Fergus O'Dowd (Louth, Fine Gael)
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Question 338: To ask the Minister for Social and Family Affairs the circumstances under which her Department partially fund people to set up in the taxi business; and if she will make a statement on the matter. [45053/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Department provides supports designed to assist and encourage the long term unemployed, lone parents, people with disabilities and other social welfare recipients to return to the active labour force. The back to work allowance is one of the main supports in this area. It provides a monetary incentive designed to make the return to work for people with long term dependency on social welfare payments financially attractive and viable. It is designed to support people who would not otherwise be able to return to the workforce for financial reasons

There are two strands to the scheme under which qualified persons can retain their social welfare payments on a sliding scale. The back to work allowance (BTWA) enables people who take up employment to receive a tapered percentage of their social welfare payment over a three year period; 75% in year 1, 50% in year 2, 25% in year 3. Under the back to work enterprise allowance (BTWEA), persons who become self employed receive a tapered payment over a 4 year period; 100% in year 1, 75% in year 2, 50% in year 3, and 25% in year 4.

A person in receipt of a social welfare payment who decides to set up as a self employed taxi operator would be eligible to apply for the back to work enterprise allowance. In order to qualify, a person must be in receipt of a qualifying social welfare payment for a certain duration. Those taking up self-employment must first have their self-employment project approved. In partnership areas this will be done by the partnership company. In non-partnership areas this will be done by the department's local facilitator. Approval normally involves an interview with the applicant to assess the viability of the proposed project, to provide advice on funding or on "Start Your Own Business" courses and other relevant aspects.

In the context of the back to work enterprise allowance, the department operates a technical assistance and training scheme (TATS) under which a person may qualify for a grant up to a maximum of €1,000 towards certain start-up expenses. This fund is designed to enhance the person's chances of succeeding in becoming independent of the social welfare system. It is a support for persons in need of assistance for training in the areas of starting a business, book-keeping/accounts, preparation of business plans, marketing, literacy and computer training or assistance with the purchase of small items of equipment. It is administered through the department's facilitator network based in social welfare local offices.