John Brady
Question:551. Deputy John Brady asked the Minister for Social Protection the estimated full-year cost of exiting the JobPath contract early. [13845/17]
View answerTuesday, 21 March 2017
Questions (551, 552)
John Brady
Question:552. Deputy John Brady asked the Minister for Social Protection the estimated full-year financial implications of ceasing to direct jobseekers to JobPath. [13846/17]
View answerWritten answers
I propose to take Questions Nos. 551 and 552 together.
The JobPath contract contains provision for early termination notwithstanding any dispute which may arise and which is covered elsewhere in the contract.
Written notice must be served on the contractor 6 months in advance of a termination.
The amount of compensation to be paid to the providers is stipulated in the contract, however, this information is commercially sensitive and to publish same would place the State at a disadvantage both in terms of the contracts now in place and any future procurement that may be undertaken.
The estimated budget for JobPath 2017 is €65m, the actual expenditure will depend on the number of referrals and the resulting number of clients who enter full employment, for which the contractor can claim a sustainment fee. This may represent a saving to the Exchequer but the saving will also be dependent on the cost of replacement services, as there is insufficient capacity immediately available to absorb the referrals that would have gone to JobPath.
I hope this clarifies the matter for the Deputy.