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

I thank the Deputy for raising this issue. As she will be aware, most of the contracts for local employment services have been in place since the 1990s and have simply been rolled over on an annual basis. Good governance and public procurement rules require that my Department does not continue the existing process of simply rolling over contracts for employment services. As a first step in moving to a procurement approach that complies with all of the necessary standards, the Department recently issued a request for tender expanding employment services into seven counties across the north-west and midlands where a local employment service, LES, does not currently exist. It is wrong to look at this tender as a move away from a not-for-profit model to a payment-by-results model. It is absolutely client-focused, with a strong focus on local services, community linkages and client service levels and outcomes. As I have said, it is expanding service provision into seven counties that currently do not have a local employment service. Approximately 90% of the fees to be paid under the contract are based on client service rather than outcomes. The outcome fee is an additional payment.

The request for tender published on 26 May is the product of an extensive process involving lengthy consultation with the sector and the engagement of external consultants. I am satisfied that the approach being taken balances the need for high standards of procurement with our shared concern to ensure the service delivers for our clients. I believe the Department's current providers, such as the LESs and job clubs, are well positioned to respond to the tender. Tenders will be evaluated on the basis of quality and the ability of an organisation to access a wide range of supports and services to best meet the specific needs of their clients. There is a limited cost element in the request for tender but it is within defined parameters. The vast majority of the awarding criteria will be determined by the quality of service design, as well as links to the relevant local partners and stakeholders.

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