Dáil Éireann debate -
Tuesday, 20 Feb 1990

Vol. 395 No. 9

Written Answers. - Enterprise Allowance Scheme.

Gerry O'Sullivan

Question:

64 Mr. G. O'Sullivan asked the Minister for Labour the total number of jobs created under the Enterprise Allowance Scheme since its inception; the number of such jobs estimated to have been sustained over a long term; his views on whether the scheme has served a useful purpose; and if he will make a statement on the matter.

Minister for Labour (Mr. B. Ahern)

The number of new businesses started since the inception of the enterprise scheme in December 1983 up to the end of 1989 was 23,000 approx.

An ESRI report published in October, 1988, estimated that some 60 per cent of enterprises are still in existence after two years. It was found that business survival under this scheme was most likely where the participant was aged 25-44 and had previous relevant experience and training.

I am satisfied that the enterprise scheme serves a useful purpose and has contributed to increases in employment and reductions in unemployment at an acceptable cost to the State.

It is my policy to keep the operation of all employment schemes under review with a view to making improvements where necessary. For example, last September, I announced that the allowance payable under the scheme would be increased and paid over a shorter period of time in order to provide greater support at the start-up phase of the enterprise. I also indicated that £100,000 was being allocated to FÁS for the provision of expert advice and guidance to scheme participants where such advice was not readily available in FÁS.