Gay Mitchell (Dublin South Central, Fine Gael)
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At a recent occupational health and safety summit, the Minister of State at the Department of Enterprise, Trade and Employment with responsibility for labour affairs, Deputy Killeen, made a number of points. Among them were that Ireland's workforce is set to experience rapid ageing from 2025 onwards and that increased rates of life expectancy for both men and women pose significant challenges for the work environment. He argued that early or mandatory retirement also presents significant challenges for our future labour market. He pointed out that in 2004 the Central Statistics Office projected that the population aged 65 years and over would increase by 538,000 from 2006 to 2031, an increase of 116%, with no corresponding increase in the younger working age population.

The Minister of State argued that the cost of funding age-related payments in 2005 was in the order of €3 billion. He argued that while this ageing was not taking place as quickly as in some of our European partners, there was no doubt that this would become a significant issue for Ireland in the longer term and that the NCB in 2006 predicted that by 2050 there would be less than two persons of working age per person over 65. He argued that the cultural mindset change that is required by both employers and employees to encourage older workers to remain in the labour market is one which the national strategy on health and well-being at work would endeavour to encourage through promotion, prevention and rehabilitation and so enable them to avail of the education and employment opportunities as envisaged in the agreement. He argued that, consequently, unlike our European partners, we have time and opportunity to address this through the strategy, which is designed to maintain and, where necessary, improve the work ability of the older workforce so they can work healthily to full retirement age and beyond full retirement age if they wish and retire healthily.

This is what the Minister of State stated at this summit. Interestingly, the European country in which men can expect the longest period of illness-free life after the age of 65 is Cyprus, which has an average of 12.6 years. Cyprus is also the EU member state with one of the highest proportions of people aged between 65 and 69 in employment — 20% against an EU average of 8%. I raise this issue in the context of a case involving a constituent who has worked for a FÁS scheme for the last six years, the last three of which he has worked as a supervisor under a jobs initiative in a parish hall. This scheme is administered by a partnership board. The man took retirement in 1994 as a result of an occupational accident and now takes home €296 out of €320 gross. He signed a contract in June 2006 to continue for the year and has now been informed that he must retire the day before he turns 66. He will be 66 years of age on 31 December 2006.

This man carries out an important function locally which is badly needed. As I understand it and bearing in mind the comments made by the Minister of State which I have just cited, Government policy is to encourage those who reach the age of 66 to continue to be available for work if they so choose. This is for a variety of reasons, including the issue of longevity to which I referred. When is Government policy likely to become consistent with its stated aims? For the sake of consistency of policy and, particularly in this case for the sake of the community, I ask the Minister to direct FÁS to change its policy so FÁS supervisors and workers can be retained after the age of 66 where they wish to continue and where the community wishes to retain them. FÁS tells me this is a matter of policy and policy is made by the Government and the Dáil. I ask the Minister to review and change this policy. This man will be not be 66 for another two months and wishes to continue serving his community, which needs him. He is not being paid a fortune but he is engaged in a very worthwhile job and is very badly needed. I ask the Minister to change the policy and allow him to continue working.

Michael Ahern (Cork East, Fianna Fail)
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It is welcome to see Deputy Gay Mitchell back in the House. He has not lost any of his energy. I am delivering this reply on behalf of the Minister for Enterprise, Trade and Employment, Deputy Martin, who has responsibility for community employment, CE, schemes. CE schemes are active labour market programmes designed to provide eligible long-term unemployed people and other disadvantaged persons with an opportunity to engage in useful work within their communities on a temporary basis.

CE as an active labour market programme has the emphasis on progression into employment. This programme, with its focus on the needs of disadvantaged persons, forms a major response by FÁS to tackling the social exclusion of such groups as persons with disabilities, lone parents, long-term unemployed people and drug abusers, with a view to their reintegration into the labour market.

Changes have been made to CE so that it responds to the needs of disadvantaged people. CE health sector places have been ring-fenced from any reductions that have taken place since March 2002 and FÁS makes every effort to ensure places are maintained at the agreed level on ring-fenced schemes. In addition, projects in RAPID areas are given priority. However, it is important to remember that the primary purpose of CE is to provide short-term work experience and training opportunities for long-term unemployed persons and other disadvantaged groups with a view to facilitating their progression to work in the open labour market. It is imperative, therefore, that CE positions be vacated on a rolling basis to facilitate new participants.

To cater for older workers in particular, in November 2004 the Department of Enterprise, Trade and Employment raised the three-year participation limit to allow those aged 55 years and over to avail of a six-year period on CE schemes based on participation since 3 April 2000. This was done in recognition of the fact that older participants may find it more difficult to progress into the open labour market.

In July of this year, my Department published its sectoral plan under the Disability Act 2005. One of the key highlights of this plan is to increase participation rates of people with disabilities on CE over the period of the plan and to raise the CE participation limits for people with disabilities to provide additional training to assist progression to employment. In the case of people with disabilities under 55 years of age, the participation limit was raised by one year from three to four years, while for people with disabilities over 55 years of age, the participation limit was also raised by one year from six to seven years.

A new individual learner plan is also currently being rolled out nationally in FÁS which is designed to track and record an individual's progress from programme entry to exit. Beginning with the identification of learning needs at induction, through to project and progression skills development, this new approach addresses the personal, social, vocational and specific work-related skills needs of each participant.

Gay Mitchell (Dublin South Central, Fine Gael)
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Will the Minister review this case?

Michael Ahern (Cork East, Fianna Fail)
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Funding for CE in 2006 has been provided with a view to maintaining overall numbers on FÁS schemes at 2005 levels. Currently, over 22,000 people are employed on CE schemes nationally, a figure which has been maintained throughout 2006. FÁS is hopeful it will fill its full allocation in 2006. In delivering these places, FÁS operates flexibility in the management of this allocation in order to maximise progression to the labour market while at the same time facilitating the support of community services. This provision of places is managed through a standardised application process between regional FÁS offices and local sponsor-community organisations and any issues regarding the allocation of places are dealt with in this context. FÁS makes every effort to ensure differing levels of demand between neighbouring schemes are equalised.

CE still aims to remain an active labour market programme with the emphasis on progression into employment. The programme is managed within this context, with consideration given to the availability of resources and the needs of participants and the community. However, I will raise the case highlighted by Deputy Gay Mitchell with the Minister and ask him to review the situation pertaining to the individual in question.

Gay Mitchell (Dublin South Central, Fine Gael)
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I thank the Minister of State.