Michael Finucane (Fine Gael)

I move:

"That Seanad Éireann

— acknowledging the work undertaken by community groups, throughout the country with the assistance of the FÁS Community Employment Schemes, and the deteriorating economic climate for people who are displaced from community employment schemes who fail to gain access to other work

— recognising the deep concern of community, health and sporting organisations about the future of these schemes and the continuation of important local projects

— accepting the contribution that these schemes make to the self-esteem of the participants, and the support provided to groups involved in parish, sporting and voluntary activities

— aware of the difficulties encountered by people over 50 years of age in sourcing alternative employment, calls on the Tánaiste and Minister for Enterprise, Trade and Employment

(a) to suspend the reduction of 5,000 places in community employment schemes at this time of economic downturn and lack of job opportunities in the open market

(b) to ensure that people in long-term unemployment will continue to have the opportunity to do valuable work through community employment schemes and

(c) to establish a new social employment scheme for the older age group who are long-term unemployed".

I am pleased to move this motion on behalf of my colleague, Senator Paul Coghlan, and that the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Fahey, is present as he crusaded on the issue in late 2003 and voiced his strong concerns at the proposed cuts. He was backed by 40 Fianna Fáil backbenchers and I understand that at a parliamentary party meeting approximately 30 members supported his call for the community employment schemes to be retained. He stated at the time that the attitude of the party to the community employment schemes would be an acid test as to how it would be assessed by the voters. I have long been a great exponent of community employment schemes because they have transformed towns and villages in rural Ireland. I know that without the input of community employment schemes many of our towns and villages would not look as well and would not be as successful in the Tidy Towns competition.

Community employment schemes also give people the dignity of work. Many people on community employment schemes are in the over 50s group and would find it difficult to get jobs in the market place but are extremely content to work on these scheme. I think it is a retrograde step that a person who is on an unemployment scheme has to return to unemployment assistance. It degrades the dignity which sustained him in a job to that time. It is false economy. The extra cost to the Exchequer in retaining a person on a FÁS scheme as opposed to unemployment assistance is €28.

Community employment schemes play a very useful role and provide benefits across a wide range of activities from crèches to people with disabilities. I accept the Government will state the counter argument that the number of long-term unemployed has decreased, and that is so, however, people who work on community employment schemes would find it difficult to get jobs in the open market. We all know that for those over 55 it may be difficult to get a job. It is extremely important that people work in that type of employment.

In 1998, more than 40,000 people were on community employment schemes, a figure which has now halved to 20,000. The proposed reduction of 5,000 places caused a great deal of concern. My colleague in Limerick West, Deputy John Cregan, was on the plinth of Leinster House crusading for the retention of places on the community employment scheme. Irish politics is different from British politics where 70 Labour MPs voted yesterday against the Labour Party's changes in education. We have loyalty to the Whip and Government Deputies, having stated their position on the steps of Leinster House, when called on to vote on a Labour Party motion, voted in support of the Government.

I am aware that the Minister for Finance, Deputy McCreevy, would like to get the numbers on community employment schemes down to zero. If we continue to reduce the number of places on community employment schemes, the good work that has been done in communities will be eroded, unless the level of funding to local authorities is increased. The Minister for Social and Family Affairs, Deputy Mary Coughlan, has introduced changes that will have an insidious impact on people in community employment schemes by virtue of cutting the number of hours in which they can participate, and in many cases making it uneconomic to work on them.

The media are not focusing on this issue in recent times, but I get deputations from people involved in community employment schemes because the numbers are reducing or schemes are being amalgamated in different areas and the numbers participating are dropping considerably. The problem has not gone away and this is still a live issue. The supervisors who have worked on such schemes for many years fight for their retention, which is understandable because they can see the benefits. In 2003 there were 17% fewer on community employment schemes and I presume we will see further cuts in the future. If there are, some substitute should be put in place. Some people may ask whether they provide a meaningful role and I believe they do. I have already spelled out the beneficial effects for the participants. Many people in my area of Newcastle West probably would not have jobs if they were not participating in community employment schemes. I would be interested to hear whatever enlightenment the Minister of State can provide with regard to changes to the scheme, which might be beneficial. By tabling this motion, we are at least giving him a chance to respond. Perhaps there are some positive aspects on which the Minister of State can elaborate, but people who have spoken to me see only the negative side of many of the changes to the scheme. I look forward to the Minister of State's response.