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Dáil Éireann díospóireacht -
Thursday, 11 Jun 1992

Vol. 421 No. 2

Adjournment Debate. - Social Employment Schemes.

I thank the Chair for permitting me to raise this matter on the Adjournment. It concerns cuts which have been made by FÁS in the numbers of participants being recruited on social employment schemes. This is extraordinary given our rising level of unemployment.

Over the past two weeks sponsors and co-ordinators of social employment schemes have been informed of an unannounced policy to reduce the number of participants in these schemes. Already one important inner city scheme, the Lourdes Community Resources Centre with 20 SES workers has been closed down because FÁS did not allow it to roll over on 8 June. A second scheme in the city centre, the Grapevine Arts Centre is due to close on 19 June because it, too, is not being permitted to roll over.

In my constituency a number of SES schemes which are sponsored by Dún Laoghaire vocational education committee and Dublin County vocational education committee have been informed that recruitment of participants is to be reduced by 50 per cent. This means that SES schemes which are doing important and imaginative work in local communities are under threat. Schemes such as "Options" in Ballybrack, Community Action Television, Loughlinstown Employment Group, Sport-Eco and Choices in Shankill are now under threat. The 50 per cent cut in participation will not only reduce numbers but will threaten the viability of these projects because their administrative and supervisory budgets are based on the number of participants. If the number of participants is halved so too is the finance for the schemes' overheads. These groups operate community radio and television services, run unemployed centres, organise women's groups, produce community magazines and carry out environmental works. This type of activity requires continuity. If it is disrupted by massive reductions in participants it will be difficult to resume it.

Will the Minister explain why these cuts are being made? To date, FÁS have made no statement to explain to either the sponsors or the participants of schemes the rationale for the cuts. I understand that it may be due to the arrangements that exist for the funding of FÁS schemes. If this is so it should be corrected immediately and those involved in SES schemes reassured that the work is valued and is secure.

It is interesting that these cuts in the SES schemes are coming just before the launch of the community employment development programme. This programme was given pride of place in the budget speech by the Minister for Finance last January. Could it be that SES money is now being held back to kick start the CEDP later in the year? Is this another case of robbing Peter to pay Paul? We are owed an explanation and an assurance. With the unemployment figure now heading towards 300,000 and unemployed people willing to participate on SES schemes it does not make any sense to cut back on these schemes. The Minister should address this question as a matter of urgency.

In my constituency, for example, there is a number of schemes which are shortly coming up for renewal and for renewal of participation in the schemes. If there is any delay or refusal to renew these schemes not only will it affect individual participants, but it will affect the schemes, because they need a certain amount of continuity. Many of the schemes and projects require a great deal of planning and management. If the numbers of participants are depressed at any given time, it throws the whole operation of the project askew and it could undermine the viability of them. The Minister should address this urgently. I hope he will respond positively to these points.

I wish to emphasise at the outset that the social employment scheme is in operation and will so continue. An Exchequer allocation of £72.9 million has been made available to FÁS for expenditure on the scheme this year to provide opportunities for an average of 11,000 people on the scheme each week. However, the actual number on the scheme at any particular time will vary depending on the number of projects in operation.

The scheme is the principal manpower intervention aimed at the long term unemployed and it has been in operation since 1984. It provides opportunities, albeit on a part-time basis, for long term unemployed people, to become involved for a year in a work related situation and so improve their prospects of obtaining employment when full time employment opportunities arise. There were 12,556 on the scheme at the end of April 1992 of whom about 54 per cent are persons with adult and child dependants. The scheme represents a successful collaboration between local communities and the State in that local groups sponsoring projects must come up with proposals for projects which generally involve improvements to local amenities. In addition, local communities come up with a certain element of funding for the projects. A wide variety of projects is undertaken under the scheme and all Deputies will be aware of the benefits to local communities and local unemployed people brought about through the scheme.

One of the difficulties which has arisen over the years is that some voluntary groups providing services on a continuing basis at local level have come to rely on schemes such as the social employment scheme for assistance in providing their services and as such the schemes are in danger of becoming project driven. Employment schemes were not intended to provide assistance on an ongoing basis for projects. Rather the intention was that projects would be of a finite nature which would allow flexibility in providing opportunities for long term unemployed people where such opportunities were needed having regard to the level of unemployment in different parts of the country, and available resources.

I am aware of the difficulties being experienced by some promotors of projects in having projects renewed. This arises because intake to the scheme must be managed by FÁS so as to ensure that expenditure is kept within the available resources. A mid year review of expenditure on the SES has indicated that there will be some savings on employment scheme expenditure due to a slight change in the profile of participants. I am pleased to advise the House that I have authorised FÁS to utilise these savings to fund additional SES and Teamwork activity between now and the year's end. This should overcome some of the difficulties being experienced by sponsors whose SES projects have or are about to expire. However, I would again emphasise that continued support for particular projects cannot be guaranteed. FÁS must have the flexibility to manage the scheme having regard to the needs of the long term unemployed throughout the country and the available Exchequer resources.

Unfortunately the scheme is no longer eligible for European Social Fund aid, but I am pursuing the matter with EC officials to see if an agreement can be reached on the restoration of ESF aid.

I would refer Deputies to the Community Employment Development Programme which is being introduced in the 12 pilot areas established under the area based strategy for long term unemployment and which will replace the SES in these areas. Under the new programme a training element will be provided for participants who will also retain their secondary social welfare benefits. EC aid in the form of a global grant is being sought by the Taoiseach's office for the various measures including the Community Employment Development Programme announced by the Taoiseach at the end of April to operate in the 12 pilot areas under the area based strategy. This may act as a test case with the Commission in my efforts to have ESF aid restored for the SES generally.

I understand from the Director General of FÁS this week that an urgent review is underway of projects whose renewal had been deferred. FÁS hope to be in a position to clarify the position with sponsors within two weeks. In fairness, however, I must say that it is unlikely that all projects seeking renewal will be authorised for immediate start. Some prioritising and staggering of such renewals is inevitable.

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