The primary purpose of community employment as an active labour market programme is to reintegrate long-term unemployed persons into open labour market jobs. This programme was restructured by the Government in 1999 to take account of the tightening labour market and to refocus the programme on older persons and those most removed from the labour market. The restructuring involves a gradual reduction in participation on the programme over time as well as a range of other reforms aimed at securing better targeting and outcomes from the programme.
The principal feature of the restructuring was the introduction of a phased reduction in the number of participants on community employment to 28,000 people by 2003. This was achieved by transferring the resources of 5,000 places to the new social economy programme and by reducing the number of people, otherwise on community employment, by 4,500 from the 1999 average provision of 37,500. Funding for an average of 32,500 places has been provided for the current year at an overall cost in the order of £307 million, which includes funding for the job initiative programme that provides 2,870 places on average. Funding of individual community employment projects is a matter for FÁS as part of their responsibilities under the Labour Services Act, 1987.
The current very favourable economic climate has led to a reduction in the overall level of unemployment over the past number of years and, consequently, it is appropriate to scale down the level of funding provided for active labour market programmes.
In this context, it is necessary for FÁS, as the operational agency for this programme, to prioritise projects according to needs. FÁS currently give priority to "caring/support" projects based in the community and voluntary sector, including services for disabled people. In addition, resources are particularly targeted at areas of high unemployment and certain rural areas where there are few opportunities to take up work in the open labour market.
FÁS funding of community employment projects, includes grant aid towards the cost of participants, supervisors and materials. The participant's allowance has recently been increased by £8 per week, in line with improvements in rates paid by the Department of Social, Community and Family Affairs. An allowance is paid for the participant and his dependent spouse and children.
Community groups availing of community employment funding receive a materials grant of £12 per participant per week, or £624 per annum. This grant aid is available for groups providing development modules for participants. A grant of £10 per participant per week is paid to groups not providing development modules. The cost of materials used by participants, together with administration and other associated costs of operating a community employment project, may be financed from this grant. This grant rate is in operation since April 1994. FÁS also funds the cost of a supervisor and, in certain cases, an assistant supervisor, depending on the number of participants on a project. In addition to looking after the development and progression of participants, supervisors help with the administration of the project.
Community employment provides community groups with the human resources necessary to develop projects in their local area providing a wide range of community services that would otherwise not be available to the locality. It is entirely appropriate to expect that communities will make a contribution from their own resources for the operation of a community employment project. Therefore, our Department has no plans to increase the current level of funding in the immediate future.
With regard to the current Collinstown community development project, I am advised that this project commenced on 12 February 2001 and will run until February 2002. The project has approval for ten participants and one supervisor, dealing with the maintenance of the local GAA pitch and other environmental-type work. Total funding per annum is approximately £95,000, inclusive of materials and training modules.
The materials grant itself is approximately £6,000 per annum. I understand that 40% of this grant goes towards insurance, audit fees, transport, signs and other miscellaneous items. The Collinstown community development group project has participated in, and received funding, under the community employment programme over the past ten years and I hope it will continue to participate in the programme for the foreseeable future for the benefit of the entire community.
Senator Cassidy has made a very strong case on behalf of Collinstown and Fore and the adjoining townlands, including loughs Lene and Glore. He referred to the connection between the Oireachtas and Lough Lene and he referred to the seven wonders of Fore. It is a beautiful place and I would like to the scheme maintained and sustained. Now that the programme is in position, we are obliged to operate within the parameters laid down for it. However, with the very broad community involvement and the wide range of activities in the area, it would be ideal for inclusion in a social economy programme next year. Perhaps Senator Cassidy would look at that in consultation with FÁS and the local community.
In the light of the very positive economic climate, I assure the House that the future operation of the community employment programme will be kept under close review by our Department to ensure that it provides the maximum opportunities for employment for the remaining members of our communities who have not yet found work in the open labour market.
