HC Deb 11 December 1996 vol 287 cc265-7
5. Mr. Eastham

To ask the Secretary of State for Education and Employment when she next plans to meet representatives of training and enterprise councils to discuss the future of training. [7055]

9. Mrs. Bridget Prentice

To ask the Secretary of State for Education and Employment when she next plans to meet with the training and enterprise councils to discuss the future of training. [7059]

Mr. Paice

My right hon. Friend and I meet regularly with TEC representatives to discuss a wide range of topics, including the future of training.

Mr. Eastham

When the Minister next speaks to the TEC organisation, will he discuss the serious problem of skill shortages? How does he reconcile those shortages with the fact that the budget for TECs has been cut by £34 million and that that figure will increase when the inflation factor is taken into account? How does he justify the merger with local chambers of commerce, which are using TEC funding—private organisations using public money—and how will that help the 600,000 young people under 25 who have no jobs?

Mr. Paice

On mergers with chambers of commerce, the public funding of the TEC parts of those organisations is closely audited and there is no question of its being used for other matters related to the chamber of commerce.

On overall funding, the reality is that we will be spending more money on programmes for young people, more on work experience and more on TEC discretion. The only significant reduction will be in training for work: we expect to spend 4.5 per cent. less than forecast for this year while unemployment has decreased by 10 per cent. in the same period.

Mrs. Prentice

Is the Minister aware that not only have 600,000 young people under the age of 25 no job or education or training place, but 250,000 young people have been out of work for more than six months? What guarantee of a future can the Minister give them in view of the cuts that the Government have made in the TEC budgets?

Mr. Paice

The overall number of opportunities provided by TECs and the Employment Service is not being reduced—there are just as many. Young people who have not found their way into the work force for a long period will benefit from the tripling of opportunities in pre-vocational programmes next year. It has been clearly established that one of the problems is that some of those youngsters do not have the basic skills on which to build a vocational qualification. The Employment Service offers the one-to-one programme. As my right hon. Friend the Secretary of State said, in the longer term the measures announced in the White Paper on Monday will guarantee all young people a good opportunity for training or education up to national vocational qualification level 3.

Mr. Hawkins

Does my hon. Friend agree that one of the most significant developments is the growth of modern apprenticeships? As industry is so concerned to improve training for young people, the fact that 67,000 modern apprenticeships are due to be on stream by 2000 is good news, and a clear demonstration of the Government's commitment to that policy.

Mr. Paice

I welcome my hon. Friend's remarks. He is right that industry and commerce across the piece have widely accepted modern apprenticeships, not just in the traditional vocations but in many modern and novel vocations. The success of modern apprenticeships has led us to adopt the same approach to the development of national traineeships which we outlined on Monday.

Mr. Byers

Can the Minister confirm that he has received the strongest possible representations from the TEC movement urging the Government to submit an application under objective 4 of the European social fund? Does he accept that a failure to submit such a programme would mean the loss of £140 million from Europe which is badly needed to assist in-work training? Even at this late stage, will the Minister give an assurance that further consideration will be given to an application for objective 4 funding under the European social fund?

Mr. Paice

I do not accept the position as the hon. Gentleman describes it, but the Government will be setting out their position on objectives 3 and 4 in the near future.