FINE GAEL has criticised Minister for Enterprise Mary Coughlan over her department’s €9.8 million cut in the €26.5 million allocation for the Skillnets agency which provides funding for training in the workplace.
Opposition spokesman on enterprise Leo Varadkar TD said Ms Coughlan should instead have cut elements of the budget for Fás, the training and employment authority.
“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 €140 million Fás budget for services to business, which mostly involves grants to the social partners, or the €120 million Fás budget for corporate affairs, advertising, jobs fairs, board meetings, etc,” Mr Varadkar said.
A spokesman for the Department of Enterprise, Trade and Employment pointed out that Government funding of Skillnets had actually been increasing in recent years, prior to the economic downturn.
“This level of increased funding is indicative of the Government’s commitment to upskilling persons in employment, with particular emphasis on those with low basic skills, to retain and enhance employability and maintain competitiveness.”
Hinting at a further cutback the spokesman added: “All budgetary allocations are currently under review, in the context of the deteriorating economic and budgetary position, and the measures are to be announced on 7th April in that regard.”
Mr Varadkar cited a letter last week to associated bodies and groups, in which Skillnets chief executive Alan Nuzum said: “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 per cent versus the amount allocated for 2008.
“We have been very recently advised by the Department of Enterprise, Trade Employment that our current funding for the TNP in 2009 will be subject to a further reduction of circa 25 per cent. The reasons given are that there is a need to create additional resources to support the training needs of the unemployed.”
Mr Nuzum continued: “You should also be aware that Skillnets have submitted a proposal to DETE [Department of Enterprise Trade and Employment] on how our networks could play a role in supporting the training needs of the partially and fully unemployed. Any suggestions on this matter would be welcomed.”
Meanwhile, Government sources pointed out that, in his speech to the Fianna Fáil Ardfheis, Taoiseach Brian Cowen announced the establishment of an Enterprise Stabilisation Fund with initial funding of €100 million to be run by Enterprise Ireland.