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

I thank the Deputy for his question, which is on a matter we have already addressed. More than €1 billion was spent on a wide range of employment supports by the Department in 2015. This expenditure is being fully maintained in 2016. The CSP is one of these supports and provides financial support to community companies that supply revenue-generating services of a socially inclusive nature. Many of these companies are also funded from other sources and generate revenue from the public use of their facilities and services.

The CSP provides a contribution to the wage costs of the companies on the basis that the services are not fully self-financing or the cost of provision would be prohibitive on users. The Department does not set the wage rate, but requires the payment of wage rates consistent with local norms. As of December 2015, 398 companies employing 2,800 employees were directly supported by the CSP. The Department estimates that, at the end of last year, some 60% of those employees were being paid above the level of the minimum wage, which is in keeping with the social inclusion and social benefit objectives of the programme. The Department is committed to working with the remaining companies to achieve the objective of paying a reasonable wage. The Deputy should note that the CSP accounts for less than one third of the resources generated by these companies.

Contracts of up to three years' duration are provided for under the CSP. Arrangements whereby individual companies will be able to access additional financial resources to compensate for the welcome increase in the minimum wage - it is the second such increase under this Government - are being put in place. Submissions will be assessed on a case-by-case basis, with the annual funding commitment being adjusted accordingly where that is found to be warranted. An advance of 25% of the contract value for 2016 has been, or is in the course of being, paid to companies currently in the programme. This ensures that immediate cashflow requirements are supported. Overall, I am satisfied that the level of resources available to the CSP in 2016 at just over €45 million will be adequate to meet its ongoing funding needs.

See this speech in context