§ Mr. Craigenasked the Secretary of State for Employment, further to the reply given to the hon. Member for Glasgow, Maryhill, on 25th May 1978, Official Report, Volume 950, column 676, if he will now announce his decision on the proposals submitted by the Manpower 820W Services Commission for the funding of enterprise workshops, including cooperatives, under the special temporary employment programme; and if he will make a statement.
§ Mr. GoldingI have now agreed with the Manpower Services Commission that the arrangements made for assisting small enterprise workshops under the job creation programme should be continued in a revised form under the special tern, porary employment programme. The, funding arrangements agreed are as follows:
1. An enterprise workshop is a STEP scheme which has an income from sales or the provision of services and aims to become fully self-financing by the end of the period of MSC funding, thereby creating permanent employment opportunities but not at the same time putting existing jobs or businesses at risk.
2. The cost of funding enterprise workshops will be met from funds allocated to STEP and will in general be subject to the terms and conditions of funding under that programme. It follows, therefore, that private gain is not permitted during the period of funding and that recruits should be unemployed and aged 19 or over.
The requirement to give preference to the long-term unemployed may in certain circumstances, however, be relaxed with agreement of the MSC area office. Funding will cover the agreed wage costs, subject to the maximum currently laid down by the MSC plus £225 per place for a full year towards the operating costs of the scheme.3. Enterprise workshop applications should be submitted to MSC area offices in the same way as ordinary STEP schemes. Sponsors will, however, be expected to provide details of estimates of income and expenditure, organisation and sales. Guidance about the kind of information needed can be obtained from MSC area offices.
4. Funding of schemes accepted by the MSC as potential enterprise workshops will be in two stages. Initially, funds may be provided for a maximum of one year. During this period the sponsor will be able to develop management expertise, expand markets and carry out job-related training. At any time up to three months before the end of the first period of funding the sponsor may apply to convert the scheme to enterprise workshop status. The actual change-over will have to take place before the end of the first year.
5. At this stage the MSC will examine the progress of the scheme. If satisfied that it has a reasonable prospect of achieving viability, enterprise workshop status will be agreed and a further period of funding, again up to a maximum of one year, may be authorised. Employees essential to the successful continuation of the scheme may be retained beyond the normal 52-week limit of employment on STEP schemes.
821W6. The maximum possible period of funding for any enterprise workshop will be for two years.
§ Mr. Craigenasked the Secretary of State for Employment, further to the reply given to the hon. Member for Bristol, North-East (Mr. Palmer) on 13th December 1977, Official Report, Volume 941, column 186, if he will indicate how many of the 21 co-operative workshops named are still being funded by the Manpower Services Commission; how many of those 21 have ended their period of financing, and how many of those are still in existence; and if he will give the same information as in the original answer
Sponsor MSC Grant (£) Jobs Project Period of Funding Publications Distribution Co-operative 43,991 14 Distribution of periodicals. 5.12.1977 to 1.12.1978 Co-operative Enterprise Board 44,666 15 Furniture repair, renovation. 1.1.1978 to 28.12.1978 Drym Fabricators Ltd. 45,379 12 Steel fabricator. 9.1.1978 to 29.12.1978