Dáil Éireann debate -
Thursday, 4 Mar 1999

Vol. 501 No. 5

Written Answers. - Employment Support Services.

Jan O'Sullivan

Question:

48 Ms O'Sullivan asked the Minister for Social, Community and Family Affairs if he will introduce an income support measure along the lines of family income supplement or the new farm assist for entrepreneurs coming off the back-to-work allowance. [6441/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The back-to-work allowance was introduced in September 1993 as an integral part of my Department's employment support services designed to encourage long-term unemployed people to return to the active labour force.

The scheme provides a weekly allowance of 75 per cent of the normal weekly unemployment payment for the first year, 50 per cent for the second year and 25 per cent for the third year and is available to those going into paid employment as well as self-employment. In addition, participants retain entitlement to certain secondary benefits subject to a household weekly income limit of £250.

Furthermore, the extension of the area enterprise allowance to non-partnership areas, introduced in 1998, effectively provides for a four-year cycle of support to those starting a business, with a weekly allowance of 100 per cent of the normal weekly unemployment payment available in the first year.

It is important to recognise also that, as well as the weekly allowance provided under the scheme, a range of additional supports are also available to participants on the scheme, and notably to those engaged in self-employment.

For instance, an allocation of £1.2 million has been provided for the training and technical assistance fund this year which will be used to provide supports to self-employed scheme participants in such areas as book-keeping and marketing and to help finance the purchase of items of essential equipment

Arrangements have also been put in place, in co-operation with the first step organisation, to provide access to interest free loans coupled with ongoing advice from qualified investors. Separate arrangements have been made with the credit unions to guarantee loans to scheme participants.

My Department is in the process of commissioning independent analysis of a number of aspects of the back-to-work allowance scheme, including in particular, the sustainability of the self-employment enterprises created under the scheme. The question of providing for a special income support measure along the lines suggested by the Deputy will be assessed in the light of the outcome of this analysis. This assessment would also have to take account of the position of those engaged in self-employment generally.