John Gerard Hanafin (Fianna Fail)

I move amendment No. 1:

To delete all words after "Seanad Éireann" and substitute the following:

— notes that the number of places being supported under the Community Employment (CE) Programme in 2004 is being maintained at 2003 levels and that the total allocation for employment programmes has been fixed at €351 million which will support up to 25,000 places across the CE, Job Initiative and Social Economy Schemes;

— commends the Government on the introduction of a new rural social programme which will create up to 2,500 additional community-related employment places;

— recognises the important contribution that Community Employment and other programmes such as Job Initiative and Social Economy have made to the provision of services for local community groups and organisations over the past number of years and the clear commitment given by the Government to the ongoing support of such services;

— notes the Government's success to date in dramatically reducing the numbers of persons in long-term unemployment — a key target group of active labour market interventions;

— notes the Government's continuing commitment to persons facing the prospect of becoming long-term unemployed through the full roll-out of the Employment Action Plan preventative strategy and also the recent introduction of a high supports process for persons likely to experience severe employability barriers;

— recognises the flexibility which already exists for older persons on CE. In the case of people aged over 50 years, the three year cap on participation has been removed where people in this age group, having spent three years on the programme, continue to experience difficulties in getting employment; and

— notes the considerable time and resources devoted by Government to the review of Community Employment and other active labour market programmes to allow appropriate and timely responses to the changing labour market and changing needs of vulnerable groups.

We are fortunate to have such a competent Minister of State as Deputy Fahey and I welcome him to the House. I am pleased to have this opportunity to speak about community employment schemes. Since our previous discussion on this topic in November, some significant developments have taken place which have gone some way towards allaying fears expressed in both Houses of the Oireachtas and around the country that community employment schemes were to be axed. CE schemes were established to help the long-term unemployed and other disadvantaged groups obtain gainful employment. For a variety of reasons, the schemes have broadened their focus to include the development and resourcing of community services. CE schemes have made a valuable contribution in carrying out both these roles. They are of real social value to those who participate in them, not least older, semi-skilled workers, and many worthwhile, non-commercial community activities depend on them. Even in an era of full employment, there are people who do not wish to work outside of their community. For that reason, there will always be a need to provide this type of scheme to ensure that people work in the community for its benefit. As a result of the upturn in economies here and around the world, some people have argued there is less need for community employment schemes. This view fails to take into account the human and social benefits these schemes deliver. I have seen the wonderful work resulting from these schemes in my community in Tipperary and I am sure all of us can bear witness to the benefit of CE schemes in our local areas.

The Government has recognised the tremendous work those on CE schemes have provided to local communities across the country. Therefore, it has decided, in the context of the 2004 Estimates, that the combined participation levels on community employment schemes, the job initiative, and social economy programmes will be maintained at the 2003 level. No further reductions in numbers are envisaged in 2004.

The total allocation of funding for employment schemes in 2004 has been fixed at €351 million. This will support up to 25,000 places across the three schemes. FÁS will be given some flexibility in the management of this financial allocation in order to maximise progression to the labour market while at the same time facilitating the support of community services. These guarantees allow both FÁS and scheme sponsors at local level to have greater certainty when planning what services should be supported. The commitment to fund a pool of up to 25,000 places amounts to a significant level of activity at a time when some 47,500 work permits have been issued to employers in 2003 in respect of generally low skilled or unskilled personnel from overseas.

It has been suggested that people working in areas such as the health services, child care etc. would lose out on this change. As the Minister has said, all health service related CE projects, including those providing services for people with disabilities, have been ring-fenced against any reductions. Other services ring-fenced against reductions include drug task force activity and child care service provision.

Our economy has a strength it never had before. The maintenance of near full employment in a more difficult environment is a remarkable achievement. Some years ago the conventional wisdom was that long-term unemployment reduction could never be achieved and that the State would have to cater for large numbers of permanently long-term unemployed people. This Government has, over recent years had a fair degree of success in its work to generate jobs for all unemployed people. Nothing provides dignity better than a job. The Government has provided an additional 400,000 jobs since 1997. Long-term unemployment, one of the greatest causes of poverty, is down from over 5% in 1997 to approximately 1.5% today.

I would like to highlight the creation of a new rural employment scheme last month. This scheme focuses on providing help where it is truly needed and will provide secure community related employment opportunities for persons in families eligible for the farm assist scheme. It is designed to provide up to 2,500 places and will tackle the twin problems of low income and lack of services in rural communities. The relative decline in farm incomes has caused hardship to families dependent on that income. However, rural communities possess a wide range of skills and talents which are often under utilised. All current participants of CE schemes who have a herd number will automatically transfer to the rural employment scheme.

The Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, emphasised that the institution of the rural employment scheme will help to free up places on community employment schemes which will then be allocated to new participants in both rural and urban areas. A number of reviews of community employment schemes are ongoing. I look forward to studying their recommendations. I hope these reviews will re-focus community employment schemes so that those most in need will continue to benefit from them. While the three year cap on participation has been amended to allow those who are particularly disadvantaged to remain on the schemes, I hope those carrying out the review process will see fit to examine the merits of letting the majority of participants continue to benefit their communities past the three year cap. I will endeavour to influence Government policy constructively on this matter.