€10m training agency cut ‘disastrous’

MOVES by Tánaiste Mary Coughlan to slash e10 million from a retraining scheme were branded disastrous by opposition parties last night.

The Skillnets agency, which funds training in the workplace, has seen its budget cut a third to e16.7m.

Fine Gael enterprise spokesman, Leo Varadkar, claimed the employment minister went for an easy target rather than tackle scandal-hit Fás.

“It is a major retrograde step to cut back funding for Skillnets. The minister is going for the easy target in Skillnets because she does not have the courage to take on the powerful vested interests in Fás.

“She could cut the e140m Fás budget for services to business, which mostly involves grants to the social partners, or the e120m Fás budget for corporate affairs, advertising, jobs fairs, board meetings, et cetera. As an alternative to cuts, Skillnets has expressed a willingness to include the newly unemployed and people working two or three days on their programmes. This is a really good idea.

“The current system separates the unemployed in Fás courses and training centres. Involvement in Skillnets’ programme would be of huge benefit to the newly unemployed by keeping them involved in the world of work and integrating them with people still in employment,” Mr Varadkar said.

Fine Gael backed up its argument with a letter, to related groups, in which Skillnets chief executive, Alan Nuzum, stated: “I am writing to inform you of some serious developments in relation to the funding levels available to the Training Networks Programme (TNP) for 2009.

“As previously outlined in late 2008, our funding level for 2009 was reduced by circa 16% versus the amount allocated for 2008.

“We have been very recently advised by the Department of Enterprise, Trade and Employment that our current funding for the TNP in 2009 will be subject to a further reduction of circa 25%.

“The reasons given are that there is a need to create additional resources to support the training needs of the unemployed.”

Skillnets allocations are among those being reviewed again ahead of the emergency budget next month.

However, Taoiseach Brian Cowen last month announced a new Enterprise Stabilisation Fund worth e100m. There are about 100 Skillnets companies across the country.

Labour also expressed concern about the cut in funding, insisting available money should be directed at keeping as many people as possible in work as each lost job cost the state e20,000 a year in benefit costs and lost taxes.