Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 304: To ask the Minister for Social and Family Affairs the details of grants, loans or other financial assistance available to unemployed persons to purchase a taxi licence or to prepare a car for use as a taxi. [32551/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
Link to this: Individually | In context

The Department of Social and Family Affairs provides supports designed to assist and encourage unemployed people, lone parents, people with disabilities and other social welfare recipients to return to the active labour force. It operates a number of schemes designed to assist unemployed people who wish to take up self employment. The short term enterprise allowance (STEA), introduced from 1 May 2009, provides immediate access to support where people who have lost their jobs and qualify for Jobseeker's Benefit wish to set up a business. Payment under the scheme is at the same rate and for the same duration as their entitlement to Jobseeker's Benefit.

The back to work enterprise allowance (BTWEA) is designed to provide a monetary incentive for people who are longer term dependant on social welfare payments to develop a business while allowing them to retain a reducing proportion of their qualifying social welfare payment, plus secondary benefits, over two years; 100% in year 1 and 75% in year 2. The qualifying period required for access to back to work enterprise allowance (BTWEA) is 12 months provided a person has an underlying entitlement to Jobseeker's Allowance. A person in receipt of a social welfare payment who decides to set up as a self- employed taxi operator may be eligible to apply for the STEA or the BTWEA back to work enterprise allowance. However, one of the important steps under both schemes is that those taking up self-employment must first have their business venture approved as viable and sustainable.

In the context of the STEA and BTWEA schemes, the department operates a technical assistance and training scheme (TATS) under which a participant may qualify for a grant up to a maximum of €1,000 towards certain business start-up expenses. This fund is designed to enhance the person's prospect s of succeeding in becoming independent of the social welfare system through support 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. Facilitator are aware of the difficulties in the taxi industry and are not providing assistance under the technical assistance and training scheme to new taxi businesses.