§ Mr. LoveTo ask the Secretary of State for Trade and Industry what financial targets are to be set for community finance initiatives funded from the Phoenix Fund by the Small Business Service; and if he will make a statement. [156259]
§ Ms HewittCFIs can take a variety of forms, in a legal and operational structure as well as operation of different lending models. Combined with the fact that the CFI sector within the UK is still developing and a number are still in their formative stages, the imposition of operational financial targets as part of the Phoenix Fund support is not deemed to be appropriate at this time. All supported CFIs are being actively encouraged to work towards operational sustainability and this was considered as part of the application assessment process.
The Small Business Service and HM Treasury are currently working with relevant private sector organisations towards formation of a high quality, professional and adequately resourced Trade Association for the community development finance sector. It is 791W envisaged that any Trade Association will, once operational, formulate performance indicators to assist members with comparison of their performance to "best practice" and similar organisations. CFIs supported through the Phoenix Fund will be encouraged to seek membership of any such Trade Association.
The purpose of the CFI elements of the Phoenix Fund is to encourage entrepreneurship within disadvantaged groups and communities, through stimulating the growth and development of the CFI sector in the UK. CFIs supported through this programme are required to provide quarterly reports in a format prescribed by the Small Business Service, in order to monitor the impact on the disadvantaged target group or community of each CFI.
§ Mr. LoveTo ask the Secretary of State for Trade and Industry what criteria are used to evaluate bids from community finance initiatives for Challenge Fund support from the Phoenix Fund; and if he will make a statement. [156258]
§ Ms HewittCFI support from the Phoenix Fund is allocated on a competitive challenge basis. The assessment process has two elements being, (i) review by SBS against key criteria stated in the bidding guidance, (ii) an independent assessment panel to advise the SBS Chief Executive on the final award of Phoenix Fund support. In reviewing the bids the panel was concerned with the soundness of each proposal, its impact on entrepreneurship in areas of disadvantage, impact on the growth of the CFI sector in the UK and development of appropriate models and good practice.
Bidding guidance for the first round of Phoenix Fund support for CFIs was issued in June 2000 and copies are held in the Library of the House.
§ Mr. LoveTo ask the Secretary of State for Trade and Industry what priority is given to community finance initiatives that are national in scope within the Challenge Fund element of the Phoenix Fund; and if he will make a statement. [156260]
§ Ms HewittCFI support from the Phoenix Fund is allocated on a competitive challenge basis. The assessment process had two elements being, (i) review by SBS against key criteria stated in the bidding guidance, (ii) an independent assessment panel to advise the SBS Chief Executive on the final award of Phoenix Fund support. In reviewing the bids the panel was concerned with the soundness of each proposal, its impact on entrepreneurship in areas of disadvantage, impact on the growth of the CFI sector in the UK and development of appropriate models and good practice.
Within the context of this challenge process no preference or priority is given to whether an applicant organisation operates at a national or local level. The PAT 3 recommendation which underlies the CFI support programme was to support CFIs in disadvantaged areas and deprived groups. As part of the assessment against key criteria, consideration is given to whether an applicant 792W organisation demonstrates a clear focus on disadvantaged areas or deprivation and how it compares against other applications which have a clear focus on social exclusion and deprived groups.