Question:
108 Dr. Upton asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans for the future role of FÁS; and if she will make a statement on the matter. [28656/01]
Written Answers. - Future Role of FÁS.
When I appointed the new FÁS board for a five year term I was conscious of the general view that current labour market conditions are likely to persist over the medium term. It is also unquestionable that if we are to maintain our economic and employment performance over the longer term, continuous up-skilling of people both in and seeking employment will have to become the norm. I also believe that tackling labour shortages and increasing skill levels is not just an economic challenge, it also presents us with a social opportunity to tackle long-term unemployment and disadvantage.
The Government's and FÁS's strategic response to existing and predicted trends should be twofold – to mobilise labour supply from all available sources, through matching, training and integration and, at the same time, to continuously upgrade the skills and competencies of the workforce and those seeking employment.
Specific issues which I have asked FÁS to take into account include strengthening the role of the employment service, as the front line in the FÁS strategy towards filling vacancies or referring job seekers to suitable training; increasing female participation where there remains considerable scope; encouraging older people to remain in or re-enter the workforce; eliminating long-term unemployment, which remains the Government's aim; in relation to people with disabilities, FÁS's new role here will seek to provide access to more and better jobs; in relation to youth and low skilled employment, one of the downsides of the recent job creation levels is that it can encourage young people to leave education early and take up low skilled employment.
I have asked FÁS to review its training services for young people and its links to the education system to address this issue and, in relation to immigration, I have stressed to FÁS that our primary objective must be to secure higher participation rates and to use the present employment opportunities to tackle disadvantage. Our efforts to encourage foreign workers to come here must be targeted at the skills and jobs which cannot be sourced from home and we need to be able to adjust flexibly to changing circumstances. I should add that at a policy level I have been looking at how we can flexibly adjust the work permit scheme to prevailing labour market conditions. I expect to be in a position in the very near future to announce new arrangements for processing and deciding on applications for work permits which will take full account of the changing circumstances.
Any review of future strategy has to take account of the major levels of activity under the community employment programme. Community employment accounts for half of the FÁS budget of £650 million and half of their annual clients. Community employment schemes have made a very positive contribution to the quality of life, not just of those participating on them, but also to the wider communities which benefited from the services provided.
Participation levels on community employment are gradually being reduced reflecting the falling numbers of the long-term unemployed and the shift in emphasis away from work experience programmes to training, from which there is a greater level of progression to employment. The mainstreaming of schools services currently under way and the proposed mainstreaming of other essential services, including the health and environmental sectors, will further reduce the numbers employed on the programme. Mainstreaming involves the transfer of community employment funds for specific services to other Departments with functional responsibility for those services.
The valuable contribution which active labour market programmes such as community employment make to persons experiencing long-term unemployment and to community services is fully recognised and the labour market needs of these groups will continue to be supported through community employment and other initiatives such as the social economy programme and the job initiative programme for as long as appropriate. However, the dramatic improvement in the levels of long-term unemployment in recent years, and the demand levels for workers in the economy, mean that the pool of potential community employment workers is inexorably diminishing fore very good reasons. Accordingly, essential community services may in future require to be provided by other means.
In considering eligibility for future participation in community employment I have been very conscious of the particular needs of older participants. This is especially the case in parts of the country where there may not be alternative sources of employment. I was very happy to announce more flexible arrangements for such persons last August.
There are different challenges facing the labour market in the short and medium term. There are still significant vacancies to be filled in the economy, while the present uncertainty and the threat of increased unemployment means that we will have to engage those losing their jobs so that they can quickly find new ones. With a return to economic growth and employment in the medium term, the challenges will be to mobilise labour supply and to provide the skills to meet the needs of the economy. In both scenarios FÁS has a major input and will be required to operate flexibly to meet the changing circumstances.