Catherine Byrne (Dublin South Central, Fine Gael) | Oireachtas source

I thank the Senator for tabling this Commencement matter. As he correctly pointed out, it is not within my area of responsibility. I have been asked to take it on behalf of my colleague, the Minister of State at the Department of Education and Skills, Deputy John Halligan, who sends his apologies that he cannot be here. I will read the statement I have been given. I have taken note of what the Senator has said which I will relay back to the Minister of State.

The Tipperary hostel project was a community based project set up in 2000 by Tipperary Hostel Limited. Its objective was the transformation of a Famine era workhouse in Tipperary Town into a facility which was expected to operate primarily as a local community based hostel under community and voluntary management. The project was part funded under a FÁS job initiative programme. FÁS provided financial support to assist with the job intervention programme, for example, with participants' wages. Funding was also provided for the project by Pobal. The aim of the job initiative programme was to assist long-term unemployed persons to prepare for work opportunities by providing participants with work experience, training and development opportunities.

In April 2010 the board of Tipperary Hostel Limited informed FÁS that it would be ceasing work on the project on 30 April 2010. This followed on from an internal audit investigation by both Pobal and FÁS. At the time of the closure there were 22 employees participating in the scheme. FÁS arranged alternative employment on community schemes for 22 participants, however only one availed of this offer.

A case on behalf of the employees was taken to the Employment Appeals Tribunal where it was established that the employer of the job initiative programme participants was Tipperary Hostel Limited, not FÁS. FÁS ceased to fund and manage all job initiative schemes in 2011 as this function was transferred to the Department of Social Protection. In October 2013 FÁS was abolished and SOLAS was established. SOLAS has no liability for redundancy payments to the former participants as its predecessor, FÁS, was never their employer as was confirmed at the Employment Appeal Tribunal. SOLAS was not a party to the Labour Court recommendations of March 2016, LCR21162 to LCR21181, inclusive, and LCR21185. The parties involved were Tipperary Hostel Limited and SIPTU. In the recommendations of the Labour Court the finding was against Tipperary Hostel Limited. Tipperary Hostel Limited stated it had no funds as during its operation it had relied on funding from FÁS and POBAL. The Labour Court recommended that the parties, Tipperary Hostel Limited and SIPTU, jointly co-operate in seeking the necessary funds from the funding agency to discharge the amounts recommended. Tipperary Hostel Limited and SIPTU have not at any stage sought funding from SOLAS or the Department.

In relation to the decision on the provision of funding, it should also be noted that there is an outstanding liability due to SOLAS of €159,960 from Tipperary Hostel Limited.SOLAS has continued to pursue this funding from the company. I thank the Senator for giving the Minister an opportunity to outline the position in relation to the Tipperary hostel project.