HC Deb 15 December 1980 vol 996 cc22-3W
Mr. Prescott

asked the Secretary of State for Employment, in view of the Public Account Committee's view that the Shenley Trust contract for the establishment and management of the Fort William underwater training centre secured an extremely high rate of profit, if he will ensure that any other such contract concerning the centre does not involve the payment of excessive compensation.

Mr. Jim Lester

The Manpower Services Commission is engaged in discussions with the offshore industry with a view to securing a transfer to the industry of financial and management responsibility for the centre. I am following these discussions and their implications for existing contracts closely. If the discussions are successful the terms of any future contracts will be for the parties involved to determine.

Mr. Prescott

asked the Secretary of State for Employment what compensation has been or is to be paid, and to whom, for the ending of existing contracts, concerning the management of the Fort William underwater training centre.

Mr. Jim Lester

I am informed by the Manpower Services Commission that the current contract for the management of the underwater training centre was awarded by the commission to Shenley Trust Services Ltd. with effect from 1 January 1980. This contract provides four months' notice in order to terminate the agreement. As notice has not been given and the contract has not been terminated, no compensation has been paid.

Compensation would only arise if the commission chose to make payment of fees and attributable costs in lieu of notice, as an alternative to the contractor continuing to manage the centre during the notice period. The terminal payment would depend partly upon the timing of any notification to pay compensation in lieu of notice and partly upon the outcome of discussions on the extent of attributable costs which the project manager would incur during the notice period.

Mr. Prescott

asked the Secretary of State for Employment when he expects to finalise the new contract for the operating of the Fort William underwater training centre; on what terms and with whom; and if he will make a statement.

Mr. Jim Lester

I am following closely the complicated negotiations which the Manpower Services Commission is having with representatives of the offshore industries in order to try to develop new management and funding arrangements for the centre. I intend to make a statement on the outcome of these negotiations as soon as possible.