Fás dual payments a 'barrier' to labour

EMPLOYMENT:JOB TRAINING body Fás should have its administration budget cut by 10 per cent, funding for some of its programmes abolished and social welfare payments for participants on its employment schemes abolished, according to the expenditure review report.

As part of measures calculated to save the Department of Enterprise, Trade and Employment €238 million a year, the report says staff numbers across the department and its agencies should be cut by almost 600.

Future participants in community employment schemes who receive full payments from Fás should not retain their entitlement to social welfare payments, it says. This change would save €100 million a year, it estimates.

The dual payment practice is “a major barrier to progression to the normal labour market”.

The Jobs Initiative Scheme, which stopped recruiting participants in 2004, should be wound up, saving €10 million.

Funding of Skillnets and Fás Services to Business should cease on the grounds that these services can be provided by employers, the report says, while a 10 per cent “efficiency cut” should be imposed on Fás administration, saving €15 million a year. Advisory body Forfás should have its exchequer allocation cut by 20 per cent.

The report proposes that the Health and Safety Authority and the National Employment Rights Authority be merged into a new Work Place Inspectorate, saving €5 million. It also recommends removal of red tape in State interaction with businesses on industrial relations, workplace safety and employment rights.