Oireachtas Joint and Select Committees

Friday, 9 November 2012

Joint Oireachtas Committee on Finance, Public Expenditure and Reform

Pre-Budget Submissions: Discussion with Civic Society Representatives

12:55 pm

Ms Bríd O'Brien:

That would allow additional flexibility and would be welcome. The difficulty is that the Department is afraid that if it redesigns the system, it will collapse. If, however, we are talking about public sector reform, we must be serious about it. There is work out there, but it is part-time or piecemeal and people do not know how long it will last. Many employers would like to employ people but they are afraid if they do they will not be able to hold on to them. We should facilitate people to provide employment and to take up employment.

The administrative system must change. Instead of a person signing off one FÁS training course and signing on to the other, there should be a categorisation system. In some casual vacancies, this system already exists but the system must be redesigned to be able to do this. The Department or training agency could then see who has done what course and what they are doing now. The on-line data would be better and would allow for better decisions and planning. It is to the Department's own advantage because it would give a more efficient and effective use of resources.

The labour market has three key aspects and if we are to address the unemployment crisis, all aspects must be engaged with. The State itself currently employs one in six of those with a job. The community and voluntary sector is a significant employer in its own right and there is then the for-profit private sector. All sectors have a role to play. Currently there is a huge emphasis on the exporting for-profit sector. The difficulty with that sector is it makes our economic statistics look better, which would be great at one level, but the employment kick-back is not the same. We need indigenous economic activity and the State has an important role to play, particularly in areas where foreign direct investment will never take place. The community and voluntary sector has a role to play and often does currently in the provision of services and creation access to employment. We must explore all three areas while making sure all aspects of the labour market are speaking to each other so if people engage in employment programmes, employment providers can consider how to ensure the progress is made. Progress is particularly poor at the moment in generic jobs, where there should be no issues at all.

Social contracts have been bandied about for a long time. Like Deputy Doherty I do not understand the block on this. We must look at everything. They have an important role to play and could be an important support of local community and voluntary sector economic activity and social enterprise.

There are proposals for the self-employed to be able to buy into the social insurance system. Our proposals is that they pay both. That would still be a hell of a lot less than is the case in some other states. In France the self-employed contribution to the social insurance system is very significant.

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