Alice-Mary Higgins (Independent) | Oireachtas source

I will bracket for a moment my own questions because I need to come in on this. I might then come back to my original questions. It is very important that we are clear on that question. Mr. McKeon cites European public procurement rules. While I recognise that there have been some ameliorating attempts in the way the contracts have been designed, there are a couple of fundamental issues. Leaving aside some of the bigger questions on the role of private companies in JobPath and how the targets work, I am concerned about the question of education outcomes. What potential is there through the JobPath system for an education outcome for an individual? Is it the case that after a certain period, say two years, the only outcome is to be processed to a job? There is a concern about that model.

We have to be very clear that we are not obliged under EU public procurement directives to contract out for this. It was very regrettable that the Department put this on the agenda in advance of the transposition of new European directives in March this year which make explicit provision that member states have the right to exclude areas of social protection. These are clear areas which governments are not required to put to contract or tender. There is a very serious concern about this. I would like to know if the Department has carried out an impact or risk assessment as to what this means for the Department and this area of social protection. It is a new step to introduce private contractors. How does that affect the public policy options that will be open to Government in future? If we go ahead with the trade agreements we are negotiating, there will be a ratchet clause which will make it very difficult for any area that has been into private contract to be restored to public contract. Without going back to subjects like water and whether we opted for the derogation, there are clear and explicit options for social protection as one of the areas which can be reserved for public delivery. I would love to know if the Department has looked, is looking or will look at a risk assessment in terms of not just delivery right now but what it means for our public policy options in future.

I cite the Oireachtas's own research as to why this is important. The research of the Library and Research Service in the Oireachtas shows that European services which have done this have found mixed outcomes. While I appreciate that an experiment is being tried, it is also about the attached risk. A large-scale French experimental study found that public employment services had a positive impact on employment rates which was twice that of a private provider. In Sweden, increased interaction with private providers did not improve overall chances of finding a job. Recent research in Germany has found that public provision provided better outcomes than contracting out employment services. I appreciate that the Department was trying to respond to demand at a time of huge unemployment and during a public service freeze when the necessary staffing was not available. I recognise that there has been a very genuine desire to ensure and improve times and engagement. This decision was made in that context. However, I am cautious. What is the exit strategy?

If this private contracting does not work out and the Department wants to hire case workers and retake that area of work into its direct delivery, what is the route? I will come back to my overall questions later.