Vol. 563 No. 4
106 Ms Harkin asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps being taken by her Department to ensure that projects approved in 2002 under the social economy scheme by local county committees and FÁS regionally will be given the resources to commence in 2003. [8363/03]
While my Department provides FÁS with an annual allocation to fund the social economy programme, the regional breakdown of this funding and the approval of funding for individual social economy enterprises are day-to-day operational matters for FÁS as part of its responsibilities under the Labour Services Act 1987.
Allocations for the programme have increased from €6.62 million in 2001, to €20.55 million in 2002 and stand at more than €30 million in 2003. Notwithstanding the considerable pressures this year on current Government expenditure, the allocation to the social economy programme was increased by 50%. This increased allocation to FÁS will enable it to meet commitments under the programme. However, as a result of the extraordinary demand for the programme, this substantially increased allocation is not sufficient to meet all the demands from sponsors for new projects. FÁS is currently meeting promoters of approved projects to agree an appropriate timeframe for releasing funds.
I thank the Minister of State for his reply. I agree the allocation has increased which is welcome. To re-echo the words of Deputy Bruton, does the Minister of State not agree it makes good sense both socially and economically to fund social economy projects that meet the real needs of people on the ground? An example is the WEE project in north Leitrim which was ready to upgrade the homes of elderly and disabled people. If a cost benefit analysis were to be carried out, would the Minister of State not agree that it would save money in the short and long terms?
Is the Minister of State aware of the high dependency rates, historically and currently, in the north-west on labour market interventions such as CE and the social economy scheme? While he talked about unemployment, the rate of under-employment contributes significantly to that. How does it make sense that the same constraints should apply in the north-west in areas such as Sligo and Leitrim as in other parts of the country that are not dependent to the same extent on CE and the social economy scheme?
In August 2002, FÁS indicated the cost of meeting existing social economy commit ments would be €30.836 million in 2003. This allocation was sought and received in full. The Department wrote to FÁS on 20 August advising it not to give formal approval to projects which would result in firm financial commitments in 2003 over and above those already committed. FÁS has since confirmed those commitments will be met.
While any suggestion of a regional imbalance would be a matter for FÁS, under the current review we are looking at areas of the country that have more significant unemployment problems, such as Sligo and Leitrim, with a view to trying to give further assistance through the various schemes that are in operation. From travelling throughout the country and meeting representatives of FÁS and sponsors of schemes, it is evident that there is considerable room for improvement in the efficiency and effectiveness of those schemes. There is considerable room for improvement in the output of schemes. This is now under review and when that review is completed I am confident we will have more effective schemes doing better work than has been the case up to now.
As the Minister of State has agreed there is a high dependency, would he consider prioritising spare capacity which will undoubtedly arise before the end of the year into the areas about which I have spoken – the north-west, Sligo and Leitrim?
I do not anticipate much spare capacity.
