Dáil Éireann Debate, Wednesday - 29 June 2016
139. Deputy Catherine Connolly asked the Minister for Social Protection the nature and duration of the contracts and the financial arrangements made with two companies to deliver JobPath; if persons in receipt of disability payments are included; the status of the implementation of JobPath; how he is overseeing the effectiveness of the contracts; and if he will make a statement on the matter. [15841/16]
View answerIreland’s Public Employment Service (PES) is managed by the Department of Social Protection (DSP) and delivered directly by its own Intreo service as well as by contracted private companies under the JobPath service; the Local Employment Service (LES) and Job Clubs. The JobPath element of the service is a new approach to employment activation designed to support long-term unemployed people and those most at risk of becoming long-term unemployed to secure and sustain paid employment. My Department has contracted two companies, Turas Nua Limited and Seetec Limited, to deliver JobPath services.
The roll-out of the service commenced on the 20th of July 2015 on a phased basis and the service is now fully rolled out to all 121 Departmental offices. To date c. 38,000 jobseekers have been referred to the JobPath service. Only clients in receipt of a jobseeker payment are referred to JobPath. Clients in receipt of a disability payment are not referred to JobPath.
JobPath is a payment by results model and all set-up and day-to-day operational costs are borne by the companies. Payments are made on a phased basis over a 12 month period in respect of each jobseeker placed into sustained employment. Accordingly the contractors will not be able to fully recover their costs unless they help a sufficient number of jobseekers to secure employment and then support them to sustain that employment over a 12 month period.
The contracts are for six years comprising two consecutive phases, (phase one entails four years of client referrals while phase two entails a ‘run off’ period during which time no additional clients will be referred). The contracts include options to extend phase one for further periods (up to a maximum of 24 months) at the department’s discretion.
The contracts stipulate a significant number of obligations that both companies are required to meet, for example, in terms of the service elements to be delivered and the performance to be achieved. The delivery of these obligations is subject to on-going review and monitoring by the department, including on-site checks and inspections and a customer satisfaction survey to be undertaken by a third party research firm commissioned by the Department. Payments to contractors can be reduced if these inspections and surveys do not yield satisfactory results. Payments can also be reduced if the contractors do not meet their contracted targets with regard to employment outcomes, and if employment growth in the economy exceeds the medium term forecasts of the Department of Finance. Failure by the contractors to improve performance (if they are not meeting contracted target levels for employment outcomes) or to address any service deficiencies identified in the inspections and surveys mentioned above can lead to termination of the contracts.
It is not intended to publish the individual fees agreed with the JobPath contractors as these are commercially sensitive and to do so would place the State at a disadvantage both in terms of the contracts now in place and any future procurement that may be undertaken.
I hope this clarifies the matter for the Deputy.
