Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 115: To ask the Minister for Finance the progress made to date with regard to the plan announced in Budget 2006 for the establishment of a €100 million fund for social finance; and if he will make a statement on the matter. [19287/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

As I set out in my reply to Question No. 60 on 30 March 2006, the aim of the initiative is to give an impetus to the development of, and make a real contribution to expanding, Social Finance provision in Ireland. The Social Finance initiative will, therefore, complement the wide range of measures that are currently in place to promote and assist community infrastructure and local development, including the development of micro-enterprises.

A practical model for social finance funding is currently being developed. The intention is to keep the administrative structures as light as possible, consistent with meeting the objectives of the initiative, and ensuring that the funds are used effectively on a value-for-money basis. With a view to developing an effective model my Department has, to date, consulted with a number of public, private and voluntary bodies currently involved or with interests in this area, in addition to its discussions with the banking community.

A key priority is early implementation of the initiative. This will provide the opportunity to market test particular options, which can in turn inform the further development of the social finance initiative. To this end my Department, in consultation with the Office of the Attorney General, is developing proposals for Government on the appropriate legal framework which would clarify the objectives, roles and functions of the investment vehicle, establish the type of delivery structure judged most suitable to the requirements of social finance, and also deal with such matters as governance and accountability arrangements.

As far as the potential sources of funding for social finance provision are concerned, there has been a positive reaction from the banking community to my invitation to support the initiative. However, as I set out in reply to Question No. 53 on 28 February 2006, the sum of €100 million referred to by the Deputy is not accurate. The banks have committed to contribute seed capital funding of €25 million to the initiative.