I move amendment No. 1:
To delete all words after "Dáil Éireann" and substitute the following:
recognises that the community and voluntary sector plays a crucial role in supporting social, community, economic and cultural life throughout Ireland and is an important partner for the Government in delivering vital services;
notes that in addition to its societal and cultural roles, the wider not-for-profit sector is also a significant industry in its own right, employing more than 100,000 people;
notes that it is estimated that the sector has an annual turnover of €5.7 billion and generates €3.7 billion in wages and salaries per annum;
acknowledges the responsibility of Government to protect the vulnerable and disadvantaged in our communities by maintaining its focus on front-line services, while working to keep the cost of delivering these services to a minimum. In this regard, the aim must be to provide simplified, easy-to-access, high quality services for those who require them;
notes the Government's commitment to reviewing the delivery of services at local level and further aligning the functions of local development agencies with local authorities in order to improve service delivery from the point of view of the citizen;
commends the commitment by the Government to reducing duplication of services, providing more efficient and effective local services, and ensuring greater democratic accountability in decision-making at a local level through, inter alia, the alignment of the local government and local development sectors in a way which builds on the strengths of both sectors;
recognises that initiatives to improve services at a local level must be underpinned by a bottom-up community development approach, which will continue to ensure that communities, and the marginalised within those communities, are afforded the opportunity to influence and shape local decisions;
notes that the fiscal difficulties facing the Exchequer, combined with an underdeveloped philanthropic and fund-raising capacity in Ireland, have had an impact on both public funding and private investment from business and individuals to the community and voluntary sector, at a time when the need for services is increasing;
commends the Government for renewing the mandate of the Forum for Philanthropy and Fund-raising to support strategically the further development of both philanthropy and fund-raising capacity, with an interim report to be submitted to Government in October 2011;
recognises that to attract greater funding from philanthropy and corporate investment, it is critical that there is an appropriate infrastructure to facilitate philanthropy and investment in this country, and appropriate regulation of the non-profit sector that promotes effectiveness, accountability and transparency;
recognises that the community and voluntary sector can play an important role in the social and economic recovery of Ireland as a provider of valuable social services but also as a contributor to job creation and economic growth;
is conscious of the meaningful role the community employment scheme and similar initiatives play in supporting services for communities and their contribution to providing work placements and meeting the needs of people affected by long-term unemployment and those most distant from the labour market;
believes that opportunities exist to streamline the operation of these interventions with a view to meeting the commitments contained in the programme for Government for extending their reach and improving their effectiveness; and
notes that the St. Andrews Agreement commits the Northern Ireland Executive to supporting the establishment of an independent North-South consultative forum appointed by the two Administrations and representative of civil society and encourages the Government to continue its efforts towards the establishment of the forum.
We are fortunate in this country to have a vibrant and diverse community and voluntary sector. There are more than 14,000 charities and not-for-profit organisations which contribute to Irish society in a myriad of ways by providing essential services in areas such as social care, child care, care of the elderly, health services, education, the environment, sport and culture.
While we are all aware of what these organisations bring to our quality of life, perhaps we do not fully recognise the value of the not-for-profit sector in the economic well-being of our country. The wider not-for-profit sector in Ireland employs more than 100,000 people, which is almost equivalent to the number employed in agriculture. It is estimated that the sector has an annual turnover of €5.7 billion and generates €3.7 billion in wages and salaries per annum. Moreover, funding channelled into the sector goes straight to work in every city, town and parish across the country, boosting local employment and the local economy. These figures do not include the tens of thousands of unpaid volunteers who make an enormous difference on a daily basis in every parish in the country, from serving on school boards to coaching football teams. For example, the Tidy Towns awards ceremony earlier this year paid tribute to what has become one of the most important environmental initiatives in this country, driven by an army of volunteers working in 821 cities, towns and villages across the country in co-operation with local authorities as well as local business and tourism efforts.
The reconfiguration of ministerial portfolios earlier this year means that responsibility for local government and community-related functions is now vested in one Department, the Department of the Environment, Community and Local Government. The bringing together of these functions provides the means to effect a comprehensive and joined-up reform of local government and local development as outlined in the programme for Government. It provides us with an opportunity to implement a more co-ordinated approach to the reform of these sectors than would otherwise be the case. The Department of the Environment, Community and Local Government has already begun to work on the task of achieving greater alignment between local government and local development functions and programmes. Alongside this, work is under way on implementing the recommendations of the local government efficiency review group. This is an important process and, as it is being implemented in parallel with our focus on alignment between local government and community development, it will help to provide a solid foundation for the successful alignment of functions and programmes. It is also important at this early stage in the approach to alignment of functions that Ministers and officials at the Department have the opportunity to consult with key stakeholders in order to share our view on what we are aiming to achieve and to obtain input from all those involved in the areas of local and community development.
The programme for Government has committed to reviewing the delivery of services at local level to improve service delivery for the citizen. At a basic level, this is a commitment by Government to deliver services in an integrated and joined-up way that meets the needs of citizens. It is a commitment to create and sustain vibrant rural and urban communities in a way that involves those communities in the decision-making process, fosters progressive change and provides people with the means to shape their own futures. This involves sharing and devolving responsibilities down to a much lower level, and will allow communities to have a meaningful say in shaping their future rather than being passive recipients of decisions from on high.
Essentially, we must improve service delivery and do so at a significantly reduced cost to the public purse. The economic and social challenges we face are unprecedented and the pressure and demands on the public finances are ones we must face. We must ensure that scarce resources are invested wisely and fairly. We must not lose sight of the fact, however, that we have a responsibility to protect the vulnerable and disadvantaged in our communities. The Government is conscious of the critical importance of maintaining the emphasis on front-line services while working to contain and reduce the cost of delivering these services. In this regard, the aim must be to provide simplified, easy-to-access, high quality services for those who require them.
The closer alignment of local government and local development that my Department is pursuing is aimed at reducing duplication of services, ensuring greater democratic accountability in decision making at a local level and delivering more efficient and effective services for the citizen. While it is too early to predict the shape of the outcome, the steering group has been asked to pursue its work within a short timescale.
The bottom-up approach is an integral feature of local and community development and must be retained. We must ensure our communities, and the marginalised within those communities, are afforded the opportunity to influence and shape local decisions. The Government is also of the opinion that a partnership model is a vital element in delivering effective local and community development programmes. This model facilitates a multi-agency effort and fosters a multi-dimensional approach to the delivery of services to communities.
Those who wish to continue to volunteer on behalf of their communities will be encouraged under the local and community development programme, LCDP, without the bureaucratic burden of ensuring compliance with company law. The LCDP is delivered using such a partnership-based or bottom-up approach. Local development companies have been chosen by the Department as the main LCDP delivery agents. Representatives from a range of voluntary, statutory and community sectors, along with social partners, constitute the boards of directors, who work collaboratively to effect change locally. This integrated delivery of social inclusion responses will allow the LCDP to harness local skills and resources to empower individuals and groups in supporting progressive change. There has already been a significant reduction in the number of local development bodies operating in the sector, resulting in a more coherent and streamlined targeting of resources at local level. These achievements are not inconsiderable and provide a strong foundation to meet the challenges ahead.
The Department also saw a need to reduce or remove the responsibility for company law compliance from the board members of community development projects, allowing them more time to do what they do best — to use their local knowledge, energy and commitment to improve service delivery on the ground. We will make sure the aligned structures resulting from the process now in hand recognise the strengths and experiences of both the local government and local development systems. We want to be sure the best elements of both are accommodated in any new structures.
Responsibility for community employment and a number of similar initiatives transferred earlier this year to the Department of Social Protection. Over the coming months, the Minister for Social Protection, Deputy Burton, hopes to be in a position to look afresh at a number of aspects of the operation of these initiatives, which were referred to in earlier speeches. Against the background of scarce resources, the Government will consider where the best outcomes at the best value can be achieved in providing opportunities for people who are out of work. Community employment cannot be excluded from any consideration of this nature.
It is important to emphasise to the House that the purpose of community employment is primarily the development of a skills base and improvement of the work-readiness of individuals so they can re-enter the workforce after periods of unemployment or other absences. Community employment is an active labour market programme designed to provide opportunities for people to engage in useful work and training within communities on a fixed-term basis with a view to progression to the labour market in the short term.
The criteria for participating in community employment are based on a person's individual circumstances, including his or her age, the length of time he or she has been unemployed or absent from the labour market, and whether he or she is in receipt of qualifying social welfare payments. The programme also focuses on those with more limited access to jobs and training opportunities, including lone parents, persons with disabilities, stabilised substance abusers, ex-prisoners, Travellers, and long-term unemployed persons. Duration on the programme is limited to facilitate the progression of participants to the open labour market. This also allows for the movement of participants through the programme and opens opportunities for new participants to avail of the benefits offered. The number of places available was increased to 23,300 in 2010. The budgetary provision for 2011 will allow FÁS to continue the programme at the same level as 2010. In delivering these places, FÁS will continue to operate flexibly in the management of this allocation in order to maximise progression to the labour market, while at the same time facilitating the support of community services.
In summary, the Government will continue to support the positive role of FÁS employment schemes in meeting the needs of long-term unemployed persons. The Government is also conscious of the meaningful role community employment projects play in supporting services in communities the length and breadth of Ireland. While there are no immediate plans to alter the current criteria for participants in community employment or add to the number of places available, I understand the Minister will be taking stock of its operation with a view to making improvements if these are found to be necessary. The programme for Government contains a commitment to reform local government, including consideration of the possibility of moving functions that are currently being performed by agencies, such as community employment and enterprise supports, back to local government. Any future consideration will have regard to that commitment.
On 7 December 2010, the then Minister for Finance announced the introduction of a community work placement initiative for up to 5,000 people in his budget statement to Dáil Éireann. The initiative, known as Tús, was launched on 21 December 2010, and work on developing the necessary implementation structures has been under way since. Tús will provide short-term, quality work opportunities for those who are unemployed for more than a year, with work placements being offered by the not-for-profit, community and voluntary sectors. The initiative will be delivered locally by each local development company and by Údarás na Gaeltachta in Gaeltacht areas. Promotion of Tús to potential work placement providers has been under way for some weeks as part of a process of identifying suitable positions. Local development companies are recruiting supervisory staff which will provide for a phased roll-out over the coming months, with the full 5,000 placements being made available in 2012. The 2011 provision is €30 million, increasing to €100 million for a full year's operation.
The aims of the rural social scheme are to provide income support for farmers and fishermen who are currently in receipt of specified social welfare payments and to provide certain services of benefit to rural communities. The scheme allows low-income farmers and fishermen who are unable to earn an adequate living from their farm holding or fishing to earn a supplementary income. All of the work undertaken while participating on the scheme should be beneficial to the local community. Although responsibility for the scheme rests with the Department, it is managed at local level by the local development companies and Údarás na Gaeltachta in Gaeltacht areas. In 2010, some 2,600 participants and 130 supervisors were engaged in supporting 2,460 community projects at a cost of more than €46 million. The provision for 2011 is €46.14 million, which will be used to retain existing numbers employed while aiming to provide support to 2,500 community projects.
The objective of the community services programme is to support local community services in the delivery of good quality local services which address disadvantage while providing funding to employ people with limited work opportunities. An important aspect of the programme is its emphasis on the creation of employment opportunities for specific groups suffering social or economic disadvantage. As a general principle, 70% of workers in CSP-funded posts must be from the following target groups: people with disabilities, the long-term unemployed, Travellers, lone parents, and rehabilitated drug misusers.
The economic difficulties facing the country have undoubtedly impacted greatly on both public funding and private investment from business and individuals to the not-for-profit sector. This is occurring at a time when the need for services from the sector has increased dramatically. In addition, parts of the sector are hugely reliant on State funding, with not-for-profit organisations on average receiving 60% of their funding from the public purse. We have a shared responsibility to support the non-profit sector. Both philanthropy and fund-raising capacity are underdeveloped in this country and we lag behind other nations such as the United States and the United Kingdom in terms of a strategic approach to private investment in the non-profit sector. There is great scope to increase corporate giving in this country, an area in which we trail well behind our European counterparts.
It is against this background that the Minister for the Environment, Community and Local Government, Deputy Phil Hogan, reconvened the Forum on Philanthropy last June under the chairmanship of Mr. Frank Flannery. The Minister has asked the forum to bring forward proposals for a strategy to develop philanthropy and fund-raising in support of civil society. These proposals will be delivered by the end of this month. There is an urgent need for such a strategy, which offers a great opportunity to create new and innovative public private partnerships to address fundamental social and economic challenges and support arts and cultural initiatives.
To attract greater funding from philanthropy and corporate investment, it is critical to have in place an appropriate infrastructure to facilitate it, with efficient tax and legal frameworks that encourage giving, proactive and engaged intermediaries and wealth advisers and appropriate regulation of the non-profit sector which promotes effectiveness, accountability and transparency. The non-profit sector must adapt to the new economic realities we face and operate more efficiently and innovatively. It must also become better at targeting a more diverse range of supports, including partnerships within the corporate sector, to develop its potential. It is essential that the non-profit sector can tap into the many crossover benefits which can flow from a well-cultivated relationship with the business community.
The extent of the challenge to develop philanthropy and fund-raising capacity in this country is underlined by the statistics generated on behalf of the Forum on Philanthropy. For example, only 15% of donors in Ireland give in a regular, planned fashion compared with 36% in the United Kingdom. This is an important statistic because planned donations are on average five times larger than spontaneous donations. In terms of percentage of income donated, Ireland ranks well below the United States and many of its European peers, including Sweden, Switzerland and the United Kingdom, where despite a similar government philosophy, people are donating more than 1% of their disposable income compared with the Irish figure of 0.8%. The United Kingdom figure is 1.2%. In Ireland the 400 top earners account for some 10% of tax-deducted charitable giving. In comparison, in Germany, the United Kingdom and the United States, the top income earners account for more than 30% of private donations.
There are only some 30 active grant-making foundations in Ireland compared with more than 8,000 in the United Kingdom. With 0.7 charitable foundations per 100,000 inhabitants, the number of Irish foundations lags far behind the European average of approximately 20. If Ireland were to match the average European figure, we would have 857 grant-making foundations. Corporate giving in Ireland is also very low. Only 1.4%, or some €25 million, of Irish NGOs' income in 2005 stemmed from corporate donations, or less than 0.1% of pre-tax profits of the top 500 Irish companies. By comparison, all listed corporations in the United Kingdom donate on average 1.2% of their pre-tax profits, reaching as much as 7% for Sainsbury's. In other words, these British corporations donate 12 times the Irish contribution.
Of the professional advisers surveyed, 80% stated that their clients do not understand the concept of strategic planned philanthropy. Some 50% of advisers have never had a discussion with their client about philanthropy and another 18% do not feel comfortable with the subject and only discuss it if the client raises it. Even though Ireland is gripped by recession, there is significant potential to increase the amount of money raised. For example, between 2009 and 2010 the total sum raised by charities increased by 23%, or 6% if one excludes the most effective fund-raisers, namely, the overseas development charities.
I will now deal with the section of the motion dealing with the North-South consultative forum. The Good Friday Agreement provided for the establishment of a consultative forum, appointed by the two Administrations, representative of civil society and comprising the social partners and other members with expertise in social, cultural, economic and other issues. The Government fully subscribes to the importance of the implementation of this and all other provisions of the Agreement. However, this is an issue which requires in the first instance a firm commitment from the Northern Ireland Executive to proceed. Accordingly, the Government has proposed a rewording of the paragraph in the motion, as follows:
[Dáil Éireann] notes that the St. Andrews Agreement commits the Northern Ireland Executive to support the establishment of an independent North-South consultative forum appointed by the two administrations and representative of civil society and encourages the Government to continue its efforts towards the establishment of the forum.
This more accurately captures the complex nature of the steps required to progress this important issue.
The establishment of the North-South consultative forum, provided for in both the Good Friday Agreement and the St. Andrews Agreement, has been discussed with the Northern Ireland Executive at all the plenary meetings of the North-South Ministerial Council since the re-establishment of the Executive in May 2007. The Government delegation is led at these meetings by the Taoiseach, while the Northern Ireland Executive delegation is led by the First Minister and Deputy First Minister. The plenary meeting in July 2007 noted the intention of the Northern Ireland Executive first to complete its review of the Civic Forum for Northern Ireland, a body provided for in the Good Friday Agreement for consulting civic society in Northern Ireland. That review is still outstanding.
During 2008, the Government consulted the social partners and various cross-Border and North-South groups on the establishment of the North-South consultative forum. Following on from this, we formally communicated our proposals to the Northern Ireland Executive on the role, format, membership and operation of the forum. A response is awaited from the Executive. On 15 October 2009, as a contribution to the process leading to the establishment of the forum, the Government facilitated a consultative conference in Farmleigh involving the social partners and other civil society groups from across the island. The conference was opened by the then Taoiseach. Participants from across the island came from all traditions, including representatives from business, the trade union movement, agriculture and the community and voluntary sector. A wide ranging discussion took place on the role of civil society and its capacity to contribute meaningfully to cross-Border co-operation. Participants strongly supported further such engagement to explore specific areas for co-operation, North and South, at the level of civil society.
Following on from the October 2009 event, and to contribute further to the process leading to the establishment of the consultative forum, a second consultative conference took place in Dublin on 26 May 2010. Two panels discussed the key themes of the conference — sport and young people, and the role that innovation can play in economic recovery, North and South. Participants strongly endorsed continuing engagement between representatives of civil society, North and South.
A third North-South consultative conference took place on 13 January 2011, also in Farmleigh. Participants were drawn from the social partners, business and the community and voluntary sector across the island. The event focused on the theme "co-operating through the crisis", that is to say, how civil society groups can work together creatively, North and South, to tackle the challenges ahead, given the current difficult economic environment on the island. Keynote presentations were delivered by Professor John Fitzgerald, a research professor at the ESRI, and by Mr. Victor Hewitt, Director of the ERINI -Economic Research Institute of Northern Ireland. Topics arising included the need to address the social economy across the island as a source of potential growth which should be fostered and encouraged, including the provision of necessary capital. Structural unemployment, North and South, was also identified as a significant problem needing attention.
The establishment of the formal North-South Consultative Forum is reviewed at regular plenary meetings of the North South Ministerial Council, the next of which is scheduled for 18 November 2011. In its contacts with the Northern Ireland Executive, the Government will continue to press strongly to have the matter brought to an early conclusion.
In the course of the Sinn Féin motion there are references to ring-fencing funding for the community and voluntary sector and it would be disingenuous not to refer to it. It also focused on the dormant accounts fund.