Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Gabhaim buíochas leis an Aire as bheith anseo chun déileáil leis an gceist rí-thábhachtach seo. The whole process around the social inclusion and community activation programme, SICAP, or the public procurement process of community or social inclusion programmes is mired in confusion. As far as I know, the letters that were to be signed off on and sent out this week are now put on hold for a future date, adding to confusion among workers and those who are dependent on delivery of a service.

Will the Minister reinstate the €742,000 he has cut from the community programmes in Dublin and the €2 million cut in social inclusion programmes across the State? Regardless of the SICAP tendering process, that will lead to loss of jobs or at the very least, a loss of services in the most hard-hit communities. There is deep concern, for instance, in my own area, about the viability of the equine centre and other services in Bluebell, St. Michael's estate, Fatima, Rialto, and the south-west inner city, given that in future a single organisation will cover two partnership areas in some instances - double the geographical area and double the service delivery on a reduced budget. Will the Minister reduce that and can he commit to ensuring there will be no job losses and no loss to community services in this tendering process? I congratulate all those community workers who have been delivering services despite cuts, not just from the Minister's Department but from other Departments, over the years and manage to retain most of the services. That is a testament to them and to the communities that depend on them.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I am pleased that the Minister came in person to the House to deal with this important issue. The SICAP tendering process was meant to be announced tomorrow. If that is put back, more uncertainty arises for the workers, who do not know what is going to happen after the end of March. As the Minister knows, there are about 2,000 workers in this sector who are waiting for a decision on SICAP. The SICAP process was totally unsatisfactory from beginning to end and is going to lead to some very bad outcomes on the ground.

This evening I would like to concentrate on the issue of what is going to happen to people who are employed in the partnerships after 31 March. As Deputy Aengus Ó Snodaigh has said, there is a cut in the money. Can the Minister confirm how many jobs the Department estimates will be lost? Will the companies be given money to put a proper redundancy package in place in order that a proper voluntary redundancy scheme will be put in place for the workers? The uncertainty is very unsatisfactory. It is also interesting to look at the Labour Court decision of 4 December 2014, where it rightly points out that even though the Government is not technically the employer, standing back from the process and pretending to have nothing to do with it is somewhat like Hamlet without the prince. There is an obligation on the State to engage not only with the employers but with the employees to clarify what is going to happen to their jobs and, if there is going to be downsizing, how that will be approached and whether the companies will get money to facilitate fair redundancy packages, as one would expect in a situation like this.

Alan Kelly (Tipperary North, Labour)
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This is a very important issue. My Department's local community development programme, LCDP, is the largest social inclusion intervention of its kind in the State. The successor programme to the LCDP, the social inclusion and community activation programme, SICAP, to be rolled out on 1 April, will build on the LCDP aims and objectives. Its aim is to tackle poverty, social exclusion and long-term unemployment through local engagement and partnership between disadvantaged individuals, community organisations, public sector agencies and many other stakeholders.

Community development is an integral part of SICAP and underpins the entire programme. I am confident that supports for the most disadvantaged in our society will continue under SICAP and that the programme will continue to provide supports to those most distant from the labour market. In accordance with the public spending code, legal advice, good practice internationally and in order to ensure the optimum delivery of services to clients, which I am sure everyone agrees is critically important, SICAP is subject to a public procurement process, which is currently under way. The public procurement process is a competitive process that was open to local development companies, other not-for-profit community groups, commercial firms and national organisations that can provide the services to be tendered for to deliver the new programme. The outcome of the procurement process will be known later this month.

In the changing landscape for the community and local government sectors and having regard to my Department's response to differing priorities, the primary focus of my Department must be to ensure that the front-line services being supported, particularly those focused on the needs of the most socially deprived communities, are protected, given the need to ensure best value for the scarce resources available at this time.

While business continuity remains a key concern for all stakeholders, it is not possible to predict what impact, if any, the outcome of the competitive process for the new programme will have with regard to the network of local development companies, LDCs, which are independent limited companies, or their staff.

The outcome of the competitive process will be known later this month and I assume it is this announcement to which the Deputies are referring. At that stage, my Department will review the outcome, mindful of the need to observe procurement regulations and ensure front-line services delivered through the new programme are protected in so far as possible.

My Department does not have any role in the internal operations of LDCs and, therefore, does not have a role in staff or employment matters, which are for the board of each company, as the employer, to manage. Each funding Department is responsible for its funding and contractual arrangements with the local development companies.

In the meantime, all groups which received local community development programme funding in 2014 are being funded through LCDP interim arrangements until 31 March, pending the outcome of the competitive process, which is imminent.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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The Minister did not address the key concern and instead washed his hands of the issue by claiming it was not his responsibility. If funding for local partnerships in the Dublin area is cut by €742,000, it will affect service delivery, irrespective of the outcome of the tendering process. It is incorrect to claim, therefore, that it is not possible to predict the impact of the competitive process. Both the Minister and I can predict what will be the impact of a cut of this magnitude. I ask him again if he will take more time, given that he has not yet issued the relevant letters and reverse the cut. Will he also guarantee that there will be no job losses or loss of service in the most disadvantaged communities in the State?

One of the key points made to the Joint Committee on Public Service Oversight and Petitions by Ms Deirdre McCarthy and Siân Muldowney of the Dublin Inner City Partnership was that it did not have to be this way. According to Ms McCarthy and Ms Muldowney, the new EU directive which will come into effect when it is transposed into Irish law in the next 12 months provides that tendering is not necessary.

Éamon Ó Cuív (Galway West, Fianna Fail)
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While he may have made the statement with a serious face, the Minister cannot honestly believe local partnership companies can make redundancy payments to staff without his Department providing them with the money to do so. All of the funding disbursed under the social inclusion and community activation programme, SICAP, is controlled by the Department and no disbursements may proceed without his approval. It is amazing that the Labour Court saw through the rubbish being spoken by the Minister. The court, in its recommendation on the matter, stated the issues raised by the unions were real and substantial and, like any group of workers, the workers in question were entitled to an opportunity to have the issues ventilated and addressed by those with responsibility for the decisions that had given rise to their concerns. This, according to the Labour Court, cannot be achieved through engagement between the parties to the referral alone, namely, the local development companies and unions. Having taken into account all of the circumstances of the case, the court recommended that a forum be established to deal with the employment related matters affecting the workers associated with the claim. This forum, it stated, should involve the unions and representatives of the employers in the first instance. However, the parties should seek the participation in the forum of the de factodecision makers in matters of policy and funding. The Minister is the de factodecision maker in this case because he provides all of the funding. Will he be up-front and inform the employers and workers about what will take place or will he leave them in the lurch, as he appears to be doing?

Alan Kelly (Tipperary North, Labour)
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I, too, can read and have read the Labour Court's recommendation in the case. I am well aware of my responsibilities and will not shirk them. However, the fact remains that the local development companies are private entities.

The Deputies have probably raised this issue a little prematurely because a tendering process is under way and will soon conclude.

Éamon Ó Cuív (Galway West, Fianna Fail)
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When will it conclude?

Alan Kelly (Tipperary North, Labour)
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Imminently.

Éamon Ó Cuív (Galway West, Fianna Fail)
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What does that mean?

Alan Kelly (Tipperary North, Labour)
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It means very soon.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Will it conclude by the end of the month?

Alan Kelly (Tipperary North, Labour)
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Yes, that is the timescale.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Is Fine Gael-----

Alan Kelly (Tipperary North, Labour)
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May I make my contribution? As part of the tendering process, we will find out what will be the scale, range and geographical and sectoral spread of the impact of the process on local development companies. I intend to ensure those on the front line who receive the services provided by local development companies will be fully protected. The Department will do everything possible to ensure this will happen once the tendering process has concluded.

As the Minister with responsibility for this area, I will not prejudge a tendering process that is under way, as it would not be appropriate or responsible to do so. The outcome of this independent process will be known soon and I am confident that the Government will address any issues that arises in the area of service provision to ensure people will receive the services they need.