Vol. 558 No. 6
3 Mr. Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will, in conjunction with the Department of Social and Family Affairs, consider setting up a social employment scheme for persons over 50 years, for persons with disabilities and for single parents. [25187/02]
An overall appraisal of active labour market programmes is under way under the aegis of the PPF standing committee on the labour market. A key element of the appraisal will be towards re-orientating such programmes to more effectively target the needs of disadvantaged groups. The outcome of the deliberations of the standing committee will inform the Government's consideration of appropriate interventions for the long-term unemployed and other disadvantaged groups, such as older workers, persons with disabilities and lone parents.
In addition, I have recently initiated discussions with my colleague, the Minister for Social and Family Affairs, on future options for older workers on community employment schemes whose employment prospects in the open labour market remain limited. I anticipate the outcome of these discussions, which will take some time to complete, will be informed by the reviews to which I have already referred.
This marks a change from the comments of the Minister.
Does the Minister of State accept that 14,000 of the 19,000 people who will leave community employment schemes this year will be in the disadvantaged category to which he refers, namely, people over 50 years of age, people with some disabilities or lone parents? Would it not make sense to ensure these people are given some kind of employment as opposed to immediately joining the live register?
The whole objective of community employment schemes is to allow for progression to sustainable employment. We are anxious that everybody on community employment schemes, irrespective of his or her age or level of disadvantage, is given the training and the opportunity to progress to a full-time job. We accept there are people who face a more difficult challenge in terms of progression due to age, disability or another disadvantage. Part of the review will be to consider alternative opportunities for such people. As I stated in a recent debate, the review is examining ways of keeping people over the age of 55, particularly those living in areas where there are no job opportunities, on community employment schemes.
My point is that the only progression these people are making is to return to the live register. Another type of scheme is, therefore, essential. Does the Minister of State realise that most available jobs are in larger centres and people in rural areas with no access to public transport find it extremely difficult to get jobs when they leave the community employment scheme? Due to the new restrictions being introduced in the area of social welfare they also find it difficult to get unemployment assistance. Given the significant cutbacks imminent in local government it is important that we have schemes to support the voluntary work of community groups. Does the Minister consider that a new form of social employment scheme would offer a way of addressing this major problem?
I do not accept additional restrictions are being imposed by the Department of Social and Family Affairs. The same criteria apply to people coming off community employment schemes as have always applied. We must remember that community employment schemes are temporary contracts, not full-time jobs for life. The success of community employment has been that it is flexible and that people must leave it, which may mean going on the live register for a period. All of this is under review. Moreover, the labour market programme will no longer be the only policy area as the review will, for the first time, examine the potential for community employment schemes to provide a proper community service on a long-term basis. We have to ensure this community service is provided effectively and cost efficiently. This area will form part of the review and will be a feature of the policy change being undertaken by my Department in association with other Departments and FÁS.
When will the review be completed and when will we have decisions and results?
The review is ongoing. However, by the time of the next Estimates we expect to be in a position to have a new and effective community employment scheme providing better opportunities for those who need them most and improved community services, albeit with fewer people.
The Minister of State should not run out of road.
We know we will have the support of the Opposition.
4 Mr. Howlin asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason for the cuts of ?100 million in the FÁS training and integration supports and employment programmes in regard to her Department's Estimates for 2003; the way in which this major funding cutback will impact on FÁS services; and if she will make a statement on the matter. [25190/02]
The overall allocation to FÁS in 2003 for training and employment measures is €660 million compared to an allocation of €714 million in 2002, a reduction of just under €54 million, not €100 million as suggested in the question. In 2003 the direct Exchequer contribution of €73.518 million is complemented by a €222.055 million contribution from the national training fund, bringing the overall investment in FÁS training initiatives to €295.573 million. This compares to €301.018 million in 2002 which means that overall investment in this area is being maintained at close to 2002 levels. This will result in a modest reduction in training places in 2003. FÁS will prioritise, in so far as possible, the training and employment supports for the disabled within their overall allocations.
The Government's commitment to the central role played by training in underpinning competitiveness is further demonstrated by the recently launched in-company training scheme which will provide €45 million between now and the end of 2006 in training and upskilling the labour force. This ESF funded initiative will be co-financed mainly by the private sector. The allocation for 2003 to FÁS employment programmes, which includes community employment, is set at almost €365 million as against €413.4 million in 2002. The 2003 allocation will support an average community employment participation level of around 22,000 throughout next year with a closing participation rate of about 20,000. It also includes an average job initiative programme participation level of around 2,500 throughout the year with an end of year participation level of about 2,200. Commitments entered into in respect of social economy programmes approved to date are also included.
The board of FÁS, taking account of Government policy guidelines, will decide on the detailed priorities and breakdown of funding between schemes and activities from within these overall allocations.
Does the Minister accept that with an inflation rate of 5%, in order to stand still the real requirement amounts to a cut of €100 million for this year? Does she also accept that her personal antipathy and that of her party to community employment schemes has reduced the total numbers in the current year by 5,000? Does she further accept that it is her intention to reduce it by a further 5,000 places next year? Within a two year period that amounts to a reduction of a third. This will have devastating effects on communities and individuals whose dignity has been restored by these schemes. Will she explain her antipathy to one of the most important and universally applauded schemes since it was introduced to the labour market by my colleague, the former Minister, Deputy Quinn?
I do not accept what the Deputy says. I work very closely with a large number of community employment schemes both in my constituency and elsewhere. I witness at first-hand the enormous work that is being done. Essentially, today it is a community service.
The Minister has abolished a third of them.
It is no longer merely a labour market measure. The Minister of State, Deputy Fahey, has already dealt with the issue in reply to a previous question.
We are putting more people through training, particularly more young people, so they can access a job in the labour market at a time when there is huge pressure here to bring in immigrant labour, an area I will deal with in the next reply. It makes more sense to put people through formal training where they can access a job. The Cabinet recently established a sub-committee of which the Minister of State, Deputy Fahey, is a member. It reviews not just the operation of community employment but of other schemes of this kind so that we can have a sensible policy as we go forward. The aim is to maintain community services and provide much needed activity and experience as well as some element of training for those in our society who are not in a position to access a job.
In the past five years, the number of people on long-term unemployment dropped from over 90,000 to just under 22,000. When the former Minister, Deputy Quinn, introduced community employment as a successor to social employment, there was one community employment place for every six long-term unemployed people. Today there are more people on community employment, thankfully, than there are on long-term unemployment.
We have to respond to these changes in the context of the budgetary situation in which we find ourselves. If we had not got money from the training fund, the numbers might have gone down further. There are very few discretionary elements in my Departments budget. In the initial round of funding that was suggested for my Department by the Department of Finance for next year we were faced with a scenario where we might not have succeeded in getting money out of the training fund to give to FÁS to support some of its activities. I am delighted we were successful in doing that and I hope we will be able to keep as many people as possible on community employment and also in training.
A brief question, Deputy Howlin.
This is only my second supplementary.
We are running out of time.
That is because of long answers. I wish to ask two brief supplementaries. Does the Minister accept that it is very poor recompense for the 5,000 people who currently enjoy employment under a community employment scheme to be told that it could have been worse if the Minister for Finance had his way?
In the light of the immovability of the Minister on this matter, will she at least give a clear assurance that those categories in the most vulnerable areas will be protected and that there will not be a reduction in the numbers in community employment schemes in RAPID areas?
We already indicated during the Private Members' motion debate that schemes in the RAPID area, child care schemes and so on, will be ring-fenced.
The Minister did not say that, she is misleading us.
The Minister said they will have top priority.
The funding for those areas is being ring-fenced. We indicated that in the contributions that were made.
