Batt O'Keeffe (Cork North West, Fianna Fail)

I wish to share my time with the Ministers of State from my Department, Deputies Jimmy Devins and Barry Andrews.

The scale of the challenges we face and the speed at which the economic environment has changed make this budget one of critical importance to our country's future well-being.

As the Minister for Finance pointed out yesterday, there is limited scope for additional expenditure reductions at this stage of the year. Savings had to be found, however, and the burden of these adjustments has been spread across Departments.

An adjustment of €81 million has been made to the education Vote as part of yesterday's budget. This is made up of a reduction of €27 million in current expenditure across several programme areas and a €54 million reduction in capital expenditure. This adjustment brings the gross allocation for the education Vote in 2009 to €9.49 billion, representing a total reduction of €134 million on the allocation in the October budget. The difference between the overall reduction of €134 million and the adjustment of €81 million in yesterday's budget is largely due to the transfer of funding for youth services to the Department of Health and Children and adjustments for general savings agreed by Government in February. The revised allocation still represents an increase of about 2% on the 2008 out-turn.

To achieve long-term reductions in the public sector pay bill the Government has introduced a series of measures aimed at reducing the number of people employed in the public sector. This includes a ban on recruitment and promotion. A major concession has been made for education whereby the numbers cap applying to teachers and special needs assistants, SNAs, will be applied only after the start of the new school year in September 2009. Vacancies arising after that date will continue to be filled, subject to the overall cap on numbers, so that the level of service being provided will be maintained.

While a moratorium on 'post of responsibility' allowances in schools will apply generally, a concession also applies to the first allocation of these allowances for new schools. In addition, principal and deputy principal posts will continue to be filled under the delegated sanction arrangements for filling teaching posts. These arrangements illustrate the Government's commitment to maintaining front line services in schools.

A total of 80,000 people have lost their jobs since January. Unfortunately, we expect more jobs to be lost in the coming months. A priority for the Government is to support those who have lost their jobs through retraining and further education. A range of measures is being targeted at maintaining people in employment, re-skilling and facilitating better access to allowances.

The higher and further education sector has a key role to play in providing the type of up-skilling that will help unemployed people develop their workforce skills and avail of more sustainable employment opportunities as the economy recovers. As part of the budget measures almost 7,000 additional education places are being made available for unemployed people.

From September 2009, an additional 1,500 post leaving certificate, PLC, places will be made available nationwide, bringing the total number to nearly 32,000. The PLC programme provides successful participants with specific vocational skills to enhance their prospects of securing lasting, full-time employment, or progression to other studies. The allocation of these extra 1,500 PLC places is another step in expanding opportunities and broadening access to further education so that people can enhance their employment skills.

These additional places continue the significant progress we have made over the past 12 years in expanding further education provision. Investment in further education last year was €414 million, a 400% increase on the equivalent 1997 figure. This increased investment allowed 145,000 learners to receive education and training last year, an increase of more than 95,000 on 1997.

Applications through the CAO for entry to third level courses in 2009 show an increase of 6% over 2008, while applications from mature students, have increased by almost 20%. While the increased number of students entering the system at a time when further reductions are being imposed on already reduced budgets will necessitate difficult spending choices at the level of individual institutions, it is appropriate, in parallel, to target extra resources in supporting individuals who become unemployed to be given access to employment relevant skills.

This will involve a degree of redeployment of resources within the higher education sector according to that priority need. Notwithstanding the reductions in funding, it is expected that at least 2,000 unemployed will be accommodated on full-time third level courses starting this autumn.

Many unemployed people with good workforce skill recognise that embarking on a third level programme is a key stepping stone to changing career paths and want to be given the opportunity to start re-skilling as soon as possible after losing their jobs. It is recognised that a potential barrier in this regard is the fact that the traditional third level academic year runs from September to June and most places are filled through the CAO process. For a variety of reasons, however, students may either not take up a place that has been offered to them through the CAO or they may subsequently drop out of a course after it has started. A review by the institutes of technology of the scope to utilise this additional capacity to offer places to unemployed people concluded that filling these places midway through a course term could place both new entrants and existing students at a disadvantage. As an alternative means of utilising this spare capacity, a number of institutes of technology are providing unemployed people with the opportunity for direct entry into newly-developed accelerated level 6 certificate programmes. Under this initiative participants will be able to complete the first year of a standard two-year programme in an accelerated manner so that they can move to the second year of the programme in September 2009. Just under 300 places have been provided under this pilot initiative which commenced in February.

It is also recognised that unemployed people who may be out of the formal education system for some time may have concerns about their capacity to embark on a third-level programme of study. To help address these concerns, institutes of technology across the country are utilising spare capacity to provide over 900 places on a range of newly-developed, part-time transition programmes. The purpose of these programmes is to assist unemployed people to find out more about the type of courses that may be suited to them and to build their confidence by developing some of the necessary skills for studying at third level. It is hoped that having undertaken these courses, a significant number of participants will be encouraged to apply on a direct entry basis for a range of third-level certificate and degree programmes commencing in September 2009. Participation in the accelerated programmes and the third-level transition courses is free of charge and participants continue to be eligible for social welfare payments.

In recognition of the fact that a return to full-time education may not be appropriate to the circumstances of many unemployed people who want to engage in fundamental upskilling, 1,500 places will be provided to enable persons who are unemployed or who are on short-time working, to pursue third-level certificate or degree programmes on a part-time basis. The Department of Enterprise, Trade and Employment will fund these places and arrangements for the operation of the part-time programme will be agreed between officials in my Department and the Department of Enterprise, Trade and Employment.

As a result of the downturn in the construction sector, a significant number of apprentices are losing their jobs before they can complete their apprenticeship. The institutes of technology have been working closely with FÁS to ensure that apprentices are given every opportunity to complete their apprenticeships. Extra classes are being provided for apprentices who have to re-sit exams and a number of additional term blocks will be provided throughout the summer to facilitate over 300 apprentices to complete the education phases of their apprenticeships. I thank the Teachers Union of Ireland for its co-operation in this regard because it is facilitating this programme out of the normal school year in these exceptional circumstances.

A new 11-week certified education programme has been developed specifically for redundant apprentices. The programme, which will be delivered by institutes of technology, will commence in September 2009 and will cater for up to 700 redundant apprentices per annum.

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