Roderic O'Gorman (Dublin West, Green Party) | Oireachtas source

As outlined in the national social enterprise policy, Trading for Impact, social enterprises are enterprises whose objective is to achieve a social or environmental impact, rather than maximising profit for its owners or shareholders. That policy response recognises that the early learning and childcare sector includes many social enterprises. Indeed, there are more social enterprises in early learning and childcare than in any other sector.

Clearly, the social enterprise model is already a feature of the sector.

The expert group report on the sector's funding model, Partnership for the Public Good, looked at social enterprises and acknowledged the values-based model underpinning them. Encouraging such values, as well as prioritising the public good dimension of early learning and childcare, underpins the whole approach to the new funding model. I fully agree we should support and encourage such values in the sector. I am well aware that many providers are motivated by a desire to educate, support and work with children rather than by profit and that they reinvest surpluses into their businesses. There are challenges with depending on the social enterprise model, particularly given that such enterprises do not have a distinct legal form. The partnership approach developed under the new funding model, however, is designed to move in this direction and has been very successful. Core funding has supported the public good dimension of the sector by providing additional funding to support quality and sustainability in exchange for improved transparency and a commitment to the fee management system.

In addition, I have taken steps to preserve and expand the community sector, whose approach aligns with that of social enterprise. For example, under the building blocks extension scheme, capital funding will be made available to deliver thousands of additional early learning and childcare places. It will offer funding for large-scale projects to enable existing community services to build new capacity into their current premises by means of physical extension. It will also allow community services to apply to purchase or construct new premises.

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