Dáil Éireann Debate, Thursday - 14 January 2016
48. Deputy Denis Naughten asked the Tánaiste and Minister for Social Protection to provide funding to projects under the community services programme to cover the increase in the minimum wage; and if she will make a statement on the matter. [1650/16]
View answerThe community services programme (CSP) is one of a number of programmes and schemes operated by the Department. It provides financial support to community companies that provide revenue generating services of a social inclusion nature. Many of these companies are also funded from other sources and generate revenue from the public use of their facilities and services. The CSP provides a contribution to the wage costs of the companies on the basis that the services are not fully self-financing or the cost of provision would be prohibitive on users. The Department does not set the wage rate but requires the payment of appropriate wage rates, consistent with local norms.
At December 2015, 398 companies employing some 2,800 employees were directly supported by the CSP. The Department estimates that, at the end of 2015, some 60% of these employees were being paid above the level of the minimum wage, in keeping with the social inclusion and social benefit objectives of the programme. The Department is committed to working with the remaining companies to achieve the objective of paying a reasonable wage. The Deputy should note that the CSP accounts for less than a third of the resources generated by these companies.
Contracts of up to three years duration are provided for under the CSP. Arrangements whereby individual companies will be able to access additional financial resources to compensate for the welcome increase in the minimum wage are being put in place. Submissions will be assessed on a case-by-case basis with the annual funding commitment being adjusted accordingly, where it is found to be warranted. An advance of 25% of the contract value for 2016 has been, or is in the course of being, paid to companies currently in the programme. This ensures that immediate cash-flow requirements are supported.
Overall, I am satisfied that the level of resources available to the CSP in 2016 at just over €45m will be adequate to meet the ongoing funding needs of the programme.
