Jonathan O'Brien (Cork North Central, Sinn Fein)
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The JobPath programme is one of the labour activation measures initiated by the Department of Social Production. The Minister of State may be aware that the programme outsourced labour activation measures to private companies. There was a tendering process during which a number of companies bid. In the end, two companies were selected to run labour activation measure on behalf of the Department.

I understand almost €7 million was spent on branding and publicising Intreo offices. Those who engaged with the offices were assigned case workers who worked with them in trying to secure employment or upskilling. The problem with the private companies operating the labour activation measures set up by the Department is that they are paid by results.

The reality on the ground - this is not hearsay and the evidence will bear this out - is that many of the people who are directed into those private companies - Seetec Limited and Turas Nua Limited - are being advised of things which I think are unethical. For example, I know of one young lady who was advised to leave her qualifications off her CV because they indicated she would be overqualified for many of the jobs in which they were trying to place her. Many individuals are being forced into low-paid jobs because it is done on a commission basis and the private companies are only paid if they are successful in placing somebody in employment. What is happening is that people are being directed into low-paid jobs with no job security. As a result, people are being recycled. They are getting a low-paid job and are being let go. They go back in again to the private companies and are again placed in another low-paid job and it is a continuous circle.

I am sure all Deputies received the e-mail from a young lady who wrote a letter of complaint to the Tánaiste and Minister for Social Protection, Deputy Joan Burton, in respect of her experience with one of these companies, Seetec Limited. It should be pointed out that Seetec Limited was under investigation in England for abuse of powers in respect of disabled people and how they were being treated in regard to labour activation measures. That this company is running labour activation measures on behalf of the Department raises questions all on its own. Some of the advice this individual got from a person in the private company was that she should leave her education qualifications off her CV, that she should not bother to get a full driving licence because one can drive around on a provisional licence, which is not the case, and not to go on to a community employment scheme because that scheme is being abused by people who do not wish to find real employment. In her e-mail she said she felt put down, disrespected, belittled and bullied by the individual who was dealing with her who had no regard for what she wanted which was to try to secure sustainable employment. The JobPath scheme is a failure and is just a profit-making exercise for private companies. We have privatised a public service.

Tom Hayes (Tipperary South, Fine Gael)
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I thank the Deputy for raising this important issue and giving us an opportunity to discuss some of the issues he has raised. JobPath is a new approach to employment activation that will support people who are long-term unemployed and those most at risk of becoming long-term unemployed to secure and sustain paid employment. Following the completion of a rigorous public procurement process, two companies were selected to provide the JobPath service, Turas Nua Limited and Seetec Limited. The companies will deliver services directly and will also engage a range of local subcontractors, including local training and employment service providers. In delivering these services the contractors will be supplementing and complementing the work of the Department's existing in-house case officers and the work of the mediators of the local employment services. JobPath will not replace or substitute for these services. It will provide additional capacity to extend case-managed activation to people who are long-term unemployed.

JobPath has been designed having regard to international experience of contracted employment services. Significant safeguards have been built into JobPath. These include a service guarantee to ensure all participants receive a baseline level of service as well as payment penalties for the companies if service performance or service quality do not meet standards.

Participants on JobPath will receive intensive individual support to help them address barriers to employment and to assist them in finding jobs. Each person is assigned to a personal adviser who will assess a person's skills, experience, challenges and work goals. A personal progression plan will be drawn up that will include a schedule of activities, actions and job-focused targets. Participants are also provided with a range of training and development supports, including online modules, career advice, CV preparation and interview skills. They will spend a year on the programme and if they are placed in a job, they may continue to receive support from the JobPath contractor for the first year of employment. During their term on JobPath they may also be referred for further education and training opportunities. Jobseekers retain their existing social welfare payments while on JobPath.

An important feature of JobPath is that it is a payment by results contract. Contractors are paid if and when they place clients into sustained employment. In this regard employment is defined as work of at least 30 hours per week lasting for at least 13 weeks. Contractors are paid a fee, in arrears, for each 13-week period of employment up to a maximum of four payments or one year's work. This payment approach incentivises the contractors not just to find work for people but to strive to ensure the work is full time and sustained.

Olivia Mitchell (Dublin South, Fine Gael)
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I will stop the Minister of State and he may come back to the rest of his reply. I call Deputy Jonathan O'Brien.

Jonathan O'Brien (Cork North Central, Sinn Fein)
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The Minister of State listed what the individuals in these companies are supposed to do, namely, formulate a personal progression plan that helps a person to find a job, assess their personal skills, experiences, challenges and work goals, and give them help with career advice, CV preparation and interview skills. I put it to the Minister of State that is not what is happening within these companies. The details of a case have been e-mailed to every Deputy in this House. It outlines one young lady's interaction with Seetec Limited where she was told to leave her qualifications off her CV. That is not helping her with her CV. That is not assessing her career skills. It is the complete opposite.

The reality is that because it is a pay by results system, we are finding that many of those engaging with these companies are being forced into low-pay, zero-hour contract jobs. They are not getting sustainable employment. Many of them will stay in employment for a number of weeks, but after 13 weeks that company gets paid. After 13 weeks and one day, if that individual loses that job, that company will still be paid. It is a private company which in my opinion is doing the job the Intreo offices and the education and developmental intervention services, EDIS, were doing on the first day. We spent a good deal of public money on establishing the Intreo offices. We took 1,000 people from that system and we are now directing them into private companies who are only interested in profit and not giving people sustainable employment. They are being forced to take up no contract, zero-hour jobs.

Tom Hayes (Tipperary South, Fine Gael)
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It is important not to generalise. Some people will find work and do very well on a scheme like that. One cannot generalise and say people will not get jobs from these schemes. Some will do well and get into a good career.

Jonathan O'Brien (Cork North Central, Sinn Fein)
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Not with the type of jobs I am talking about.

Tom Hayes (Tipperary South, Fine Gael)
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To clarify, both companies will be subject to regular on-site inspections and audits to ensure JobPath is delivered in accordance with contractual obligations. In addition, the Department will commission customer satisfaction surveys to assess independently whether customers referred to JobPath are satisfied with the level and quality of the services delivered by the contractors. It is important with respect to the Deputy's points about assurance because they will be audited and monitored. Failure by the contractors to satisfy the Department inspectors or achieve a satisfactory score in an independent survey will result in payment penalties being applied, so there is a measure to ensure the bodies must live up to this programme. I know one of the companies in Roscrea involved with this and it has a very good track record. I take the points made by the Deputy and I will relate them to the Minister. I thank him for raising the issue because a scheme like this will always run into some difficulties.