Mr. Jim Breslin:

As there seems to be some confusion in the sector with regard to this matter, we are considering how we can better communicate our proposal in this regard in order to allay misunderstanding. The Department has decided that in 2013 six national bodies currently directly funded by the Department will be funded by the City of Dublin youth services board. This does not affect the other VECs. As the largest funding mechanism for youth services, the City of Dublin youth services board has developed a good quality financial system to govern the payment of grants to youth bodies in Dublin. We plan to take advantage of this system in delegating the funding of the six national bodies to it. We have signalled that we want to examine arrangements for 2014 and this has caused people to infer all kinds of reasons for it. Between now and 2014 we will be undertaking detailed planning work and careful consideration as to how this will proceed. Nothing will be done in a hurried way and we will not put a system in place until we are confident it will work. We have taken some considerations into account. The VECs around the country deal with about 400 grants. On average, the VECs take a 6% management fee for dealing with this funding. We hope to examine this arrangement and its cost-effectiveness. This is not to take away from the statutory role of the VECs. We provide a separate funding for youth officers with whom the Department works very closely. Those roles will be maintained. However, given the significant funding from the Department, we have an obligation to examine whether duplication occurs in grant-awarding mechanisms and whether it could be more cost-effective. We will take our time in carrying out this review. No precipitative action will be taken before January 2013. If any money can be saved in the processing or administrative arrangements, then the funding for front-line projects can be secured. Our timescale is longer than that interpreted by the sector or the VECs.