§ The Parliamentary Under-Secretary of State for Work and Pensions (Maria Eagle)Following the Mid-Term Quinquennial Review of Remploy Limited, the final report has been published. The report has been distributed to those people formally consulted during the process and copies have been placed in the Library. It is also available on the Jobcentre Plus websitehttp://www.jobcentreplus.gov.uk/Aboutus/Publication in English and Welsh. Hard copies are also available in Welsh, Braille, audio and large print*. We have also agreed an additional £17m to enable Remploy to strengthen its balance sheet and maintain its manufacturing operations. The Mid-Term Quinquennial concluded that: Remploy has been, and remains, the principal delivery agent for the Government's WORKSTEP programme;
The current model of providing Remploy with external finance through an annual grant in aid is appropriate;
The Company's Corporate Plan provides the best option for taking its agenda forward;
The remit, whilst not clearly expressed, is within the parameters of the Government's Welfare to Work strategy; and
86WSRemploy's Non-Departmental Public Body status remains the most appropriate vehicle for Remploy to deliver Government policy, ensuring the necessary level of security for its disabled employees and allowing Remploy the freedom and flexibility to operate successfully in a commercial environment.
The recommendations of the Review are as follows:
A set of financing principles should underpin determination of the annual Remploy Financing Limit, together with a clearer framework for the relationship between Remploy and Government;
Remploy's remit needs to be clearly expressed and fully understood by all those involved in the management of Remploy both within the Company and within Government. This remit should be expressed in a new 'Main Agreement' between Remploy and Government; and
Remploy's status as a Non-Departmental Public Body should be retained but more explicit governance arrangements need to be implemented to ensure greater clarity in the relationship between the Company and Government.
In addition, I have, on behalf of my Right hon Friend the Secretary of State for Work and Pensions, written to the Chairman of Remploy approving the 2002–03 Annual Performance Agreement between the Department and the Company. This agreement covers the year from 1 April 2002. It has been negotiated by the Chief Executive of Jobcentre Plus on behalf of my Right Hon Friend the Secretary of State for Work and Pensions. The targets are:
the average number of progressions of disabled people will increase to 2,000, including a minimum of 1,400 to mainstream unsupported employment;Remploy Ltd will maintain a total unit cost target (operating deficit per disabled worker) of £10,173;
the Company will achieve Gross Margin of £53.7m;the Company will achieve employee development time of 5 per cent.The text of the Annual Performance Agreement has been placed in the Library. Remploy published its Report and Accounts for 2001–02 in July 2002 and copies are available in the Library.
* Copies of this publication can be obtained from Disability Support Division, Level 3 East Wing, Rockingham House, Sheffield S1 4ER.