Written answers

Tuesday, 24 January 2012

Department of Social Protection

Community Employment Schemes

9:00 pm

Photo of Michelle MulherinMichelle Mulherin (Mayo, Fine Gael)
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Question 335: To ask the Minister for Social Protection the reason she has implemented cuts to the materials grant for current community employment schemes before the review of schemes has been conducted by her to establish their viability or otherwise; the compensation she proposes for sponsors of current schemes who are now out of pocket, having entered into financial commitments for the running of such schemes on the basis of grant levels in operation on the date of entry into a community employment agreement with FÁS; and the comfort she will provide to sponsors in this dilemma. [3423/12]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Due to the current economic circumstances and the need for the Department of Social Protection to find savings of €475 million in Budget 2012, it was necessary to examine all aspects of Departmental expenditure. Under the Comprehensive Review of Expenditure in 2011 undertaken by my Department in September of last year, the effectiveness and value for money of spending programmes was reviewed, the option to reduce the Training and Materials Grants was included in this review. This has resulted in the changes being made to the Community Employment (CE) scheme, which were announced as part of Budget 2012, including the reduction in the training and materials grants from €1,500 to €500 per participant per annum.

In relation to this reduction, the Department of Social Protection will seek to minimise the effects of these changes on those schemes most affected and will examine the income and expenditure of schemes with reference to their capacity to absorb the changes made to the grant. Eligible financial commitments entered into prior to the budget announcements that have been approved by the local FÁS officer and manager (now with the Department of Social Protection) will be reimbursed.

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