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Employment Schemes

Dáil Éireann Debate, Thursday - 3 February 2022

Thursday, 3 February 2022

Questions (49, 83, 97)

Paul Murphy

Question:

49. Deputy Paul Murphy asked the Minister for Social Protection if a commitment will be made to ending privatisation and outsourcing of the social protection system; and if she will make a statement on the matter. [5400/22]

View answer

Paul Murphy

Question:

83. Deputy Paul Murphy asked the Minister for Social Protection if she will withdraw the tender for local employment services; and if she will make a statement on the matter. [5401/22]

View answer

Gino Kenny

Question:

97. Deputy Gino Kenny asked the Minister for Social Protection if she will withdraw the tender for local employment services; and if she will make a statement on the matter. [5468/22]

View answer

Written answers

I propose to take Questions Nos. 49, 83 and 97 together.

Firstly, I can assure the Deputies that the new Local Area Employment Service is not a privatisation of employment services. Instead, it is a shift to competitive procurement as required by the State’s legal obligations and the principles of good governance.

The procurement of a Local Area Employment Service is being done over two phases. The tendering process for the first phase, covering seven counties where no Local Employment Services existed, is complete, with contracts awarded and services being mobilised. Phase two has commenced with the publication in December of a request for tenders for the remaining 19 counties over 17 contract lots. Services are expected to commence in July.

Once the procurement process is complete, the State will have established a quality employment service designed to engage with those farthest from the labour market in every county in the State. By contrast, the existing LES services covers just eight counties, with partial coverage in four more and no service in fourteen counties across the State.

The possibility of retaining the current LES model and doing nothing was not an option. My Department has received clear legal advice from the Chief State Solicitor’s Office and the Attorney General that this process is not in keeping with our procurement obligations and there needs to be competitive procurement for future public employment services. In addition, my Department is responsible for ensuring good governance of employment service provision, which requires greater oversight and enhanced visibility of service provision.

My officials have worked to ensured that the new procurement model minimizes any potential barriers to the community and voluntary sectors or inhibits their ability to submit high quality tenders for future services. The Local Area Employment Service model prioritises and awards the provision of quality employment services, community linkages and social value.

After extensive engagement with stakeholders after phase one, my Department incorporated many improvements into the phase two request for tender, published shortly before Christmas.

I understand and appreciate the concerns of the sector at the changes proposed. However, current community and voluntary service providers with a strong track record and an openness to cooperation will be well placed to submit high quality tenders for the new services. Under Phase 1, community and voluntary sector providers were successful in two of the three lots where they submitted tenders. My Department will continue to proceed with Phase 2 to ensure that its contracted employment services are procured in manner consistent with the State's legal obligations.

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