Conor Lenihan
Question:106 Mr. C. Lenihan asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on giving greater definition to the social economy; and when she will bring proposals before the Cabinet. [15101/99]
Written Answers. - Social Economy.
Conor Lenihan
Question:113 Mr. C. Lenihan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will reserve 5,000 places in the community employment scheme for exclusive deployment within the context of the social economy. [15138/99]
I propose to take written Question Nos. 106 and 113 together.
I refer the Deputy in the first place to the report of the P2000 working group on the social economy. The working group concluded that while a considerable level of State and EU funds was already being invested in social economy type activity, there was a case for a dedicated social economy programme which would have as its primary aim the regeneration of disadvantaged communities, and thereby enhance opportunities and the quality of life in such communities. Accordingly, the report, agreed by all the social partners, proposes setting up a dedicated social economy programme, and sets out an operational framework and funding basis for the programme.
The working group recommended that funding for the programme be sourced primarily through reallocation, on a phased basis, of a proportion of funding currently committed to community employment and that the dedicated social economy programme should be managed operationally at national and local level by FAS, in partnership with relevant interest groups. The programme will be run under the aegis of a national co-ordinating committee representative of the social partners and chaired by my Department. It is also intended that FÁS will supply a technical support function for social economy projects.
I intend to bring proposals to give effect to the working groups report to Government shortly.
When fully operational, the dedicated social economy programme will provide for an annual investment of approximately £41 million, composed of a reallocation of resources currently invested in 5,000 Community Employment places – £38 million, a remodelling of FAS Community Enterprise Programme ' £2 million and an additional £1 million, provided for in my Department's Estimates to assist social economy enterprises to develop business plans and to cover start up costs. It is not possible to quantify the number of jobs the programme will give rise to as support provided under the social economy programme is intended to more flexible in form than that available under the community employment programme. There is also likely to be some economic spin-off locally from projects.
While the social economy programme will largely be funded through resources transferred from the community employment programme it will not replace that programme but will operate alongside it. Even with reduced numbers the community employment programme will remain a very substantial programme. I expect the social economy programme to begin to be phased in later this year.