§ Mr. Stuart Hollandasked the Secretary of State for Employment whether, and on what grounds, he considers that Elephant Jobs Ltd. has put at risk permanent jobs in the local community or the London area.
§ Mr. AlisonPart of the activities of Elephant Jobs Ltd., for which funding is at present received from the Manpower Services Commission under the community enterprise programme, involves the production of goods for sale. Any private sector competitor in the same market would have to fund all his costs from the receipts arising from the sale of the goods. Since the wage costs incurred by Elephant Jobs Ltd. in the production of these goods as well as a contribution towards operating costs are currently paid for by the Manpower Services Commission, Elephant Jobs Ltd. is at a distinct advantage, which could put existing jobs at risk or prevent the creation of potential new jobs.
§ Mr. Stuart Hollandasked the Secretary of State for Employment on what grounds he bases his proposal to close the activities undertaken by Elephant Jobs Ltd.; and whether there has been any change in community enterprise programme guidelines relevant to this firm.
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§ Mr. AlisonElephant Jobs Ltd. has secured the approval of the Manpower Services Commission to fund 150 places in various activities under both the community enterprise programme and the youth opportunities programme. Of these 150 places, about 40 are involved in activities which do not fall squarely within the guidelines for the community enterprise programme. Since there is now no shortage of sponsors in the London area who are applying for places under the community enterprise programme, the Manpower Services Commission feels it is no longer justified in funding places with Elephant Jobs Ltd. which do not fall squarely within the existing criteria. Moreover, the Manpower Services Commission is not satisfied that Elephant Jobs Ltd. has followed all the necessary procedures designed to safeguard public money. Until it is so satisfied, there can be no question of any funding for any of the places approved for Elephant Jobs Ltd., after the present agreement expires.
§ Mr. Stuart Hollandasked the Secretary of State for Employment whether he is satisfied that Elephant Jobs Ltd. will be able to remain operational if community enterprise programme funding is withdrawn.
§ Mr. AlisonThat is a matter which Elephant Jobs Ltd. alone can decide.
§ Mr. Stuart Hollandasked the Secretary of State for Employment what estimate he has made of the number of persons who may be made redundant as a result of the withdrawal of community enterprise programme funding from Elephant Jobs Ltd.; and what is his estimate of the net cost to the Exchequer of. (a) their employment with community enterprise programme funding and (b) their unemployment.
§ Mr. AlisonThere are currently 150 places under both the community enterprise programme and the youth opportunities programme approved with Elephant Jobs Ltd. Of these, 111 are temporary jobs funded under the community enterprise programme. There are currently more than enough sponsors prepared to put forward projects, in the London region, for funding under the community enterprise programme. Any reduction in the number of jobs provided by Elephant Jobs Ltd. will therefore be fully compensated by an increase in the number of jobs provided elsewhere in the London region. A decision by MSC not to renew funding in the case of some community enterprise programme places sponsored by Elephant Jobs therefore would have virtually no effect on net costs to the Exchequer.
§ Mr. Stuart Hollandasked the Secretary of State for Employment, in view of the fact that Elephant Jobs Ltd. may be refused re-funding for projects which previously received community enterprise programme funds, if he is satisfied that the rules for granting such funding have been fairly applied to this firm.
§ Mr. AlisonYes.