Dáil Éireann díospóireacht -
Wednesday, 22 Nov 2000

Vol. 526 No. 4

Written Answers. - Community Enterprise Programme.

Jim O'Keeffe

Ceist:

157 Mr. J. O'Keeffe asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the difficulties being caused in many rural areas because of her decision to end the community enterprise programme; her views on whether the situations catered for under that programme will not in most instances be covered by the social economy programme; and whether she will give greater flexibility to FÁS to allow such programmes to continue for another year or 18 months where it is clear that they can be brought to fruition during that time. [26420/00]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

The social economy programme, which I launched on 18 September, arises out of the report and recommendations of the Partnership 2000 social economy working group established by the Government.

The report acknowledged the role that the social economy could play in the regeneration of local economies and in improving the quality of life of local communities. The aim under the social economy programme is to build up to an investment of £41 million annually with 2,300 full time equivalent jobs being created in social economy enterprises by 2003.

The £41 million funding for the new social economy programme consists of the redirection of £38 million from the community employment scheme, £1.9 million from the FÁS community enterprise programme and an additional £1 million from the Exchequer. It was the intention of the working group that a new expanded programme to support the social economy would encompass the activities and objectives of the existing community enterprise programme that was aimed at providing enterprise supports to community and voluntary groups.

The social economy programme is particularly targeted at supporting enterprise activity within disadvantaged urban and rural communities, which provides employment opportunities for long-term unemployed over 35 years of age and other disadvantaged persons. Maximising employment opportunities and supporting the regeneration of the local community will be important objectives of the programme.

In relation to the community enterprise programme, all agreed contracts that have been entered into by FÁS are being met in a flexible way. Many business initiatives previously supported under the community enterprise programme in both urban and rural areas, as well as many new local enterprise projects, could be developed by community-voluntary groups as social economy enterprises through funding from the social economy programme. FÁS is actively supporting this process and will monitor its progress. Due to the stated aims and funding to be made available under the social economy programme it is expected that viable social economy enterprises providing sustainable employment opportunities and much needed services in disadvantaged areas will be created. As part of the promotion of the new programme, business plans from community groups, that previously received support under the community enterprise programme, will be encouraged by FÁS. Applications are made through the local FÁS office and are assessed by a local working group comprising the social partners and other local interests.