Mr. Paul O'Toole:

With regard to Deputy McConalogue's questions and the link between further education and training and the economy, the link is at the heart of it. The two central planks of the further education and training strategy involve combining an approach that recognises the need to develop skills for the economy — enterprise-facing skills — with active inclusion, therefore providing routes for all citizens. I emphasise that because, frequently during the development of the strategy, people pigeonhole further education and training into one category or the other. It either has social inclusion at its heart or it has enterprise at its heart, and never the twain shall meet. In our view, the distinction is inaccurate. If we are clear on the types of skills people need to get employment or increase their employability, if we are to recognise that everybody is starting from a different place on their journey and if we are true to our mission in this regard, we will link active inclusion with skills for the economy more accurately.

The Deputy also raised the issue of apprenticeships and the fall-off therein, particularly in a number of trades. It is true that there has been a fall-off. Apprentice intake peaked in 2006 and 2007 and then fell off a cliff with the decline in the economy and the construction sector generally. There were a considerable number of apprentices stuck in the system because they were not able to complete their programmes. There was considerable investment in supporting those apprentices who were stuck to get over the line with some degree of success. What we are observing is that, overall in respect of the existing set of 25 apprenticeships, recruitment this year has increased significantly over last year. It is up approximately 47% year on year. It is not where it needs to be. The long-range needs of the economy require a greater intake of apprentices, including in the types of disciplines the Deputy raised. We are working with the Construction Industry Federation of Ireland and others to try to bring forward responses to that.

With regard to guidance, we agree completely that good guidance for people who are unemployed or wish to upskill or re-skill, through the Intreo system initially for the unemployed and then through the guidance service within education and training boards, has a value. The strategy identifies the need to improve those services.

The Deputy asked about the amalgamation process involving SOLAS and the education and training boards. It is ongoing. In a formal sense, 40% of the old FÁS provision transferred to the education and training boards on 1 January this year. The balance of 60% transferred on 1 July. With regard to the logistical aspect, that has worked very well to date. The education and training boards invested a lot of time with SOLAS to make sure the transition worked. At the heart of our thinking in this regard is the view that we would not drop the ball with learners during the process. We have met the education and training boards regularly, including this morning, to ensure we are co-operating fully to advance the amalgamation and the work on the strategy overall.

With regard to Deputy Ó Snodaigh's point on investment, including in STEM and other courses, we are keeping all course provision under constant review. One of the tools we will deploy to ensure that this works and that the State is getting a return on its investment is systematic evaluation, combined with an evidence-based approach to future decision making. It is not just a case of what we think as we will bring a structure and rigour to the assessment of all further education and training programmes, of whatever hue and for whatever purpose.

During 2014 the State has directly invested €640 million through SOLAS and €186 million through the Department of Education and Skills in post leaving certificate course provision. This is a combined investment of approximately €826 million, approximately one quarter of which goes towards income support for participants who need it. It is a significant investment and we want to optimise its use so it is used efficiently. A total of 91.5% of the SOLAS budget is a programme budget, principally in the form of direct grant aid to education and training boards and others. There are also a number of national programmes. The overhead part of this is approximately 3.7%, and we are also responsible for discharging the pensions of former staff members of FÁS and AnCO, which absorbs approximately 4.8%. The State is making quite a significant investment and we want to ensure it is optimised and that we provide value for money.

The point made on the utilisation of workshops is quite correct. In tandem with the fall-off in the construction sector in particular, many workshops which had been geared up towards the peak were under-utilised, but this is starting to turn. During the period when we did not have the flow of new apprenticeships and new courses, we tried to provide workshop-based upskilling and reskilling. We tried to manage the utilisation over this period. I expect that as the economy turns we will start to have full utilisation.