HC Deb 06 May 2004 vol 420 cc1477-8
4. Mr. Elfyn Llwyd (Meirionnydd Nant Conwy) (PC)

What assessment she has made of the impact of budget reductions in the ACAS public helpline on the planned expansion of that service; and if she will make a statement. [170681]

12. Mrs. Ann Cryer (Keighley) (Lab)

What assessment she has made of the possible effect of proposed reductions in the ACAS budget on staffing levels. [170689]

The Parliamentary Under-Secretary of State for Trade and Industry (Mr. Gerry Sutcliffe)

We are in discussion with ACAS about its future funding. It is too early to speculate on the detailed impact on ACAS staff or operations.

Mr. Llwyd

As I understand it, the Department is to impose a 10 per cent. cut across the board. I am sure the Minister will recognise the good work that ACAS does in employee-employer relations. As he knows, the helpline deals with 28,000 calls per week, and ACAS intended to expand that service. Will the Minister explain how, in the light of any cuts, the Department expects ACAS to expand the service? If he believes that the service will not be affected by a budget cut, can he say which ACAS services are likely to be cut?

Mr. Sutcliffe

How ACAS disburses its funds is a matter for the ACAS board, as the hon. Gentleman knows. The Department funds the whole budget. The ACAS helpline has been extremely helpful to small firms and individuals, and we hope it will continue and develop. It has taken over 700,000 calls a year and I believe it will continue. ACAS is reviewing its operations across the board and I believe it will propose many other ways of helping small firms and individuals.

Mrs. Cryer

With my hon. Friend's great experience in the trade union movement, does he believe that cuts in funding to the frontline staff at ACAS could have a negative impact on industrial relations, which could cost the taxpayer more than any savings made in funding?

Mr. Sutcliffe

I am grateful to my hon. Friend for raising the matter. It is not our intention to stop ACAS doing the excellent work that it does. We support the work that ACAS is involved with. We are looking at efficiency savings right across the Department and because ACAS falls within the Department's remit, we must examine its efficiency as well, but it is not our intention to interrupt any of the work that ACAS is doing.