HC Deb 24 January 1984 vol 52 cc752-3
Mr. Latham

asked the Secretary of State for Employment whether he will make a statement on the possible reallocation of unspent cash resources under the youth training scheme.

The Minister of State, Department of Employment (Mr. Peter Morrison)

While we do not propose any general reallocation of the potential underspend on the youth training scheme, I am proposing to transfer, subject to parliamentary approval, £25 million from the Manpower Services Commission's grant-in-aid to the community programme to allow the original target of 130,000 filled places to be met by the end of the financial year.

Mr. Latham

Is my hon. Friend aware that although the statement made in the House on 21 December 1983 was welcome so far as it went, some of us would have preferred to see the Manpower Services Commission's proposals for 17-year-olds accepted and the figure of £4 reduced to below £3? If money is still left at the end of this financial year, will he consider reallocating it?

Mr. Morrison

I assure my hon. Friend that we looked carefully at the proposals for 17-year-olds. We thought that it was right that the year ahead should be one of consolidation for the youth training scheme. I am grateful to my hon. Friend for his remarks about the £3 limit on the travelling allowance. We shall keep that matter under review. We await further thoughts from the MSC.

Mr. Meadowcroft

Will the Minister look carefully at the recent statement that appeared to be derogatory of the many excellent schemes, similar to the YTS, carried out by the voluntary sector and consider allocating some of the unspent resources to encourage schemes in that sector?

Mr. Morrison

I assure the hon. Gentleman that nothing derogatory was said about the voluntary organisations. They have fulfilled and will continue to fulfil an important task in relation to the YTS. We have always maintained that employer-based schemes are to be in the majority in terms of the totality of the YTS.

Mr. Lawler

As there are vacancies in a number of schemes, especially ITEC schemes, due to the successful placing of trainees in full-time employment before the end of the scheme, will my hon. Friend consider allowing careers officers to place 18-year-olds in those vacancies?

Mr. Morrison

I cannot give my hon. Friend that assurance, but if a trainee moves from trainee to employed status he can still be part of the youth training scheme.

Ms. Clare Short

Has the Minister read the report of the West Midlands National Association of Teachers in Further and Higher Education showing that in Birmingham private agencies are monopolising the scheme and running it for profit? Will he use some of the resources saved, due to the lack of enthusiasm for the scheme among young people, to run the scheme better rather than divert the funds to other purposes?

Mr. Morrison

I know that the hon. Lady has never much liked the scheme, but I am surprised at her claim that young people do not like it, as more than 300,000 have already joined it on a voluntary basis. I have not seen the report to which she refers, but private managing agencies are acceptable, as are voluntary organisations and local authorities.

Mr. Michael Morris

I congratulate my hon. Friend on the general success of the scheme, but, as there is still criticism of the complications of running it, will he try to remove those difficulties before transferring resources elsewhere?

Mr. Morrison

I am always prepared to listen to constructive ideas for simplifying the bureaucracy of the scheme. We wish to ensure, both this year and next, that the quality of the training is improved wherever possible.

Mr. Sheerman

Is the Minister concerned about the number of youngsters placed with training rather than with trading companies? Is he aware that in some areas more than 40 per cent. of youngsters are placed with training companies and not, as was the original intention of the scheme, with companies actually making a product for sale?

Mr. Morrison

As the hon. Gentleman knows, the agencies concerned use their training facilities for 13 weeks, or perhaps longer, and then farm the trainees out to acquire work experience on employers' premises.

Mr. Forth

Will my hon. Friend consider relaxing the rules for disabled youngsters who often cannot meet the rigorous age limitation requirements so that they may find employment, which otherwise might not be possible?

Mr. Morrison

I agree that disabled youngsters have an especially powerful case. That is why my right hon. Friend the Secretary of State announced before Christmas that the eligibility rules would allow such youngsters to enter the scheme up to the age of 21.