John Brady (Wicklow, Sinn Fein)
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568. To ask the Minister for Social Protection the impact that the privatisation of JobPath has had on the local employment services in view of the possible anti-competition implications resulting from such private contracts with Turas Nua and Seetec; and if he will make a statement on the matter. [41584/16]

Leo Varadkar (Dublin West, Fine Gael)
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My Department delivers the State’s employment activation service directly through the Intreo service and under contract arrangements with companies providing JobPath and Local Employment Services.

Arising from the large increase in unemployment during the recession the Department of Social Protection required additional capacity to meaningfully engage with all those who are unemployed – in particular the long-term unemployed (who need more intensive levels of engagement). Following a review of best practice in other countries and taking account of advice and recommendations from a number of expert groups and bodies (including the OECD, NESC and CESI) and a consultation process within Ireland it was decided to develop the JobPath service to increase capacity under a ‘payment by results’ contract model. This model was ‘adopted’ by the Troika and made a requirement under the Memorandum of Understanding with the EU, IMF and ECB.

Following a public procurement competition, which was open to all providers, including local employment services providers, contracts were signed on 5 June 2015 with two companies to deliver the JobPath service. The two companies, Turas Nua Ltd and Seetec Business Technology Company Ltd, provide additional employment services which augment – not replace – the Department’s own employment services. It is important to note that it is not the intention to displace existing resources or to create competition between those companies already delivering local employment services and companies delivering the new service.

As in 2016, for 2017 the Department has contracted for the provision of LES in 26 locations with 22 different contractors via a network of offices and outreach clinics. The LES will continue to support Jobseekers in parallel with the Department’s own services and JobPath.

In addition to increasing the Department’s capacity to provide services to more jobseekers, the impact of JobPath has been to enable the Local Employment Service (LES) to increase the frequency with which they engage with jobseekers and thereby enhance the quality of the services they provide.

I hope this clarifies the matter for the Deputy.