Willie O'Dea (Limerick City, Fianna Fail)
Link to this: Individually | In context

Question 256: To ask the Minister for Social Protection if his attention has been drawn to the forthcoming closure of a company (details supplied) who now have only three weeks of material funding remaining; and if she will make a statement on the matter. [6436/12]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Limerick Community Services Ltd provide a very valuable service in Limerick.

Budget 2012, has resulted in the following changes being made to the Community Employment (CE) scheme: a reduction in the training and materials grants from €1,500 to €500 per participant per annum; the ending of the concurrent entitlement to a CE payment and a social welfare assistance payment for new CE entrants; and the ending of the dual payment of Qualified Child Dependent Increases to CE participants in receipt of certain DSP payments.

In relation to the reduction in the training and materials grant the Department is seeking 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.

I have directed that a review of the financial resources of individual schemes be completed by the end of March. The purpose of the review is to examine the income and funding of sponsoring organisations in terms of their ability to continue to deliver the programme. As part of the review alternative sources of support will be examined, particularly the level of funding from other State Agencies. The review will also seek to establish if income is generated by scheme activity and the potential for utilisation of these funds to cover project costs. The outcome of each review will provide a clear picture of the core funding required for each CE scheme. This will assist the Department in ensuring a fair distribution of the funding available for these schemes.

Assurances have been given to community and voluntary organisations that no CE scheme will be forced to close as a result of the reductions in training and material grants, pending the completion of this review at the end of March. Officials from the Department are engaged in discussions with Limerick Community Services to complete this review.