Dáil Éireann Debate, Thursday - 7 November 2013
8. Deputy Jim Daly asked the Minister for Transport, Tourism and Sport if he will consider providing for the inclusion of local and social employment clauses in any future capital projects to be progressed by his Department; and if he will make a statement on the matter. [46951/13]
View answer241. Deputy Jerry Buttimer asked the Minister for Transport, Tourism and Sport if he will provide for the use of social or local employment clauses in future capital projects under his Department’s remit; and if he will make a statement on the matter. [47472/13]
View answerIn light of the stimulus programme worth €2.25 billion, what steps is the Department taking to ensure there are social and local employment clauses in any contracts issued, especially with the upcoming national sports centre development, the capital sports grants, roads building etc.?
I propose to take Questions Nos. 8 and 241 together.
My colleague, the Minister for Public Expenditure and Reform, who has overall responsibility for public procurement has advised the House that it has been decided to adopt a targeted approach to the inclusion of a social clause in public works contracts in the context of the Government's €2.25 billion stimulus programme. The public private partnership, PPP, element of the programme, at some €1.5 billion, will require an estimated workforce of 13,000. This offers an excellent opportunity to target the long-term unemployed. In order to avoid displacing existing workers, the focus will be on contracts where employers are likely to be hiring additional workers.
The National Development Finance Agency, NDFA, is leading the implementation of the measure, initially through the devolved schools programme which it is managing on behalf of the Department of Education and Skills. It has commenced tendering for a number of schools which will act as a pilot for the introduction of the social clause. In essence, the clause will require contractors to ensure 10% of the “person weeks” required to deliver the contract will be performed by individuals recruited from the ranks of the long-term unemployed and that 2.5% of the “person weeks” take the form of a registered scheme of apprenticeship or similar national training or educational work placement arrangement. The performance of the clause will be reviewed during the operation of the pilot and, subject to its satisfactory operation, included in the wider PPP programme.
Regarding the application of a social employment clause within my Department's capital programme, I am happy to announce that the National Roads Authority, NRA, which is responsible for the largest portion of the capital programme, intends to incorporate a social clause into the roads PPP programme. Specific projects envisaged are the N25 New Ross bypass PPP and the M11 Gorey-Enniscorthy PPP. The NRA will work closely with the NDFA and take account of the experience and results of the pilot programme under way. Depending on the success of the clause, there are other elements of my Department's capital programme which could adopt this approach, including the development of the National Sports Campus in Abbotstown, Blanchardstown.
I welcome the Minister's response and confirmation because the single greatest challenge for us is getting people off the long-term unemployment register and back to work. Every Department has a part to play in this task. One of the more notable successes of the Government is that the Department of Social Protection has moved away from just issuing cheques and is now heavily involved in labour activation measures. Every other Department must step up to the mark on that front, too. It is important, when Departments are spending their budgets, that they do so with a social conscience and target the long-term unemployed. I am delighted with the Minister's proactive approach to this issue and his Department's determination to assist the long-term unemployed by ensuring some of the billions it is spending are directed towards them. There is also a local element to this issue. Many of the projects cross several Departments, be they school building, road projects and so forth. A lot of those employed on such projects can travel from 20 counties away and it is hard to understand how this happens or justify it. I urge the Minister to place more emphasis on local employment iniitiatives, where possible.
I welcome the Deputy's comments. This is very positive news. The social clause will apply such that some people who are long-term unemployed will be employed on these contracts. The requirement to take on apprentices is also very positive and particularly important in the construction sector. However, we must always be aware of the law of unintended consequences. Many people who run small construction firms, particularly subcontractors, have between ten and 20 staff who move from job to job. We want to avoid a situation where they would have to lay people off to take people on just to satisfy the social clause. That is why we are going to move expeditiously but cautiously with these new arrangements.
Question No. 9 is in the name of Deputy Robert Troy who is not present. The next question tabled by a Deputy who is present in the Chamber is Question No. 11 which is in the name of Deputy Kieran O'Donnell.
Question No. 10 answered with Question No. 6.
