Tommy Broughan (Dublin North East, Labour)
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93. To ask the Minister for Public Expenditure and Reform when it is expected that the pilot project of hiring a certain percentage of long term unemployed persons and apprentices in public projects, which is currently taking place under the devolved schools build programme design and build framework, administered by the National Development Finance Agency on behalf of the Department of Education and Skills, will be rolled out on a national basis. [15781/14]

Brendan Howlin (Wexford, Labour)
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The use of a social clause requiring a contractor to recruit a certain percentage of those employed on a public works construction site from the ranks of the long-term unemployed is being piloted on a limited number of schools projects under the Devolved Schools Build Programme Design and Build Framework, which is being administered by the National Development Finance Agency on behalf of the Department of Education and Skills.  The Government Contracts Committee for Construction (GCCC) last year approved the pilot initiative to be included in the NDFA Devolved Schools Programme. 

A framework of contractors has been set up for the Devolved Schools Programme, which consist of a mix of new builds, extensions and some remedial works to existing schools both at a primary and post primary level.  Three contracts were recently awarded off the Devolved Schools Programme.  The projects will be constructed using the public works contract for Building Works designed by the Contractor.  A clause has been included in the contract which requires that 10% of the person weeks worked on the contract be undertaken by individuals recruited from the ranks of the long-term unemployed.   There is also a requirement for 2.5% of the person weeks on the contract to be undertaken by apprentices. 

It is important to note that such a provision must be managed carefully both to ensure that the requirements set can be met and monitored but also consideration must be given to their impact on a sector that has experienced decline in output since 2008 as it may result in significant displacement of those already in employment.

The contractor's compliance with this clause under the Devolved Schools Programme will be carefully monitored in accordance with the terms set out in the contract.   Once initial evaluations on the performance of the clause have been undertaken any necessary amendments will be tabled at GCCC before they are incorporated into the €1.5bn, PPP element of the €2.25bn Stimulus Programme that I announced in July 2012. 

However it is not intended to include the amendments incorporating these social clauses in the public works contracts generally since there is a substantial risk that doing so would cause considerable displacement of those already in employment.  The Stimulus Programme represents an additional Government spending commitment on top of the €17bn funding contained in the Infrastructure and Capital Investment 2012-2016 published in November 2011.  Those projects funded under the Stimulus Programme that are not PPP projects may apply the amended forms of contract, provided they are of an appropriate scale, but must first seek the sanction of the Government Contracts Committee for Construction to depart from the standard form of public works contract.