Dáil Éireann Debate, Tuesday - 18 May 2021
67. Deputy Claire Kerrane asked the Minister for Social Protection if she will provide an update on the tender for local employment services; the length of time the tendering process will be open for applications; if the terms of reference will include changes to the current model of employment services from a cost-met model to a cost bid model; and if she will make a statement on the matter. [26485/21]
Amharc ar fhreagraWill the Minister provide an update on the forthcoming tender process for local employment services and job clubs? She will know that this has been a matter of concern to those who work in these services. When will the process begin, how long will it last for and will the terms of reference include a move from the current cost-met model to a cost bid model?
I thank the Deputy for raising this matter. My Department is finalising a request for tender with the aim of establishing new local employment-type services in areas of the State where they do not currently operate. I expect this tender to issue shortly and the details of the procurement will be outlined in the published request for tender. The forthcoming procurement process will not impact the contracts of existing providers in other areas. I expect the tender will prove attractive to local community-based organisations, including local development companies. My Department has obtained legal advice that such services must be procured though open competitive procurement processes in line with EU and national rules.
Cost-met funding models require scrutiny of day-to-day expenditure, placing an undue administrative burden on the employment service provider and my Department. This approach diverts valuable resources away from clients and does nothing to enhance employment outcomes for the long-term unemployed or others supported by the service. Moving to multi-annual funding, with payment for each individual referred to the service, coupled with a strong emphasis on quality service provision, will reduce the administrative burden and is more likely to deliver enhanced outcomes for clients.
Separately, all current employment service contracts expire at the end of 2021. In many cases, these contracts have been in place for more than 20 years, with no formal procurement being undertaken in that period. This is not in compliance with the requirements of good governance or proper procurement. My Department is developing requests for tender to ensure that sufficient high-quality employment services are procured in a manner that is compatible with procurement rules. Organisations with strong experience in the delivery of similar services at community and local levels will be in a strong position to respond to the requests for tender when they issue.
I was hoping to get more than a reference to "shortly", as the latter is difficult to interpret and define. If the extension of the initial services to the four new locations is expected to be rolled out from July, I imagine that the tendering process is due any day now. Perhaps the Minister could provide further details on that.
What concerns me about the Minister's reply is the move to a multi-annual funding approach that pays for each jobseeker referred to the service, which is in essence JobPath. JobPath has failed, is not a quality service and has not served the jobseeker nor the taxpayer well. JobPath has cost the taxpayer €259 million and counting since 2015 whereas the likes of local employment services cost between €17 million and €20 million per year. For a decent number of people who have been referred to it, JobPath has not led to employment that has been sustained for longer than 12 months. Will the Minister provide the House with information on the future of the JobPath service in line with this contract for services?
I agree that fantastic work is being done by local employment service providers across the country. The local employment service in my county of Monaghan is led by Mr. Francis McCarron, who does good work helping people with career guidance, CV and interview preparation, and upskilling and training supports. This is the case in many local employment services and I assure the Deputy that I recognise the great work being carried out by many of our local employment service providers. As Minister, however, I must follow the legal advice that I am given. To do otherwise would be a dereliction of my duties. The clear legal advice that I have been given by the Attorney General is that my Department is in breach of EU procurement rules and we need a competitive procurement process for these contracts. In addition, the Comptroller and Auditor General found in his 2019 report that the Department was not in adherence to public procurement policy.
The Minister has made the case for why this tendering process is necessary. That is fine, but my concern is that, ahead of the tendering process, she is talking about paying for each jobseeker referred to the service. That is a move away from what local employment services are doing well. I am glad that the Minister recognises this, as they are reputable. The 2018 Indecon report showed how well got they were in the communities they served, their good relationship with local employers and how they worked well and efficiently with those who came through their doors. We must remember that local employment services have a much wider remit, in that they do not just deal with jobseekers referred to them. They have walk-in and wrap-around services, which will be vital as we emerge from Covid-19, that other services like JobPath do not have.
I wish to ask about the external report on contracted services that was carried out last year. It went to the labour market advisory council, whose response the Minister received at the end of March. Will she provide the House the detail of the report and will she publish it?
That report will be published in due course. Local employment services form only one part of this jigsaw. There are a number of aspects, for example, the Intreo offices, where I have increased the number of staff to help people locate jobs. Unfortunately, many people will not get their jobs back when the economy reopens fully. We want to help them find other jobs. A number of approaches to this work are being taken, including local employment services, JobPath and Intreo. Above all, we do not want to reduce any of those services. With this request for tender, which I hope to publish very shortly, I aim to expand services in areas where we do not have a local employment service currently.
