Enterprise, Trade & Employment
Commentary

Overview:
The Department of Enterprise, Trade & Employment submitted Estimate proposals within the Government's pre-Budget target. The Committee accepted that additional pressures of some €49m should be provided for. The Committee identified measures which would generate reductions of €74m and which would result in an allocation some €25m below the approved pre-Budget target. In addition, the Committee supported the transfer of €50m from Vote spending to the National Training Fund.

Additional comments:
Community Employment (CE) - The Department proposed a significant reduction of €50m in the CE programme in 2003 which would involve a reduction in the number of CE places from 24,000 to 15,000. The Committee concluded that such a reduction could not be achieved in one year. The Committee has instead proposed a reduction of €25m which will fund in the order of 20,000 CE places at end-year 2003. The Committee understands that this will allow priority to be afforded to services in the areas of childcare, Drugs Task Forces and CLÁR /RAPID regions. It also understands that places available for lone parents and persons with a disability will not be adversely affected.

The Committee supports the closer integration of the Employment Support Services in the Department of Social & Family Affairs with CE as part of a wider policy to maintain the focus of these schemes on labour market intervention principles to the extent possible. One option would be to transfer responsibility for the former schemes and the associated funding to FÁS along with responsibility for a revised CE scheme. The Committee strongly recommends that a strategic review of the various expenditures feeding into the support of the long term unemployed be undertaken as soon as possible.

F1:Science and Technology/F2:Technology Foresight - The Committee recognises that investment in Science & Technology is an important element in Ireland’s efforts in repositioning Irish industry higher up the economic value chain and becoming a knowledge-based economy. The provision for this area in 2002 was €93m while the proposed allocation for 2003 for F1 and F2 combined is €101m. In reaching the 2003 allocation, the Committee has sought to ensure that sufficient resources have been provided to meet contractual commitments maturing in 2003 in respect of grants, and certain SFI costs. Any additional funding for this area would be a matter for consideration in due course (e.g. in the Budget) when it can be put in the context of other demands.

FÁS K1 – Administration and general expenses - The scale of administrative spending by FÁS is significant and the Committee recommends that FÁS should be required to provide an administrative efficiency dividend equivalent to 2% of its administrative spending.

The National Training Fund - The Fund was set up to generate resources for skills training among those in, or seeking, employment and is likely to have generated a surplus of approximately €100m by the end of 2002. The Committee considers it would be more appropriate to use a proportion of this existing surplus in place of voted expenditure to support the level of training envisaged for 2003 and beyond. It recommends, therefore, that consideration be given to using the Fund in this way and that corresponding reductions on voted expenditure be taken as savings. A figure of €50m is suggested for 2003.