Dáil debates

Wednesday, 13 February 2008

Priority Questions

Employment Support Services.

1:00 pm

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 104: To ask the Minister for Social and Family Affairs the number of people on welfare referred in 2007 under the National Employment Action Plan to FÁS; the percentage of those that were placed in employment, training or education; if he has satisfied himself that the structures are achieving the maximum potential of progressing claimants off welfare; the action he will take to improve these arrangements; and if he will make a statement on the matter. [5441/08]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Based on the latest information available, 49,300 people from the live register were referred to FÁS in the period January to November 2007. Of these, over 7,000 had been placed in jobs, training or education by the end of December 2007. This represents over 14% of the total referred. A further 16,900, approximately, left the live register at the end of December 2007. In total, therefore, nearly 24,000 of those referred to FÁS had left the live register by the end of the year.

All new claimants are currently identified for referral on reaching three months on the live register. Those referred remain on the live register while engaged with FÁS until they take up offers of employment or training. I am satisfied that the employment action plan provides an effective structure for dealing with the progression needs of those on the live register. It provides a stimulus to job search and affords an opportunity to explore, under professional guidance, the full range of employment and training services offered by FÁS.

The Department also provides other support services to assist unemployed people, particularly the long-term unemployed, lone parents and sickness related welfare recipients to return to the active labour market either by taking up employment or becoming self-employed. At present, some 40 facilitators provide these services.

Provision has been made in the national development plan for a social and economic participation programme which will build on these activities. The programme is aimed at all people of working age on social welfare payments. The Department will shortly commence recruiting some 30 additional facilitators who, together with the existing facilitator network, will have responsibility for implementing the programme at local level. The programme will build on the Department's existing experience and relationship with the people concerned, in co-operation with other relevant service providers such as FÁS, VECs, the HSE and other local agencies.

The Department has also secured funding, under the European Social Fund, for a project aimed at developing a systematic employment strategy based on individual case management of people on disability welfare payments. The project will be implemented initially in 2008 in County Westmeath with a view to mainstreaming at national level following a review and evaluation. I am satisfied the current structures and new measures outlined significantly increase the prospects of progressing claimants off welfare.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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In reply to the previous question the Minister said the best way out of poverty was to encourage people to get into employment. Nobody disagrees with that. The Minister also asked us to be positive about these proposals. We will be positive if the Minister plays his part in ensuring these things happen. Unfortunately, the record shows the Department and FÁS have not been very active in assisting people to move off welfare into training or employment.

The numbers being referred to FÁS have been increasing steadily over the past seven years. However, the number of people being placed in employment each year has remained static, at approximately 6,500 or 7,000. Previously approximately 40% of people were being placed in employment. In 2006 the figure was 26% and the Minister has just told us that last year it was a mere 14%. How can the Minister defend that disappointing figure when only 14% of people referred to FÁS for a job or training place succeeded in being placed? This is a serious problem.

I raised this problem yesterday and want to return to it. The level of work being done by FÁS in terms of assisting lone parents, school leavers or middle aged people who find themselves redundant into training and employment is tokenistic. A figure of 14% is completely inadequate. Can the Minister blame the various groups working in this area if they are sceptical of his proposals in view of the fact that he does not seem prepared to put funding into providing the services necessary to support people? Does the Minister accept that FÁS needs to take drastic action?

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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The figures I provided show that over 50% of the 49,300 were placed. Some 7,000 were placed directly and another 17,000 left the live register. I presume they got employment too, but did not need the assistance of FÁS to do so. However, they would have interacted with FÁS. Out of that interaction that 17,000 decided they were in a position to work.

I am not saying we have reached the end of the development of the process. I agree there is a need to enhance further the ability and co-relation between my Department and FÁS to get as many people as possible out of the social welfare system, where they are entirely dependent, into the workplace. We need to facilitate that, whether through education, training or other ways, in order to help them achieve either part-time or full-time employment. I want to see more done.

The Deputy may have noted that in my response to the question, I indicated a substantial increase in the number of additional facilitators to help this process forward. I also mentioned the scheme that will be implemented in County Westmeath this year. There is innovation in this area. I have attended many FÁS graduation ceremonies over the past number of years and have spoken to people from all walks of life who said that without FÁS, they would be nowhere. We would like to see a higher volume of people employed and off the social welfare system. FÁS is only one of the elements involved in achieving that and it cannot be entirely achieved through it.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Most OECD countries have moved towards a situation where income support Departments have been merged with employment support agencies. Does the Minister think there is a case for doing that and for merging FÁS with the Department in order to provide a seamless service? Under the proposals for lone parents, it is the Department that is in touch with the lone parent until the child is seven years of age and then FÁS takes over. There is no continuity in that. Is there not a strong case for merging FÁS with the Department.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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That is a matter of policy and whether I think it might make a substantial difference. There are no such proposals currently. I made the point in my initial response that all new claimants are referred to FÁS after three months on the register. Therefore, the figures I gave dealt with the historical situation. In the recent past all new claimants must——

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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The placement rate is significant.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Yes, but not all the ability to deliver jobs lies solely with FÁS. There are many different ways——

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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A declining number are placed.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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The figure that went to FÁS is 49,000. That is a substantial number of people and approximately half of those placed came directly or indirectly off the register because of that interaction. That is significant.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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It is a very low number.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I agree. That is the approach we are taking and that is why we are exploring the pilot schemes in Coolock and Kilkenny. We need to substantially increase that figure. All new entrants are automatically referred to FÁS after three months on the system.