Tony Gregory
Question:67 Mr. Gregory asked the Tánaiste and Minister for Enterprise, Trade and Employment the cutbacks in the social employment programme for 2003. [5070/03]
Written Answers - Social Economy Programme.
Aengus Ó Snodaigh
Question:72 Aengus Ó Snodaigh asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the decision by FÁS to issue a directive on 7 February 2003 that decisions on all social economy schemes in the pipeline be frozen forthwith. [5139/03]
Aengus Ó Snodaigh
Question:73 Aengus Ó Snodaigh asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason for the decision by FÁS to issue a directive on 7 February 2003 to freeze decisions on all social economy schemes; if her attention had been drawn to the fact that such a decision was imminent; when the decision was taken; the criteria used to reach that decision; and when the decision will come into effect. [5140/03]
Aengus Ó Snodaigh
Question:74 Aengus Ó Snodaigh asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will define the social economy scheme; and if the scheme will continue to exist under social inclusion. [5141/03]
Aengus Ó Snodaigh
Question:75 Aengus Ó Snodaigh asked the Tánaiste and Minister for Enterprise, Trade and Employment if there are plans to move social economy schemes away from her Department and into the Department of Community, Rural and Gaeltacht Affairs; and the areas in which they would come under the community development portfolio. [5142/03]
I propose to take Questions Nos. 67 and 72 to 75, inclusive, together.
The social economy programme was introduced in September 2000 to provide start-up capital to social economy enterprises that create permanent sustainable employment for the long-term unemployed people over the age of 35 and other disadvantaged groups. Demand for the scheme has proved considerable. My Department provides FÁS with an annual allocation to fund the scheme. The allocations have increased from €6.62 million in 2001, to €20.55 million in 2002 and stands at more than €30 million in 2003.
Notwithstanding the considerable pressures this year on current Government expenditure, the allocation to the social economy programme was increased by 50%. This increased allocation to FÁS was to enable them meet commitments under the programme. However, as a result of the extraordinary demand for the programme, this substantially increased allocation is not sufficient to meet all the demands from sponsors for new projects. I am assured by FÁS that they will finance all legal commitments made to the enterprises already approved. They are currently reviewing how best to schedule the support already committed to approved projects so as to ensure as equitable a distribution of funds as possible. FÁS also assures me that no written directive was issued by them on 7 February 2003, in regard to the social economy programme. Finally, I have no plans to transfer responsibility for the social economy programme from my Department to any other Department.