Dara Calleary (Mayo, Fianna Fail)
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118. To ask the Tánaiste and Minister for Social Protection why additional funding has not been awarded to the sponsors of the community services programme to account for the increase in the minimum wage in 2016; if this will negatively impact on the ability of the sponsors to deliver on the programme's objectives; if she will re-examine the issue; and if she will make a statement on the matter. [43757/15]

Dara Calleary (Mayo, Fianna Fail)
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119. To ask the Tánaiste and Minister for Social Protection the number of participants on the community services programme, by county; and if she will make a statement on the matter. [43758/15]

Kevin Humphreys (Dublin South East, Labour)
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I propose to take Questions Nos. 118 and 119 together.

The CSP is designed to address locally identified gaps in the provision of services to communities and to utilise the potential of community assets and resources that are already in place. Funding is provided in the form of a financial contribution for the employment of staff to deliver the service. The CSP became operational in 2006 absorbing a previous programme operated by FÁS including a grant structure linked to the minimum wage. Any such link is historic given that many current contracts have been in place for at least nine years and the wage levels in service providers have increased. The grant structure was remodelled in 2009/10 in response to the financial crisis with the value of the full-time equivalent wage element maintained at €19,033 per annum only. The programme has never provided full funding for wages. The rules of the programme require service providers to pay the local rate for equivalent employment, which is generally well in excess of minimum wage levels. Contracts of up to three years duration are available to service providers that continue to deliver needed services and demonstrate an ability to generate and maintain income from other sources for the services delivered.

The level of grant support available from the CSP contributes no more than a third of aggregate turnover of the community companies in contract. It has been at all time clear that the CSP represents a contribution only to the cost of employment. The service providers undertake to generate additional revenue from the services they deliver to support the adequate remuneration of staff employed and to provide for overhead, operational and future development costs.Pobal is engaged by the Department to provide contract management and financial oversight and compliance services. Currently, the value of CSP contracts is just under €42 million providing a contribution to 2,111.5 full time equivalent positions. The Department estimates that 2,800 people are directly supported in employment by the CSP contribution when part-time work is taken into consideration. An estimated 300-500 additional employees are supported indirectly from income generated from activities and other public resources provided to the companies.

TABLE

CSP CONTRACT VALUES & NUMBER OF EMPLOYEE APPROVED FOR FINANCIAL CONTRIBUTION - 2015