HC Deb 16 May 1989 vol 153 cc151-2
3. Mr. Dalyell

To ask the Secretary of State for Employment if he will make a statement on progress towards the privatisation of skill centres.

The Secretary of State for Employment (Mr. Norman Fowler)

Preparations are well advanced to offer the Skills Training Agency for sale by private tender. All preliminary expressions of interest are being recorded by the Government's sale advisers, including the proposals for a management buy-out.

Mr. Dalyell

What is the figure in the Secretary of State's brief for the amount that the Government hope to raise through the sale of skill centre land and buildings?

Mr. Fowler

The straight answer to that is that we are taking advice from property advisers on that point. I am glad that we have now been able to employ property advisers. They are in the process of valuing the sites and clearly the Government will want a fair price for those sites.

Mr Paice

Will my right hon. Friend confirm that he will consider applications and proposals to purchase individual skills centres rather than just the national network? Will he also confirm that selling skill centres into the private sector will put them in a better position to provide the flexible response that the private sector has already clearly demonstrated that it is able to do?

Mr. Fowler

I entirely agree, especially with my hon. Friend's second point. At the moment we have had about 40 expressions of interest in the purchase of skill centres, and they will be considered. It must be understood that the present position of the Skills Training Agency is not sustainable. About one third of the centres are seriously underused and are now making a loss approaching £20 million per year.

Mr. Tony Lloyd

Will the Secretary of State confirm that the Deptford skills centre is on freehold land which already has B1 planning permission? Will he speculate on what that site will be worth on the open market in that part of London? What did the Minister of State mean when he told me in a written answer that he would make provision for the Government to share in any development gains—not to take them, but simply to share in those windfall gains? Why are the public not to have the full value of any increase in those assets?

Mr. Fowler

It is certainly the Government's aim that the public should have the full value of the sites. However, I do not believe that it would be sensible for me to speculate about the value of a particular site, especially as we have just appointed a firm of surveyors to carry out the exact exercise required by the hon. Gentleman. Surveyors were appointed following a competitive tender, which is a sensible and businesslike approach.

Mr. Harry Greenway

Will my right hon. Friend take note of the unsatisfactory situation at the Perivale skill centre in my constituency, which is managed from the Twickenham skill centre some considerable distance away although all the jobs and industry are in the Perivale area? Will my right hon. Friend seek to achieve the division of the management of those two skill centres before any privatisation?

Mr. Fowler

It will not be before privatisation, because privatisation will take place over the next few months, but I will ask my advisers on the privatisation to take that into account.

Mr. Dalyell

In view of the unsatisfactory nature of the Minister's reply, I beg to give notice that I shall seek to raise the matter on the Adjournment at the earliest opportunity.