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Dáil Éireann díospóireacht -
Wednesday, 26 Jan 2000

Vol. 513 No. 1

Written Answers. - Employment Support Services.

Conor Lenihan

Ceist:

614 Mr. C. Lenihan asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that officers of his Department consider work performed by unemployed persons, in an effort to establish their own businesses, as being bona fide work in view of the fact no remuneration has been received for this work; and the plans, if any, he has to change this. [1756/00]

Conor Lenihan

Ceist:

620 Mr. C. Lenihan asked the Minister for Social, Community and Family Affairs if his attention has been drawn to the fact that casual dockets for those working on a casual basis make no provision for those attempting to establish their own businesses and who may be working and getting no reward; and the plans, if any, he has to change this system. [1842/00]

I propose to take Questions Nos. 614 and 620 together.

Current legislation provides that unemployment benefit is payable only in respect of days of unemployment. It is not payable in respect of any day during which a person is engaged in insurable employment or self-employment, irrespective of the number of hours worked or the amount of remuneration or profit received.

Unemployment benefit claimants who are engaged in self-employment are not required to sign on at their social welfare local office. As entitlement to a weekly payment of unemployment benefit is dependent on the number of days unemployed, a self-employed person claiming unemployment benefit is required to provide this information weekly on a casual signing docket. The amount of earnings is not requested as it is not relevant in determining entitlement to unemployment benefit.

However, unemployment assistance, which is a means-tested payment, is payable to a self-employed person whose weekly income falls below the rate of unemployment assistance appropriate to his or her family circumstances. The rate payable depends on the person's means, which are ascertained by deducting all expenses necessarily incurred from his or her gross income.

I have no plans at present to amend the legislation governing unemployment payments for self-employed people. If the Deputy has a particular case where difficulties have arisen I will be glad to have it examined. I should also mention that my Department's back to work enterprise allowance is specifically designed to support unemployed people who take up self-employment opportunities. The allowance, which is available to those who are at least 23 years of age and signing on for 12 months or more, lasts for a period of four years and is paid at the rate of 100% of the unemployment payment for the first year, 75% for the second year, 50% for the third year and 25% for the final year.

Conor Lenihan

Ceist:

615 Mr. C. Lenihan asked the Minister for Social, Community and Family Affairs if an area allowance is payable to people who are trying to set up their own businesses and are out of work for less than one full year. [1757/00]

Conor Lenihan

Ceist:

621 Mr. C. Lenihan asked the Minister for Social, Community and Family Affairs the plans, if any, he has to reform the social welfare code in order to assist those who wish to set up their own businesses and do not qualify for the area allowance scheme. [1843/00]

I propose to take Questions Nos. 615 and 621 together.

The scheme operated by my Department to assist people in setting up their own businesses is specifically targeted at the long-term unemployed who need additional support in this regard over and above the services available otherwise for this purpose. Both the back to work allowance and the back to work enterprise allowance, formerly known as area allowance enterprise schemes, have been very successful in encouraging over 64,000 long-term unemployed to take up employment and self-employment opportunities. They form an integral part of my Department's employment support services designed to activate the long-term unemployed to leave the live register.

At present 19,100 participants are in self-employment and 18,500 in employment with the support of the scheme. The focus of the schemes must remain on the long-term unemployed, that is, those who have been unemployed for at least 12 months. Demand for the schemes is still buoyant and I am anxious to ensure that the schemes continue to be available to those who need them most to help them break out of the cycle of long-term unemployment.

A report by consultants on the scheme was published in November 1997. A further evaluation of the scheme is being carried out and a draft report by the consultants has been received. I will review the scheme in the light of the consultant's final recommendation.

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