Oireachtas Joint and Select Committees

Wednesday, 17 October 2012

Joint Oireachtas Committee on Education and Social Protection

Minimising Unemployment: Discussion with Department of Social Protection

10:50 am

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein) | Oireachtas source

There are a number of issues I want to raise but I will try to be brief. It is a huge area and it is important that we get it right and do not further exacerbate the problems. How are we to going to address the issue of recruitment for many child care schemes, particularly those catering for people with a disability? A figure I was given by Citywide indicated an 84% drop in applications since the budgetary change which did away with the secondary benefits which applied to that category. Given that the numbers applying are limited the existence of some the child care facilities are threatened. That is a major challenge.

Mr. Egan mentioned the effects of training and materials grant on schemes. In many cases we are getting services on the cheap that should be provided by the State but that is a policy decision. It works out at approximately €1,000 per person. The cost of a FETAC level 5 course in child care is approximately €700. That means the budget is virtually gone for the participant and one is left with only €300 for a year or a year and a half. Has consideration been given to increasing the numbers? I realise that at the end of the day, the decision rests with the Minister. There are 180,000 long-term unemployed people, many of whom are five or six years unemployed by the time they reach 25 years of age but there are only 23,000 places. In a comment or a contribution it was indicated that there is a concentration on throughput rather than results, that there is a need to get as many people on to community employment as possible. That is fine but if there are not results the only way is to hold them until the progression is guaranteed and to get more people on the scheme, which means increasing the numbers rather than a faster throughput. I wish we had more time to debate the issue.

I welcome the financial review which has much to do with the management. For those of us who were on CE sponsor groups in the past, there are major questions in respect of the pressures on CE to get sponsors because of the additional liabilities, given that some are incorporated. Has there been any movement since the review, in respect of pooling of insurance costs across the board and contractors of IT suppliers and stationery being allowed to purchase for five, six or more schemes? Last week we had a discussion on schools where a similar issue arose.

Audits were mentioned and they are a significant cost. Most of these schemes do not bring in money as most of the money goes on training and materials. Therefore, a cost of €1,000 for audit is substantial and can be the difference between survival or not surviving.

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