Local government owned rehabilitation enterprises, accounts (discontinued), 2001-2005

The rehabilitation enterprises owned by the local governments had a positive profit for 2005. The profit before tax in relation to the operating income increased from 1.9 per cent in 2004 to 3.7 per cent in 2005. A contributing factor is the decrease in the operating expenditure ratio to the operating income from 97.5 per cent in 2004 to 95.9 in 2005. The operating income for 2005 was about NOK 5 254 million. This was an increase of NOK 308 million from 2004. During the same period operating expenses increased by NOK 217 million.

There was a moderate increase in the public subsidies to these enterprises. The enterprises received about NOK 2 184 million as public subsidies. This was an increase of about NOK 133 million from 2004.

Financial situation

By the end of 2005, the local government owned rehabilitation enterprises total asset was estimated to be NOK 4 250 million. This was an increase of about 5.8 per cent from 2004. The enterprises fixed assets increased by 2.4 per cent. During the same period the value of the enterprises current assets related to the sales of goods and services increased by about 10.3 per cent.

Return on equity increased by 3.9 per cent from 2004 to 2005. This was as a result of positive profitability after tax. The enterprises experienced improved liquidity and positive working capital. The equity ratio increased by 6.6 per cent for the period from 45.9 per cent in 2001 to 52.5 per cent in 2005. The positive profitability for the period is a contributing factor to this development.

Development

The number of the local government owned enterprises has been relatively stable during the last five years. There was a slight decrease in the number of enterprises from 313 in 2004 to 309 in 2005. Approximately 18 100 persons were employed by the local government owned rehabilitation enterprises by the end of 2005. This was an increase of about 520 persons compared to 2004. The total number of people employed by these enterprises comprises the number of employees in rehabilitation programmes as well as regular employees.

Local government owned rehabilitation enterprises

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-local government-owned rehabilitation enterprises. 2001-2005. NOK million and per cent