Tuesday, 23 July 2019

Questions (2635)

Dara Calleary

Question:

2635. Deputy Dara Calleary asked the Minister for Rural and Community Development if it is permissible for a CSP company to use profits of one activity within the organisation to subsidise another activity that provides a vital community service; if not, his views on whether this is in keeping with the spirit of the CSP in cases in which as a consequence the vital community service has to be curtailed; and if he will make a statement on the matter. [33664/19]

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Written answers (Question to Rural)

The Community Services Programme (CSP) supports more than 400 community organisations to provide local services through a social enterprise model. Funding is provided as a fixed annual contribution to the cost of a manager and an agreed number of full-time equivalent positions, with more than €46m available under the programme in 2019.

CSP supported organisations are generally required to generate income from their activities, for example, from the public use of their facilities and services. While they must maintain a minimum reserve of 13 weeks operating costs, and meet minimum wage obligations for CSP supported posts, they may reinvest any surplus income generated from their activities to support the organisation's mission and objectives.

This may involve using profits from one activity to subsidise another. Moreover, organisations may reinvest profits in non-CSP activity, as long as such activity doesn't contribute to commercial displacement of another local business. Generally, the use of surplus generated income is, first and foremost, a matter for the management and board of each organisation.