Breeda Moynihan-Cronin
Ceist:95 Mrs. B. Moynihan-Cronin asked the Tánaiste and Minister for Enterprise, Trade and Employment the Government's plans for the future role of FÁS; and if she will make a statement on the matter. [3343/02]
Written Answers. - Future of FÁS.
The labour market has changed dramatically in Ireland in recent years. Since 1997 employment has grown by 28% and unemployment has fallen to 4.3% from 10% in 1997. Long-term unemployment is currently recorded at 1.2%. This represents a tight labour market characterised by vacancies in all sectors and at all skill levels.
The recent rise in unemployment has been brought about mainly by short-term factors such as the downturn in the technological sector and the economic effects of the 11 September attack in the US. There is a general view that unemployment will rise in 2002 but that good economic and employment growth will return in the medium term.
In the context of relatively low unemployment, a tight labour market over the foreseeable future and the need for continuous upskilling of those in the workforce, I believe that the future strategy of FÁS should be based on a new emphasis on services to employers to maintain skills and competitiveness; more training for job seekers and people in work to ensure that they remain employable in the face of change; greater mobilisation of labour and skills, particularly from at home, to meet the needs of a developing economy; and continuing to improve outcomes for unemployed people and marginalised people, including early intervention to counteract the risk of long-term unemployment.
In response to the changed labour market conditions and taking account of the foregoing concerns, FÁS engaged in a strategic review and published its new strategy in December last. The key elements of the new strategy are a significant emphasis on services to employers and employed people; a greater focus on mobility and flexibility, through the upskilling of the workforce; further development of the standard-based apprenticeship programme, including further educational/training options for craft persons; the provision of portable skills for employees; the promotion of employment through greater mobilisation of labour supply from all available sources; more assistance to help people to move from unemployment into employment; continuing to improve services for unemployed people, particularly those who are marginalised with an emphasis on a focused approach, tailored to individual needs; using the employment service as a gateway to all labour market services; and a guarantee of service to unemployed people.
This shift in focus will be supported by an increased commitment to quality and standards in all FÁS activities; a regular review of FÁS services and programmes to assess their continued relevance in a rapidly-changing environment and to identify changes that may be required; putting in place a best practice human resources strategy and the necessary organisational structures and systems to ensure the flexibility to implement change rapidly, efficiently and effectively; and openness to alternative delivery systems and the building of working partnerships and alliances with other service providers.
FÁS has, and will continue to play, a major role in meeting the labour and skills requirements of the economy and in tackling unemployment. The FÁS budget remains significant. In 2002 its total operating budget is over €870 million and it has the capacity to engage with up to 100,000 people on training or employment programmes.