Tony Killeen (Clare, Fianna Fail)

I thank the Deputies for raising this issue on the Adjournment.

The active labour market programmes undertaken by FÁS comprise job initiative, community employment and the social economy programme. Between them these programmes provide about 25,000 places. The vast majority of participants, in the order of 21,600, are on community employment.

Job Initiative is an active labour market programme aimed specifically at those over 35 years of age who have been unemployed for the previous five years. Participants are employed on a full-time basis. In the region of 1,900 participants are currently employed on JI.

The programme was introduced as a pilot programme in 1996-97 with 1,000 places available. It operated as a three-year work experience programme with the objective of progressing its participants into jobs in the open labour market. The allocation of places to individual projects is an administrative matter for FÁS. Currently, local managing agents manage Job Initiative projects, usually at partnership level. These managing agents are legally and administratively the employers of the participants in the JI context.

There was extensive consultation with the social partners and key stakeholders last year on the future direction of FÁS labour market programmes. Following the conclusion of the review process, my colleague, the Minister for Enterprise, Trade and Employment, Deputy Martin, announced that with effect from 10 November 2004 there would be no compulsory lay-offs on JI. Participants employed on the programme would have their contracts renewed for a further term. In circumstances where people leave JI voluntarily, the community organisations may replace them with CE participants. These arrangements are intended to ensure the maintenance of the provision of a network of valuable community services throughout the country.

It is intended that available resources will fund additional community employment positions and other improvements to the programme, which it is believed will provide better outcomes for the long-term unemployed and other disadvantaged groups. The CE programme is currently being restructured by FÁS to better meet the needs of the individual participants. The new approach will include a new application and assessment process for CE sponsors and an individual learner plan for participants.

I am informed by FÁS that the Tallaght Community Development Initiative, which is the managing agent on behalf of FÁS, does not wish to continue to manage the project and that the TCDI itself — and I stress this point — has decided on its own initiative to disband the company with effect from Friday, 1 July 2005. This was not a decision taken by FÁS. Furthermore, I am informed by FÁS that it was only informed of this decision on Monday, 20 June 2005. In the meantime, FÁS is using every effort in seeking out other placement possibilities for the JI supported workers and the continuation of the services provided by the company. FÁS has already met representatives of the managing agent and further meetings are planned to discuss a way forward. I have asked FÁS to keep me informed of developments.

I would point out that Exchequer funding is providing more than 25,000 places on FÁS employment programmes this year at a cost in the region of €368 million, of which €293 million is in respect of CE.

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