Training and Enterprise Councils (Hansard, 24 March 1995)

§ Ms Bridget Prentice
To ask the Secretary of State for Employment to whom training and enterprise councils are financially accountable. [15787]

§ Mr. Paice
Training and enterprise councils are independent companies, mostly limited by guarantee, and are run by a board of directors who are also their members. The board has ultimate responsibility for all its TEC"s financial obligations.
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As with other independent private companies, these obligations arise from a TEC's contractual relations with other parties.
In the event of a TEC being unable to meet its financial obligations, the Companies Acts and Insolvency Act make provision for relevant affected parties to seek redress. These parties can request the courts and/or the Department of Trade and Industry to appoint an administrator, receiver or liquidator, with a view to controlling, disposing and investigating the company"s affairs.

§ Mr. Rooney
To ask the Secretary of State for Employment what progress has been made in awarding TECs three-year licences; and how many have been granted such licenses. [16141]

§ Mr. Paice
Training and enterprise councils have made significant progress in meeting the demanding criteria required to be awarded three-year licences. Twenty-one TECs have already obtained licences to operate from 27 March this year. The other 53 English TECs have until 1997 to meet the criteria.

§ Mr. Rooney
To ask the Secretary of State for Employment what significant changes are being made to(a) the TEC operating agreement for 1995–96 and (b) the TEC quality assurance supplier management requirements; and if he will place copies of these in the Library. [16140]

§ Mr. Paice
The training and enterprise council operating agreement for 1995–96 has been significantly redrafted to:

incorporate the requirements of TEC licensing;

include new programmes announced in the competitiveness White Paper;

include the services funded by my right hon. Friend the President of the Board of Trade; and

improve the clarity of the Government"s contract with TECs.

There have been no changes to the TEC quality assurance supplier management requirements. Copies of all relevant documents have already been placed in the Library.