Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

I thank Deputy Costello for highlighting this issue, which has come to my attention only recently. He provided an example of the Dublin Adult Learning Centre, for which the insurance premium has increased by €2,500. This substantial increase was quoted without warning. I understand the reason the Deputy, as a director of the centre, community activist and public representative for Dublin, is concerned about the issue.

Community employment schemes are required to procure annual liability insurance to cover their schemes. In recent months, sponsors have been advising the Department of increases in insurance premiums for schemes. The main reasons for these increases advised to the Department when this was queried with the insurance companies were claims cost inflation, an increase in claims frequency in recent years, changes in the courts' jurisdiction, and a reduction in income from insurers' investments.

The Department has been in consultation with the main insurers of community employment schemes about the increases with a view to ameliorating them and seeking to limit the incidence of future claims. The Department recommends, in the first instance, that scheme sponsors seek alternative quotes to ensure they obtain value for money.

Insurance premium costs continue to be reimbursed from the community employment materials grants. Sponsors have been asked to be especially mindful of their legal obligations under the Safety, Health and Welfare at Work Act 2005 and in respect of the supervision of the health and safety environment of their employees.

Materials budgets are allocated on an annual basis and managed at divisional level. In general, the Department is not in a position to allocate additional moneys to the materials budget in 2015. However, if a scheme experiences particular difficulties, the sponsor should contact the local departmental office on the matter.

Like Deputy Costello, I am acutely aware of what community employment does for local communities. Not only do these schemes assist long-term unemployed people to return to work but many also provide valuable services.

I thank the Deputy for raising the issue. I share his concerns about the matter and I will continue to engage on it.

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