Tony Killeen (Clare, Fianna Fail)

I thank Senator Bannon for raising this issue and affording me the opportunity to clarify the situation. Following our recent appointments, the Minister for Enterprise, Trade and Employment, Deputy Martin, and I reviewed current policy on the operation of the FÁS employment schemes, which comprise community employment, jobs initiative and social economy programmes. In undertaking this review, we have taken fully into account the views and concerns expressed to us by various interest groups and other key stakeholders, including the social partners, with whom there have been extensive consultations in recent months.

On foot of this review, the Minister decided that a number of changes would take affect as and from 10 November 2004. There will be no compulsory lay-offs on the jobs initiative scheme and those participants who remain on the scheme will have their contracts renewed. People who leave the scheme voluntarily will be, replaced by community employment participants to support the service being provided. Likewise, there will be no compulsory cessation of social economy programmes, which play a valuable role in communities. In situations where an enterprise decides to cease activity, the employees affected will be assisted by FÁS in finding alternative employment. In addition, the three-year cap will be removed for community employment participants aged over 55. This category of participants will be eligible to participate on community employment schemes for a maximum of six years. In the case of people advancing beyond 55 years during their normal period of service on a community employment scheme, participation can be extended for up to a maximum of six years. The ring-fencing of essential services, particularly health-related services and drugs task force clients, will be maintained.

The community employment schemes will remain as an active labour market programme with the emphasis on progression to employment. Despite the buoyant labour market, the continuing high level of inward migration and low unemployment, I am conscious that there is still a need for these schemes for people who find it difficult to secure employment. In 2005, therefore, there will be 25,000 places in total on community employment schemes, jobs initiative schemes and social economy programmes. These employment schemes have made a major contribution towards the provision of a network of valuable community services throughout the country. Equally, they offer participants the opportunity of work experience in a wide range of disciplines, which equips them in time to progress to full-time employment in the open labour market.

I am happy to announce that funding for the particular community employment project sponsored by Longford County Council and referred to by Senator Bannon has been approved. Contracts have been issued to the council. The project is expected to commence by the end of November 2004 and the recruitment process has already commenced.