Mattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Ceann Comhairle for allowing me to raise this very important issue. The closure of the hostel project in Tipperary town and the abandonment of the workers has caused heartbreak for the workers themselves and the wider community. The hostel project was a jobs initiative scheme. The workmanship and craftsmanship displayed by the supervisor and the 23 employees was above and beyond all expectations. They completed the refurbishment of a church, as well as 60 other projects throughout Tipperary. Those workers were let go without the benefit of the enhanced redundancy scheme, which was in place in 2007 and was issued in counties such as Donegal and Wexford for other schemes that were closed down. They are entitled to receive the enhanced redundancy payment on top of their statutory redundancy, which they waited for over a year and a half to receive. It is totally unfair and an injustice to the workers who gave so much time and energy to the project.

Pobail and FÁS are conducting investigations into the project, which have been going on for nearly two and a half years. It is time we got some clarity in the matter. The building has become derelict. Vandals are breaking into it and it has been abandoned, for all intents and purposes. Over €4 million was spent on the project, in wages and materials grants. The project was very well supported by various Departments, the local Tipperary Town Council and South Tipperary County Council.

Will the workers received enhanced redundancy, to which they are entitled? When the workers were being let go they were told by FÁS that it was because of misappropriation of FÁS funds but neither the workers nor their supervisor misappropriated any funds. I am not making any allegations as to who did but the workers definitely did not and their names should not be besmirched and should be cleared. I am aware that a Garda investigation is ongoing and I hope it will have a successful conclusion.

This is a travesty of justice. Tipperary town and the wider county has many fabulous community projects, which had enjoyed the support of FÁS, Pobail and many other statutory funders over the years, with excellent results. One such project is being honoured today by a Government Minister, namely the Canon Hayes project in Tipperary Town. It is a pity that the hostel project has left such a sour taste in the town. Five of the directors resigned from the board and the chairman, before he resigned, made complaints to the Garda about his name being on claims documents that he had not signed. It was accepted that the signatures on the documents were not his. This is a very sad situation where money has been misappropriated. The workers and the board members who resigned should not have to carry the can here. Their names should be cleared.

I appeal to the Minister to ensure that the investigations by Pobail and FÁS are concluded without further delay and the findings released. If there are charges to be brought by An Garda Síochána, let them be brought. At least then there would be an end to the rumours, speculation and innuendo which are unfair, in particular, on the workers. They completed this project in a spectacular fashion. The church really is something to behold. It is a real treasure, as are the rooms in the hostel that they had finished. The hostel is now lying abandoned, even though it is nine tenths finished. The gates are locked but unfortunately, weather and vandals are wreaking havoc on it. Above all the workers have been cast off, some of them into early retirement, in an unfair fashion. They have been mistreated. Indeed, they continue to be mistreated because the supervisor has not received his full redundancy payment, despite having an agreement with FÁS

The workers are entitled to enhanced redundancy. I appeal to the Minister, although I accept he is not the Minister responsible, to have the situation investigated thoroughly because it is a blight on all community employment groups, of which there are many in Tipperary town and district. It is not fair that the good name of the people of Tipperary or the good workers or supervisors involved would be besmirched in this manner.

James Reilly (Dublin North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am responding to this matter on behalf of the Minister for Social Protection, Deputy Joan Burton. I thank Deputy Mattie McGrath for raising the issue. The job initiative, JI, programme provides full-time employment to those who are long-term unemployed over the age of 35 years. In 2004, a Government decision was made to allow participants on the job initiative programme to remain on it until retirement age. There are currently 1,256 JI participants with a budget for the programme in excess of €27 million.

The Tipperary Hostel was an independent company whose day-to-day operations were overseen by a board of management. The project involved the restoration of a former workhouse in Tipperary town with the aim of housing a 30-room budget accommodation hostel. At time of closing, the project employed 21 participants including a supervisor under the job initiative. The project had been running from 1999 to 2010 with labour being provided by the job initiative programme and capital costs being funded by the county council, the Heritage Council and the Department of Arts, Heritage and the Gaeltacht. Funding from the Department of Arts, Heritage and the Gaeltacht was withdrawn in April 2010 after accountants from Tipperary Hostel Limited failed to sign the accounts and it came to light that funds were overdrawn. Pobal, on behalf of the Department of Arts, Heritage and the Gaeltacht, conducted an audit that found serious shortcomings and suspended its funding.

With the closure of the project, FÁS offered each JI participant on the scheme alternative employment with other community employers in Tipperary, including the retention of accumulated service and pay. These positions were approved by FÁS, were additional to existing positions and would not have displaced jobs of existing workers. Only one person took up the offer. The remaining 20 followed the advice of SIPTU and pursued a claim for redundancy. On 7 December 2011 this matter was heard before the Employment Appeals Tribunal, EAT, with 22 appellants seeking redundancy. The Employment Appeals Tribunal upheld that 20 of the 22 appellants were entitled to statutory redundancy from their employer, Tipperary Hostel Limited. The redundancy payments have now been made to the 20 individuals by the redundancy section of the Department of Social Protection.

Mattie McGrath (Tipperary South, Independent)
Link to this: Individually | In context | Oireachtas source

What the Minister stated is correct but one part is inaccurate. At the time, savage cutbacks were being made to community employment projects in Tipperary and numbers had to be reduced. We were told we had the highest number of people working on community employment schemes in the south east. If staff had taken up the job offers on other schemes they would have been displacing existing colleagues on those schemes due to the significant number of people being laid off.

The Minister indicated that Pobal investigated the situation and suspended funding. Those involved cannot be left high and dry with innuendo and bad feeling. The situation must be sorted out. Where there was wrongdoing it must be outed and there must be proper and fair treatment. The Labour Court upheld the claims of FÁS workers for enhanced redundancy who were employed on community employment projects in Wexford and Donegal. That is all the workers seek, in addition to having their names cleared, which is equally if not more important. It is not true to say they were offered jobs additional to existing positions because they would have been displacing existing employees. I was involved at the time. The workers involved had carried out dedicated, skilful work on many projects. They had made the homes of many people safer and ensured they had better living conditions. It is not good enough that this is all the thanks they get.

James Reilly (Dublin North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In these tough times nobody wants to see anybody lose their job. However, on behalf of the Department I must point out a number of facts. Tipperary Hostel Limited was the employer. All the JI participants were offered similar, alternative positions with the same terms and conditions. No one was made redundant. Only one of the JI participants opted to continue on the programme. The redundancy paid was only statutory redundancy, but the JI participants can now seek enhanced redundancy similar to that available to other community employment workers. All payments of enhanced redundancy to employees on job initiative or other programmes reduces the amount of funding available for the programme and thus leads to a reduction in the overall number of participants. Currently, there are 1,256 participants on the jobs initiative programme.