HC Deb 20 July 2000 vol 354 c305W
Mr. Tony Lloyd

To ask the Secretary of State for Education and Employment what representations he has received about the consistency of the allocation process of funds by the Further Education Funding Council to further education colleges in Manchester, as part of the national settlement; and if he will make a statement. [131415]

Mr. Wicks

[holding answer 19 July 2000]: My right hon. Friend has received a number of representations about the allocation of funds by the Further Education Funding Council (FEFC) to further education colleges in Manchester. The representations raise a series of complex technical points which the FEFC is now pursuing urgently. I will write to my hon. Friend when the FEFC has responded to the concerns raised.

Mr. Chidgey

To ask the Secretary of State for Education and Employment what assessment he has made of the possibility of legal liability arising from the overruling and reversal of advice given by officers acting for the Further Education Funding Council. [131359]

Mr. Wicks

[holding answer 19 July 2000]: Any potential liability arising in the circumstances described in the question would be an issue between the Further Education Funding Council and any colleges affected.

Mr. Chidgey

To ask the Secretary of State for Education and Employment if he will list those colleges of further education which are in dispute with the Further Education Funding Council over the interpretation of the Council's two per cent. tolerance policy based on the 1996–97 funding agreement; and what assessment he has made of the impact on those colleges' financial planning and policies of advice on interpretation of the two per cent. tolerance policy given by the Council's officers. [131358]

Mr. Wicks

[holding answer 19 July 2000]: One college, Eastleigh, has lodged a formal complaint with the Further Education Funding Council and others are in discussion with the Council. A college which had assumed it could write off a 2 per cent. shortfall should now aim to make up the difference either by repaying the funds or absorbing some unfunded growth. The Council has offered flexible terms to assist any college in this position.