Question:
52 Dr. Upton asked the Tánaiste and Minister for Enterprise, Trade and Employment the Government's plans for the future role of FÁS; and if she will make a statement on the matter. [9481/02]
Written Answers. - Future of FÁS.
The labour mar ket situation has changed dramatically in Ireland in recent years. Since 1997, employment has grown by 25.6% and unemployment has fallen to 4% from 10.3% in 1997. Long-term unemployment is currently recorded at 1.2%. This represents a tight labour market characterised by vacancies in all sectors and at all skill levels. The recent rise in unemployment has been brought about mainly by short-term factors such as the global economic downturn, particularly in the technological sector. There is a general view that unemployment will rise in 2002 but that good economic and employment growth will return in the medium term.
In the context of relatively low unemployment, a tight labour market over the foreseeable future and the need for continuous upskilling of those in the workforce, I believe that the future strategy of FÁS should be based on greater mobilisation of labour and skills, particularly from at home, to meet the needs of a developing economy; more training for jobseekers and people in work to ensure that they remain employable in the face of change; continuing to improve outcomes for unemployed people and marginalised people, including early intervention to counteract the risk of long-term unemployment; and a new emphasis on services to employers to maintain skills and competitiveness.
In response to the changed labour market conditions and taking account of the foregoing concerns FÁS engaged in a strategic review and published its new strategy in December last. The key elements of the new strategy are a significant emphasis on services to employers and employed people; a greater focus on mobility and flexibility, through the upskilling of the workforce; further development of the standard-based apprenticeship programme, including further educational-training options for craft persons; the provision of portable skills for employees; the promotion of employment through greater mobilisation of labour supply, from all available sources; and more assistance to help people to move from unemployment into employment.
It should also continuing to improve services for unemployed people, particularly those who are marginalised with an emphasis on a focused approach, tailored to individual needs; using the employment service as a gateway to all labour market services; and a guarantee of service to unemployed people. This shift in focus will be supported by an increased commitment to quality and standards in all FÁS activities; regular review of FÁS services and programmes, to assess their continued relevance in a rapidly-changing environment and to identify changes that may be required; putting in place a best practice human resources strategy, and the necessary organisational structures and systems, to ensure the flexibility to implement change rapidly, efficiently and effectively; and openness to alternative delivery systems and the building of working partnerships and alliances with other service providers.
FÁS has and will continue to play a major role in the meeting the labour and skills requirements of the economy and in tackling unemployment. The FÁS budget remains significant. In 2002 its total operating budget is over €870 million and it has the capacity to engage with up to 100,000 people on training or employment programmes.