Mr. Darragh O'Connor:

The next question related to how projects are affected by cuts to disability and lone parent's payments. There is a practical issue in areas such as drug rehabilitation and child care, where we are seeing an impact. A high proportion of CE child care workers are lone parents and have been in receipt of those additional payments. We are now finding that child care facilities cannot find staff to meet their ratio requirements and this is putting pressure on their existing resources. Many of them are contemplating reducing the number of children they take on. This reduces their income stream and leads to a vicious cycle. Practical issues arise as a result.

In drug rehabilitation projects, where 1,000 places are ring-fenced, there appears to be a huge reluctance among people who need to avail of these services to give up their disability payment and go onto a CE scheme. People seem to be fearful that they may not resume their disability payment when they come off the CE scheme. They have medical needs and need their disability payment. The demand for drug rehabilitation services has not declined but schemes are finding it difficult to persuade people to join, because of the financial implications.

I will ask Mr. Seamus Briscoe to say a few words about how the cuts to training and materials grants have affected CE schemes since last year's budget.