Dáil Éireann díospóireacht -
Wednesday, 31 Mar 1993

Vol. 428 No. 6

Written Answers. - Unemployment Reduction Measures.

Austin Deasy

Ceist:

50 Mr. Deasy asked the Minister for Enterprise and Employment the special incentives, if any, which are available in the pilot areas classified as disadvantaged in terms of employment; and if he has satisfied himself that the scheme has been successful.

Minister for Enterprise and Employment (Mr. Quinn)

The Taoiseach announced new measures on 30 April 1992 aimed at reducing long term unemployment in the 12 areas established under the area based strategy of the Programme for Economic and Social Progress. These measures focus on eliminating the disincentive caused by the removal of secondary benefits, such as Christmas bonus, fuel allowance, etc., for persons who are long term unemployed and who sign off the live register to take up either paid employment and/or training and development schemes.

The measures include the Community Employment Development Programme, CEDP, and the area based enterprise allowance. The CEDP was introduced on 1 October 1992. It is an enhanced employment programme for the long term unemployed similar to the social employment scheme but involves the retention of existing secondary social welfare payments by participants, improved training and development opportunities, exemption from PAYE, and, for voluntary sponsors, exemption from the employer's contribution of PRSI. The area based enterprise allowance involves the payment for a period of 12 months to a person who is starting a business of an allowance equivalent to the social welfare payments the person would have been entitled to while on the live register. The person will also retain the secondary benefits associated with the payment. The approval of the proposed enterprise project by the local area based partnership company is necessary before payment is allowed.

At present 2,200 people are engaged in the CEDP, and 240 people are in receipt of the area enterprise allowance. These measures are being implemented in the 12 partnership areas on a pilot basis, and are subject to an evaluation to assess their effectiveness in assisting persons who are long term unemployed.

I attach particular importance to evaluating the impact of this scheme on long term unemployment. A comprehensive evaluation of the area based response to long term unemployment was commissioned by the Central Review Committee of theProgramme for Economic and Social Progress. An interim report covering the period June, 1991 to December, 1992 has been completed and is being examined by my Department.