HC Deb 13 November 1996 vol 285 cc341-3
5. Ms Lynne

To ask the Secretary of State for Education and Employment what is her Department's policy towards the merging of TECs, business links and local chambers of commerce. [2074]

Mr. Paice

The Government support such mergers where this is the wish of all the local partners concerned.

Ms Lynne

The Minister is aware of the proposed merger between Rochdale chamber of commerce and Rochdale training and enterprise council, incorporating business link and the enterprise trust. Does he agree that, although Rochdale already has an excellent record on exports, that merger can only improve the situation and build on our very good record on manufacturing industry in the borough?

Mr. Paice

There have already been nine such mergers and, in most cases, they are delivering the benefits to which the hon. Lady referred. I am, indeed, aware that Rochdale TEC, the local chamber of commerce and other organisations are considering a merger and I congratulate them on the fact that they are consulting widely at this stage, before formulating any proposals to the Government. If that leads to a proposition to the Government for approval for a merger, I shall, of course, bear the hon. Lady's points in mind.

Mr. Brooke

In the context of the merger of the central London TECs, to what extent has my hon. Friend received intimations of the relative underfunding of the London TECs compared with those in the rest of the country? Would it be sensible to make representations to him, rather than to anyone else?

Mr. Paice

I obviously find it difficult to accept my right hon. Friend's use of the term "underfunding" in relation to London TECs—the London TECs are funded on the same principle as TECs throughout the country and that is not a level of underfunding that I understand. If my right hon. Friend has particular concerns, the first place to which he should take them, together with the merged Centec organisation, is the Government office for London, which apportions funding between all the London TECs. I am sure he understands that, if he would like to see me about it, I should be delighted to talk to him.

Mr. Sheerman

Is not the Minister's pathetically timid response—[Interruption.] We will probably have to use the word "pathetically" all the time this afternoon. Is it not a fact that the Deputy Prime Minister has consistently said—using much stronger language than the Minister—that he wants vigorously to encourage those mergers up and down the country as a positive part of the Government's policy? That pathetically timid response does not square with that attitude.

Mr. Paice

The hon. Gentleman will find that my right hon. Friend the Deputy Prime Minister, under whose auspices the competitiveness White Papers are published, has said exactly this: that where there is clear local demand for a merger and partners come forward, the Government support the merger.

Mr. Sheerman

It is on record.

Mr. Paice

It is also on record that we have an on-going evaluation process of the nine mergers that have already taken place. We believe that, at this stage, it would be premature for the Government actively to promote mergers, but we are quite pleased and delighted to see them when they come forward based on local initiatives.

Mr. Waterson

Is my hon. Friend aware of how successful has been the merger between the Sussex TEC and chamber? Is he aware of the tremendous boost given to local business people in my constituency yesterday, when we had the privilege of a visit by the Deputy Prime Minister, who gave his support to the local business partnership?

Mr. Paice

I am aware of the success of the Sussex merger which my hon. Friend described. I was not aware that my right hon. Friend the Deputy Prime Minister was there, but I am delighted to hear that he was. As has already been said, I am sure that he will have been pleased to see the success there, as we have seen it elsewhere. I have no doubt that such mergers will continue to take place elsewhere.