Written answers

Tuesday, 17 November 2015

Department of Social Protection

Departmental Contracts

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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89. To ask the Tánaiste and Minister for Social Protection how she will ensure that a private-for-profit company, that financially incentivises job placement, will remain free of corruption and fraud; and if she is aware of the fraudulent activities of some companies in the United Kingdom, including some who were awarded JobPath contracts here [40096/15]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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JobPath is a new approach to employment activation that will support people who are long-term unemployed and those most at risk of becoming long-term unemployed to secure and sustain paid employment.

Following the completion of a rigorous public procurement process, two companies were selected to provide the JobPath service - Turas Nua Limited and Seetec Limited.

JobPath was designed having regard to international and Irish experiences of such provision and significant safeguards have been built into JobPath. These include a service guarantee to ensure that all participants receive a baseline level of service as well as penalties for the companies if service performance or service quality does not meet standards. Both companies will be subject to regular on-site inspections and audits to ensure that JobPath is delivered in accordance with contractual obligations. It is also the case that decisions regarding a person’s welfare entitlements while on JobPath will be taken only by Department officials and not by the JobPath companies.

Turas Nua is a new joint venture between FRS recruitment, based in Roscrea, and Working Links, a not for profit UK service provider. It has been acknowledged by Working Links that some members of its staff incorrectly recorded employment and training placement for jobseekers under the 'New Deal', the precursor programme in the UK to the Work Programme. However the Department of Work and Pension (DWP) has publicly stated that the errors occurred in 2008 as a consequence of its heavy reliance on paper-based transactions and that it is satisfied that these cases were investigated thoroughly by Working Links (the amount involved represented less than 0.05% of the payments at the time) and that appropriate actions were taken, with the associated amounts being repaid. DWP has subsequently awarded additional contracts to Working Links.

Seetec was accused of fraudulent activity by former staff members in 2013. This alleged fraud related to claims that Seetec inflated employment outcomes for people with disabilities under the 'Work Choices' programme in the UK. The DWP has publicly refuted these claims and advised the UK’s Public Accounts Committee that it has investigated the claims and found no wrongdoing.

It is important to note, that neither of the above companies has been sanctioned by the DWP for any fraudulent activity.

The potential for inflating figures has been taken into consideration in the design of JobPath. The Department is satisfied that artificial inflation of employment outcomes will be controlled in Ireland though the use of data matching with Revenue Commissioners Commencement of Employment records and the Department’s own welfare payment systems.

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