Finian McGrath (Dublin North Central, Independent)
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Question 73: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will give an update on strategies to deal with the high unemployment rate of between 12%-14% in some parts of the State; and to outline any plans to deal with social exclusion. [8888/04]

Frank Fahey (Galway West, Fianna Fail)
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The quarterly national household survey released by the CSO in December 2003 shows that 86,500 persons or 4.6% of the workforce were unemployed. The long-term unemployment rate was 1.4%. Employment growth continued in the third quarter of the year to bring the total number of persons in employment to 1.82 million. In view of the slowdown in global economic growth over the last two to three years, this performance demonstrates retention of a significant job creation capacity in the Irish economy.

With regard to IDA-assisted companies only, there was a net reduction in employment of just over 3,000 in 2003. The work of IDA in attracting FDI and encouraging new rounds of investment from within the existing population of overseas firms in Ireland is just one part of the complex set of activities that Ireland must undertake to underpin the job creation capacity of the economy in a way that will help ensure that in the round, job gains will exceed job losses. The national development plan, national spatial strategy, regulatory and competition policy, indigenous industry and relevant implementing bodies and agencies also play a key role in this process.

Enterprise Ireland has primary responsibility for indigenous manufacturing and internationally traded services companies employing more than ten people, as well as for inward investment in the food and natural resources sector. Through its network of eight regional offices, Enterprise Ireland aims to ensure that both start-up opportunities and the expansion of existing firms can be achieved with maximum benefit to the regions and their communities. Funding packages for entrepreneurs and business projects in the BMW regions include additional financial supports and incentives to further encourage growth outside of the greater Dublin area.

Enterprise Ireland also works with companies to assist them in improving competitiveness. One such example is Enterprise Ireland's competitiveness fund 2003, which is designed to help small and medium enterprises overcome distinctive competitiveness difficulties. The fund is now closed, with 97 applications, to the value of €11,904,636, having being approved. Under its community enterprise centre programme, Enterprise Ireland supports communities in the provision of local business infrastructure to foster the setting up of new businesses which have the potential to grow. A total of €26 million has been committed to support local communities in providing their own enterprise space over the past four years. In the previous 15 months, capital grants from Enterprise Ireland were approved for 35 communities throughout the country.

FÁS undertakes a range of activities that address the needs of socially excluded groups and long-term unemployed people. Such categories of people participate in the full range of FÁS training and employment programmes and avail of their guidance and advisory services. In addition to availing of mainstream services, FÁS has specific targeted approaches to this category of client.

The national employment action plan, NEAP, adopted by the Government as its response to the European employment guidelines, includes a commitment to a more systematic engagement of employment services with the unemployed. The core orientation of the employability pillar in the EU guideline, which is based on a preventative strategy, is focused on early and systematic intervention with unemployed people, re-integrating them into the labour market as quickly as possible, inter alia, by providing them with the necessary skills to improve their employability. The aim of the action plan is to reduce unemployment and prevent the drift into long-term unemployment by assisting unemployed people to return to employment by actively engaging with them at an early stage. Under the NEAP the Department of Social and Family Affairs refers all persons reaching certain thresholds of unemployment for interview by FÁS. The referral threshold for those aged 25-54 was reduced from nine months to six months in March 2003.

The NEAP is now being rolled out on a phased basis to all persons who are more than six months on the live register and have not been selected for inclusion in the process previously. The process commenced in Dublin in May 2003, followed by the west, the north-west and the midlands in October 2003, with the remaining two regions — south-east and north-east — commencing by the end of 2003. In Dublin some 9,000 persons should benefit from this process over the next 18 months, with an additional 27,000 persons approximately benefiting in the remaining regions.

The Pathways programme was designed by FÁS as a response to the needs of long-term unemployed people to assist them to identify the most appropriate development pathway for them in order to obtain and maintain employment. The programme is of two weeks' full-time duration and is intended to be a highly positive and motivating experience. Participants are allowed to retain social welfare benefits while participating. Each participant finishes the programme with a career path action plan and an appointment with an employment services officer. The first Pathways pilot programme took place in Sligo in July 2003 and it has also been piloted in four locations in Dublin. More than 220 clients attended pilot programmes in 2003. Pathways is being further developed and rolled out during this year.

In January 2003 FÁS introduced a new high supports process, HSP, for job-seekers who are suffering personal barriers to employment. A budget of €1.2 million was assigned for the piloting of the HSP in seven regions. Under the programme, supports are provided for participants identified for inclusion including long-term participants on the job initiative programme as well as job seekers referred to FÁS under the NEAP. Service providers such as the Department of Social and Family Affairs, the Department of Health and Children, the Department of Education and Science, LES, and other organisations as appropriate, participate in and drive flexible local networks of relevant service providers to deliver progression routes to clients under the HSP.

The HSP has been continued in 2004 and will operate as in 2003, with the exception that the process has been extended to cover all regions and not just those identified in the pilot in 2003, thereby extending the process to a greater number of clients. A budget of approximately €1.3 million has been allocated. It is projected that 320 "non-progression-ready" clients and 230 job initiative participants will engage in the HSP in 2004.

The RAPID programme is aimed at targeting Government expenditures on disadvantaged areas in a co-ordinated way. The FÁS contribution to the RAPID programme has been delivered mainly through the prioritisation of existing FÁS programmes. Support provided by FÁS has been through FÁS community services — where the community employment programme is the major element and where RAPID areas continue to be prioritised — FÁS employment services, the local employment service and FÁS training services. As the Tánaiste has previously stated, "Projects and/or places in disadvantaged areas which come under the RAPID initiative are given priority over places outside these areas, subject to budgetary and quality considerations."