HC Deb 24 May 2004 vol 421 cc1318-9W
Charles Hendry

To ask the Secretary of State for Education and Skills what assessment he has made of the effects on the private sector of his Department's decision to reduce the amount it will offset against Connexions partnerships' VAT costs. [172650]

Margaret Hodge

We have recommended that partnerships look to improve their tax efficiency. It does not automatically follow that this will have any effect on sub-contracting to private providers. The Department is monitoring how partnerships are dealing with the reduction in VAT transitional funding and we have made it clear that we expect them to continue to involve the private sector. We know that the lead body model is the most tax efficient and an increasing number of areas are adopting this, leaving private sector careers contracts in place.

Charles Hendry

To ask the secretary of State for Education and Skills what representations he has received from private providers of Connexions services concerning his Department's decision to reduce the amount it will offset against partrnership's VAT costs. [172671]

Margaret Hodge

In total my Department has received 12 representations from private providers about the decision to reduce the amount of transitional support to Connexions partnerships.

Charles Hendry

To ask the Secretary of State for Education and Skills whether it is his Department's policy to ensure that Connexions partnerships commit themselves to maintaining the pension benefits of private providers' staff if a partnership opts to shift from a sub-contracting operational model to a system of direct delivery and to incorporate the private providers' staff. [172676]

Margaret Hodge

Connexions Partnerships are private companies with obligations to their individual boards. As such the Department is unable to become involved in individual decisions about pension benefits for Connexions staff. This includes where a partnership opts to shift from a sub-contracting operational model to a system of direct delivery and to incorporate the private providers' staff. We would however expect Connexions partnerships to give due regard to any incoming staff and to make every effort to ensure that they are not disadvantaged in any way.