Edmond Campbell, Senior News Coordinator

The Ministry of Labour and Social Security is getting ready to disburse $1 billion to the micro-enterprise sector under an initiative announced by Prime Minister Portia Simpson Miller during her presentation in the Budget Debate earlier this year.

Despite earlier threats of legal action by the Jamaica Labour Party if Government used the funds for that purpose, State Minister for Labour and Social Security, Senator Floyd Morris, said in the next few weeks money would be allocated to a number of accredited financial institutions at four per cent.

The financial entities will then provide loans to micro and medium-size enterprises at a rate not exceeding 10 per cent.

In his contribution to the State of the Nation debate in the Senate on Friday, Senator Morris said he was heartened that the Opposition's threat to take the Government to court has "died a natural death".

He told his colleagues that while the Government would be spend-ing a large sum to finance micro enterprises, the National Insurance Scheme is expected to expand significantly.

"They would have to return their contributions to the National Insurance Scheme, both entre-preneur and the employees, so you can understand the multiplier effect as a result of this injection," he explained.

He also reported that the National Insurance Fund has increased to $44 billion this year, up by $3 billion in less than a year.