§ Mr. Paice
[holding answer 20 February 1995]: I estimate that the Department is owed at least £2 million but the final figure could be substantially higher. This represents principally the cost of training for which the Department has paid South Thames training and enterprise council but which the TEC cannot at present substantiate with evidence.167W
§ Ms Harman
To ask the Secretary of State for Employment who will be responsible for the financial liability in respect of the South Thames TEC employees when Central London training and enterprise council takes over the S ITEC responsibilities for Southwark and Lambeth; and who will meet the cost of their redundancies and pensions.
§ Mr. Paice
[holding answer 20 February 1995]: The Government office for London is developing proposals for the appropriate division of the budget between SOLOTEC and CENTEC. When these are available they will be subject to further discussion between the Government office for London and the two training and enterprise councils before being finalised.
§ Mr. Paice
[holding answer 20 February 1995]: It is normal for providers' contracts with training and enterprise councils to expire at the end of the contract year. Providers then have to negotiate new contracts for the following year. No provider can be guaranteed renewal of its contract. The position will be the same in the South Thames TEC area, except that providers will seek to contract with one or both successor TECs. It is a commercial decision for TECs about which providers they wish to contract with.
Because of the particular circumstances in the South Thames TEC area, the Department has laid a minute before the House seeking parliamentary approval to extend the letter of comfort already issued to providers contracted with South Thames TEC to deliver the Government's youth training credits and training for work programmes. For those YT/credits and TfW providers 168W whose existing contracts with South Thames TEC are not renewed by a successor to South Thames TEC, this would give a guarantee of payment for:
- (i) outputs achieved in relation to training completed prior to 26 March under the existing contract with South Thames TEC;
- (ii) training for up to a further 3 months in respect of TfW and a further 6 months in respect of YT/Credits that commenced prior to 26 March in accordance with their existing contracts, and outputs achieved in relation to training completed within the periods stated above.