HC Deb 26 February 1998 vol 307 cc489-90
12. Mr. Llwyd

What current review there is of the operational efficiency of training and enterprise councils in England and Wales; and if he will make a statement. [29890]

Dr. Howells

We are looking at the efficiency of all the organisations we fund as part of the departmental spending review.

Mr. Llwyd

Is it not time to evaluate the work and results of TECs? In particular, is it not time to consider whether many of their functions could better be performed by colleges of further and higher education?

Dr. Howells

We are looking closely at what the TECs do so that we can ensure that they are focusing on the objectives of this Government, including providing proper value for money; ensuring that the TECs rid the part of the training and education system that they fund of fraud and abuse; and improving the performance of weaker TECs to the level of the best TECs. Some good TECs are doing valuable work in improving the competitiveness of the regions that they serve.

Mr. Bill O'Brien

I thank my hon. Friend for his assurance that the TECs will be investigated. Many of my constituents have been let down by the Wakefield TEC, because the shortage of skills and lack of training has been apparent in an area with many redundant mineworkers. In reviewing the efficiency of TECs, will my hon. Friend take especial interest in the Wakefield TEC, because it has failed many local people?

Dr. Howells

I know that my hon. Friend and his colleagues from neighbouring constituencies have assiduously monitored the progress of Wakefield TEC. It has had special problems, of which we are aware. A few improvements have been made recently, which will make a significant difference. I assure my hon. Friend that we are looking closely at Wakefield TEC and will draw several lessons from its failure to provide the goods in its training schemes.

Mr. Dorrell

I welcome the generally favourable approach that the Minister is taking to TECs, which he continues in his replies this afternoon. Will he confirm that almost the only firm decision that was included in the glitzy presentation yesterday was the cut of £150 million in the money available to the TECs, which he has just endorsed? Will he explain why he thinks it sensible to announce a reduction of £150 million in the resources available to a scheme that he supports, before the review that he mentioned earlier takes place?

Dr. Howells

The right hon. Gentleman has once again completely misunderstood the situation. The TECs have £280 million languishing in their reserve accounts that should be used to provide education and training. Those sums have been sitting there for years in some cases and we aim—we have consulted the TECs on the subject—to make that money work. It will work by providing individual learning accounts, which will improve the lives of the people who live in the regions served by the TECs.

Mr. Sutcliffe

Further to the question asked by my hon. Friend the Member for Normanton (Mr. O'Brien), is not part of the problem of TECs and further education colleges as training providers in areas where there are skills shortages and a higher age of unemployment that insufficient investment has been made in appropriate training opportunities? Will my hon. Friend look at that during his review?

Dr. Howells

That is a central function of the TECs and, where they have failed, it is nothing short of a disgrace. They were set up by the previous Government to provide exactly the sort of functions described by my hon. Friend. During the review, we shall make sure that, in future, no TEC will be guilty of a dereliction of duty of that sort. It is absolutely vital that, if they spend large amounts of taxpayers' money, they spend it well and provide the skills and training required in their regions.