105 Proinsias De Rossa asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason the FÁS co-operative development unit has stopped taking applications for supports; the Government's position on the future of the unit in relation to supporting co-operative development, given the long-term contribution of the co-operative movement to employment creation here; and if she will make a statement on the matter. [10161/02]

In 1988, the co-operative development council and unit were established following a commitment in the Programme for National Recovery.

In the context of the then prevailing high level of unemployment, the council and unit sought to, among other things: promote the co-operative concept, provide information and research in relation to co-operative development and provide advice and assistance, including financial supports to emerging co-operatives.

With the vastly improved employment situation in recent times, there has been a decline in the demand for the services for which the council and unit was originally established. In recent years the unit has been focusing on a more limited role e.g. helping employees to take over a business in circumstances where the family owner has decided to cease involvement. This activity, while laudable in itself, is not strictly compatible with the priorities set by FÁS in its recently published statement of strategy 2002-2005.

I understand that the Director General of FÁS has met with representatives of the social partners and conveyed this view to them. I further understand that they share the director general's approach in this matter, as I do. Discussions are ongoing on how the current activities of the council and unit might be supported through other more appropriate organisations.