§ Mr. CryerTo ask the Secretary of State for Employment how much money has been paid by Astra Training Services Ltd. to the Government for skill training centres; and if he will make a statement.
§ Mr. EggarThe sale of the training business to Astra Training Services Limited will involve a payment from the Government to Astra of some £11 million. This is a price determined in the sale process after open competitive bids and subsequent negotiations. It reflects the costs of turning around a business which is currently unprofitable and creating training businesses with good prospects of viability.
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§ Mr. CryerTo ask the Secretary of State for Employment under what terms of the information memorandum issued by Deloitte Corporate Finance on his behalf the skill centres have been disposed of by his Department; what revenue is expected from sites in the three categories A, B and C; and if he will make a statement.
§ Mr. EggarUnder the agreed terms of sale, at 42 skill centres and the Sheffield head office the training business purchaser will take the Government's interest in the site, or a new lease from the landlord. At 10 skill centres the purchaser will take a type A, B or C lease along the lines set out in appendix IV of the information memorandum (a copy of which was placed in the Library on 19 December). These leases will provide for rents to be phased in as set out in the information memorandum, with the total rent for all 10 leases reaching £1,098,600 p.a. in year three. I propose to sell the Government's interests in these 10 sites, subject to the leases to be granted to training business purchasers, later this year, so expect to receive the rental revenue from the leases for only a period of months.
§ Mr. CryerTo ask the Secretary of State for Employment what was the cost of advertising and securing the sale of skill centres; what fee was received by Deloitte Corporate Finance; and if he will make a statement.
§ Mr. EggarThe cost of advertising the offer for sale of the Skills Training Agency was £13,337. Fees paid to Deloitte Corporate Finance as at 16 March 1990 were £124,229 for its work as the Secretary of State's main sale adviser. In addition, fees of £132,425 had been paid to Deloitte Haskins and Sells in respect of the initial feasibility study, and £42,903 in respect of accountancy work associated with the sale. The figures exclude expenses and VAT.
Figures for the total fees payable to Deloittes and other advisers in respect of the sale will become available once the sale has been concluded and final invoices have been agreed.
§ Mr. CryerTo ask the Secretary of State for Employment when those directors of Astra Training Services Ltd. w ho are civil servants will be expected to assume full-time duties with the company; and if he will make a statement.
§ Mr. EggarThe three directors of Astra Training Services Limited who are civil servants will cease to be civil servants and assume full-time duties with the company at the time the sale to Astra is completed. I expect this to be in April or May.
§ Mr. CryerTo ask the Secretary of State for Employment who conducted negotiations with his Department for the purchase of skill centres by Astra Training Services Ltd.; and if they were civil servants at the time of the negotiations.
§ Mr. EggarNegotiations for the purchase of a training business by Astra Training Services Limited were conducted between Astra's professional advisers and the Government's main sale advisers, Deloitte Corporate Finance. A t the time of the negotiations the directors of Astra were civil servants; their professional advisers were not.