Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank the Deputy for raising this matter. My Department is finalising a request for tender with the aim of establishing new local employment-type services in areas of the State where they do not currently operate. I expect this tender to issue shortly and the details of the procurement will be outlined in the published request for tender. The forthcoming procurement process will not impact the contracts of existing providers in other areas. I expect the tender will prove attractive to local community-based organisations, including local development companies. My Department has obtained legal advice that such services must be procured though open competitive procurement processes in line with EU and national rules.

Cost-met funding models require scrutiny of day-to-day expenditure, placing an undue administrative burden on the employment service provider and my Department. This approach diverts valuable resources away from clients and does nothing to enhance employment outcomes for the long-term unemployed or others supported by the service. Moving to multi-annual funding, with payment for each individual referred to the service, coupled with a strong emphasis on quality service provision, will reduce the administrative burden and is more likely to deliver enhanced outcomes for clients.

Separately, all current employment service contracts expire at the end of 2021. In many cases, these contracts have been in place for more than 20 years, with no formal procurement being undertaken in that period. This is not in compliance with the requirements of good governance or proper procurement. My Department is developing requests for tender to ensure that sufficient high-quality employment services are procured in a manner that is compatible with procurement rules. Organisations with strong experience in the delivery of similar services at community and local levels will be in a strong position to respond to the requests for tender when they issue.

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