I propose to take Questions Nos. 15, 17 and 43 together.
The Government earlier this year approved the introduction of four pilot schemes in each of the 12 partnership areas introduced under the Programme for Economic and Social Progress. These schemes offer financial assistance and benefits to persons who have been unemployed for 12 months and who start their own businesses, enter paid employment, education or training courses, or partake in a community employment development programme.
The purpose of the schemes is to remove, in a very direct way what is seen to be a strong disincentive, namely benefits attaching to the welfare system which are removed when a person gets a job. The arrangement to be piloted in the area-partnerships will show the extent to which this is a real barrier, for the long term unemployed.
Persons who start their own businesses will be paid an allowance equivalent to their unemployment assistance or benefit for a period of 12 months. They will also retain the secondary benefits applicable to such assistance or benefit from the Departments of Health, Social Welfare or local authorities.
The schemes relating to paid and self employed are in operation since 1 July. The community employment development programme is in operation from 1 October and the scheme for training and education will be finalised shortly.
It is estimated that the uptake of the schemes may be: 500 persons in paid employment; 300 persons in self employment; 1,000 persons in education/ training; 3,000 persons in CEDP.
The schemes are being administered by the relevant Government Departments and local authorities in liaison with Area Partnership Companies.
The numbers who have availed of the schemes to date are small given the recent start up dates. Reports of the uptake will be provided by the Area Partnership Companies on a quarterly basis and I will have these laid before this House for information.
I believe that it is important to recognise that a more coherent and equitable linking of our welfare and tax systems will be necessary to allow the approach of the schemes I have outlined to be replicated country-wide at an acceptable cost.
At the practical level, I have asked the Central Review Committee of the Programme for Economic and Social Progress— acting in close consultation with other relevant public bodies — to bring forward for consideration by Government specific recommended policy measures for the equitable linking of the tax and welfare systems. The Central Review Committee will be reporting to me, and through me to Government, on my request to them in this area as part of the review of the Programme for Economic and Social Progress at the end of this month.