HC Deb 07 February 1995 vol 254 cc178-81W
Mr. Peter Bottomley

To ask the Secretary of State for Employment in what circumstances, for what reason and when South Thames TEC ran out of money.

Mr. Paice

The extent of the problems at South Thames training and enterprise council was revealed by a team of accountants led by staff from this Department with the support of the accountancy firm, Grant Thornton. Grant Thornton reported to this Department on 16 December 1994. Its report was conveyed to the TEC on the same day. The report showed that the TEC was trading at a loss and forecasted that this would continue, that its balance at best was negative or would shortly become so, that it faced major cash flow problems and that weaknesses in its management accounting and financial control systems persisted. In the light of the report, my right hon. Friend the Secretary of State concluded that it would be unsafe to commit further public money to the TEC. In view of the report and that conclusion the board of South Thames TEC concluded on 21 December 1994 that the company was insolvent and invited my right hon. Friend the Secretary of State to appoint a receiver.

Mr. Peter Bottomley

To ask the Secretary of State for Employment if he will update each quarter a list of training providers to South Thames TEC that became business failures because of money unpaid by South Thames TEC.

Mr. Paice

To date, I have not been told of any training providers who have failed for this reason.

Mr. Peter Bottomley

To ask the Secretary of State for Employment to what purpose South Thames TEC put the money received from central Government for the purpose of paying training providers.

Mr. Paice

The training and enterprise council's financial affairs are currently a matter for the receiver appointed by my right hon. Friend the Secretary of State. I shall reply to the hon. Member's question when the receiver has done the necessary work in connection with the TEC's affairs.

Mr. Bryan Davies

To ask the Secretary of State for Employment what steps he is taking to ensure that training guarantees for young people and unemployed adults in the area formerly covered by South Thames TEC are fulfilled.

Mr. Paice

The Government guarantee that any young person aged 16 to 17 who is not in employment, training or education and seeks youth training will be offered a suitable opportunity. There is no equivalent guarantee for unemployed adults. The Department's main aim is to ensure the continued provision of training in the South Thames training and enterprise council area. A number of steps have been taken to assure training providers that they will be paid for training undertaken since 7 November 1994. The Department has issued letters of comfort to providers contracted to South Thames TEC for training for work and youth training credits, child care, work-related further education, careers and guidance year and 10 and careers libraries. The Department of the Environment has extended comfort to the business start-up programme. The Government office for London is making payments direct to providers of these programmes under the terms of its contract with South Thames TEC from 7 November 1994 until 1 January 1995. For the period of three months from the appointment of the receiver on 21 December 1994, the Departments will make available to the receiver sufficient funds to ensure providers receive payments for training and outputs delivered by them under the terms of their contract with South Thames TEC for the same programmes.

I made an announcement on 31 January, Official Report, columns 598–600, in reply to a question from my hon. Friend the Member for Eltham (Mr. Bottomley), about the future arrangements for the South Thames TEc area. Two neighbouring TECs, Central London TEC and South London TEC have been invited to submit proposals to me on how they would provide the full range of TEC responsibilities for the area fro the beginning of the new financial year.

Ms Ruddock

To ask the Secretary of State for Employment if he will list the names and addresses of training providers who did not have a formal contract with South Thames TEC but who had provided training by agreement with South Thames TEC.

Mr. Paice

I understand that the South Thames training and enterprise council did not have formal contracts but paid under letters of intent to providers of the following programmes: compacts, teacher placement service, work-related further education and years 9 and 10 careers-guidance. In addition, some providers of traineeships to Routeways—a wholly owned subsidiary of South Thames TEC—were also paid through letters of intent. The providers covered by letters of intent are shown in the following table:

  • Archbishop Michael Ramsey
  • Aylwin
  • Charles Edward Brooke
  • Dick Sheppard
  • Dunraven
  • Geoffrey Chaucer
  • Lilian Bayliss
  • Norwood
  • Sacred Heart
  • St. Martin's in the Field
  • St. Saviours and St. Olaves
  • Stockwell Park
  • Walworth
  • Warwick Park
  • Waverly
  • William Penn
  • Aspen House
  • Elm Court
  • Highshore
  • Landsdowne Mortimer
  • Orchard Centre
  • Spa
  • Thurlow Park
  • Turney
  • Willowfiled
  • Clapham Park
  • George Rainey
  • Kingsdale
  • Abbey Wood School
  • Addey and Stanhope School
  • Anerley School
  • Blackheath Bluecoat C of E
  • Brent Knoll School
  • Catford County Girls School
  • Churchfields School
  • Crofton School Crown Woods School
  • Deptford Green School
  • Eaglesfield Boys School
  • Eltham Green School
  • Forest Hill School
  • Hatcham Wood School
  • John Evelyn ESC
  • John Roan School
  • Kidbrooke School
  • Malory School
  • Moatbridge School
  • Northbrook C of E School
  • Pendragon School
  • Plumstead Manor School
  • Prendergas Girls School
  • Sedgehill School
    • 181
  • St. Joseph's Academy Boys
  • St. Pauls RC School
  • Sydenham School
  • The Schoolhouse Alternative Education Project
  • Waterfied School
  • Woolwich Polytechnic Boys

Others

  • Southwark College
  • Lambeth College
  • Lewisham College
  • Greenwich College
  • Southwark Careers Service
  • Lambeth Careers Service
  • Lewisham Careers Service
  • Greenwich Careers Service
  • British School of Motoring
  • Direct Team
  • Goodnews Training Ltd.
  • Greenwich Clipper
  • Jobreach (Greenwich)
  • New Directions
  • Pepys Radio Project
  • Rendberry Ltd.

Ms Ruddock

To ask the Secretary of State for Employment when South Thames TEC was entered on to the high-risk register.

Mr. Paice

The Department does not maintain formal risk registers. The training and enterprise council's internal financial management is a matter for the TEC board. The high-risk assessment made by the Department related to the effectiveness of financial control systems in the TEC and was made in December 1993.