I propose to take Questions Nos. 10 and 86 together.
As pointed out in the newspaper article referred to, I am aware of the reluctance of some social welfare recipients to take up employment, or even part-time employment, because of the risk of losing their secondary social welfare benefit such as the fuel allowance, butter vouchers, Christmas bonus, medical card and differential rents.
I am determined, however, to maintain the real value of social welfare benefits while still promoting the incentive to work. In this regard, the family income supplement scheme has proved to be a valuable incentive mechanism for families on low pay by encouraging them to continue in employment.
The question of disincentives has also been addressed in the context of the area-based partnerships established under the Programme for Economic and Social Progress. Local companies have been established in 12 pilot areas with a history of high unemployment. There are an estimated 25,000 people who are currently long term unemployed in these areas. The companies are responsible for monitoring and evaluating local initiatives.
Only last week, the Taoiseach announced special measures to improve the position of long term unemployed people in the designated areas. These measures include the payment by my Department, for a period of 12 months, of the allowance equivalent to unemployment payments to a person who is starting a business and whose project has been approved by the local company. The object of this arrangement is to ensure a family income while the new business is getting underway. In addition, the long term unemployed person starting their own business will be able to retain the secondary benefits associated with their social welfare payment for a period of 12 months.
A person who takes up paid employment will also be able to retain their secondary social welfare benefits subject to satisfying an upper income limit which is to be specified by my Department in consultation with the Department of Finance. Furthermore, those participating in recognised education, training and employment or work experience programmes will be able to retain their secondary social welfare benefits for the duration of the programme.
I am confident that, within the context of the area partnerships, these measures will greatly assist in removing what are perceived as strong disincentives to taking up employment. In the longer term, the question of a more coherent and co-ordinated linking of the tax and welfare systems will have to be considered and the issue is now to be looked at by the central review committee of the Programme for Economic and Social Progress.