Liverpool Skill Centre (Hansard, 2 July 1990)

§ Mr. Blair
To ask the Secretary of State for Employment what discussions took place between his Department and METEL prior to the dismissal of the Liverpool skill centre staff including the timing of these discussions.

§ Mr. Eggar
The sale negotiations with Merseyside Education Training Enterprise Ltd—METEL—for the Liverpool skill centre were carried out by the Department's professional advisers, Coopers and Lybrand Deloitte. The negotiations extended over a period of months and were concluded on 14 May.
As far as staff redundancies were concerned, METEL had made it clear, prior to the sale, to staff, trade unions, and the Department that they would need to restructure the business, and that redundancies were expected. The speed with which the redundancies came, and that they affected all staff, was not signalled in the pre-sale discussions, and was a great disappointment to the Department.

§ Mr. McLeish
To ask the Secretary of State for Employment what provisions were made in respect of the numbers of people to be employed at the METEL skill centre in Liverpool after its sale.

§ Mr. Eggar
[holding answer 23 June 1990]: The skill centre was sold as a going concern, and no specific provisions were made in respect of the exact number to be employed by METEL after completion of the sale.

§ Mr. Blair
To ask the Secretary of State for Employment how many of the staff working at the Liverpool skill centre were dismissed on 15 May; and if he was informed that the dismissals would take place prior to the sale of the skill centre.

§ Mr. Eggar
[holding answer 25 June 1990]: All the staff working at the Liverpool skill centre on 15 May 1990 were made redundant. The Department was not informed, prior to the sale, that all staff would be dismissed.

§ Mr. Blair
To ask the Secretary of State for Employment whether the recognised trade unions were consulted about the dismissals on redundancy terms of the staff of the Liverpool skill centre, in line with the Employment Act 1975; and if he will make a statement.
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§ Mr. Eggar
[holding answer 25 June 1990]: On completion of the sale of the Liverpool skill centre, the issues of trade union recognition and consultation on redundancies became matters for the new owners.

§ Mr. Blair
To ask the Secretary of State for Employment if he will make a statement on the future of Liverpool skillcentre as a training centre.

§ Mr. Eggar
The sale of the training business at the Liverpool skill centre to Merseyside Education Training Enterprise Limited was negotiated on the basis that it would continue to operate as a training business. Now that the centre is in the private sector, it is for METEL to determine the future of the business. However, I have no reason to believe that METEL will not continue to operate a training business from the centre.

§ Mr. Blair
To ask the Secretary of State for Employment if will he give details of how the severance payments to the staff of the Liverpool skill centre who have been dismissed will be funded.

§ Mr. Eggar
Merseyside Education Training Enterprise Limited, which purchased the business of the Liverpool skill centre, made it clear, prior to the sale, to staff, trade unions, and the Department that they would need to restructure the business, and that redundancies were expected. In negotiating the price for the training business, some allowance was made for anticipated redundancies. It will be for METEL to pay the severance payments agreed with staff.

§ Mr. Blair
To ask the Secretary of State for Employment if he will make it his policy to offer reinstatement into the civil service to the staff of the Liverpool skill centre who have been dismissed.

§ Mr. Eggar
An agreement has been reached with the trade unions concerned for my Department to give preferential consideration to applications for reinstatement from staff employed in the Skills Training Agency—STA—immediately before the sales were concluded, including those at the Liverpool skill centre, if they are made redundant in the private sector within three years of completion of the sales. Within the terms of the agreement everything that can be done to help staff from the Liverpool skill centre will be done.

§ Mr. Blair
To ask the Secretary of State for Employment if he will make a statement on the effect on training provision in the Liverpool area of the Liverpool skill centre developments.

§ Mr. Eggar
Now that the Liverpool skill centre is in the private sector it is for the purchaser, Merseyside Education Training Enterprise Limited to determine the future of the business. I have no reason to believe that the sale of the Liverpool skill centre to METEL will adversely affect training provision in the Liverpool area.