Dáil debates

Thursday, 15 October 2009

Labour Services (Amendment) Bill 2009: Second Stage (Resumed)

 

Photo of Michael FitzpatrickMichael Fitzpatrick (Kildare North, Fianna Fail)

I welcome the opportunity to speak on this Bill, which was published on 6 October. I commend the Minister for bringing the legislation before the House so quickly. The Bill, which amends the legislation governing FÁS, provides for stronger governance and accountability.

FÁS has been doing tremendous work at national level, but I wish to speak mainly about its operations in my own constituency of Kildare North. Those participating in FÁS in Kildare and rural Ireland generally can hold their heads high, notwithstanding the unfavourable press coverage that FÁS is currently receiving. Those participants are all very decent and honourable people.

FÁS anticipates the needs of, and responds to, a constantly changing labour market, which employs approximately 2 million people. It comprises a regional network of 66 offices and 20 training centres. FÁS operates training and employment programmes, as well as providing a recruitment service to jobseekers and employers. In addition, it delivers an advisory service for industry and supports community-based enterprises.

As someone who has been in involved in a wide range of community activities for many years, I know about the organisation's operations at local level. I have witnessed the transformation of people on FÁS training programmes and their successful progression into permanent employment.

I acknowledge the work of FÁS for people with special needs, including its work for people with disabilities in co-operation with vocational education committees. In County Kildare, FÁS works with other State agencies, the voluntary sector and communities to do a tremendous job in improving the lives of those with special needs.

The Bill will allow the Minister to restore public confidence in FÁS. It will clear the way for that organisation to continue to deliver its training and employment programmes. The recent details released by FÁS show that the live register and vacancy trends for the second quarter of 2009 indicate that the jobs decline is becoming less severe. Unfortunately, however, redundancies have continued apace. The slowdown in numbers signing on can be attributed somewhat to a significant drop in the number of accession-state nationals joining the live register. Part-time employment has increased and now accounts for one in five jobs in the labour market.

The country needs FÁS now more than ever before because tackling the jobs crisis remains a clear priority. In the April budget, the Government introduced 23,000 additional education, training and work experience places for the unemployed at an estimated cost of €128 million. A number of these measures involve an innovative approach to interventions of this kind, including the introduction of a work placement programme, a short-time-working training programme, and part-time third level schemes.

Since the beginning of the year, we have re-allocated substantial additional resources to boost job search, training, work experience and educational opportunities. These include doubling the job search referral capacity from 6,500 to 12,250 per month and bringing the total number of places for referrals by the Department of Social and Family Affairs to 147,000 per year. Similarly, the Government has increased the total number of training places provided by FÁS this year to a total of 128,000, compared to the 66,000 places taken up last year. Other concrete actions taken were the provisions for trainees to progress their apprenticeships, the provision of more than 6,000 additional places in further and higher education and significantly improving access to supports for individual enterprise through assistance under the back to work enterprise allowance and the back to education allowance schemes of the Department of Social and Family Affairs.

The proposed changes in the legislation will improve the effectiveness and governance of FÁS and strengthen its accountability in a number of areas. It will make the board more manageable through reducing its size from 17 to 11 members - I would reduce the number further because smaller numbers can make boards more effective - changing its composition and including the director general as an ex officio member and introducing a provision relating to the disclosure of interest by board members and the staff of FÁS. These changes are a most welcome development.

In concentrating on what went wrong within the organisation, the good work of its employees should not be overlooked. Their role and valuable contribution to Irish life must be commended. FÁS management has a great deal of which to be proud, in particular, the way managers developed the agency to deliver successful training schemes to the unemployed and people with disabilities in our communities. I thank them for that and for the support and co-operation extended by their frontline staff while working for the betterment of our communities. They developed the agency into a significant organisation delivering appropriate programmes in these recessionary times.

The Minister for Enterprise, Trade and Employment announced earlier this year a number of new training programmes for those who had lost their jobs in the construction sector. The new courses are aimed at helping those in construction to upgrade their skills to take advantage of the new wave of green and clean technology opportunities coming on stream nationally. The Minister detailed seven courses, including gas safety and installation, sustainable energy, building energy rating, smart intelligence building systems and installation technology and techniques. Since 2007 FÁS services to business have also delivered a number of programmes in energy efficiency, renewable technology, carbon footprint calculation and reduction, waste prevention, waste protection and water treatment aimed at the general workforce, including construction workers. All these courses have created a substantial number of jobs since their introduction in May.

Accountability is important when it comes to all boards. The Bill provides for the director general of FÁS to be made accountable to the Committee of Public Accounts and to other committees of the Oireachtas and removes obstacles to the disclosure of information by a member of the board of FÁS to the Minister for Enterprise, Trade and Employment regarding an issue of concern.

I refer to governance and the code of conduct. With regard to supervision of the agency, it is important that the Department should be satisfied systems are in place to effectively manage public funds. However, this should not be interpreted as the Department having to take on the responsibilities that probably belong to the bodies concerned. This is why, in addition to the Department monitoring activities - the second mechanism to ensure the requirements of the code of practice for the governance of State bodies are adhered to - it is important that it provides an assurance in the FÁS annual report confirming steps have been taken to ensure the appropriate controls have been effected. This would be in line with Department of Finance guidelines, which require that Accounting Officers should be satisfied that the requirements of the code of practice are being implemented in State bodies under their aegis.

It is important to emphasise that board members of companies and State agencies have a role to play and they should be fully aware of their liabilities and responsibilities.

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