Transcript 投影片 1 - GeoCities

Discussion Forum on “Combating Poverty –
Policies and Strategies” Lessons Learnt
from Overseas Experiences
Hung Suet-lin
17/10/2005
WORK-RELATED SUPPORT
Creating Jobs and
Enterprises
in Deprived Areas
The Problem
Concentration of workless
• Greatest variation in terms of unemployment and
economic inactivity rates at the smallest levels of
geography – between districts and wards
• “postcode poverty”
• Social Exclusion Unit (SEnU) adopted a streetby-street approach to analyse the situation
• Areas with high concentration of workless, for
example, North West, North East, Yorkshire and
the Humber
Concentration of workless
• A quarter of concentrations cluster into 3% of
England’s 8,005 wards
• In the worst affected 1% areas, more than half of
all adults are out of work and on benefits
• Self-employment in concentrations is half the
national average (4% compared with 8%)
• Four out of 10 of the concentrations are also
concentrations of workless lone parents
Characteristics of the concentrations
• around half the working-age population have no
qualifications
• half the households have at least one person
with limiting long-term illness
• proportion of black twice the national average.
• multiple disadvantages such as substance
misuse and a disability
• many have two or three generations out of work
• One fifth of workless households have
dependent children
• one third of workless people provide over 50
hours of caring work per week
Enterprise gap
• significant disparities in level of enterprise
at a regional level
• a wide variation in both business start-up
rates and business density
• lack of joint working at local level
Explaining the Problem
•
Changes in the nature and location of
jobs
“Residential sorting”
Area effects
•
•
–
–
Place effects - the lack of infrastructure,
transport, competition for job opportunities
and variation in the quality of local services
People effects - the damaging effect of living
with many other workless peoples such as
area-based discrimination by some
employers
Explaining the problem
• Barriers to develop local enterprises in
deprived areas
– Access to finance
– Access to business support services
– lack of experience, skills or training of
potential employees
– a weak enterprise culture
– institutional or administrative barriers
– a poor business environment
Government approach
• Basic Value
Nobody should be disadvantaged
by where they live.
Local solution for local problems
Government approach
•
•
•
•
reducing barriers to employment in the three
crucial areas of childcare, skills and transport
to increase economic performance in every
region as well as narrowing the gap in growth
rates between regions
to promote jobs and enterprise in deprived
areas
give greater freedom to local and regional
managers and to frontline workers
Local Strategic Partnerships (LSPs)
and Local Area Agreements (LAAs)
• Neighborhood Renewal
– reversing the spiral of decline
– Neighbourhood Renewal Unit’s (NRU) work
cuts across all government departments
– LSPs are central to the delivery of the
Neighbourhood Renewal National Strategy
Action Plan
– in 88 most deprived local authority areas
– receiving additional resources through
Neighbourhood Renewal Fund (NRF)
LSPs
• a single non-statutory, multi-agency body matching local
authority boundaries
• to identify local problems and provide solutions
• to develop and deliver a Local Neighbourhood Renewal
Strategy to tackle deprivation
• to promote better joining-up of agencies and initiatives in
the public, private, business, community and voluntary
sectors
• went through a process of accreditation by Government
Offices for the Regions in 2002
• Community Empowerment Fund – involving people in
how public services are provided
LSPs
•
Core tasks of LSPs
–
–
–
prepare and implement a Community
Strategy
explore the scope for bringing together and
rationalizing exiting plans, partnerships and
initiatives
work with local authorities in working out a
Local Public Service Agreements
LAAs
• all relevant organizations are
parties
• specify the targets and funds
available to spend in the pursuit
of the targets
Local enterprise growth initiatives
(LEGI)
• a funding worth ￡ 50 million in 2006-07,
rising to 150 million per year by 2008-09
• to provide support to locally developed
proposals to promote enterprise in the
most deprived areas of England
Local enterprise growth initiatives
(LEGI)
• The Government has designated 1997
Enterprise Areas in 2002.
• In England and Scotland, the areas
selected are the most deprived 15% of
wards/areas.
• In Wales and Northern Ireland, they are
the most deprived 42% of wards.
• In England, 73% of them lie within the 88
local authorities which receive support
from the Neighbourhood Renewal Fund.
Local enterprise growth initiatives
(LEGI)
• Six Key Principles
– effective targeting
– effective solutions
– significant commitment
– strong local partnerships
– integration with broader regeneration efforts
– evaluation and evidence building
Local enterprise growth initiatives
(LEGI)
• Three outcomes targeted
–increasing total entrepreneurial
activity
–supporting the sustainable
growth
–attracting investment and
franchising into deprived areas
Neighbourhood Renewal Fund
•￡ 3 billion to be spent over 10 years
• can be spent in any way that will tackle
deprivation – health, education, jobs, housing,
local environment, crime
• targeting at job creation
• providing support to small and medium size
companies and room for informal economy
• some successful cases such as providing
special services, usually personal services
• partnership with transport trust to provide free
transport on buses/trains to job-seekers
Phoenix Fund
• launched in Nov 1999, a 30m Fund
• to support enterprise in deprived areas
and promote the creation of social
enterprises
• provided around 20m to support the
Community Development Funding
Initiatives (CDFI) sector providing lending
and loan guarantee support to enterprises
Small Business Service (SBS)
•
an agency of the Department of Trade and
Industry
seven strategic themes
•
–
–
–
–
–
–
–
Building an enterprise culture
Encouraging a more dynamic start-up market
Building the capability for small business growth
Improving access to finance for small businesses
Encouraging more enterprise in disadvantaged
communities and under represented groups
Improving small businesses' experience of
government services
Developing better regulation and policy
Social Enterprises
• A Social Enterprise Unit (SEnU) has been
set up in Small Business Service of the dti.
• Definition of social enterprise:
“A social enterprise is a business with
primarily social objectives whose surpluses
are principally reinvested for that purpose in
the business or in the community, rather than
being driven by the need to maximize profit
for shareholders and owners.” (Department of
Trade and Industry, 2002, pp. 8)
Defining features of social enterprises
•
•
•
•
•
•
a kind of social economy; to support a social
purpose
tackle a wide range of social and
environmental issues
using business solutions to achieve public
good
a combination of enterprise, social purpose
and customer focus
social purposes: creating wealth for the
disadvantaged, neighbourhood and urban
regeneration, public service delivery, social
and financial inclusion
part of the broader third sector
Defining features of social enterprises
• a great diversity in size, strength and operates at
many levels including local community
enterprises, social firms, cooperatives and large
national or international organizations
• some start off as businesses, most are in
transition from voluntary sector organizations
• no single legal model for social enterprise, can
be companies limited by guarantee, shares,
industrial societies, unincorporated, charities
• social enterprises “clustering” together to benefit
from support networks and greater economies of
scale
Social Enterprise Unit
• set up within the Department of Trade and
Industry (dti) in Autumn 2001
• 8 major areas of concern:
–
–
–
–
–
–
–
–
legal and regulatory issues
public procurement
business support and training
finance and funding
promotion
research/mapping
impact evaluation/social and economic indicators
learning from experiences
Social Enterprise Unit
• Seven roles
– help to change the business culture
– to ensure that the legal and administrative framework
should not hinder the development and growth of
social enterprise by providing a leveling play field
– the local authorities in particular have an important
role in opening up public procurement
– working closely with training providers, both public
and private
– to ensure appropriate finance and funding is
available
– active promotion of social enterprise by recognizing
and rewarding success
– to develop minimum standards of behaviour or an
accreditation system of social enterprises
development of cooperatives
• supported under the policy of developing social
enterprises
• The cooperative principles:
“that the very act of working together can bring social
and economic benefits have been recognised. It is
believed that through working in this way, people can
develop a sense of their own power to change things,
recognition of the importance of collective action, and
better understanding of wider concepts of citizenship”
(dti, 2002, p.25).
development of cooperatives
• Cooperative Action is a new foundation
established to support the development of
new forms of cooperatives and mutual
enterprise; giving grants and making loans
of between ￡ 5000 and ￡ 200,000.
• Intermediaries, e.g. Cooperative
Movement, Social Enterprise London
National Minimum Wage
The Problem
• September 2004, around 25.6 million workforce
with 17.6 million full time and eight million parttime
• low-paying sectors accounted for some 6.1
million jobs – around 24% of all employee jobs
• 46% of employee jobs in the low paying sector
are full time
• April 2004,1.1% of total number of jobs paid
below the October 2003 NMW (272,000 jobs)
Concentration of low pay jobs
•
•
•
•
•
•
Women
part-time workers
home workers
some minority ethic groups
young people
those who have a work-limiting health
problem
The Low Pay Commission
•
•
•
•
•
set up in 1997
National Minimum Wage introduced in 1999
an independent advisory commission
10 appointed commissioners, on voluntary basis
to produce a report to the government every two
years
• for the discussion of the parliament
• become statutory after parliament endorsement
The NMW
•
•
•
•
•
•
set two years ahead
taking reference from the average earning
growth
to make it as evidenced-based much as
possible
also through a process of negotiation with
employers
principle behind - “fair pay fair job”, not
meeting “needs”
1.1 million jobs have directly benefited from
the 2004 upratings
National Minimum Wage Hourly Rates,
April 1999- October 2004
Age 16-17
Age 18-21
Age 22 and over
￡3
￡ 3.6
June 2000 – September 2000
￡ 3.2
￡ 3.6
October 2000 – September
2001
￡ 3.2
￡ 3.7
October 2001 – September
2002
￡ 3.5
￡ 4.1
October 2002 – September
2003
￡ 3.6
￡ 4.2
October 2003 – September
2004
￡ 3.8
￡ 4.5
￡ 4.1
￡ 4.85
April 1999- May 2000
October 2004 -
￡3
Impact of the NMW
• no significant negative impact on the
labour market or inflation
• no evidence that unemployment
increases
• not much adverse effect on
profitability of firms
• gender pay gap has been narrowed
Impact of the NMW
Nine sectors providing around 6 million jobs, nearly a
quarter of total, have been mostly affected:
• retail
• hospitality
• cleaning
• security
• childcare
• social care
• agriculture
• textiles, clothing and footwear
• hairdressing
Compliance and enforcement
• Self-enforcement is the approach
• Inland Revenue’s minimum wage team has
completed over 5500 investigations in 2003-04
• arrears are identified in 36% of the cases
• no prosecution cases for non-compliance
• non-payment of the minimum wage in the
informal sector, e.g. hospitality, business
services, hairdressing and horticulture sectors
Compliance and enforcement
• Reasons for non-compliance include
– low awareness resulting in careless mistakes,
– workers crossed age thresholds and became
eligible for the adult minimum wage rate were
not identified
– some worked longer hours than they were
paid
Compliance and enforcement
• Recommendation of the Low pay Commission:
– interest charges payable on arrears
arising from minimum wage
underpayment
– financial penalties for seriously noncompliant employers
Recommendations for Hong Kong
Creating Jobs and Enterprises
Local strategic partnership
Local Area Agreement
Developing social enterprises
Setting up Minimum Wage
Recommendations for Hong Kong
Local Strategic Partnership
Local Area Agreement
•
•
•
•
developing indices of deprivation
identifying deprived areas
allocating special funds to tackle deprivation
promoting better joining up of public, private
agencies and NGOs in deprived areas
• developing local strategic plans
• determining specific targets of change
Recommendations for Hong Kong
Developing social enterprises
• Legislation of a new legal form for social
enterprise
• to establish a dominant mentality that
social enterprise is for social purposes
• cooperatives not to be treated as a form of
job-related training expecting members to
move on to higher-paid jobs
Recommendations for Hong Kong
Developing social enterprises
• opportunities be open to all individuals, groups
and organizations of both NGOs and private
• well built-in system of monitoring such as board
and management structure
• statutory requirement or other measures are to
be explored
• public procurement to be committed
Recommendations for Hong Kong
Developing social enterprises
• setting up intermediaries
• In the long run, minimum standards of
behaviour or an accreditation system of
social enterprises to be developed
• grants to support start up capital
• change of government accounting rules
• service to support business development
Recommendations for Hong Kong
Setting up minimum wage
• a strong government will
• establishing a commission
• appointing respectable persons
committed to the course
THANK YOU