Dáil debates

Wednesday, 1 April 2009

3:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 26: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will ensure there will be no reduction in funding to Skillnets in 2009; her views on proposals to include newly redundant people in Skillnets training; and if she will make a statement on the matter. [13739/09]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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Government funding of the Skillnets training networks programme, which supports enterprise-led training in the workplace, has increased in recent years. Public funding of all training networks and in-company training programmes managed by Skillnets Limited amounted to €26.7 million in 2008. This level of funding has been indicative of the Government's commitment to upskilling persons in employment, with particular emphasis on those with low basic skills, in order to retain and enhance employability and maintain competitiveness. The programme's budget is provided through the national training fund, with levels of matching funding provided by the private sector.

The changed economic and employment market has meant many of the workers who would have benefited from training programmes for those in employment are now unemployed. In my view, this means we must adjust our training programmes to the new reality of the labour market. That is why my Department is implementing a number of initiatives to increase training for the unemployed. This will mean refocusing some of the finite budgetary resources for training towards activation measures aimed at training greater numbers of unemployed persons. It is because of this that the Skillnets training network programme allocation for 2009 is under review in the forthcoming April budget.

I am aware that proposals have been made to my Department from Skillnets on how the enterprise-led Skillnets training network model might potentially be of assistance in the training and up-skilling of the unemployed and of part-time workers. These proposals are currently under discussion with the Department. All departmental budgets are under review. Any re-allocations that result will reflect the funding priorities that have been agreed by the Government and the changes necessary to support their delivery.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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As this question is being taken in ordinary time, any Deputy may intervene. I call on Deputy Varadkar.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I thank the Ceann Comhairle and the Minister of State for agreeing to allow the question. Skillnets does an excellent job. It is one of the examples of money that is well spent. It provides excellent training, it is largely employer-led and it gives the people who work in those industries the skills they need to improve the competitiveness of the industry and to go on to promotion and better jobs. I would not like to see it cut, and if it is cut, the Minister of State can be sure it is one cut Fine Gael will definitely reverse in Government.

When will the Minister of State tell us about cuts? There are 100 Skillnets companies across the country, and they have been told their budgets will be cut by 26% this year. We are already half way through the year, and the companies must make commitments. Will we know by next Tuesday whether the Government is going to cut Skillnets? I also understand that the Minister of State is analysing the idea of including some unemployed people in the Skillnets programme. Does he not think that makes much sense? In the past, we have isolated unemployed people and put them on their own with other unemployed people doing separate training? Does he not think it makes good sense to take newly unemployed people and involve them in skills programmes with people who are in work and in business?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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Skillnets has been already given its budget for 2009. There has been a reduction of 26% in the budget for the provision of training for those in work. It is part of the national skills strategy and the one step up programme for training people in unemployment. Let us be under no illusions. We must refocus and rededicate the scarce resources to provide training for people who lose their jobs. Many of the people who would have trained in Skillnets were low skilled workers and have recently lost their jobs. The priority obviously is to train those people and provide upskilling support for them.

Skillnets has already got its budget, but we will evaluate the resources for those who find themselves unemployed in order to train them.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Will the Minister of State tell us by next week?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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I will tell him when the decision is made.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Does the Minister of State not understand the damage being caused to the country by this uncertainty? People do not know what is happening. They do not know how much they will be paid next month, or how much they will be taxed next month. We need certainty.

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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A budget will be introduced next week and that will bring finality to many of the issues being raised by the Deputy. Skillnets has been given its allocation for 2009. It is the case that there is a reduction, but the priority must be with people who now find themselves unemployed and no one in the House could disagree with that. We must use all our resources to ensure such people at least have some form of training, re-skilling and reorientation of their skills available. This will assist their efforts to try to find work in the limited opportunities available, but at least when the upturn comes, they would have been given that opportunity.

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)
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Does that mean there has been no change in the Skillnets budget?

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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There is a reduction. It was 26.7% last year and it has been reduced by in excess of 25% this year.