Dáil Éireann debate -
Tuesday, 18 Feb 2003

Vol. 561 No. 4

Written Answers. - Estimates Report.

Billy Timmins

Question:

182 Mr. Timmins asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures as outlined in the review of Estimates report which have been implemented by her Department to date; the measures she proposes to implement; and if she will make a statement on the matter. [4472/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

The general financial measures put forwarded by the Estimates Review Committee were adopted by my Department with some alterations to meet operational requirements. These adjustments were incorporated in my Department's Abridged Estimates Volume for 2003 in a manner which ensured that the net Exchequer requirement for my Department did not increase beyond that envisaged by the review committee.

Of the specific recommendations made by the committee in its commentary, the current position in each case is outlined below. The committee strongly recommends that a strategic review of the various expenditures feeding into the sup port of the long-term unemployed be undertaken as soon as possible. A cross-departmental group of senior officials is undertaking a review of the community employment scheme and other such schemes across Departments both from the perspective of the labour market and the provision of community services. The review will inform the Government's consideration of the options for the future of CE and other related programmes.

The Committee recommends that FÁS should be required to provide an administrative efficiency dividend equivalent to 2% of its administrative spending. A reduction of 2% was applied to the projected administration costs of FÁS in the Abridged Estimates Volume for 2003. FÁS has agreed to operate within its reduced allocation.

The National Training Fund, NTF, was set up to generate resources for skills training among those in, or seeking, employment and is likely to have generated a surplus of approximately €100 million by the end of 2002. The committee considers it would be more appropriate to use a proportion of this existing surplus in place of voted expenditure to support the level of training envisaged for 2003 and beyond. It recommends, therefore, that consideration be given to using the fund in this way and that corresponding reductions on voted expenditure be taken as savings. A figure of €50 million is suggested for 2003.

My Department accepted the proposal of the committee and also secured Department of Finance approval to draw down a further €12.049 million from the NTF to fund some of the adjustments referred to above.