Dáil Éireann Debate, Wednesday - 13 January 2016
85. Deputy Tom Fleming asked the Tánaiste and Minister for Social Protection the status of an issue (details supplied) regarding shortage of funding for a service in County Kerry; and if she will make a statement on the matter. [46831/15]
Amharc ar fhreagra103. Deputy Dara Calleary asked the Tánaiste and Minister for Social Protection to clarify the statement made by a Minister (details supplied) in Seanad Éireann regarding extra supports being made available to community services programme companies in connection with the increase in the minimum wage; how these supports can be accessed; how much of a budget has been allocated to these specific supports; and if she will make a statement on the matter. [1038/16]
Amharc ar fhreagra143. Deputy Pearse Doherty asked the Tánaiste and Minister for Social Protection the arrangements being made to assist companies in receipt of funding via the community services programme to enable contracted companies to meet the increased costs associated with staff payments and employee wages incurred as a result of the increase in the minimum wage which came into effect from 1 January 2016; and if she will make a statement on the matter. [1453/16]
Amharc ar fhreagraI propose to take Questions Nos. 85, 103 and 143 together.
The Department of Social Protection supports service provision through a number of programmes and schemes. The community services programme (CSP) provides financial support in the form a contribution to the cost of wages to community companies that provide revenue generating services of a social inclusion nature not otherwise provided. These community companies operate on a community business or social enterprise model. Companies supported by the CSP are funded on the basis that they are allowed to generate and use income from the services they provide to pay staff, meet overhead costs and to contribute to their future development. The CSP provides a contribution to the wage cost on the basis that the services are not fully self-financing or the cost of provision would be prohibitive on users. The Department does not set the wage rate but requires the payment of appropriate wage rates consistent with local norms.
Companies employing some 2,800 employees are directly supported by the programme. At the end of 2015, the Department estimates that some 60% of these employees are paid above the level of the minimum wage, in keeping with the social inclusion and social benefit objectives of the programme. The Department is committed to working with the remaining companies to achieve the objective of paying a reasonable wage.
Contracts of up to three year duration are provided for under the CSP. Arrangements whereby individual companies will be able access additional financial resources to compensate for the welcome increased in the minimum wage are being put in place. Submissions will be assessed on a case-by-case basis with the annual funding commitment being adjusted accordingly where it is found to be warranted. An advance of 25% of the contract commitments for 2016 has or is in the course of being paid to companies currently in contract under the programme.
I am satisfied that the level of resources available to the CSP in 2016 at just over €45 million will be adequate to meet the ongoing funding needs of the programme.
