Council for Social Aid, Manchester

HC Deb 09 June 1989 vol 154 cc249-50W

Mr. Leighton

To ask the Secretary of State for Employment what information he has as to why the Council for Social Aid in Manchester, and training manager for employment training, has gone into liquidation.

Mr. Nicholls

I understand that the directors of Manchester Diocesan Church of England Council for Social Aid Ltd. felt that they were unable to meet their financial obligations and for this reason, and in accordance with the provisions of the Companies Act and the Insolvency Act, decided to cease trading and to place the company into voluntary liquidation.

Mr. Tony Lloyd

To ask the Secretary of State for Employment (1) what is the number of workers who will be made redundant as a result of the failure of the Council for Social Aid, Manchester; what is the number of workers who will be or are being offered alternative employment; what guarantees were given to staff in terms of redundancy payments and outstanding earnings; and if he will make a statement;

(2) what was the total number of trainees on the scheme run by the Council for Social Aid, Manchester, at the time of liquidation; what was the number of trainees who will be offered training places on other ET schemes; what guarantees were made to trainees in respect of the training allowance and child care payments; what is the amount of the debt; and if he will make a statement.

Mr. Nicholls

I understand that approximately 200 people have been made redundant following the closure of Manchester Diocesan Church of England Council for Social Aid Ltd.

Any redundancy payments or outstanding earnings are a matter for the company's liquidators who will deal with these matters in the normal way in such cases.

The number of employees who are offered alternative employment will depend on the local demand for their services.

At the time Diocesan Church of England Council for Social Aid Ltd. ceased trading there were 1,011 ET trainees in training. All of these have been, or will shortly be, offered a training place with an alternative training manager. In the meantime all trainees remain on their training allowance.

In addition, until trainees are found alternative training managers, child care costs will be met where this is necessary.

The total amount of the company's debt is not known to my Department and is a matter for the liquidators.

My major concern now is to ensure that everything possible is being done to minimise the disruption for trainees so that they can carry on developing their skills and improving their job prospects.