HC Deb 25 January 1989 vol 145 c628W
Mrs. Gorman

To ask the Secretary of State for Employment if he will make a statement on the future of the Co-operative Development Agency.

60 Mr. Cope

The Co-operative Development Agency was set up in 1978, with the aim of promoting co-operative ventures and representing the interests of the co-operative movement. Since that time and with the help of the CDA, many co-operative support agencies have been established, offering advice and assistance to anyone wanting to start or develop a co-operative business.

The CDA was originally set up with a finite ceiling of financial support. Its life was extended under the 1984 Co-operative Development Agency and Industrial Development Act and the financial ceiling increased to £3 million. We estimate that this ceiling will be reached in the 1990–91 financial year.

The CDA has done the job it was asked to do by Parliament and there is now a good national network of local co-operative development agencies. There is also a wider network including the small firms service and local enterprise agencies able to offer business advice to small firms of all kinds; the local training and enterprise councils announced in the White Paper "Employment in the 1990s" will be asked to take account of the needs of all small and developing businesses in their localities including co-operatives.

We are therefore inviting comments from interested bodies on whether the agency is still needed and on our proposal to bring it to an end. We will consider any comments carefully. If, after doing so, we conclude that the agency should be wound up we will do so by order under the affirmative resolution procedure in accordance with the provisions of the 1984 Act.