Oireachtas Joint and Select Committees

Thursday, 18 May 2017

Select Committee on Social Protection

Estimates for Public Services 2017
Vote 37 - Social Protection (Revised)

10:40 am

Photo of John BradyJohn Brady (Wicklow, Sinn Fein) | Oireachtas source

The figures are there, with an increase of 158% on last year, but the ambiguity starts coming in any time questions are asked as to the payments to Turas Nua or Seetec. There is no clarity. For the Minister to compare community employment to Turas Nua and Seetec because it is established on a private company basis is disingenuous. Turas Nua and Seetec are for profit. They are profit driven and this is their motivation. I hope the Minister will agree community employment provides essential and critical community services, and to compare it because it is set up on a company basis is disingenuous and a slap on the face. Many community employment schemes are struggling because of the creation of JobPath. People are being referred to JobPath and not to local employment schemes or community employment schemes. They are not allowed on community employment schemes once they are signed up to JobPath.

I am not sure whether the review the Minister spoke about will be a root and branch review of the full operation of the scheme and both companies involved, because there are other concerns with regard to cherry picking. This is another phenomenon that has been brought out and exposed in the UK. I have spoken previously about concerns in this regard. Will the Minister elaborate on this review? Will the findings be published? There are huge concerns.

With regard to redundancy and insolvency payments, which are in the same chapter, I note the Estimate is for a reduction of 20.5%. I wish to raise concerns carried in many national newspapers recently. The Department wrote off €345 million in redundancy payments due to the State. There is huge concern. I acknowledge some of the companies are legitimate, for whatever reason, but some companies have come back under a different name with the same individuals. There is concern that some companies have abused the system. They have wound down and let people go to avoid giving out redundancy payments. What process has been put in place to ensure these payments have been followed up and paid to the State? A total of €345 million certainly surpasses and puts in the shade the Minister's big campaign about welfare fraud, which I will touch on later on.

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