Brian Lenihan Jnr (Dublin West, Fianna Fail)

I am replying on behalf of the Minister for Enterprise, Trade and Employment, Deputy Martin. I thank Deputy Healy for raising this matter on the Adjournment.

Community employment offers work experience and training opportunities for the long-term unemployed and other disadvantaged groups. The aim is to assist participants to progress to a job in the open labour market. The number of participants on community employment schemes increased during 2004. It stood at 19,848 in January 2004 and increased to 22,194 by the end of the year. There was an overall increase in the calendar year 2004 in the numbers of people on community employment. I stress that the FÁS employment programmes, which comprise community employment, social economy and the job initiative, will provide a total of 25,000 places in 2005.

A total of €351 million was allocated to FÁS employment programmes in 2004 which was similar to the budgeted amount provided in 2003. In the region of €369 million will be spent by FÁS administering the programmes during the current year.

Community employment is an active labour market programme. It aims to assist the long-term unemployed and other disadvantaged persons to progress into the labour market. A secondary objective of the programme, as Deputy Healy fairly pointed out, is to support service provision in local communities. The reduction in the level of places available during the years 1999 to 2003 reflected a refocusing of available resources towards training and other more appropriate supports and came as a result of the significant decline in long-term unemployment which stood at 8.9% in 1993 and decreased steadily from 1998 onwards to 1.4% in 2003.

On foot of a review of FÁS employment schemes, which included detailed consultations with the social partners, the Minister for Enterprise, Trade and Employment introduced the following changes with effect from 10 November 2004. The three year cap was removed for persons aged 55 and older, and those over the age of 55 are now eligible to participate in community employment for a maximum of six years. In the case of persons advancing beyond the age of 55 during their normal period of service in community employment, participation can be extended for up to a maximum of six years.

This change is designed to address the particular difficulty of finding replacements to participate in community employment schemes in certain rural areas. It will also help secure the continuity of community services generally. Combined with the rural social scheme, under the aegis of the Minister for Community, Rural and Gaeltacht Affairs, which has 2,500 places available, the existing community service support framework will be maintained.

Current ring-fencing and prioritisation procedures for the essential services of child care, health-related services and the drugs task force are being maintained.

Community employment will remain an active labour market programme with emphasis on progression to employment. For those under the age of 55, the normal service of up to three years maximum will continue to apply subject to the current flexibility guidelines administered by FÁS.

The continuation of ring-fencing and the extended participation in community employment by older workers will help secure the continuity of community services in general and will ensure that the existing community service support framework will be maintained.

In addition to the changes introduced in community employment, participants remaining on the job initiative, approximately 1,900, will have their contracts renewed on an annual basis. Participants who voluntarily leave the programme will be replaced by community employment participants to support the service being provided.

There will be no compulsory cessation of social economy programmes, which play a very valuable role in communities throughout the country. When an enterprise makes the decision to cease activity, affected employees will be assisted by FÁS in finding alternative employment.

I assure Deputy Healy and the House that there will be no large-scale closure of schemes during 2005 and that overall numbers will be maintained during the year. The Government will continue to support the positive role of community employment in meeting the needs of the long-term unemployed and in the provision of essential services within such communities according to the level of resources available.

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