Mr. Paul O'Toole:

I welcome the opportunity to assist with the committee's examination of payments made by SOLAS to Rehab for the provision of specialist vocational training and other services.

I am accompanied by Ms Mary Lyons who is currently director of community training provision.
On 18 November 1997 the Minister for Justice, Equality and Law Reform announced that the Government had approved, in principle, the establishment, on a statutory basis, of a national disability authority and a disability support service. The Government also approved the formation of an establishment group which was tasked with the preparation of detailed proposals for the establishment of the National Disability Authority and the future location of departmental responsibility for the functions of the National Rehabilitation Board, NRB. The establishment group recommended, inter alia, that responsibility for vocational training for people with a disability transfer from the Department of Health and Children to the Department of Enterprise, Trade and Employment.
Following the passage of the National Disability Authority Act 1999, the issuing of the National Rehabilitation Board (Transfer of Property, Rights and Liabilities) Order 2000 and the National Rehabilitation Board (Dissolution and Revocation) Order 2000, the NRB was dissolved on 11 June 2000. FÁS then assumed responsibility for labour market services for persons with a disability, including people with physical, intellectual, mental health or sensory disabilities. This was a major new responsibility for it, encompassing a range of services and supports. It included responsibility for vocational training for people with disabilities provided by specialist training providers.
The main provider of specialist training at the time FÁS assumed responsibility in 2000 was the National Training and Development Institute which subsequently became National Learning Network, NLN. National Learning Network Limited is a wholly owned subsidiary of Rehab Holdings Limited. Details of the 30 NLN locations across the country which had agreements at a local level with FÁS and, with effect from 2014, the relevant education and training boards - some from 1 January 2014 and the balance from 1 July 2014 - are listed in the information already submitted to the committee.
The system of payment to specialist training providers which was inherited by FÁS was a whole-time equivalent annual rate per place. The current whole-time equivalent annual rate is €14,956 per capita.
We have placed a priority on continuous improvements to the quality of training and governance to ensure we are providing the best possible service for the learner. We have developed a process to ensure National Learning Network, as well as other specialist training providers, meet our approved quality control systems and are regularly monitored. Detailed information and copies of relevant documentation have been supplied to the committee. Payments to specialist training providers are made on the basis of vouched claims, based on the approved capitation fee per whole-time equivalent.
During 2010 we initiated processes to enhance business planning and service level delivery; reduce the effective capitation fee; and develop a new procurement process for specialist training. The first two parts of this programme have been delivered. In the intervening period, however, very significant institutional changes have happened. Policy and budgetary responsibility for the activities of FÁS was split in January 2011 between the Department of Education and Skills and the Department of Social Protection. In July 2011 the Government decided to abolish FÁS. In January 2012 operational responsibility for employment and community services transferred from FÁS to the Department of Social Protection.
The new education and training boards came into existence on 1 July 2013 and already some have taken and others will be taking over operational responsibility for the majority of the former training activities of FÁS, including the provision of specialist training for persons with a disability. FÁS was dissolved on 26 October 2013 and SOLAS was established on 27 October 2013. On 31 December 2013 the former training activities of FÁS in Cork, Dublin and Kerry transferred to the Cork, City of Dublin, County Dublin and Dún Laoghaire and Kerry Education and Training Boards. The balance will transfer on 1 July this year.
SOLAS is preparing a strategy for further education and training for submission to the Minister for Education and Skills by 31 March 2014. Following determination by the Minister of the future strategy for further education and training, SOLAS will review existing provision across all aspects of the sector, including specialist training provision, with the objective of ensuring the optimum approach for the future.
NLN also registered as an approved training contractor with FÁS. It can compete with other such companies for contracts, awarded by FÁS in the past and education and training boards in the future. It has been successful in this regard. The aggregate values of such contracts have been included in the information already supplied to the committee.
We will be pleased to answer whatever questions committee members wish to raise regarding SOLAS payments to National Learning Network.