I apologise for the absence of the Minister. He asked that I reply to this matter on the Adjournment on his behalf. I thank Deputy Ahearn for raising the matter.
As was recently indicated to this House the Book of Estimates for 1993 included an Exchequer allocation of £83.811 million for expenditure on the social employment scheme and the community employment development programme which replaced the social employment scheme in the 12 areas designated under the Programme for Economic and Social Progress area-based strategy to combat long term unemployment. This allocation would have allowed the participation of an average of 13,500 participants throughout the year compared with 12,000 last year. However, in order to meet demands for additional places the Government recently approved the provision of a further £13.5 million for the scheme bringing total funding in 1993 to £97.3 million. This will provide opportunities for an average of 15,500 people throughout the year. Despite such a significant level of funding the Government is aware that all demands for places will not be satisfied and is currently examining the practical and financial implications of providing additional resources this year. However, in the context of the overall budgetary situation such additional resources would have to be found from savings elsewhere.
The scheme, which commenced in 1985, is the principal manpower intervention aimed at assisting the long term unemployed. It provides opportunities, albeit on a part-time basis, for long term unemployed people to become involved for a year in a work-related situation, thus gaining valuable work experience. In addition, it gives them an opportunity to learn new skills and practise existing skills which should improve the prospects for participants of obtaining employment when full-time employment opportunities arise.
Just over half of the participants on the social employment scheme and community employment development programme are persons with adult and/or child dependants. This level of participation by older long term unemployed people with dependants is very satisfactory and has come about due to the availability since 1990 of a child dependant allowance. The current levels of payment to participants are £75 per week for a person without a dependant, £107.50 per week for a participant with an adult dependant, and participants with children can also get up to £12.50 per week per child. I can confirm that sufficient funding has been made available to allow these rates to be increased further from July next to £77 for a participant without a dependant, £110.70 for a participant with an adult dependant, while the full rate in respect of a child will be up to £12.80.
The scheme represents a successful collaboration between local communities and the State, in that local groups sponsoring projects come forward with proposals for projects in their communities, many of which involve improvements to local amenities. In addition, local communities must come up with a small element of funding for the projects to supplement the assistance available under the scheme for materials and supervision. A wide variety of projects is undertaken under the scheme ranging from projects improving the local environment, sports, arts and tourism projects to community development and all Deputies are well aware of the benefits to local communities and local unemployed people brought about through the scheme.
The scheme is, however, to a certain extent a victim of its own success. One of the difficulties which has arisen over the years is that some voluntary groups providing services on a continuing basis at local level have come to rely on schemes such as the social employment scheme for assistance in providing their services. As such the schemes are in danger of becoming project-driven. The social employment scheme, and teamwork which is targeted at unemployed people under 25, were not intended to provide assistance for projects on an ongoing basis. Rather the intention was that projects would be of a finite nature which would allow flexibility in providing opportunities for long term unemployed people where such opportunities were needed having regard to the level of unemployment in different parts of the country and, of course, the overall budgetary situation. It would be unfair if existing projects were automatically renewed each year. This, of course, would mean that new projects no matter how deserving or necessary, could not be considered.
Intake to the scheme must be managed by FÁS to ensure that expenditure is kept within available resources and to ensure an equitable distribution of projects throughout the country based on local needs. FÁS must have the flexibility to manage the scheme having regard to the needs of the long term unemployed throughout the country and available Exchequer resources.
EC support for the scheme is being sought in the context of the 1994 to 1999 round of Structural Funds with the aim of moving towards a doubling of participation levels to 30,000 each year. The Government was very conscious that some long term unemployed people were not interested in participating in the social employment scheme because they would lose their secondary social welfare benefits, notwithstanding the fact that the levels of payments to participants on the social employment scheme exceed those to which they would have been entitled had they remained on social welfare. As such the community employment development programme has replaced the social employment scheme in the 12Programme for Economic and Social Progress areas on a pilot basis since last October. Under the programme a training element is being provided on projects involving 15 or more participants and participants retain their secondary social welfare benefits such as butter vouchers, fuel allowance, etc. The operation of the programme will be evaluated to assess its effectiveness in assisting persons who are long term unemployed. In addition, the question of extending the programme nationwide will be considered in the context of the funding available under the Community Support Framework for the period 1994 to 1999.
