Local government owned rehabilitation enterprises, accounts (discontinued), 2000-2004

Increasing public subsidies

On the whole, local government-owned rehabilitation enterprises are doing well. Profit before tax for 2004 is positive but decreasing as compared to 2003, from 2.8 per cent of the total operating income in 2003 to 1.9 per cent of the operating income in 2004. A contributing factor is the increase in the total operating expenditure's per cent of the operating income. The operating income increased by some NOK 326 million, that is 7.1 per cent from 2003 to 2004. At the same period the operating expenditure increased by approximately NOK 361 million or 8.1 per cent.

Public subsidies continue to increase. During the period 2004, the enterprises received NOK 1998 million as public subsidies. This is an increase of about 0.6 per cent, from 39.8 per cent of the operating income in 2003 to 40.4 per cent of the operating income in 2004.

The equity ratio has increased by 7.2 per cent, from 43.3 per cent in 2000 to 50.5 in 2004. The positive profitability development and improved capital structure for new enterprises may also be contributing factors.

Local government-owned rehabilitation enterprises

There was a slight increase in the number of local government-owned rehabilitation enterprises from 2003 to 2004, from 310 in 2003 to 311 in 2004. The enterprises employed about 16 700 people in 2004, and 16 400 people in 2003; this is an increase of about 1.8 per cent. The employment figures include staff employed by the enterprises and people who are by the employment and rehabilitation programs.

The number of rehabilitation enterprises increased from 248 in 2000 to 311 in 2004. One reason for the rising number of enterprises is the legal change to facilitate the set-up of such enterprises and a more favourable distribution of wages and operating subsidies from central and local government. Another reason is the changes in Statistics Norway's information about the ownership structure in the enterprises, which has significantly affected the increase from 2000 to 2001. On the whole, the number of local government-owned rehabilitation enterprises has been stable during the last four years.

The local government owns an enterprise if the local government or the county municipality directly or indirectly owns more than 50 per cent of the paid-up share capital.

Work opportunities for occupationally handicapped people

Rehabilitation programmes are designed to provide work opportunities for occupationally handicapped people. They offer training and counselling related to education, rehabilitation and occupation choice. The principal objectives are to find regular employment for the occupationally handicapped and to create jobs. For the majority of rehabilitation enterprises the activities involve production of goods and services. We have therefore concentrated on rehabilitation enterprises owned by local governments. Examples of such rehabilitation enterprises are public work cooperatives (ASVO), work preparation training (AFT) and work with assistance (AB).

Tables:

• Table 1 Statistics of accounts for local government-owned rehabilitation enterprises. 2000-2004. NOK million and per cent