Clause 34 - New companies
Companies (Audit, Investigations and Community Enterprise) Bill [Lords]
11:00 am
Mr Andrew Mitchell (Shadow Minister, Economic Affairs; Sutton Coldfield, Conservative)
I beg to move amendment No. 37, in
clause 34, page 33, line 35, at end add—
'(11) The Secretary of State shall establish a fund to support the cost of organisations setting up and registering as community interest companies.'.
This probing amendment was suggested to me by the Royal National Institute of the Blind. When organisations write to hon. Members on important matters, it is no bad thing to consider them in Committee.
The amendment would require the Secretary of State to establish a fund to support the cost of organisations setting up and registering as community interest companies. I would expect the Minister to ensure that such funds came out of her Department's existing budget.
Many community enterprises play an invaluable role in getting blind, partially sighted and other disabled people for whom it is difficult to find and retain employment into work. However, they have difficulty in obtaining the necessary funding to set up successfully; many funding sources give money only to registered charities and the Bill states that community interest companies are not charities. Therefore, despite the fact that a new type of organisation is being created, they might still struggle to get the necessary funding.
The RNIB therefore submits that to gain the full benefit of creating the new type of company, the Government need to create a fund to support, in certain circumstances, the cost of certain new organisations setting up and registering as community interest companies.
I shall be most grateful if the Minister responds briefly to the amendment, or, if time does not permit, if she writes to me on the matter. In turn, I will write to the RNIB.
Ms Jacqui Smith (Minister of State (Industry and the Regions and Deputy Minister for Women), Department of Trade and Industry; Redditch, Labour)
The hon. Gentleman makes an important point, which reinforces the importance of community interest companies, particularly because of their role in respect of disabled people. We have put considerable investment into the development of the proposal, not only in the Bill, but in promoting social enterprise generally. There is a future builders' fund of £125 million from the Home Office to support the development of voluntary and community organisations offering public services. However, a new fund to provide finances to organisations wishing to set up community interest companies is not appropriate because that is one choice among many options. There are many ways in which we can support community interest companies and I am extremely willing to write to all members of the Committee outlining what they are.
Mr Andrew Mitchell (Shadow Minister, Economic Affairs; Sutton Coldfield, Conservative)
I have listened with great care to the Minister. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 34 ordered to stand part of the Bill.
Clauses 35 to 40 ordered to stand part of the Bill.
Schedule 7 agreed to.
Clauses 41 to 62 ordered to stand part of the Bill.
11.15 am