Ciarán Cannon (Galway East, Fine Gael)

In order to find savings of €475 million in the budget, it is necessary to examine all aspects of expenditure of the Department. The savings of €27.5 million that the Government had identified in the budget represents a reduction of 7.5% in the overall 2011 CE spending of €360 million.

The Government recognises the valuable contribution that CE can make. However, as with all such large national programmes, not every community employment scheme has the same positive outcomes for those who participate. There have been many commentaries and reports from both national and international research bodies on the effectiveness of the schemes. These were outlined in the debate last evening and the Government must consider them seriously. In this context, it is important that CE and other employment supports are fit for purpose and deliver value to the taxpayer. Among the issues identified were the lack of labour market progression and an increased risk - not a reduced risk - of long-term unemployment. The Government is committed to ensuring that CE and similar programmes enhance the employment prospects of those who participate on the schemes. The Government also recognises the intrinsic social value of some community employment schemes, which play such an important role in communities, in particular by providing services such as helping the disabled to live independently or delivering meals on wheels to older citizens. One cannot apply a purely economic analysis to CE schemes. The OECD similarly recognises there always will be a role for schemes that are primarily directed towards the provision of crucial social services, often for disadvantaged communities that need services such as child care, elderly care and drug treatment programmes. Such schemes have a role where they deliver such services in a cost-effective manner. The Minister for Social Protection is determined to ensure that the contribution of such schemes is recognised in any future decisions on the future operation, funding and role of community employment.

The goal of the Department is to find a solution that ensures the objectives of getting people ready for real and long-term sustainable jobs, getting value for money for the taxpayer and supporting schemes that deliver much-needed social services. While there are changes to grants for CE schemes, it is important to be aware that the current and future participants on these schemes can avail of a wide range of education and training programmes at no cost to the individual scheme. The widespread availability of FETAC awards from publicly funded providers will facilitate the continued achievement of these awards by participants on CE. The Minister has asked for an initial review of the financial resources of all schemes, to be completed by the end of next March, as there is a considerable variation across CE schemes in respect of the amount of training provided, materials required and overhead costs and the potential for sponsoring organisations to meet certain costs. A flexible approach has been adopted and all options are being considered in respect of the sources and availability of funding, and all efforts are being made to minimise the impact of the reductions outlined. The internal guidance to officials is that up to €1,000 per participant may be available to a scheme in respect of the training and materials grant for this year, subject to a demonstration of need. I again assure the House that no CE scheme has closed as a result of the changes in the training and materials grant announced in the budget.

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