Skill Centres (Hansard, 27 March 1990)

§ Mr. Cryer
To ask the Secretary of State for Employment how many civil servants were involved in the management buy-out team in the Skills Training Agency; whether time, during working hours, was provided to draw up their proposals; and over how many months preparation work had been undertaken to form the proposal from Astra Training Services Ltd.

§ Mr. Eggar
Three civil servants formed the management buy-out team in the skills training agency. No other staff were involved in the planning or preparation of the buy-out proposals.
Given their special position as a management buy-out team, in early April 1989 my Department removed the three officers concerned from direct responsibility for decisions affecting both personnel matters and the expenditure of public money. This was done to ensure that bias could not enter into decisions.
The majority of the time spent on the preparation of the management buy-out proposals was beyond normal hours of duty though departmental management agreed to provide time during working hours on the understanding that the buy-out team's official duties were always accorded priority. Detailed planning by the management buy-out team started after my right hon. Friend the Member for Sutton Coldfield (Sir N. Fowler) announced on 13 March 1989 the intention to move STA into the private sector. I understand that a small amount of preliminary work, purely on a contingency basis, took place before that announcement and that the team were in 158W contact with professional advisers as from the autumn of 1988. This was not done at the expense of the team members' official duties.

§ Mr. Cryer
To ask the Secretary of State for Employment if he will list the powers under which civil servants were permitted to form and operate a private limited company; and which provide the authority for the sale of 47 skill centres to Astra Training Services Ltd.

§ Mr. Eggar
No powers are needed for civil servants to form and operate a private limited company. Such activity must not have an adverse effect on their official work or bring any conflict of loyalty to their position as civil servants.
The Secretary of State maintained skill centres under section 2 of the Employment and Training Act 1973 which empowers him to make such arrangements as he considers appropriate for the purpose of assisting persons to train for employment. No specific powers are required to discontinue arangements which he no longer considers appropriate. In the case of the skills training agency, the Government believe that a successful move to the private sector will provide a more effective contribution to the national training effort.

§ Mr. Cryer
To ask the Secretary of State for Employment, pursuant to the reply to the hon. Member for Bradford, South of Tuesday, 20 March, what is the price which has been negotiated for the sale of 10 skill centre sites; how many other sites are under consideration for sale; and who are the purchasers of the 10 so far arranged.

§ Mr. Eggar
As indicated in the earlier reply,Official Report, 20 March 1990, column 577, I propose to sell the Government's interests in the 10 skill centre sites where a training business purchaser is to be granted a lease, later this year. I propose to sell the Government's interest at nine further sites currently held by units of the Skills Training Agency which are not included in the terms of sale agreed with purchasers of training businesses. None of these 19 property interests has yet been offered for sale, so it is too early to say what price will be negotiated or who the purchasers will be.

§ Mr. Cryer
To ask the Secretary of State for Employment what expenses have been charged by Deloitte Corporation Finance and Deloitte Haskins and Sells in connection with their work on the sale of the 47 skill centres; and if he will make a statement.

§ Mr. Eggar
Total expenses in connection with the sale of the skills training agency in 1989–90, including professional fees and expenses paid to Deloittes and other advisers, will be available in the Appropriation Accounts (class VI, vote 5) to be published in the summer.