§ Mr. Paice
[holding answer 16 February 1996]: The relationship between Government and training and enterprise councils is under continual review. TECs are private companies operating under a contract. Since 1994, when South Thames TEC was placed in receivership the contract has required TECs to pay due regard to the code of practice on the financial aspects of corporate governance—the Cadbury code—and to the "Framework for Local Accountability" published by the TEC National 14W Council. TECs are also required to remain within the financial low risk band category as determined by the Department.
Further guidance to Government offices in the regions now ensures the prompt recovery of any overpayments. Licensing arrangements require TECs to meet and maintain published standards set by the Department. All TECs must be licensed by 1997.