asked the Minister for Labour the progress to date in the integration of the three constituent agencies into FÁS; if he will outline the rationalisation programme that is being implemented by the board of FÁS; and the progress made to date on that programme.

I am satisfied with the progress made in integrating the three former manpower agencies into FÁS since its establishment on 1 January 1988. I should add that even before that date preparatory work had taken place on how the services could be integrated so as to enable FÁS to offer a comprehensive service to its clients from its first day.

In the four months since establishment the senior management structure of FÁS has been put in place. I expect to receive proposals shortly in relation to the numbers and grading of staff at middle management and other levels. In particular I expect to see a redeployment of staff towards priority areas. FÁS are also working towards implementation of a plan to achieve my policy of regionalisation and decentralisation of their services.

I have asked FÁS to review the various employment and training programmes to provide a more integrated service and ensure that FÁS can offer in a flexible manner modular-type programmes which can be tailored to an individual's needs. I am awaiting their proposals in these respects.

FÁS are reviewing all other aspects of their structure and services to ensure that full integration takes place as quickly and smoothly as possible.

Arising from reports that there will be some voluntary redundancies and natural wastage of staff in the next few years resulting from the rationalisation programme, will the Minister assure the House that this will not result in a reduction in the number of courses available? Will he accept that there should be an expansion of the services rather than a contraction of them?

That is the subject of a later question. In my view the rationalisation and integration of the manpower services will result in a more efficient and effective service. Rather than reducing the services we should have a better system.

I should like to put two questions to the Minister. Is he aware of reports of quite a degree of tension within FÁS in seeking to integrate people coming from the different backgrounds? Is he aware that in some sections of the organisation people with an AnCO background are finding it very difficult to adjust to the work practices which were common in the Manpower service and the Youth Employment Agency? Is there any truth in that and, if so, what is being done to address it? I should like to ask the Minister what steps have been taken by him since the establishment of FÁS to place his Department in the driving role as the policy formulator in the manpower area? What steps have his Department taken to ensure that they take the reins from the beginning?

They are separate questions but I am glad to take them. I should like to assure the Deputy, and the House, that the friction or tension is no more than human——

They are natural and I accept that.

A total of 2,400 people from State and semi-State bodies are being brought together and others engaged on a contract basis. Yes, there has been some tension but nothing of any concern. In fact, if there was not tension I would be more concerned.

With regard to the second point raised by the Deputy, I should like to tell him that the policy unit referred to in the Manpower policy document of 1986 is now firmly in place in the Department of Labour. The Department have recruited the necessary expert staff to build up that policy unit. In future policy on all matters relating to FÁS will be formulated in the Department in conjunction with FÁS. I am not anxious for the Department to devise policies and schemes without working with those involved in the front line. The scheme is working and a number of initiatives have already been announced.