HC Deb 21 January 1992 vol 202 cc114-5W
Sir Robin Maxwell-Hyslop

To ask the Secretary of State for Education and Science for each of the financial years 1991–92, 1992–93 and 1993–94, whether it is Government policy that any surplus of revenue over expenditure should be at the disposal of the governors of East Devon college of further education at Tiverton or that it should be paid over to the local education authority.

Mr. Eggar

For 1991–92 the treatment of any surplus of revenue over expenditure is determined by the provisions of the scheme for local management of further education colleges in Devon.

The position in 1992–93 and thereafter will be subject to the passage of the Further and Higher Education Bill currently before Parliament. It is proposed that the balance of a college's income and expenditure in local authority accounts for 1992–93 will transfer to the new corporate body to be established under the legislation. Regulations will be drawn up under which such balances can be determined and attributed to colleges. Wherever possible, that will be by reference to the arrangements set out in the local management scheme for the local authority concerned.

Subject to the financial memoranda agreed between individual colleges and the Further Education Funding Council (England), which, from April 1993, will fund institutions, it is intended that any surplus of revenue over expenditure after that date will be at the disposal of the new corporate bodies.