Willie O'Dea (Limerick City, Fianna Fail)
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30. To ask the Minister for Employment Affairs and Social Protection if her attention has been drawn to the fact that the community employment scheme known as Pathways to Employment at Southill, Limerick, has been threatened with closure due to the failure of its insurance company to renew its insurance; her plans to rectify this issue; the implications for CE schemes nationally; and if she will make a statement on the matter. [39692/17]

Willie O'Dea (Limerick City, Fianna Fail)
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This refers to a matter brought to my attention in my constituency but it may have wider ramifications. That is the reason I am seeking clarification on the matter.

Regina Doherty (Meath East, Fine Gael)
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The Deputy is probably aware that since he put down the question, events have moved on a little. Local officers from my Department have been in ongoing communication with the Southill Pathways to Employment scheme. I am pleased to advise that they have resolved the matter and obtained adequate insurance for the scheme.

By way of background, the responsibility for acquiring insurance cover for community employment, CE, schemes rests with the CE sponsoring organisation as the legal employer. The annual budget provided to CE schemes includes an amount to cover consumable services and materials, including insurance, necessary for the effective operation of the project. The Deputy is aware that in last year's budget, the capitation grant was increased. My Department has become aware in recent times of an increase in insurance premiums for CE schemes. A number of representatives from CE schemes whom I have met since my appointment in June have brought this to my attention. The main reason cited for this is an increase in claims frequency over recent years by such schemes. In this context, schemes are asked to be especially mindful of their obligations under the Safety, Health and Welfare at Work Act 2005.

It is important to be aware that CE employers are at all times independent contractors for all purposes and, in those circumstances, it is not possible for the Department to become an insurance agent. Adequate insurance is required to cover schemes' legal liabilities. My Department recommends that schemes seek alternative quotes to ensure they get value for money, as has happened in this case. Also, if CE schemes are not filling their contracted number of participants, it is recommended that they align their insurance requirement with actual participant numbers. We are all aware a number of CE schemes around the country have a number of vacancies. In any cases where a scheme is experiencing particular difficulties, as this one was, the sponsor should contact the local Intreo centre or my office, where assistance will be given in as much as is possible.

Willie O'Dea (Limerick City, Fianna Fail)
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I thank the Minister for confirming that the matter at Southill has been resolved and my constituents will be delighted with the official confirmation. The Minister stated in her reply that the Department does not propose to become an insurance agent and nor am I suggesting it should. At the same time she states that it provides a sum as part of the capitation grant to cover insurance. How is that calculated and how does it anticipate what the insurance will be from year to year?

There is a broader question. I know the people in Southill, both participants and staff, went through a great deal of anxiety and distress, feeling obligated to contact their public representatives because for several weeks it looked as if the scheme would close because of a lack of insurance. It is a CE scheme but is there a policy to prevent other CE schemes in other parts of the country from having to go through such a process?

Regina Doherty (Meath East, Fine Gael)
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The capitation grant is based on the size of the scheme and the number of people working with it, as well as the type of work it does with regard to required equipment.

An intrinsic base and requirement of the community employment scheme is that it provide insurance cover for its own employees, as is the case for any business. The rise some community employment schemes have experienced in recent years has nothing to do with the capitation grant and probably more to do with current societal issues. It is fair to say that because of the 72 actions the former Minister for Finance, Deputy Michael Noonan, took in regard to the insurance industry, insurance companies have started to reduce their premiums by approximately 20% to 25%. That was probably the reason it was possible to get better value for the Southill scheme when it shopped around. I am not blind to the fact that others have expressed a difficulty in getting the same premiums they had last year or the year before, but I hope to see the 20% to 25% reduction filter through to all. If there is an issue, as there was with this scheme, the Department is able and willing to help and will not let anybody down.

Willie O'Dea (Limerick City, Fianna Fail)
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I thank the Minister for that assurance. There could be a separate debate on insurance and the extent to which premiums are decreasing. I have encountered many people in my clinics and so on and not yet met anybody who has told me his or her insurance premium has gone down, nor has mine decreased. The Minister is saying that if a similar problem arises elsewhere and a particular community employment scheme has a difficulty in getting insurance cover, the Department will be very eager and anxious to assist and will have its doors open to help in any way possible. Is that correct?

Regina Doherty (Meath East, Fine Gael)
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That is nothing new. It has been the case under every former Minister in my Department which facilitates and supports community employment schemes which are an extremely valuable service. The Deputy is aware that there are several issues with community employment, Tús and rural social schemes. In the coming months there will be a review of participation in the schemes. However, they are a hugely valuable source of social inclusion and social services and it is the job of the Department to ensure they are supported. If there is an issue, the local Intreo office is the first port of call and if a person does not find satisfaction there, he or she can certainly come to me.