Sixty-three workers and more than 100 volunteers face jobs losses in Inishowen, Co Donegal, with the announcement that eight community enterprises may soon close.
The warning came yesterday from the Inishowen community group, which warned of the affect of the losses on the area already hit by unemployment.
For the past three years FÁS's Social Economy Programme has funded the eight community projects. The projects aim to address the deficits in employment and services in the region by providing three-year grants for the development of social and economic enterprises.
However, in early 2005 the funding for the projects, which include community radio, museums, child care and community resources, may be coming to an end upon evaluation of each programme's success.
A spokesman for FÁS said yesterday the purpose of the program is to provide funding for the projects until they are self sustaining. He said it was not intended to be ongoing.
Members of the eight projects make up the Inishowen Sustainable Community Development Association (ISCDA) which was formed to raise awareness of the region's dilemma.
Spokesman Mr Jim Doherty said yesterday that while they are very grateful to FÁS, they wanted to be sure they can continue to contribute to the community and provide the services they do.
In three years, the eight projects received just less than €1 million in funding from FÁS and more than €2 million from outside sources.
Most of the funding went into the local community and created jobs.
FÁS funds provided work for 45 people within the projects. The remaining 18 jobs came from the outside funding.
Mr Doherty said FÁS is the wrong source of funding for the programme on a continuing basis and called for funding from some other agency, potentially the Department of Community, Rural and Gaeltacht Affairs or the Department of Enterprise, Trade and Employment.
"The funding we've had to date has enabled us to grow. If we can sustain the projects as they are now, the jobs will grow as the economy and the region become more successful," Mr Doherty said.
The ISCDA will hold a conference on the future of the social economy on October 22nd at the Inishowen Gateway Hotel, Buncrana, Co Donegal.