it amounts to sharing the pain when high earners are getting increases of €30,000 or €40,000 per year?  How can he say this to people participating in community employment schemes, including people with disabilities and workers in drugs services?  Is he aware that this is a direct attack on the 22,474 people involved in these schemes, including some in the disability sector, which provide a very valuable service?  In the past 24 hours people have seen what has happened to the disability allowance and there will be further cuts to the community employment scheme.  It is not a cut of 10% or 20% but 66%.  Will the Tánaiste reverse it?

The Tánaiste: We all agree that community employment scheme projects do great work in local communities and provide great opportunities for people to gain work experience.

Deputy Joan Collins: Why are they being cut?

The Tánaiste: The Government is committed to the continuation of community employment schemes.  The total amount being spent by the Department of Social Protection on employment support programmes, including community employment schemes, is not being reduced, rather it is being increased.  The total spend by the Department on employment support programmes will be €977 million in 2012.  It will be €882 million this year.  Within the increased budget there will be reforms in the way some of the money will be spent.  There are different circumstances applying to community employment schemes.  For some, the sponsors are statutory bodies which have separate education and training budgets.  In respect of other schemes, there is access to differing levels of funds from different sources.  Within this framework there is a review taking place of the total package to ensure the best value for money is being obtained.

We should be clear about one issue.  The Government is not closing down any community employment scheme or reducing payments to community employment scheme participants.  The overall amount provided for employment support programmes is being increased, within which there will be certain reforms by the Department of Social Protection.

Deputy Finian McGrath: I accept the point about closing down facilities, but I did not mention this in the series of questions posed.  I spoke about the cut of 66.6% in funding for many community employment schemes.  Does the Tánaiste accept that this cut will result in a loss of services for those on low wages, the unemployed, people with disabilities and older persons?  This is not part of our imagination.  Does the Tánaiste accept what the Northside Centre for the Unemployed in Coolock indicated yesterday in stating it was "appalled at the proposed savage budget cuts to the funding for community employment projects by way of a 66.6% cut for training and materials"?  The centre provides an excellent service on the Northside of Dublin.  Does the Tánaiste accept that this cut will have the effect of community employment projects being unable to afford to provide basic work health and safety training for participants, which is mandatory under health and safety legislation?  This is even before we get to progression-based training which participants need to undertake to move into mainstream employment.  The community employment scheme acts as an active labour market programme.  Will it be able to function without the funds necessary to provide access to quality training for participants?

The Tánaiste: I do not accept the Deputy's contention that the changes being made in respect of training payments for community employment schemes will result in a loss of services.  I do not accept that there will be a loss of places on such schemes.  The reverse is the case.  As I noted, the overall package of employment supports, including community employment schemes, is being increased.

Deputy Finian McGrath: Why then are those involved writing to us?  Is the problem in our imagination?

The Tánaiste: In addition, the jobs budget in May provided for over 20,000 new training and education places, while the Minister for Public Expenditure and Reform, Deputy Brendan Howlin, announced a €20 million labour market activation fund to create a further additional 6,500 places for the long-term unemployed.

The Department of Social Protection will seek to minimise the effects of the changes on those affected.  It will examine the income and expenditure of schemes with reference to their capacity to absorb some of these costs, particularly in the case of statutory organisations which, in many cases, have separate training and education budgets.  Additionally, there are community and voluntary sponsoring organisations which receive funding from a multiplicity of State agencies.  These will be examined with reference to their ability to continue programmes with reduced funding from the Department.  There are a number of schemes which, through activities supported under the community employment scheme, generate significant income.  These will also be included in the review. 

The Department of Social Protection will work closely with the Department of Education and Skills with a view to providing training for community employment scheme participants.  As the Deputy knows, FÁS community employment and labour placement aspects are now to be located in the Department of Social Protection.  There is a revised and reformed approach to the way in which labour activation measures, including the training and education aspect, will be managed.  The change announced in the budget must be considered in that context.