§ Mr. McNamaraTo ask the Secretary of State for Education and Employment, pursuant to his answer of 28 July 1998,Official Report, column 137, if he will make a statement on the activities of commercial companies providing careers information which have been able to generate a surplus through the efficient delivery of their contracts, legitimate dividends to shareholders or cash transfers to a parent company, indicating the amount attributed to shareholders retained as company profits and the amount of cash transfers to parent companies in the last period for which figures are available. [55458]
§ Mr. MudieTwenty seven of the sixty six Careers Services operating under contract with the Department are run by companies limited by share with the power to distribute profits to the shareholders. The majority of these organisations have retained within the company any profits arising from efficient delivery of the Careers Service. The value of the contracts with the 66 Careers Services was just over £220 million in 1996-97. According to the latest information available, which is taken from the statutory accounts for the financial year ended 31 March 1997, dividends amounting to some £359,300 were paid in respect of contracts held by Lifetime Careers, Guidance Enterprises Ltd, Careers 1199W Management Ltd and Northumberland Guidance Company. West London Careers Service Ltd and CfBT Thames Careers Guidance Ltd made a transfer of £820,000 to their parent company CfBT which is an educational trust which includes within its objects the provision of careers information, guidance and advice.