Deputy Jim Higgins has been given permission to make a one minute statement on a matter appropriate to the Minister for Labour.
Adjournment Debate. - Labour Matter.
My comments do not reflect on AnCO and its successor, FÁS. There is a danger of the collapse of various FÁS apprenticeship schemes due to the fact that it is virtually impossible to get into any apprenticeship scheme unless one can obtain direct sponsorship from an employer. Apprenticeships with 30 places have only eight or nine places directly funded by FÁS, the rest depend entirely on the goodwill of sponsorship and employers. However, because of the difficult situation and the cost of sponsorship, it is becoming virtually impossible for extremely talented apprentices to get places on these schemes.
Employers who sponsor apprentices are faced with a bill of £60 per week maintenance and the full cost of tool kits in addition to £500 employers' liability insurance. Apart from the prohibitive cost factors, employers cannot understand why their employer liability insurance must be extended to cover injury risk to apprentices working over 100 miles away under someone else's supervision. Because of the failure to give adequate European social funding, hundreds of skilled young people are unable to obtain apprenticeship sponsorship and many of them have to emigrate. What is happening is that parents are now paying the cost which should be paid by the sponsoring employer. This is circumventing the scheme and only those who can afford it can get in.
I ask the Minister to revamp the scheme. I understand that FÁS have made a detailed submission to him recommending a restructuring of the apprenticeship scheme. I ask the Minister this evening to undertake that examination as a matter of extreme urgency.
Deputy Higgins is correct in that I have asked FÁS to review the apprenticeship system with a view to introducing a standard based system rather than the existing time served system, ensuring a satisfactory balance between supply of and demand for apprentices, and reducing the cost to the State while maintaining quality and ensuring more equity in recruitment.
I agree that there are weaknesses in the present system. The main weaknesses are the absence of compulsory standards, inadequate provision for evolving technology and inequity at entry. The present system is not always based on the best candidate getting an apprenticeship. Deputy Higgins and I would be in agreement on that.
We must strive for a high skill base to compete effectively in the Single European Market. Most European countries operate standard based apprenticeship systems. Mutual recognition of qualifications within the Community will lead to increased pressure for competency-based apprenticeship certification and Irish workers will require internationally recognised qualifications to better avail themselves of the opportunities presented by the free movement of workers within the EC. Industry's involvement in apprenticeship training in some other European countries is far greater than it is here. This area must be looked at very carefully.
Under our system a person serves a period of time and never actually completes one part of the system before moving on to the next. All the other European countries have a modular system covering a number of years, but a person must qualify in each year before moving on to the next. This does not apply in our system and we will have great difficulties in the years ahead, particularly after 1992, if we do not conform. That is why I asked FÁS to look at the present system.
In response to my request for a review of apprenticeship the board of FÁS established a review body representative of the social partners, FÁS and the Departments of Labour and Education to consider the matter. This body compiled a discussion document which FÁS published at the end of last year and invited written submissions by the end of March this year. The review body took these submissions into account when finalising their proposals which were then considered by the board of FÁS. The board decisions on the review are now with my Department for consideration, as I advised the House last week.
The proposals visualise a modular system of training with greater industry involvement but with FÁS and the Department of Education continuing to co-operate in the provision of off-the-job training. There is provision in the proposals for mature entrants and for an increase in the number of under-privileged, disabled and women entering apprenticeship. The proposals are complex and some areas are very contentious. As such they require careful consideration. I indicated to the House last week that the proposed payroll levy on employers to finance apprenticeship and other types of training was among the areas of possible contention. This question of a payroll levy has been included in the current discussions on the development of a new programme for economic and social development. In the circumstances, I am sure the Deputy will agree that I should not comment further at this stage.
The Dáil adjourned at 4.55 p.m. until 2.30 p.m. on Tuesday, 4 December 1990.