John McGuinness (Carlow-Kilkenny, Fianna Fail)
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7. To ask the Minister for Social Protection if she will outline the use of private contractors in the INTREO activation service; and if she will make a statement on the matter. [25826/13]

Joan Burton (Dublin West, Labour)
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Intreo is the new employment activation and supports service model that the Government promised to deliver in the programme for Government and under the Pathways to Work initiative. It integrates the employment services and community programmes formerly provided by FÁS, the community welfare services formerly provided by the HSE and the income support services provided by the Department. The Department recognises the advantage of contracting with external service providers. This provides access to additional expertise and knowledge and complements the Department's own services by bringing in extra resources to meet increasing demands.

As part of the Department's employment service provision, it contracts with external providers for the delivery of the local employment service, LES, and job clubs' employment services, including career planning and job search assistance, to clients who are activated through these services. The Department funds this service provision to the tune of some €25 million per annum. The Department also has contracts, worth approximately €18 million, for the delivery of income support and related services across a network of more than 60 branch offices that complements the Department's office network.

In addition, the Department engaged the Centre for Economic and Social Inclusion to provide expert advice and assistance with the design and delivery of a commercial model for the contracted provision of employment services. A report was recently provided to the Department and is being evaluated. Any decision regarding the question of engaging commercial private contractors to deliver employment services will be a matter for the Government and any subsequent process of engagement with private providers will be undertaken in accordance with normal public procurement procedures.

Willie O'Dea (Limerick City, Fianna Fail)
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We are aware of the current situation whereby contracting out occurs. The Minister will recall how, when the Pathways to Work scheme was announced, a specific commitment was made to consider the possibility of using private contractors.

The Minister said the matter has been passed to a committee to evaluate the possibility and that it will report in due course. Does she have any idea when she will be in a position to make a definite call on the issue?

I have a document which is currently being prepared by the local employment service, LES, co-ordinators for the Government. Having set out some of the shortcomings in the system which would hinder or cause difficulties to the introduction in full of the Pathways to Work scheme, the document states:

Initially there was a belief that these shortfalls could be met through “contracting with the private sector...in areas such as case management...employer engagement, job activation of long-term unemployed and job-matching/placement.” However, the High Level Issues analysis by the DSP [Department of Social Protection] has since accepted that [it quotes directly from the Department] “this process will take time and considerable resources to develop and the scale of the task that confronts the Department should not be underestimated.”

Joan Burton (Dublin West, Labour)
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Intreo and the Pathways to Work scheme have now been rolled out completely in 12 offices and partially in a further four offices around the country. I invite Members, including committee members, to visit some of the new Intreo offices because they are such a change in how people experience a social welfare office. We are also taking people’s photographs when they sign on as jobseekers for the new public services card and electronic signing has commenced. Following that, jobseekers are involved in a case structure system involving group interviews and then personalised interviews to see how we can help them.

The local employment service, LES, joined the Department consequent upon the FÁS employment services joining the Department. I consider it a valuable resource, as does the senior management of the Department, given that it is experienced in helping people back on what is sometimes a long road of education in some cases, going on to employment or developing their own business and self employment.

I am most anxious to continue to develop the models. I am not aware of the Deputy’s comments on the profitability of private sector providers in the UK. We are examining the methods in various European countries. I have spoken to people in Sweden, for example, about their public employment services and I am also interested in the French model. I have read also about the UK model. We also have a tradition in this country of using privately contracted-out local social welfare offices. There is a long history of contracting out in this country. It is one that has worked successfully and has assisted and provided services for many communities.