Dáil Éireann díospóireacht -
Wednesday, 13 Nov 1996

Vol. 471 No. 5

Written Answers. - Co-operative Enterprises.

Liz O'Donnell

Ceist:

153 Ms O'Donnell asked the Minister for Enterprise and Employment the criteria applicable for grants for co-operative enterprises processed by the co-operative development unit based in FÁS; and if he will make a statement on the matter. [21290/96]

Minister for Enterprise and Employment (Mr. R. Bruton)

I understand from FÁS that the Co-operative Development Council and the Co-operative Development Unit — CDU — aims to assist the creation of a strong, commercially viable, worker co-operative sector. In furtherance of this aim, the CDU provides three broad categories of financial assistance to its clients — assistance towards the preparation of a feasibility study-business plan; assistance towards start-up and working capital; and developmental grants for existing worker co-operatives.

To obtain financial assistance towards the establishment of a worker co-operative, the promoters of the enterprise must first supply sufficient information to the CDU to allow it to make a judgment on the potential commercial viability of the proposed project. Should the project have the potential of commercial viability, in the opinion of the CDU, financial assistance towards the preparation of a feasibility study may be sought. To be eligible for feasibility study funding, the promoters would have to meet the following criteria. The enterprise must consist of at least three persons and where there are only three people involved, the three persons concerned must not be related — in order to preserve the democratic nature of the enterprise — one person one vote; the promoters must have a commercially viable business idea; the promoters must have the balance of the funding needed to complete the feasibility study; and, the promoters must have the necessary skills to run the enterprise.

When the feasibility study indicates that the project is viable, it is submitted to the grant approval committee which is a sub-committee of the co-operative Development Council. This committee decides, on the basis of normal commercial criteria, whether financial assistance is provided, the level of that assistance and it will set out the conditions, standard and special, which will have to be met before the funding may be drawn down.

The amount of the financial assistance available is set out in information literature which may be obtained from the Co-operative Development Unit, 27-33 Upper Baggot Street, Dublin 4, or through any FÁS office.