Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

I apologise on behalf of the Minister for Social Protection, Deputy Burton, who is unable to be here this afternoon. I thank Deputy Breen for raising this important issue.

The Labour Court recommended in July 2008 that an agreed pension scheme be introduced for CE scheme supervisors and assistant supervisors, and that such a scheme be adequately funded by FÁS, which was then responsible for the programme. The Department of Social Protection assumed responsibility for the CE programme in October 2010. It must also be noted that the employer in this case is the sponsoring organisation and not the Department.

Notwithstanding that this matter has been the subject of discussions with the Department of Public Expenditure and Reform and the unions representing CE supervisors, the position of the Department is that liability for these costs should not be met from public funds. The Departments of Finance and Public Expenditure and Reform have informed FÁS and subsequently this Department that any provision for pensions for CE supervisors would have to be financed from the existing financial allocation. Additional funding will not be made available to cover this item. That has left the Department in a position in which, in order to make funds available, reductions would have to be met from a reduction in the number of CE places for jobseekers and other vulnerable groups. This is not a viable option. The implementation of the claim is not considered sustainable in light of the current and ongoing fiscal environment and the requirement to contain and reduce public expenditure. The costs of the introduction of any such scheme are likely to be of the order of €3 million per annum, with retrospective costs of the order of at least €30 million.

It should be noted again that the Department of Social Protection is not the employer of CE supervisors and that such employees are not public servants. Neither FÁS nor the Department of Social Protection was a party to the Labour Court hearing on this matter. The responsibilities of the sponsoring organisations - the employers and the employees concerned - must be recognised in considering pension provision arrangements.

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