Minister unveils social economy proposals

Enterprise Minister, Ian Pearson took his commitment to the social economy sector a step further today, when he unveiled proposals for a new legal framework for Community Interest Companies (CICs).

Mr Pearson said the proposals aimed to create as wide and flexible a menu of options as possible for those seeking to run businesses for the benefit of the community, or for the wider public good.

He added: “I am very pleased to note the increasing numbers of people and organisations wishing to do business for the ultimate benefit of the community. These businesses make an important contribution to the Northern Ireland economy and it is essential they have an appropriate framework in which to grow."

The Minister confirmed that a new Regulator would be the guarantor that public or community interest was being pursued and that profits and assets are being used to that end.

The Minister continued: "The Community Interest Company is a new option being proposed within the company law framework. In the near future, initial ideas for extending the options within other legal frameworks relating to Credit Unions and Industrial and Provident Societies will also be published.”

Social economy enterprises can be found across Northern Ireland and include a variety of legal forms such as credit unions, industrial and provident societies, local enterprise agencies, co-operatives, community businesses and employee-owned businesses.

It is estimated that more than 30,000 people may be employed in the sector in Northern Ireland.

The consultation period will run until 4 June 2004.

(MB)