Paul McAuliffe (Dublin North West, Fianna Fail)
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78. To ask the Minister for Employment Affairs and Social Protection if the new local employment scheme contract will take account of current providers that experience issues with cash flow; and if she will make a statement on the matter. [48613/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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My Department is now at an advanced stage in its first phase of procuring new employment services. This phase involves the procurement of regional employment services for seven counties in the Midlands and North-West across four lots. These counties do not have an existing local employment service and represent the first phase of an expansion of similar employment services across.

This procurement process follows extensive consultations by my Department with the existing service providers over the last number of years.

The Phase two procurement, which will see the Regional Employment Service model rolled out across the State will take on board the learnings of the first phase. This is a significant expansion of employment services and will result in State-wide coverage of employment services for those furthest from the labour market for the first time.

While it not possible to discuss the specifics of the forthcoming phase 2 request for tender, I can inform the Deputy that the financial model for the Regional Employment Service allows for nearly all fees - approximately ninety percent - to be paid early in the client's engagement.

In addition, there is a facility, already included in the phase 1 procurement, for the provision of upfront monies to successful tenderers in recognition that any provider may have cash flow difficulties at the commencement of a new contract. This facility will be made clearer in the subsequent RFTs under phase 2.