§ Mr. Andrew F. Bennettasked the Secretary of State for Education and Science if he will make it his policy to allow colleges to use the full proceeds of the sale of redundant buildings to modernise and extend the rest of their buildings.
§ Mr. WaldenNew arrangements to allow universities greater freedom to retain the proceeds of sale of land and buildings were announced by my right hon. Friend on 15 January at columns91–92. These already allow universities (subject to the approval of the University Grants Committee) to use some or all of the proceeds of sale on cost-effective schemes to rationalise or replace existing buildings. My right hon. Friend is prepared to consider the possibility of allowing similar freedom to those colleges which are grant-aided by the Department. The entire sale proceeds of redundant college and polytechnic buildings belonging to local authorities are retained by them. They may, if they wish, apply the proceeds to modernise or extend the remainder of their buildings, subject to regulations made under schedule 12 to the Local Government, Planning and Land Act 1980. These currently provide that local authorities may use up to 30 per cent. of the sale proceeds to enhance their capital allocations in any given year. The arrangements for the control of local authority capital expenditure are currently under review and my right hon. Friend the Secretary of State for the Environment hopes to publish proposals in a Green Paper early in the new year.