Ciarán Cannon (Galway East, Fine Gael)

When the Taoiseach spoke to the people on Sunday night he stated clearly that jobs are the top priority for the Government and will be at the centre of the Government's four year plan as we embark on the long road to recovery. Central to this plan is an effective, efficient and clearly focussed further education and training sector that assists many people on their individual journey on the pathway back to work or to further education. A highly educated and skilled workforce is essential for Ireland's competitiveness and growth and for job creation. Without a highly trained workforce, our companies will innovate less, our economy will grow less and our country will be less competitive.

The total amount available in 2012 for FÁS training is €322 million compared to the projected outturn of €332 million in 2011. This 3% decrease is mainly due to a reduction in the number ofnew apprenticesregistering with FÁS, and price savings being achieved on the delivery of training. To assist redundant apprentices to complete their apprenticeship programmes, FÁS will target additional resources from its budget to support the redundant apprenticeship programme in 2012.

FÁS savings for 2012 also include €1.1 million achieved through the reduction of training allowances in respect of 16 and 17 year old participants in community training centres from €76.65 and €95.75 respectively to €40 per week. This reduction will also apply to Youthreach participants where there will be a saving of €1.7 million in 2012. This revised rate will apply to new entrants from 1 January 2012.

Capitation payments for further education programmes will be reduced by 2% in 2012. This reduction in capitation will be implemented across the entire education sector, in schools and in further education. Despite this reduction, I am confident the level of provision in further education in 2012 will be maintained at 2011 levels, with approximately 170,000 full-time and part-time places annually. The additional investment we made in further education as part of the jobs initiative whereby we allocated an additional 1,000 full-time post leaving certificate places and 3,000 part-time back to education initiative places will be consolidated and sustained.

The budget announcement also indicated that €20 million will be provided under the national training fund for a new labour market activation fund targeted at the long-term unemployed. This will deliver upward of 6,500 training places in 2012. A recently completed evaluation of the labour market activation fund for 2010 by PA Consulting Group found it to be an efficient, effective and cost-competitive project and concluded that there was a strong case for continued use of this model of funding. My officials are working on the detailed arrangements for the new scheme and I hope to be able to make a further announcement in this regard early in the new year.

It is very interesting to note the outcomes of the research carried out by PA Consulting Group. The projects involved were requested to capture material in respect of the progression of their clients. The consultants were able to access such information in respect of 5,361 clients with very positive outcomes. Of these clients, 42% achieved employment; 43% continued their education; and only 15% remained unemployed. The short timeframe since the completion of courses has limited the extent to which follow-up monitoring has been undertaken. The nature of the progression pathway involved in the programme means there is often a lag before further education and training or employment opportunities are secured following completion of the initial activation programme. This partly accounts for the 47% of participants whose current status is unknown. The findings of the consultant's evaluation on both the strengths and the weaknesses of the model will be considered in the design and delivery of the 2012 initiative.

The education and skills profile of people who have lost their jobs as part of this recession is very different to the profile in previous recessions and the Government is committed to providing access to a range of upskilling and reskilling supports which are appropriate to the diverse needs of unemployed people. The higher education system also has a key role to play in this regard as is evidenced by the continued growth in adult student numbers. In particular, 17.5% of the 40,000 new entrants to full-time undergraduate programmes last year received support through the back to education allowance scheme to leave the live register and return to full-time education.

A total of €10 million is being provided from the national training fund to support a further roll-out of part-time higher education opportunities in 2012 through the Springboard initiative. Since Springboard was launched as part of the Government's jobs initiative in May 2011, almost 5,000 unemployed people have been supported to reskill in areas where there are identified skills shortages and where job opportunities are arising now and will arise in the future. The majority of Springboard participants will graduate by June 2012 with awards ranging from certificate to masters degree level.

An evaluation of the Springboard process and initial outputs to date is already under way with a view to informing the tendering, selection and eligibility criteria for the new call for proposals, which will issue in the first quarter of 2012. The precise number of places to be provided will be determined by the results of this competitive call for proposals, which will be managed by the HEA on behalf of the Department. There will be close collaboration between the expert group on future skills needs and the enterprise sector in the design of the call to ensure that programme proposals are closely aligned to identified skills needs.

An allocation of €14.5 million, the same amount as in 2011, is being provided by my Department to Skillnets in 2012 from the national training fund. The Skillnets training model centres on the training networks programme. A Skillnets network is a group of companies that comes together to carry out cross-organisational training-related activities, which may not be possible on their own. Skillnets networks arrange relevant, cost-effective and innovative training courses for member companies who operate on a regional and on a sector-specific basis. Since its foundation, Skillnets has focused much of its energy and support on facilitating networks to engage SMEs in the training process.

Skillnets continues to play a crucial role in supporting the training needs of employers and of those in employment in many different sectors through facilitating enterprise-led training and upskilling of the labour force. It is also true to say that during its years in existence, Skillnets has also fostered a new belief, particularly amongst our indigenous SME sector, in the value of ongoing training and upskilling of workers.

As well as providing training for those in employment, in recent years Skillnets programmes have been designed to provide relevant training for the unemployed through initiatives such as the job-seekers' support programme.

In 2011, Skillnets launched an initiative to respond to labour market needs as identified by industry and policy-makers, and also in response to the changing employment profile in Ireland. A new future skills needs programme fund has been established with the strategic intent to upskill current and future employees in six targeted high-growth sectors as identified by the expert group on future skills needs.

Skillnets also administers a specific training networks programme entitled Finuas, which provides its training networks programme services to the International Financial Services sector. Since mid-2009, some 2,730 persons have been trained through the Finuas programme across 22,643 training days. My Department will continue to engage with Skillnets with a view to maximising the contribution Skillnets can make to addressing unemployment.

In July of this year, the Government announced the establishment of SOLAS, the new further education and training authority. I chair the implementation group which has been set up to oversee the establishment of SOLAS. An action plan is being developed by the group, which will set out the objectives and identify the key tasks and milestones along the road to achieving this significant programme of change. As part of the development of the action plan, it is intended to hold a consultation exercise with key stakeholders and interested parties. It is expected that the consultation process will take place early in the new year.

The heads of the Bill to create SOLAS are due to be circulated shortly to Departments and to the Attorney General. A dedicated transition team has been established in FÁS to work on the significant change programme that will be required in the context of the establishment of SOLAS and the transfer of the FÁS training division to the VECs.

The establishment of SOLAS has the ultimate objective of strengthening the further education and training sector, and enhancing services to learners with particular emphasis on the needs of the unemployed. Notwithstanding the challenges inherent in the reform programme a key objective will be to maintain and enhance services for clients in the interim.

Deputies will no doubt be aware of the requirement, under the four-year recovery plan, to deliver savings of €17 million on the school transport budget. Despite this serious challenge, I have confined the budgetary changes for 2012 to an increase in the primary charge from €50 to €100 for eligible primary pupils and an increase in the primary maximum family charge from €110 to €220. This level of charging, which equates to 55% per day, per eligible child for a return journey to school, is still very modest compared to the unit cost of some €1,000 per year for every primary child transported.

Furthermore, to support the most needy families, it continues to be the case that eligible primary pupils who hold medical cards, and children with special educational needs, will be exempted from paying any charges. That represents about 30% of primary school children. In addition, this measure will be offset by a reduction in the charges for primary children availing of school transport on a concessionary basis from €200 to €100, in line with the new primary charge. This means that from September 2012, ineligible children - for example, those who do not meet the requisite primary distance criteria of 3.2 km - may apply for spare bus seats on a concessionary basis at a cost of €100 per annum, rather than the €200 charge payable up to now. In essence therefore, we have complete equity in terms of access across the primary school transport network at this point. I am happy to say that charges at post-primary level remain unchanged at €350 per pupil, and the overall family maximum payable is also unchanged at €650.

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