Dáil Éireann debate -
Tuesday, 9 Dec 2003

Vol. 576 No. 5

Written Answers. - Social Economy Programme.

Paul Nicholas Gogarty

Question:

96 Mr. Gogarty asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans for the long-term development of the social economy programme; the way in which she proposes to provide for the social economy enterprises that are being set up with regard to their future funding; and whether the employment and support structures that are in place for the schemes match the original business plans for the enterprises. [29960/03]

Denis Naughten

Question:

121 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans for the social economy scheme; and if she will make a statement on the matter. [29643/03]

Olivia Mitchell

Question:

152 Ms O. Mitchell asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the difficulties arising from the failure by FÁS to fulfil its contractual obligations with the directors of social enterprises set up under the social economy schemes; if her attention has further been drawn to the fact that restricted funding results in the accumulation of expensive overheads while the enterprises are unable to provide services in the community due to the lack of funding; and the future envisaged for these schemes. [30025/03]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Fahey):

I propose to take Questions Nos. 96, 121 and 152 together.

The social economy programme aims to support the development of social economy enterprises and, in so doing, create sustainable jobs for the long-term unemployed.

In 2003, €30.836 million was allocated for this programme to FÁS and this is being increased in 2004 to over €40 million. This is part of the overall allocation of €351 million, which is being provided in 2004 to support up to 25,000 places across the three employment schemes, community employment, job initiative, JI, and the social economy programme.

The day-to-day operation of the scheme is a matter for FÁS, which endeavours to work with the relevant groups in a sensitive manner, taking account of the particular needs of individual enterprises. Demands for assistance under the social economy programme, exceed the budget available and in the circumstances it is not possible for FÁS to meet all the requirements of the enterprises concerned.

A review of the social economy programme was recently undertaken by WRC Social and Economic Consultants. The review is currently being considered by the social economy monitoring committee, FÁS and the Department of Enterprise, Trade and Employment. The monitoring committee, which is responsible for overseeing the development and implementation of the social economy programme, is chaired by the Department of Enterprise, Trade and Employment and is comprised of the social partners and relevant Departments and statutory bodies. The review together with the views of the monitoring committee will inform the future direction of the programme. It is expected that the review will be published before the end of the year.