Dáil Éireann Debate, Thursday - 1 July 2021
115. Deputy Rose Conway-Walsh asked the Minister for Social Protection if she will review the profit-focused approach set out in a tender for the expansion of local employment services; and if she will make a statement on the matter. [35409/21]
View answerI acknowledge the great work done by the Department of Social Protection and the people working on the ground. They had a significant task to meet the demand for the pandemic unemployment payment and other payments. I want to go back to talking about the local employment service. I believe that the Minister is making a monumental mistake and I need to ask her some specific questions about it.
I thank Deputy Conway-Walsh for raising this matter. It is wrong to look at the tender published on 26 May as profit-focused. It is absolutely client-focused with a strong focus on local services, community linkages and client service levels and outcomes. It is expanding service provision into seven counties that currently do not have a local employment service. About 90% of the fees to be paid under the contract are based on client service rather than outcomes. The outcome fee is an additional payment and is about 10%. The evaluation criteria are heavily weighted towards client service and community linkages. The request for tender published on 26 May is the product of an extensive process involving lengthy consultation with the sector and the engagement of external consultants.
The current cost met funding approach, used with existing local employment services and job club contracts, involves scrutiny of all day-to-day expenditure, placing an undue administrative burden on both the provider and my Department. This approach diverts valuable resources away from supporting clients. It does not enhance employment outcomes for the clients of the service and it does not recognise or reward in any way high-quality innovative providers. We have some good providers and others which are not so good.
Moving to a new funding approach, which pays for each client referred, coupled with a strong emphasis on community linkages, linking with all the other services in the area, and quality of service provision, will reduce the administrative burden, encourage innovation and is more likely to deliver enhanced outcomes for those availing of the service.
The procurement process now under way invites tenderers to demonstrate how they can best provide a quality employment service, giving them the scope to demonstrate their expertise, which we know they have, their professionalism and their commitment, which is not in doubt.
I question the Indecon report. It is a public document and was the basis for the decision that was to be made here. I believe that there is an alternative to this decision-making, despite what has been said about the EU directive. We have to question the data and the statistical information. I believe the data are inaccurate. In Mayo, for example, it was stated that there were 65 Pathways to Work referrals in 2016 when there were actually 650. Why is it only based on one year when most of the decisions would be based on multiple years? The referrals quadrupled in recent times. It was said that there was 5% attendance when there was 80% to 90% attendance in the Mayo region. I question the basis for the decisions that are being made. How much will providers be required to have as reserves? What is the financial capacity required by the companies for tendering?
They will not need reserves because they will get the payment upfront whenever a client is referred to the local employment service. I reiterate we are expanding these services under the first phrase of the request for tender. We are putting it into areas that do not currently have this employment service. When a customer or client is referred to the local employment services from the Intreo office, the service immediately gets a 45% payment. That means that it has the money to focus on the client. When the client signs up to a plan, the service gets the next 45% of the payment upfront and has that money to help the client to look for a job and provide support in every way that it can. The final 10% is paid when the client gets a job. These are upfront payments that are totally focused on the clients. That is the most important issue here.
It is important that organisations are not excluded on the basis that they do not have the financial capital. Will those currently employed in local employment services be affected once new contracts are in place? If a group of local employment services misses out on this contract in the tendering process, will they be protected?
Will there be a transfer of undertakings for existing staff to ensure job security for them? What plans are in place for any redundancies that have to be made, any lease agreements that have to be broken and any contracts with service providers, including the disposal of assets around that? Technically, those assets belong to the Department. What plans does the Minister have in place for that?
I am absolutely appalled by the treatment of centres for the unemployed. Two centres for the unemployed have been operating in Mayo for 35 years with enormous voluntary work being done in them. They are being closed down and it is the wrong time to do so.
I have raised concerns about the request for tender with the Minister for quite some time and she is responding. However, the difficulty is that the document out as part of the current process reflects many of the fears we expressed that the request for tender will not capture the very unique and holistic nature of the local employment service. Are there plans to change the next request for tender in light of that feedback?
I reassure Deputies that the request for tender will take account of local knowledge and community engagement. There is a strong emphasis on that in the request for tender. I have spoken to a number of the providers. I understand the Deputies' concerns, but we have taken them on board. There has been significant engagement with the particular group for whom we are expanding the service. I am satisfied that, at the end of the day, we will make sure that clients are number one throughout this process and will get the service they need to get back to work.
Deputy Conway-Walsh raised the issue of redundancies. It is the case that the local development company is the employer. I hope that providers can come together and work collaboratively. As I said, the client is the number one person who needs the support to get back to work.
