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

I thank Deputy Conway-Walsh for raising this matter. It is wrong to look at the tender published on 26 May as profit-focused. It is absolutely client-focused with a strong focus on local services, community linkages and client service levels and outcomes. It is expanding service provision into seven counties that currently do not have a local employment service. About 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 and is about 10%. The evaluation criteria are heavily weighted towards client service and community linkages. 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.

The current cost met funding approach, used with existing local employment services and job club contracts, involves scrutiny of all day-to-day expenditure, placing an undue administrative burden on both the provider and my Department. This approach diverts valuable resources away from supporting clients. It does not enhance employment outcomes for the clients of the service and it does not recognise or reward in any way high-quality innovative providers. We have some good providers and others which are not so good.

Moving to a new funding approach, which pays for each client referred, coupled with a strong emphasis on community linkages, linking with all the other services in the area, and quality of service provision, will reduce the administrative burden, encourage innovation and is more likely to deliver enhanced outcomes for those availing of the service.

The procurement process now under way invites tenderers to demonstrate how they can best provide a quality employment service, giving them the scope to demonstrate their expertise, which we know they have, their professionalism and their commitment, which is not in doubt.

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