Dáil debates

Tuesday, 21 February 2017

Priority Questions

Labour Activation Projects

4:55 pm

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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28. To ask the Minister for Social Protection if he will clarify recent media reports which suggested that a number of activation programmes will close; and if he will make a statement on the matter. [8533/17]

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I tabled this question because of recent media reports that certain labour market activation programmes were due to close down. First, I want to ascertain if this is true. Second, what are the programmes in question? Third, has there been an evaluation carried out in advance of this decision?

5:05 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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As Deputies in the House will be aware, my colleague, the Minister for Public Expenditure and Reform, Deputy Paschal Donohoe, recently announced a new approach that will be taken to reviewing current departmental expenditure in advance of budget 2018. The purpose of this review is to ensure the best value for money for the taxpayer. It is quite distinct from the savings reviews in departmental funding levels that took place over the economic crisis. They were about cutting spending and this review is not about that.

Almost €1 billion was spent on employment supports provided by my Department in 2016. Funding has increased significantly over the past six years. Given the improved economic and labour market conditions, it is entirely appropriate that we examine this area of expenditure to ensure policy objectives are being delivered in an efficient manner that will deliver best value for the taxpayer and ensure best use is being made of funding in each area.

It is recognised by Government that activation schemes are positive initiatives that enable the long-term unemployed to make a contribution to their communities while upskilling themselves for prospective future employment. I have seen this first-hand myself when visiting schemes throughout the country in recent months. It is also recognised that long-term unemployment and joblessness remain critical issues. The removal of barriers to employment for those furthest from the labour market continues to be a challenge, even in periods of economic growth.

With the ongoing welcome reductions in the live register, it is necessary to ensure the number and nature of activation schemes such as community employment schemes, Tús, Gateway and others and the conditions governing participation on these schemes continues to be appropriate. I will be bringing a memorandum to Government on the operation of these programmes in the coming weeks. If there are changes to be made, consultations with stakeholders will be facilitated at that point.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I understand the Minister is saying that this is not the same as when similar types of programmes were terminated in the past for the purpose of reducing expenditure and that this is a matter of getting the best result possible for the money being expended. I basically agree with that approach. If some of the programmes are to be discontinued, I suggest that the money saved should be reinvested in the programmes as they are currently operating. For example, such money could be used to increase the capacity and the ability of the Intreo staff to interact better with their clients. It could also be used to provide more appropriate matching of people to the skills available. It could also be used for the development of employability skills. Many employers say that employability skills, namely, soft skills, having the right attitude and a willingness to learn, are much more important than hard knowledge and qualifications. The Minister will be aware that there is a need to place an emphasis on people in the older age groups who are unemployed, some of whom have been unemployed for a long time. Many developments can take place in those areas. If having studied the matter the Minister decides to terminate some programmes, I suggest the money should be reinvested in this way.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Deputy makes a very valid suggestion. As we get down to very low levels of unemployment, with long-term unemployment now under 4%, people will need a different type of support because the profile of these people is different from what it was when unemployment was very high.

To answer the Deputy's previous question, one of the programmes is already closed. JobBridge is closed for new applications and the Gateway scheme is very much in the process of being phased out. There used to be thousands of people participating in it and the number is now down to hundreds. We should be back to a position where local authorities are taking people on in the normal way, which perhaps they could have not afforded to do during the financial crisis.

The number of people participating in schemes, including community employment schemes, Tús, Gateway and the rural social scheme, RSS, grew from 25,000 in 2010 to 37,000 in 2016. If we add JobPath to that, we are talking about 97,000 people on schemes and with services. We have seen an almost fourfold increase in schemes and services at a time when unemployment has halved. It is time to examine all that.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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Is it still the Minister's intention to replace the JobBridge scheme with a different type of JobBridge scheme, as he has announced? Will he agree that from here on the element of compulsion will have to be examined regarding labour market schemes in that a labour market scheme should be viewed as a stepping stone to decent and sustainable employment rather than an extension of the social welfare sanction system?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The answer to the Deputy's first question is "Yes". It is still intended that we will have a new scheme in the latter half of the year, which will provide people who do not have work experience with the work experience they need, but it is intended that there would be an employer contribution and they would be paid, at the very least, the minimum wage rate. It will be quite different from JobBridge in that sense.

I do not have any proposals to change the "genuinely seeking work" condition. People receive jobseeker's allowance and jobseeker's benefit on the basis they are genuinely seeking work. If they are not genuinely seeking work, they should either be on a different benefit that is perhaps more appropriate to their circumstances such as disability benefit or they should be signing off. We will continue to have sanctions in those spaces. When it comes to community employment schemes in particular and other schemes, they are and always have been about much more than being an extension of the social welfare system. They provide people with useful training and useful work experience and for many people, particularly in a period of low unemployment, they will be increasingly about social inclusion and less about activating people into the labour market.

Question No. 29 answered with Question No. 26.