ORGANISATIONS that wish to reinvest profits into social projects are being forced to navigate a “clunky” and “bureaucratic” regulatory environment because of a “gap in legislation”, the Economic Development Minister has said.
Deputy Gerald Voisin was asked by St Helier Constable Inna Gardiner whether he “intends to develop” a framework in Jersey for organisations known as ‘social enterprises’.
A social enterprise makes money by selling products or services like a traditional for-profit business, but use their profits to address societal issues.
The Economic Development Minister replied that a “legal distinction” for determining a social enterprise had not yet been arrived at due to a “gap in legislation”.
But he pointed out that there is a route available for organisations that wish to “qualify” to be a social enterprise, which involves registering as a charity and then establishing a company.
Deputy Voisin cited Beresford Street Kitchen, which provides training and employment for people with learning difficulties and autism, as an example of an organisation currently using this model.
“The issue is that it is rather clunky,” he stated. “There is lots of bureaucracy, not only in establishing a charity, but also then in establishing a company.
“A social enterprise would give a one-fix solution to this, but it does need to be nestled within some form of legislative framework.”
He added that the onus for developing the framework would fall with on the External Relations and Home Affairs Ministers respectively.
“It will ultimately rest with those people,” he said. “But I think this is a good example of how the Council of Ministers need to work together.
“And I’m giving the Constable an undertaking that I will bring this forward and push this along.”
