Lucinda Creighton (Dublin South East, Fine Gael)
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Question 67: To ask the Tánaiste and Minister for Education and Skills the reason approximately only €8.4 million out of €32 million has been drawn down from the labour market activation fund; the number of participants that have benefited from the first tranche of funding; the number of participants who have benefited from the fund; and if she will make a statement on the matter. [41379/10]

Arthur Morgan (Louth, Sinn Fein)
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Question 85: To ask the Tánaiste and Minister for Education and Skills the number of training places that have so far been created under the activation fund; the number of persons who have so far taken up training places under this fund; the kind of training being made available to the unemployed; the areas these training programmes are being concentrated in; if she will provide a list of courses being provided under the scheme; and if she will make a statement on the matter. [36181/10]

Seán Haughey (Dublin North Central, Fianna Fail)
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I propose to take Questions Nos. 85 and 67 together. As part of Budget 2010, the Government announced the creation of a €20 million Labour Market Activation Fund, intended to deliver 3,500 places on training and education programmes for the unemployed. Its objective was to stimulate innovation in the provision of training and activation measures for jobseeker's seeking to up-skill and get back into work. The Fund is being targeted to specific priority groups among the unemployed: the low skilled, and those formerly employed in declining sectors - construction, retail and manufacturing sectors, with particular emphasis on the under 35's and the long-term unemployed. In order to leverage to maximum effect the potential of the market for efficient and value-for-money delivery of full or part-time education and training provision, an open tender competition was launched in March 2010. Some 370 tenders were received from public, private, voluntary and not-for-profit organisations, demonstrating a level of response and quality of proposals that exceeded the most optimistic expectations. Offers of funding were initially made to 26 organisations (Phase 1 projects). On 5th August, an additional allocation of €12 million, was made available by the Department of Education and Skills, enabling funding to be offered to 33 additional projects (Phase 2). This brought total funding to €32 million for 59 projects proposing to provide up to 12,000 education and training places for the unemployed (see Appendix A for list of these courses). Twenty-six projects providing for over 6,500 education and training places, in all geographical regions, benefited from the initial fund of €20 million. In the main, Phase 1 projects are meeting their interim targets. As of mid-October some 3,441 or 52% of Phase 1 places were already filled, with further courses coming on stream between November 2010 and January 2011. On the basis of current information, it appears that the targets for places to be provided as set out in tenders by projects can be largely met. Thirty-three projects providing for some 5,400 places in all geographic regions benefited from the second tranche of funding allocated in August. Many projects are still in the process of recruiting participants, and some have yet to sign contracts with the Department of Education and Skills. It is therefore not possible yet to state the total number of beneficiaries from the Fund. Contractual terms provide for payments to projects in three tranches – 40% on contract signature, 30% six weeks after programme start subject to achievement of interim activity and expenditure targets, and 30% on programme completion subject to achievement of education and training provision contracted for. As of end October 2010, €8.4 million had been paid to projects. It is anticipated that by year's end some €18 million will have been drawn from the Fund. The balance, €14 million, represents the liability to projects for payments that fall due during 2011, subject to them meeting the delivery terms of the contract. APPENDIX A I:\Key Task 4 Labour Market\Activation\Activation Fund\Briefing & Publicity\Appendix A Sum Results LMAF May 2010-pq5nov10.doc