John Brady (Wicklow, Sinn Fein)
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37. To ask the Minister for Social Protection if his attention has been drawn to ongoing issues in the JobPath scheme; when the next review will be conducted; and if he will make a statement on the matter. [18279/17]

John Brady (Wicklow, Sinn Fein)
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Is the Minister aware of ongoing issues in the JobPath scheme and when does he intend to carry out a full review of the scheme from its introduction?

Leo Varadkar (Dublin West, Fine Gael)
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I am pleased to advise the Deputy that the experience of JobPath to date has been very positive.

The most recent unemployment figures from the CSO show that the monthly unemployment rate in March 2017 stands at 6.4%. This is a decrease from 8.3% in March 2016 and 9.9% in March 2015, which is a decline of 3.5 percentage points in the past year.

In addition, the CSO's quarterly national household survey reports that there were 2.048 million people in employment at the end of 2016. Employment increased by over 65,000 or 3.3% in the year to the fourth quarter of 2016 and by 2.3% the previous year.

My Department recently published the results of an independent customer satisfaction survey, which indicates that jobseekers feel that they are receiving a good service and that JobPath has improved their chances of securing employment.

Between 76% and 81% of customers were satisfied with the service provided and only between 5% and 8% expressed dissatisfaction. More than 90% of customers reported that JobPath staff made them feel valued and that they had a good relationship with their adviser. They also felt the service had improved their chances of getting a job.

An analysis of employment outcomes for JobPath participants shows they have a higher chance of securing and remaining in a job than participants with a similar duration of unemployment who were not referred to JobPath. Given that only a small number of people have completed their full engagement with the service, these results can only be treated as indicative at this stage. Nevertheless, they are encouraging. Should the Deputy wish to consider the matter in more detail, the results and a copy of the survey findings are available on the Department's website.

My Department will publish similar performance reports for each successive quarter as jobseekers complete their 12-month engagement period and the next set of results to be published in the coming weeks. In addition, my Department will have an econometric review of the JobPath service, which will commence later this year when participant numbers will have reached a sufficient level to support a robust review.

John Brady (Wicklow, Sinn Fein)
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The emergence of JobPath signalled a drive towards a privatisation agenda within the Department for job activation schemes. Since 2011, penalties have been increasing year on year for those who do not engage in a job activation scheme. Between 2011 and 2016, more than 27,000 people were sanctioned. As the live register goes down, penalties go up. Is this a new policy within the Department?

Those engaged with JobPath cannot transfer to another scheme if they are offered a place, incur travel costs that are not reimbursed and are obliged to travel for up to 60 minutes to whatever job, and the Department's preference for JobPath is taking away from local employment services and CE schemes, which are suffering.

The priority for Turas Nua and Seetec is to make money. That is the bottom line. They do not care in what job they place a person; their objective is profit. Is it now a policy objective of the Department to give preference to JobPath ahead of all other schemes?

Leo Varadkar (Dublin West, Fine Gael)
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The preference of the Department absolutely is jobs first. The first thing we should try and get for somebody is a regular job as opposed to being on a scheme. A regular job is better paid, has the prospects of promotion and means that one is working and paying tax rather than being on a scheme, which means that the taxpayer has to pick up the bill and which will end. Of course, the preference is for a full-time job of more than 30 hours over a scheme. Absolutely, our policy is a regular, real job first. If somebody cannot get such a job, then he or she may well be suitable for supported employment with a scheme.

What we are doing is a customer satisfaction survey. That is done quarterly. The success rates are also published quarterly. One should bear in mind that success is being in a regular job of more than 30 hours a week, that is, a full-time job, and remaining in that job for more than 13 weeks - none of that stuff about part-time employment or unstable jobs - and we will do an econometric analysis this year.

I would point out though that this is a contract that runs until the end of 2019. We can have any review we like under the sun. The contract stands until the end of 2019 and then there is a two-year run-off period. Obviously, in 2018, this Government or the Government of the day will have to make a decision as to whether it wants to re-tender for a similar contract, not do it at all because unemployment might be extremely low by then or have a different type of contract, perhaps trying to activate different groups of people.

John Brady (Wicklow, Sinn Fein)
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The only review that has been carried out so far was useless. The review relates to the first three months of the operation of JobPath, from July to September 2015. This review was not published until January of this year.

I am sure other Deputies have similar experiences of constituents coming through their doors outlining many concerns. That report is not a true reflection of the scheme and the jobs in which the scheme is placing jobseekers, the questionable quality of the jobs being sourced for jobseekers and how the vulnerable jobseekers are treated. What we have is two private companies making money on the back of jobseekers. We have no figures. We have no costs. We have no review. We have no idea of the impact the scheme is having on jobseekers or its success rate. We have a situation where JobPath will not engage with public representatives or deal with third-party queries in any way, which is a serious problem. The Minister stated there would be some sort of a review later in the year. It needs to be a root-and-branch review of the total operation of the scheme. I again ask the Minister whether that is something to which he will commit.

Leo Varadkar (Dublin West, Fine Gael)
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I have already told the Deputy what reviews are being done and I have also explained to him that the contract runs until the end of 2019 regardless of any reviews. We would only consider cancelling the contract if the contract was breached and it certainly has not been breached.

The customer satisfaction survey and the outcome results that show how many participants are moving into employment are published quarterly. The second quarterly report will be out in the next couple of weeks.

In terms of making money, it is important to bear in mind that these companies bore all of the start-up costs. Had the Department been obliged to set up that number of offices all around the country, it would have cost tens of millions of euro. The companies bore all the start-up costs and get paid by results.

It is a very good model from the point of view of taxpayers. They only get paid-----

John Brady (Wicklow, Sinn Fein)
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Will the Minister release the figures?

Leo Varadkar (Dublin West, Fine Gael)
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Absolutely. I have already released figures.

John Brady (Wicklow, Sinn Fein)
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We are informed that they are commercially sensitive.

Leo Varadkar (Dublin West, Fine Gael)
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They only get paid by results - the result being somebody taking up sustainable employment of more than 30 hours per week for which he or she is paid. They also only get paid if the person sustains the job for more than 13 weeks. That is a good model. If it is such a lucrative thing, I do not see the other groups signing up for payment by results. If payment by results is so lucrative, why are other providers, be it local employment or community employment schemes, not seeking to move to that model?

John Brady (Wicklow, Sinn Fein)
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Will the Minister commit to releasing the figures?