HC Deb 31 January 1992 vol 202 cc699-700W
Mr. Fatchett

To ask the Secretary of State for Education and Science what is the total level of debt charges for further education colleges and sixth form colleges in England and Wales.

Mr. Eggar

The total capital financing charge in relation to maintained colleges of further education in England was £103 million in 1989–90, the latest year for which outturn information is available. The information on sixth form colleges cannot be disaggregated from that on schools. The position in Wales is a matter for my right hon. Friend the Secretary of State for Wales.

Mr. Fatchett

To ask the Secretary of State for Education and Science if he has made any estimates of the transitional costs to further education and sixth form colleges in achieving corporate status, in terms of transitional seconded staff, professional services/advice, additional accountancy and management information systems.

Mr. Eggar

The transitional costs in 1992–93 of the necessary preparations for incorporating further education and sixth form colleges and giving them independence from local authority control, subject to the passage of the Further and Higher Education Bill currently before Parliament, are estimated at £25 million in England. This figure includes costs to colleges of preparing for their new management responsibilities, as well as the cost of establishing the Further Education Funding Council for England. Provision has been included in the Government's expenditure plans for 1992–93 for the purpose.

Mr. Fatchett

To ask the Secretary of State for Education and Science if he has made any estimates of the ongoing costs to further education and sixth form colleges of corporate status, in terms of(a) additional finance and personnel staff, (b) non-recoverable VAT, (c) legal, professional and audit costs, (d) payroll administration and processing and (e) increased pension contributions to support staff.

Mr. Eggar

The costs to colleges of undertaking or buying-in services currently provided by LEAs are expected to be offset by savings in LEA administration costs and efficiency savings. The liability on colleges to pay VAT on goods and services, once they become independent of LEA control, subject to the passage of the Further and Higher Education Bill, will give rise to costs of at least some £20 million. The level of pensions contributions is expected to be broadly in line with those currently made on behalf of college staff.