§ Mr. Alex CarlileTo ask the Secretary of State for Wales where the Welsh TECs' surplus on working capital will be spent in the coming financial year; what assessment he has made of the advantages and disadvantages of TECs developing such a surplus; and if he will make a statement. [19025]
§ Mr. HagueTECs may generate surplus on the services which they deliver on behalf of the Welsh Office. TECs are able to do so where they can achieve efficiency savings with service providers. Their ability to generate surplus, acts as an incentive to the pursuit of such savings.
TECs need to generate surplus in order to help cover their overheads and to maintain reserves at levels which are at least sufficient to cover their fixed capital and working capital needs. Reserves are primarily a matter for the directors of TECs to determine, since they have a duty to ensure that prudent levels are maintained.
43WHowever, TECs are expected to reinvest any reserves which accumulate in excess of those essential needs on activities or projects which are of potential benefit to the communities which they serve. TECs are required to set out their plans for the expenditure of such reserves in their annual business plans, which are subject to approval by my Department. Additionally, planned expenditure on major projects—currently £150,000 or more—requires specific prior approval for each project and is subject to more detailed scrutiny. My Department monitors both the use of reserves and the in-year generation of surpluses as the year progresses, in order to ensure that planned expenditure proceeds and that any accumulation of reserves is matched by expenditure plans for the following year.
TECs are currently preparing their final business plans for 1997–98. However, on the evidence of their earlier draft documents, their plans for the reinvestment of reserves next year are likely to cover a wide variety of schemes including child care facilities, initiatives aimed at young people who are not in training, education or employment, the "Bargaining for Skills Initiative"—partnership between Wales Trades Union Congress and Welsh TECs—adaptations for training disabled people, health and safety awareness for employers and employees,
44W
Net funding per pupil in LEA maintained secondary schools at cash prices1 Financial Year 1990–91£ 1991–92£ 1992–93£ 1993–94£ 1994–95 Clwyd 1,923 2,146 2,287 2,133 2,206 Dyfed 1,891 2,026 2,191 2,106 2,274 Gwent 1,991 2,194 2,293 2,320 2,303 Gwynedd 1,989 2,266 2,429 2,410 2,398 Mid Glamorgan 1,903 2,293 2,355 2,228 2,249 Powys 1,813 1,935 2,158 2,254 2,291 South Glamorgan 1,887 2,064 2,162 2,116 2,123 West Glamorgan 2,168 2,392 2,515 2,383 2,340 Wales 1,951 2,186 2,304 2,246 2,264 1 Figures from 1991–92 onwards include local management of schools balances. Expenditure on school meals and transport are excluded. enhanced career guidance in schools, the "Meister Technician Initiative", support for modern communication technologies in schools, graduate employment opportunities, training support for inward investment.