Opposition parties have accused the Government of misleading the public about its plans to cut Community Employment (CE) scheme places.
Documents obtained under the Freedom of Information Act by The Irish Times, today show the Minister for Enterprise, Trade and Employment, Tánaiste Ms Harney, was last year ready to accept a Department of Finance proposal to reduce numbers on the scheme by nearly half by the end of this year.
During last year's general election Ms Harney came under pressure over the issue. Following talks and strongly worded warnings from FÁS - which runs the scheme giving work experience and training to the long-term unemployed - it was decided 6,000 places would be axed in 2003.
But official Department of Enterprise, Trade and Employment documents show Ms Harney was ready to reduce the numbers from 28,000 in 2002 to 14,840 by the end of this year.
The files show the Department of Finance initially sought savings worth €62 million but later sought a further €21 million cut in the cost of the programme. "The Tánaiste agreed to this cut," the file says.
Sinn Féin TD Mr Seán Crowe today said it was "no surprise that Mary Harney had tried to wield the axe on 13,000 Community Employment places" because the Government had "proven time and again that their interest in the unemployed is non-existent".
Labour Party leader Mr Pat Rabbitte said there is evidence the Taoiseach had "seriously misled the Dáil" last November when he said he did not believe that a figure of 13,000 or 15,500 was under discussion.
"We now know that not only were cuts of this scale under discussion, but that the Tánaiste had earlier agreed to cuts in funding that would have brought the numbers on CE down to less than 15,000 by the end of 2003," Mr Rabbitte said.
He also described as "deceitful nonsense" the claim by the Tánaiste that the cuts were proposed as a result of a FÁS review.
Mr Crowe warned that today's revelation will increase concerns the Government is intent on eliminating the scheme and called on the Government to clarify its position.