COUNCIL RESOLUTION of 7 June 1984 on the contribution of local employment initiatives to combating unemployment (84/C 161/01)

THE COUNCIL OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Economic Community,

Having regard to the draft resolution submitted by the Commission (1),

Having regard to the opinion of the European Parliament (2),

Having regard to the opinion of the Economic and Social Committee (3),

Whereas, in its resolution of 12 July 1982 on Community action to combat unemployment (4), the Council reiterated its grave concern at the persistently high level of unemployment, recognized the need for additional action and asked the Commission to submit the results of its research and thoughts on the contribution of local initiatives and cooperatives to the creation of employment,

HEREBY ADOPTS THIS RESOLUTION:

I. Aim

1. The Council notes the communication submitted by the Commission entitled "Community action to combat unemployment - the contribution of local employment initiatives"(5).

2. It notes with interest the development of the phenomenon of local employment initiatives (LEIs) ; recognizes the contribution that these initiatives can make to the objectives of the fight against unemployment and the revival of economic activity by virtue of the possibilities they offer for the maintenance or creation of jobs, particularly in small undertakings, by encouraging the recovery of local economic and social situations.

3. It considers that the development of these initiatives should be supported and stimulated by the Member States' policies accompanied by specific measures at Community level.

II. General characteristics

1. The Council notes that local employment initiatives: - are most often the result of action by individuals or groups of individuals who are either unemployed or threatened by unemployment, and are often supported by local promoters,

- are consequently implemented by persons who are not necessarily conversant with the management or administration of an undertaking and who have no personal capital of any significance,

- are particularly important for persons whose chances of integration or reintegration into the labour market are very slight,

- differ widely in their modes of organization,

- involve a wide variety of activities which are normally centred on local needs and adapted to local conditions,

- are often important in places suffering from serious unemployment or under-employment as a result of special development difficulties, (1) OJ No C 70, 12.3.1984, p. 21. (2) OJ No C 117, 30.4.1984, p. 182. (3) Opinion delivered on 23 May 1984 (not yet published in the Official Journal). (4) OJ No C 186, 21.7.1982, p. 1. (5) OJ No C 70, 12.3.1984, p. 1.

- often involve, especially at local and regional levels, cooperation by public authorities, both sides of industry and other parties, including youth organizations,

- have as their prime objective the creation of economically viable jobs,

- may rebuild confidence and produce skills, qualifications and capacity for enterprise.

2. It acknowledges that the contributions made by public authorities during the start-up period of LEIs to facilitate the creation of new jobs, while respecting the conditions of competition, are in general more than offset by the advantages which they offer in terms of job and income creation, the use of human and local resources and reductions in the cost of social benefits.

3. It considers that support provided at regional and local level, in particular to meet management and training needs, is especially important for the development and success of small, locally generated undertakings.

4. It recognizes the contribution that both sides of industry can make to facilitate the economic and social integration of LEIs.

5. It recognizes the usefulness of spreading the various current ideas, techniques and experience in the field of LEIs.

III. Action by the Member States

The Council invites Member States to adopt within the framework of their policies and practices the following policy guidelines for the promotion of local employment initiatives: 1. Take account, in their policies relating to employment creation, local and regional development and local labour market management, of the potential contribution of local employment initiatives to the fight against unemployment, the revival of local economies and the alleviation of social problems. Public recognition of LEIs with a view to promoting their development and encouraging others to follow the same path should be accompanied as necessary by appropriate legal provisions.

2. Promote the establishment of close communication between all those involved in encouraging employment creation, especially both sides of industry and public authorities, particularly at the level of the local labour market, in order to improve the level of cooperation and the transfer of useful experience.

3. Taking account of the responsibilities of, and possibilities open to, local and regional authorities, encourage the development of local support structures for LEIs by means of practical measures such as: - making available information and guidance on the existing potential for aid,

- developing services - where appropriate, by means of aid for the creation of development agencies - which are capable of providing support to those seeking to launch LEIs, and of facilitating access to the various forms of aid available,

- making available suitable premises for small undertakings and workshops, for example by encouraging the conversion of vacant buildings,

- improving conditions and extending the possibilities for tendering for public contracts.

4. Ensure that measures to improve access for small and medium-scale undertakings to finance and to provide public financial support involve criteria, conditions, decision-making procedures and delivery systems which make it possible for LEIs to benefit from them.

5. Using existing possibilities for providing public support, encourage projects for the vocational and social integration and reintegration of particularly disadvantaged categories, in particular by adapting and simplifying the procedures for providing such support.

6. Examine possibilities for resorting to new methods of providing finance for LEIs, which are likely to make it easier to launch them (e.g. aid, during the period when their projects are being started up, to hitherto unemployed persons who have set up or are setting up LEIs, creation of special funds, or support for initiatives to attract local savings into such funds).

7. Examine the extent to which national legislation facilitates the creation of undertakings, including cooperatives and undertakings of a collective nature, and offers legal and financial provisions such as will encourage the creation of such undertakings.

8. As part of the commitment already entered into by the Member States to make increased efforts to promote and develop the supply of training facilities (1), examine the extent to which training systems take account of the requirements of LEIs, paying particular attention to: - cooperation between the bodies concerned in order to remedy any lack of training or qualifications on the local labour market,

- opportunities for access to training or qualifications at local level particularly in order to facilitate the employment of the least-skilled among the unemployed and to promote training, including management training, for those responsible for LEIs,

- the skills and qualifications of trainers and vocational guidance and placement officials.

IV. Action at Community level

1. The Council encourages the Commission to support action by the Member States mainly: - through more systematic use of existing Community instruments for promoting LEIs,

- through the promotion of LEIs by means of consultation and the exchange of information on a Community-wide basis;

- through evaluation and research designed to provide a useful guide for future policies and action.

2. The Commission is therefore invited in particular to: (a) support, with the assistance of the European Social Fund, specific innovative projects aimed at facilitating the development of LEIs, particularly those directed towards: - the application or production of new technologies,

- the use of under-exploited local resources,

- the employment of particularly disadvantaged categories,

- back-up measures for these initiatives, particularly the development of innovative training and support methods adapted to their needs,

by providing for a continuous exchange of experiences resulting from these projects in order to assess their impact on employment;

(b) develop its programme of consultation and information transfer in order to facilitate the direct exchange of experiences at Community level, while coordinating it with the projects of the OECD's Cooperative Action Programme on Local Employment Initiatives;

(c) complement these actions by carrying out specific studies which help to guide and assess the action, such as: - the most apt methods of providing finance for LEIs,

- legal and fiscal encouragement for the establishment and development of enterprises including cooperatives and other forms of collective enterprise,

- the types of product and services which LEIs provide and their impact on traditional transactions from the point of view of competition.

3. The Commission is requested to inform the Council periodically of progress made in the implementation of these actions.

4. Community financing for the action set out in this section will be decided on within the framework of the budgetary procedure and in accordance with the legal commitments entered into by the Council.

Community financing of the projects referred to in paragraph 2 (a) will be in accordance with the financing capacity and rules of the European Social Fund. (1) See Council resolution of 11 July 1983 concerning vocational training policies in the European Community in the 1980s - Section II - (OJ No C 193, 20.7.1983, p. 2).