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Dáil Éireann díospóireacht -
Wednesday, 18 Jun 2003

Vol. 568 No. 6

Adjournment Debate. - Community Employment Schemes.

I wish to raise the matter of community employment schemes on the Adjournment. When I submitted this matter, I did not know that Fianna Fáil opposes community scheme cuts, as reported in today's Irish Independent. Up to 30 Deputies and Senators spoke passionately about this and they unanimously demanded that existing CE places be maintained. It is strange that on the same day as this article was published, announcements were made of another six CE schemes being cut in my constituency. These cuts can be added to a considerable number of other schemes that have been cut in the past two years.

At the start of 2002 there were 26 schemes in place in the Dublin 12 area. I will concentrate on what has happened to CE schemes in Dublin 12 because that has been repeated in Dublin 8 and in Dublin 10, which are also in my constituency. This has been repeated in many other disadvantaged communities throughout Dublin and the rest of the country. Of the 26 schemes established in Dublin 12, only 12 remain. How can the remaining schemes provide the services that were provided by 26 schemes? There is not a hope in hell of them doing that. There has been a 31% cut in CE schemes this year. With no recruitment being allowed, by the end of the year some of the existing schemes will no longer be viable. There has been a cut of 50% in the number of participants on CE schemes in the area.

It is not only CE participants who have been affected by these cuts, six supervisors in the Dublin 12 area have also lost their jobs. It was agreed that they would be entitled to four weeks pay in statutory redundancy, but that has changed. The new statutory redundancy package is eating into the four weeks payment they were promised.

We probably all received a letter form the Irish Wheelchair Association and from the Disability Federation of Ireland about the effects of these cutbacks. The Government has decimated the schemes, many of which in recent years allowed people with disabilities to move around and to have access to the services they need. In the case of Irish Wheelchair Association, 417 CE places had been reduced to 194 by December last.

I do not know how Fianna Fáil Deputies and Senators can accept the excuse from Minister of State, Deputy Fahey, that the cuts in CE schemes have been minimal. The figures I outlined are in an area where some of the schemes are protected because they are drugs task force related. I do not understand how a 50% cut in respect of these schemes in two years can be described as minimal. The Government is not seriously addressing the effects of the cutbacks.

Some people talk about the need to secure value for money. People involved in running a social economy scheme spent €600,000 of taxpayers' money, which will be lost because the Government will not give grant approval for the employment of a manager. That money was spent refurbishing a house, but it will be lost because the Government is not willing to budge. The Government accepts that the social economy project is valuable, viable and should continue, but because of its restrictions, it will not give approval for the employment of a manager and as result the Exchequer will suffer a loss of €600,000. That is crazy.

Despite the partnership process, it is crazy that the Government continues to cut community employment schemes. They play a vital role in providing services to those who are less well-off, the elderly, those with disabilities and those who are impoverished because of years of Government cutbacks and lack of investment. I urge the Government to reverse the cutbacks it has announced in the CE schemes and instead to invest money in them to make them viable.

In accordance with the Government's decision in 1999 to restructure community employment, participation levels are gradually being reduced reflecting the significant reduction in the numbers of the long-term unemployed, and the shift in emphasis away from work experience programmes to training, from which there is a greater level of progression to employment. The average participation rate on the programme during 2003 is expected to be in the region of 22,500, which amounts to a reduction of 5,000 places approximately, phased over the year. The allocation of places and renewal of individual CE projects, including projects in Dublin and surrounding areas, is a matter for FÁS.

Drugs task force activity and child care service provision are ring-fenced from any reductions and projects in RAPID are given priority. CE places in the health sector, which includes personal assistant services, are being maintained at existing levels to ensure continuity in the delivery of these services. However, such places are subject to the normal eligibility requirement for the programme.

I understand that difficulties are being encountered by certain organisations that have problems in replacing participants due to the lack of suitable applicants coming forward for the programme. All health service related CE projects have been ring-fenced from reductions that have taken place as a result of reducing the CE programme to 20,000 places by the end of 2003. During 2002, when CE places were reduced from 38,809 places down to 25,000 places, FÁS ensured that these designated health CE places were untouched and that the places were maintained as agreed.

CE expenditure in the Dublin area is a matter for FÁS. In relation to that area and the recent reductions there, I understand that FÁS has consulted local community groups before implementing changes that reflect the reduced funding available for community employment. The priorities proposed – the retention of community employment places relating to drugs services, affordable child care, health or disability services and the high priority for projects in RAPID neighbourhoods – are being recognised by FÁS in deciding the optimum use for the funds available. Many participants have completed their time on community employment and are ready to move on, and a number of others have been offered places on other projects.

Funding amounting to €274.3 million is being provided for the administration of the CE programme on a national basis during 2003. Decisions on this year's financial allocation for CE were taken in the context of the 2003 Estimates process and the allocation for this year has not been further reduced.

A key indicator of economic performance is labour market change. Employment in the Irish economy grew last year by 1.4%. The unemployment situation remains stable at just 4.6%. A particularly welcome feature of Ireland's labour market performance over recent years is the low long-term unemployment rate, which has fallen from 10.4% in 1988 to 5.6% in 1997 and now stands at just 1.4%. While indicators show a softening in the labour market conditions there are still substantial employment opportunities available in the market.

The Government is aware of the important contribution that CE has made to the development of services for local communities over the years. In this context a number of reviews of CE are currently under way. The PPF provides for an overall appraisal of active labour market programmes to be carried out and this work is being undertaken under the aegis of the Standing Committee on the Labour Market, which is chaired by the Department of Enterprise, Trade and Employment.

In addition, a cross-departmental senior officials group has been asked to consider options for the future of CE, taking account of the link with the provision of community services. FÁS is also currently completing an internal review of CE and the job initiative programme, which is well advanced and should be finalised shortly. The outcome of these various initiatives will inform the Government's consideration of options for the future of these programmes, which will arise in the context of the 2004 Estimates process.

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