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Dáil Éireann díospóireacht -
Tuesday, 5 Oct 1999

Vol. 508 No. 3

Adjournment Debate. - Community Employment Schemes.

During the summer all major community projects and many major jobs initiatives were faced with the unilateral prospect of their numbers being cut by almost 5,000 by the Minister for Enterprise, Trade and Employment, Deputy Harney, without any discussion with the social partners or reference to the standing committee on employment under Partnership 2000. A clear effort was made to reduce the resources available for measures to assist the unemployed to get sustainable jobs. It is clear the Minister was taking advantage of the current jobs climate to implement the Deloitte & Touche report which advocated the reduction of community employment places to less than 30,000, to increase the age eligibility and to restructure the programme in such a way that many of those who now avail of the scheme would be disadvantaged. When thousands of community employment workers marched past Dáil Éireann in recent weeks they were angry at the arrogant behaviour of the Minister and her Department.

It cannot be denied that the growth of the social economy has been facilitated and sustained by community employment over the past ten to 12 years. The initiative began in the mid 1980s when Deputy Quinn introduced SES. Many important local groups, such as development centres, small enterprise centres and unemployment centres, panicked when they were faced with the major difficulty of carrying on the valuable work they have done for our community over the past decade. Many primary and secondary schools were faced with great uncertainty, particularly in relation to school secretaries and other part-time workers such as caretakers and school assistants. It was difficult for principals to plan the programmes they would adopt in the 1999-2000 school year. However, none of this was heeded by the Minister. Despite a promise of 5,000 jobs during the discussions on the national development plan, consultation did not take place until last week when the Minister realised this issue would be raised in the Dáil.

As a director of an unemployment centre and a development centre, which employs more than 100 community employment workers at different times and has a good record in the northside partnership area of Dublin of placing those workers in long-term sustainable employment, I agree that the progression rates and individual development plans for those workers is an important aspect of the programme's development in the future and for advancing specific skills training and increasing the range of employment foundation courses. The Minister was ill advised in unilaterally reducing this programme.

A few weeks before the Dáil broke for the summer, Deputy Deenihan and I spoke about the future of the partnership companies. We wanted to know what would happen to the community developments after 1 January 2000. Workers played an important role in these developments through training or community employment. We felt the prospect for these projects was bleak as many of the senior staff who had implemented the programmes at local level were moving to different areas of the economy.

The Minister recently met a delegation from the Irish Congress of Trade Unions and backed down on the worst aspects of her plan. I suggest that if she wants to develop this programme and look at ways in which it can be more closely linked with an active labour market programme, she should consult the workers, their representatives in the trade union movement and their employers and sponsorship groups. The Minister has behaved in a disgraceful and unilateral way.

I am pleased to have this opportunity to discuss in the House the restructuring of community employment and to provide further clarification of the changes approved by the Government last July on behalf of the Tánaiste and Minister for Enterprise, Trade and Employment.

The primary purpose of community employment as an active labour market programme is to reintegrate long-term unemployed persons into open labour market jobs. The programme was introduced in 1994 to replace a range of then existing initiatives. At its height, it operated at a level of approximately 40,000 participants.

In a tightening labour market, continuation of an active labour market programme at this level had to be examined and the Government took a decision in July 1997 which led to the Deloitte & Touche report on community employment which was published in September 1998. The main recommendations of that report were to reduce the number of places, improve targeting and progression, limit rollover by participants, review the participation level by lone parents and discontinue community employment within the State sector because of poor progression rates. The key considerations behind these proposals were poor labour market assimilation following community employment, poor targeting notwithstanding recent reforms, excessive carouselling, poor links to the open labour market and increasing numbers of lone parents not progressing from community employment schemes.

The Deloitte & Touche report recommended cuts of between 6,000 and 8,000 places in community employment and this figure was the basis of discussions with the social partners on restructuring the community employment programme. The details of the restructuring should be restated so that there is no confusion in the House. The eligibility age has been raised from 21 to 25 with the exception of discretionary referrals under the employment action programme; the waiting period for individuals repeating a one year term is increased from six months to one year; lifetime participation in community employment by an individual is capped at three years; the numbers on community employment will be reduced from 37,500 in 1999 to 28,000 over a period of five years through transferring the resources for 5,000 places to the dedicated social economy programme and by reducing the numbers of places otherwise on the programme by 4,500; and eligibility has been extended to additional categories, namely, qualified adults and widows and widowers, subject to a qualifying period for eligibility.

In tandem with these changes, the Government has also approved the phasing in of a dedicated social economy programme with effect from 1999 and the establishment of a national monitoring committee to oversee the operation of this programme. The primary focus of this programme will be on the development and regeneration of disadvantaged communities and it arose from consultations with the social partners. The national monitoring committee is currently being established to oversee this programme.

The restructuring of the community employment programme will effectively refocus the programme on older persons and those most removed from the labour market and diminish the extent to which community employment might be seen as competing with the open labour market for employees who are job ready. The shift must be taken in tandem with budgetary changes announced earlier this year which saw 11,000 new places introduced costing £22.85 million and covering a range of topics from specific skills training through enhanced jobs clubs provision to an additional 800 flexible training places for lone parents.

The restructuring of community employment also opens up access in their own right to additional categories of disadvantaged persons in the State, that is, qualified adults who are long-term employed, and removes the anomaly whereby widows and widowers who want to return to work could not avail of community employment to facilitate a return to the jobs market. Community employment will remain a substantial active labour market initiative, albeit more focused on the most needy and hardest to place in the labour market. The programme will continue to support the community and statutory sector, if at a reduced level. The Tánaiste and Minister for Enterprise, Trade and Employment recently met representatives of the INOU and ICTU and already provided full clarification of the restructuring along these lines.

Having dealt with the details of the Government decision and the reasoning behind it, the House must contextualise it. Unemployment has fallen from 179,000 in 1996 to 95,000, that is, from 11.8 per cent to 5.9 per cent. Long-term unemployment has fallen in the same period from 103,000 to 44,000, that is, from 6.8 per cent to 2.6 per cent. In that period 29,400 additional net places directed at the socially excluded have been provided in employment, training and educational programmes. The Government has fulfilled by a factor of three the commitment in paragraph 4.24 of Partnership 2000 to provide 10,000 additional active labour market places. The ratio of community employment places to long-term unemployment has dropped from 2.6:1 in 1996 to 1.1:1 today.

The House will agree that the restructuring of community employment has been well thought out and the Government's decision has been taken in the best interests of the most needy groups in society. I commend the Government decision to the House.

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