Written answers

Wednesday, 10 December 2014

Department of Social Protection

Community Employment Schemes Funding

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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19. To ask the Minister for Social Protection her Department's commitment to the future of the community employment schemes; and if she will review a matter (details supplied) regarding community employment supervisors; and if she will make a statement on the matter. [46997/14]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Community employment (CE) is the largest employment programme of the Department. It aims to enhance the employability and mobility of disadvantaged and unemployed persons by providing work experience and training opportunities for them within their communities. In addition, it helps long-term unemployed people to re-enter the active workforce by breaking their experience of unemployment through a return to work routine. CE schemes are typically sponsored by groups wishing to benefit the local community, namely voluntary and community organisations and, to a lesser extent, public bodies involved in not-for-profit activities. Such projects provide a valuable service to local communities while, at the same time, providing training and educational opportunities to job-seekers.

In 2013, the Department provided an additional 2,000 places bringing the number of CE places to 25,300 for 2014. There are approximately 1,000 CE schemes throughout the country at any one time providing services which range from childcare and social care to community support and drug rehabilitation. The budget for 2015 is €357m which is an increase of circa €22m on this year to reflect the full year implementation costs of the additional 2,000 places next year. The Department is fully committed to the future of this programme and will continue to support and improve the programme for the benefit of the participants and the valuable contribution it makes to local communities.

With regard to a CE pension scheme, in July 2008, the Labour Court recommended that an agreed pension scheme should be introduced for CE supervisors and assistant supervisors and that such a scheme should be adequately funded by FÁS, the agency responsible for CE at that time. The Department of Social Protection is now responsible for CE.

Notwithstanding the position of this Department in rejecting that liability for these costs should be met from public funds, this matter has been the subject of discussions with the Department of Public Expenditure and Reform (D/PER) and the unions representing CE supervisors. The D/PER’s position, as outlined to the unions, is that companies contracted by the State to provide a service, including in the community sector, will have to manage their expenditure pressures, including labour and pension costs, from within existing funding levels.

Given the level of funding that would be required from the Department, the implementation of the claim is not considered sustainable in light of the current and on-going fiscal environment and the requirement to contain public expenditure. The costs of the introduction of any scheme are likely to be of the order of €3m per annum.

It should also be noted that this Department is not the employer of CE supervisors and such employees are not public servants but are employees of the sponsoring organisations. The responsibilities of the sponsoring organisations as employers and the individuals concerned as employees must also be considered.

Employers (including CE Sponsoring Organisations) are legally obliged to offer access to at least one Standard Personal Retirement Savings Account (PRSA) under the Pension (Amendment) Act 2002. All CE sponsoring organisations were informed of their responsibilities under this Act at that time.

It should also be noted that CE Supervisors may also qualify for the State Pension at 66 years of age. If they have accrued sufficient PRSI contributions (520 contributions @ full rate, equivalent to 10 years contributions) they will qualify for the State Pension (Contributory), which is not means-tested. In the event that there are insufficient contributions, the person may qualify for the State Pension (Non-Contributory), provided they satisfy the means test.

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