Éamon Ó Cuív (Galway West, Fianna Fail)
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4. To ask the Minister for Environment, Community and Local Government the arrangements in place to tender out, by the newly formed LCDCs of the local authorities, the operation of the successor to the current social inclusion programmes; and if he will make a statement on the matter. [19640/14]

Éamon Ó Cuív (Galway West, Fianna Fail)
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There has been great concern about the tender process that will apply for the new social inclusion programme. The concern is that it would allow non-locally based both private and not-for-profit companies to apply for the programme. Perhaps the Minister would reassure us on the process that will be followed.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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My Department’s local and community development programme, LCDP, is the largest social inclusion intervention of its kind in the State. The current programme officially ended at the end of 2013, having operated for four years with funding of €281 million over that period. It is being implemented by the local development companies on a transitional basis for 2014 with a budget of €47 million pending the roll-out of a new social inclusion activation programme in January 2015. All 50 local development companies are contracted by my Department to deliver the LCDP to the end of 2014. As an integral part of the alignment of community development and local government, the management and oversight of the LCDP will transfer to the local community development committees, LCDCs, within each local authority from 1 July this year.

The new programme is one of my key priorities and its budget for next year will be decided in the 2015 Estimates process. In accordance with the public spending code, best practice internationally, legal advice and to ensure the optimum delivery of the services to clients, the LCDP successor programme will be subject to a public procurement process. The new LCDCs will procure the programme locally. All proposals received will be assessed in accordance with the assessment criteria notified with the tender documentation, and the contract or contracts will be awarded on the basis of that assessment. Pobal is assisting my Department and the LCDCs in the preparation of the tender documentation and the assessment criteria. I expect that the local development companies with their experience and expertise will be well placed to tender for the delivery of the new programme in their areas.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Will it be a condition that the successful tenderer will be required to have its headquarters in the area in which it will provide the service? There is a major concern that big, professional companies from outside, with headquarters far removed from the communities, would win the tenders. Therefore, will it be one of the assessment criteria that the headquarters of the companies delivering the service must be within the area in which the service will be provided? Second, as part of the assessment criteria, will requirements be set down relating to the structure of the board of the delivery company to ensure that local community and voluntary bodies are represented on the board that will deliver the programme within each area?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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As the Deputy knows, the alignment process between local authorities, my Department and the local community development groups has been ongoing for 18 months. It is not making as much progress as it should, because of the procrastination of certain people who do not want change. The local development companies decided two weeks ago to withdraw from the process. They changed their minds yesterday and now wish to engage again with regard to the type of role the community structures will play in the delivery of these programmes. There will be a partnership between the local authority and the community structures under the LCDC, the committee that will have an oversight and monitoring role in the delivery of these programmes. I expect that community structures within the community area will be delivering and implementing the programmes.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Expectations can go wrong, as the Minister knows. Will he take steps to ensure, first, that the delivery companies, not the LCDCs, will be required to have their headquarters within the area in which the programme is to be provided? Second, will the boards of the delivery companies be required to be reflective of the community and voluntary organisations within the area in question? Third, does the transfer of undertakings regulation apply in respect of the positions currently held by staff in the local development companies?

In other words, if somebody new wins the tender will the staff be covered under the transfer of undertakings regulation?

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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The whole purpose of delivering these programmes is to reduce the level of administration as well as delivering the programmes. In 2013, the average administrative cost of delivering programmes through the LCDP has been 29%. Of €47 million allocated, some €14 million went in administration which is far too high. The structures of delivery will be assessed by the LCDC arising from the tender. It will depend on who wins the tender but I would expect that the experience of the local development companies already there will be favourites in order to win those particular programmes because of that experience. Experience will be an important criterion laid down by Pobal in the necessary criteria associated with the tender arrangements.

The transfer of undertakings does not arise. Recent legal advice given to me indicates there is no question of a transfer of undertakings obligation on behalf of the companies.