Willie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

We are aware of the current situation whereby contracting out occurs. The Minister will recall how, when the Pathways to Work scheme was announced, a specific commitment was made to consider the possibility of using private contractors.

The Minister said the matter has been passed to a committee to evaluate the possibility and that it will report in due course. Does she have any idea when she will be in a position to make a definite call on the issue?

I have a document which is currently being prepared by the local employment service, LES, co-ordinators for the Government. Having set out some of the shortcomings in the system which would hinder or cause difficulties to the introduction in full of the Pathways to Work scheme, the document states:

Initially there was a belief that these shortfalls could be met through “contracting with the private sector...in areas such as case management...employer engagement, job activation of long-term unemployed and job-matching/placement.” However, the High Level Issues analysis by the DSP [Department of Social Protection] has since accepted that [it quotes directly from the Department] “this process will take time and considerable resources to develop and the scale of the task that confronts the Department should not be underestimated.”

Could the Minister comment on the fact that her Department has found that private contractors are more or less shying away from the possibility of involvement because they have taken the view that it would not be financially worth their while to get involved because the last tranche of payment on the scheme proposed is only made when someone has been placed in a job. The private contractors consider that is too difficult in the current climate. Jobs are so scarce that it is impossible to place people.

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