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Dáil Éireann díospóireacht -
Thursday, 9 Jul 1992

Vol. 422 No. 5

Written Answers. - FÁS Scheme Participants.

Austin Deasy

Ceist:

175 Mr. Deasy asked the Minister for Labour if he will give details of (1) the number of participants in the FAS self employment scheme for each year in the past five years and (2) the number of participants who have remained in business to date; if he will re-examine the restrictions of the necessity to be long term unemployed and signing on for 13 weeks and the discontinuance of the payment after 40 weeks; and if he will make a statement on the matter.

I take it that the Deputy is referring to the FÁS Enterprise Scheme. The numbers participating in the scheme each year in the past five years were as follows: 1991, 1,592; 1990, 2,534; 1989, 2,523; 1988, 2,467; 1987, 4,539.

Details are not available on the number of participants who have remained in business. However, a study carried out by the Economic and Social Research Institute in 1988 found that some 55 per cent of businesses set up under the enterprise scheme were still in business after two years.
The scheme is not aimed at the long term unemployed. It is designed specifically to encourage unemployed persons on the live register for at least 13 weeks and in receipt of unemployment compensation to set up their own enterprises. Expenditure on the scheme through the Department of Labour is offset by savings in expenditure through the Department of Social Welfare. I have no plans to amend the elegibility conditions for the scheme.
The 40 week enterprise payment is an income support measure which is part of a range of supports available through FÁS to unemployed persons wishing to set up their own businesses. These supports include a ten week business appraisal training course prior to participation in the enterprise scheme during which participants are paid FÁS training allowances.
The Deputy will be aware of the area-based response to long term unemployment included in theProgramme for Economic and Social Progress. The Taoiseach recently approved a package of measures aimed at eliminating the difficulties faced by persons who are long term unemployed when the possibility of taking up either paid employment and/or training and development schemes present themselves. These measures which will operate solely in the 12 areas established under the Programme for Economic and Social Progress strategy include allowing long term unemployed people interested in setting up their own businesses to be paid an allowance equivalent to their unemployment payments for 12 months. They can then enter the enterprise scheme.
The area-based strategy will be reviewed and may be extended nationwide.
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