Skill Centres (Hansard, 1 July 1991)

§ Mr. McLeish
To ask the Secretary of State for Employment what steps have been taken to monitor the use by the TICC (Lakin Consortium) of the £2.1 million transfer fee paid to it as part of the sale of four skill centres; and how much has been spent on the acquisition of non-training companies.

Mr. Jackson
Under the terms of the sale of the skills training agency there is no continued business relationship between my Department and any of the purchasers. TICC Ltd. is a private company and my Department has no responsibility for its business activities.

§ Mr. McLeish
To ask the Secretary of State for Employment if he will list any changes in(a) the numbers of staff, (b) the volume of training and (c) staff terms and conditions resulting from the transfer of four skill centres to TICC (Lakin Consortium).

Mr. Jackson
The four skill centres purchased by TICC Ltd. are now in the private sector and issues relating to staff numbers, volumes of training and changes of staff terms and conditions are matters for the company and its staff.

§ Mr. McLeish
To ask the Secretary of State for Employment what monitoring he is undertaking of any proposals by TICC (Lakin Consortium) relating to(a) closure of any of the four skill centres, (b) the purchase of non-training companies, (c) reductions in staffing levels and (d) the honouring of contracts agreed with the civil service before the transfer of the four centres; and if he will make a statement.

Mr. Jackson
TICC Ltd. is a private company and the four skill centres purchased by TICC Ltd. are now in the private sector. Any issues relating to the future business plans of TICC Ltd. or its staff numbers, are matters for the company and its staff.

§ Mr. McLeish
To ask the Secretary of State for Employment if he will list any conditions attached to the payment of £2.1 million to TICC Ltd. as part of the transfer of Ipswich, Cumbria, East Lancashire and St. Helens skill centres; and if he will make a statement.

Mr. Jackson
The payment of £2.1 million to TICC Ltd. was the negative consideration agreed after negotiation between my Department and the company and reflects the overall value that could be attached to the business at the time. No conditions were attached by either party to the sale.

§ Mr. McLeish
To ask the Secretary of State for Employment whether TICC (Lakin Consortium) was70W included in the submissions excluded from being allowed to tender for the skill centres; and on what grounds such decisions were made.

Mr. Jackson
At no point in the sale process were TICC Ltd. excluded from the tendering process. Bids were excluded only if they failed to meet the Government's six sale objectives, and TICC Ltd. met these at all stages of the sale.

§ Mr. McLeish
To ask the Secretary of State for Employment what steps were taken to assess(a) the competence of the TICC (Lakin Consortium) to manage the four skill centres transferred to it and (b) the previous record of TICC in providing training.

Mr. Jackson
The Lakin Consortium (now TICC Ltd.) was formed with the intention of placing a bid for part of the skills training agency network. Thorough checks were undertaken by my Department's sale advisers into the background of the consortium members, the financial viability of the new company and its future plans for the training business. These were satisfactory and the bid placed by TICC Ltd. fully met the Government's six sale objectives.

§ Mr. McLeish
To ask the Secretary of State for Employment if he will list the financial and training record changes which occurred between the initial submissions from TICC (Lakin Consortium) being rejected and his subsequently agreeing to the transfer of four skill centres to this consortium.

Mr. Jackson
TICC's original bid included a number of skill centres for which other bids were put forward. In the context of all the bids put forward, these provided a better match with the Government's sale objectives, so TICC's bid was rejected. The company subsequently submitted a bid for four of the skill centres which remained unsold at the end of the original sale period.

§ Mr. McLeish
To ask the Secretary of State for Employment if he will set out the staff terms and conditions agreed by the Government at the time of transfer of four skill centres to the TICC; and what steps he is taking to ensure compliance by TICC with the contract terms agreed.

Mr. Jackson
The general terms and conditions of former civil servants who transferred to the private sector were protected by the Transfer of Undertakings (Protection of Employment) Regulations 1981 so that on privatisation previous conditions still applied. Special arrangements were made to secure the transfer of pension rights which are outside the scope of the regulations. The terms and conditions of TICC's employees are now a matter between them and the company.

§ Mr. McLeish
To ask the Secretary of State for Employment if he will list any conditions attached to the payment of £800,000 to Training Businesses Ltd. as part of the transfer of Lambeth's skill centre; and if he will make a statement.

Mr. Jackson
The payment of £800,000 to the Training Business Ltd. was the negative consideration agreed after negotiations between my Department and the company and reflects the overall value that could be attached to the business at the time. No conditions were attached by either party to the sale.
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§ Mr. McLeish
To ask the Secretary of State for Employment what assurances were given to the skill centres about future levels of employment training funding prior to their transfer being concluded.

Mr. Jackson
No guarantees of Employment Training income have been given to any purchaser of skill centres for the current or subsequent years.