Michael McDowell (Dublin South East, Progressive Democrats)

I am grateful to Senator Bannon for raising this matter. I am replying on behalf of the Minister of State, Deputy Fahey, who has responsibility in this area. The Department of Education and Science and Longford Vocational Education Committee provide core funding for St. Mel's training centre in Longford. The project in question is also supported by FÁS under the community employment programme.

Community employment or CE was introduced in response to a sustained period of high levels of long-term unemployment. It is a temporary employment measure whose primary purpose is to provide temporary opportunities for unemployed persons whereby they can develop their skills and obtain a recent track record of work experience with a view to taking up employment in the open labour market. When CE was introduced in 1994 there were over 128,000 people or 9% of the workforce out of work on a long-term basis. This is no longer the case. At the end of 2003, the long-term unemployment rate was 1.4% or 25,900 persons.

At its height, up to 40,000 people were employed in temporary positions on CE. In accordance with the Government's decision in 1999 to restructure the programme, participation levels have gradually been reduced over time to the current level of 20,000 places. This reduction is in line with the reduced levels of unemployment and a strategic shift in policy in favour of training and other more appropriate supports from which there is a greater level of progression to employment. In addition to CE, in the region of 2,300 places have peen provided on the social economy programme and a further 2,200 places are available under the job initiative. The Department of Community, Rural and Gaeltacht Affairs plans to introduce a new rural social scheme during 2004 with up to 2,500 places, which will provide additional support for low income farmers and fishermen in rural communities.

The allocation of CE places to individual projects is a matter for FÁS locally. FÁS is attempting to allocate available places as equitably as possible. Certain services are ring-fenced and places on these projects have been maintained, for example, CE health related services, child care and drugs task force places. Projects in RAPID areas are prioritised. The ring-fencing and prioritisation of certain services has resulted in the level of participation on other projects being reduced at a higher than average rate.

A number of CE projects in Longford and, indeed, countrywide have been required to amalgamate with neighbouring projects due to the reduction in participation levels. The supervisory position is dependent on sufficient numbers of participants being employed on a project and it is not possible to retain every position of supervisor under these circumstances. St. Mel's training centre has already benefited from CE funding for over ten years. While it will not be possible to maintain the same level of funding in 2004, FÁS has indicated that eight participants have been allocated to the centre for the coming year.

The total funding allocation for employment schemes in 2004 has been fixed at €351 million, which will support up to 25,000 places across the three employment schemes — community employment, job initiative and social economy. FÁS is being given some flexibility in the management of this financial allocation to maximise progression to the labour market while at the same time facilitating the support of community services. This allocation of €351 million is similar to the budgeted amount provided in 2003. Accordingly, there will be no further reductions in participation levels this year.

The commitment to fund a continuing pool of up to 25,000 places across the three schemes brings clarity not only to the levels of activity which can be supported but will enable FÁS to give a clear commitment to the support of local community services over an agreed period of time. The future structure of the community employment programme is currently under review by a group of senior officials and FÁS, and this group is expected to report to Ministers on the outcome of its deliberations in the near future. The outcome of this review will inform any future adjustments in the structure and the terms and conditions of participation on community employment.

The Senator referred to the Longford courthouse project. That is going ahead. Some mischievous persons——