Dáil debates

Wednesday, 7 October 2009

6:00 pm

Photo of Mary UptonMary Upton (Dublin South Central, Labour)

Since its inception in 1987, FÁS has undoubtedly provided vital training, support and education to workers throughout the country. Through its various training courses, employment fairs and recruitment services, FÁS offers people a chance for educational betterment and future employment. Now, more than ever - as Deputy Sherlock has just said - such activities are of paramount importance to many sectors and workers within our economy.

I have no doubt the overwhelming majority of FÁS's staff of more than 2,000, in its 66 offices and 20 training centres throughout the country, are hard-working and diligent employees who endeavour to develop FÁS into the vibrant organisation it was originally intended to be. Undoubtedly, the 40,000 who completed FÁS training programmes and the further 25,288 who completed employment programmes in 2008 would speak positively of the merits and values of the organisation. Unfortunately, however, that is not what we are discussing this evening. It is not what people are talking to me about when I go out canvassing or what they are discussing around their kitchen tables at home. Instead, we are talking about another case of greed and incompetence. We are discussing golden handshakes and senses of entitlement when we should be talking about the 424,000 people on the live register and the effect that unemployment is having on them and their families. We should be considering how we can best meet their training or retraining requirements through FÁS.

It is clear there has been serious breakdown and decay within the upper echelons of FÁS, leading to the astoundingly profligate spending and numerous wasteful acts which are tarnishing the reputation and legacy of the organisation. This culture of entitlement that seems to exist in the rarefied air of some semi-state bodies needs to change. How can the Government tell people on social welfare or hard-pressed public servants that they must take the pain when they see that €600,000 was spent on a television advertisement that was never aired? How can the Government call for pay restraint when the public has seen a golden handshake of more than €1 million for Rody Molloy?

The wasteful spending within the organisation has dogged the constructive work carried out by FÁS for the best part of the last year. The recent report of the Comptroller and Auditor General disclosed further examples of wasteful spending that was almost systemic. A total of €622,000 in expenditure cannot be accounted for during a six-year period. The revelations in the report would be scandalous enough if taken in isolation; however, when combined with the findings of the FÁS internal audit report which came to light late last year, they call into question the oversight and financial control within FÁS. The internal audit report mentioned, among other things, that FÁS spent at least €1 million more than should have been the case on the establishment of the Jobs Ireland website at a cost of €1.7 million.

Operating under the supervision of the Department of Enterprise, Trade and Employment, the aim of FÁS, as detailed in its 2006 to 2009 strategy, is to conduct business

... in a prudent manner and in accordance with best practice compliance, governance and risk management. Protecting FÁS resources and seeking out value for money in the work we do by achieving the greatest efficiency and effectiveness for the minimal cost.

The strategy goes on to point out that value for money is one of the central tenets and aims of the organisation. I ask the Minster for Enterprise, Trade and Employment how the wanton spending which has taken place could be in line with such lofty and, indeed, laudable ideals. How does spending €9,200 on a car for a raffle which never took place qualify as value for money? We need to ask similar questions, as mentioned earlier in the debate, of the Ministers, Deputies Micheál Martin and Mary Harney who, in their roles as Minister for Enterprise, Trade and Employment, presided over such inefficient use of taxpayers' money.

Who is accountable for such waste of taxpayers' money, money which could be better utilised in further training and development of the 424,000 people currently on the live register? Certainly, not the former director general, Mr. Rody Molloy, who without sufficient legal advice and in breach of the Department of Finance guidelines on severance pay received a golden handshake of more than €1 million at the end of his so-called successful tenure in charge of the organisation.

Why did the former director general, following his resignation from that post, receive a top-up of the equivalent of five years' service, which is at the upper limits of Department of Finance guidelines? Why was legal advice not sought on this serious issue, a matter raised by my colleagues a number of times?

I believe the board should, sooner rather than later, be restructured along the lines proposed in the report of the Committee of Public Accounts. The members of that board failed in their remit and should be removed from their post as opposed to meekly resigning in the coming weeks or months. Once again the actions of a few have coloured the positive work of an entire organisation. People who rely on FÁS for support and education now view its activities with scorn as wasteful spending follows wasteful spending.

What we have is a small circle who believe they are worth every penny and every expense. If it was only FÁS that was guilty of this type of practice, people might not be furious. However, this culture exists in so many areas. It is indicative of a Government and its cronies who are out of touch with the real people of Ireland. How could the Minster for Justice, Equality and Law Reform when on radio call the golden handshake "a few pounds"? How can a body which receives very substantial State funding shell out more than €20,000 for a Minister to visit race meetings? How could a former Minister of State become the head of one of the most powerful lobby groups in the country before his desk is barely cleared?

What we need is a change in Government and a change in the way government does its business. I wholeheartedly support this motion to get FÁS back working for the people on the live register, not the elite who would use it as a slush fund.

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