I propose to take Questions Nos. 2 and 4 together.
Community employment, CE, is a valuable resource in the provision of a range of services to communities. However, it is acknowledged that its effectiveness in terms of labour market progression is somewhat limited. The report, Supports and Services for Unemployed Jobseekers: Challenges and Opportunities in a Time of Recession, published in August 2011 by the National Economic and Social Council, was critical in terms of labour market progression. The report, What Can Active Labour Market Policies Do?, published by the ESRI in November 2011, also noted that previous studies had determined that CE was not associated with increased post-programme employment chances and that previous participation in a CE scheme was associated sometimes with an increased risk of long-term unemployment.
The budget for CE for 2012 is approximately €315 million. The massive increase in unemployment requires that as many places as possible are open to a broader range of jobseekers. The reduction in training and employment grants was implemented in the context of the overarching need to ensure that all Exchequer expenditure is targeted appropriately, which I consider to be a reasonable objective. Moreover, the total number of CE places available and the number of CE supervisors are not affected. At present, there are approximately 1,400 CE supervisors and more than 22,000 CE places.
I have directed that a review of the financial resources of individual schemes be completed by the end of March. The purpose of the review is to examine the income and funding of sponsoring organisations in terms of their ability to continue to deliver the programme. As part of the review, alternative sources of support will be examined, particularly the level of funding from other State agencies. The review also will seek to establish whether income is generated by scheme activity and the potential for utilisation of these funds to cover project costs. The outcome of each review will provide a clear picture of the core funding required for each CE scheme. This will assist my Department in ensuring a fair distribution of the funding available for these schemes.
I have given assurances to community and voluntary organisations that no CE scheme will be forced to close as a result of the reductions in training and material grants, pending the completion of this review at the end of March. This guarantee will be funded by my Department from its 2012 allocation. In parallel, my Department is also undertaking a policy review of all employment support programmes under its aegis. CE is being considered as part of this review and stakeholders will be consulted as part of this review process. I expect to have this review in the first quarter of this year. These reports at both the individual CE scheme level and at the macro level will provide good evidence on which to base future policy. The outcome of the review will form part of the report to the troika.
I again assure the House of my full appreciation of the value of CE schemes locally. The focus now is on achieving improved outcomes both in terms of service provided at local level and job progression for CE participants themselves.