HC Deb 21 February 2000 vol 344 cc691-2W
Mr. Boswell

To ask the Secretary of State for Education and Employment what action he is taking to ensure that TECs do not divest themselves of assets derived from public funds before the ending of such funding in 2001. [110397]

Mr. Wicks

My Department has a number of mechanisms in place to ensure that TECs do not dispose of assets without our agreement. We hold a debenture which prevents TECs from selling, transferring or otherwise disposing of any assets other than in the ordinary and proper course of business without the permission of the Secretary of State. The TEC licence also requires them to gain the Department's approval to dispose of any land and buildings and to get the full market value for them and, following the notice of termination of the licence on 13 July 1999, to comply with reasonable requests to limit expenditure.

Mr. Boswell

To ask the Secretary of State for Education and Employment if he will establish a mechanism for valuation and apportionment of assets currently held by TECs according to whether or not they were derived from public funds; how publicly owned assets will be treated for accounting purposes; and what advice he will offer TECs on the use or disposal of their remaining assets. [110398]

Mr. Wicks

My officials are currently working up proposals for the valuation and treatment of assets currently held by TECs. We expect to publish these by the end of March 2000. As private companies TEC assets, including publicly funded assets, are recorded in their accounts and depreciated in line with the recognised accounting standards. Should any assets remain on wind up, TEC memorandum and articles of association require them to be passed to a body with similar objects and which has been agreed by the Secretary of State. It is our intention to agree with each TEC a transition plan that will set out, among other things, plans for the future use or disposal of assets.

Mr. Boswell

To ask the Secretary of State for Education and Employment what steps he is taking to monitor performance and contract compliance by TECs during their last financial year, 2000–01. [110401]

Mr. Wicks

There is a well established system in place for monitoring TEC performance and this will continue to operate until all TEC business with DfEE ceases. Managing TEC performance is the role of Government Offices (GOs). They collect and analyse information to assess how well each TEC is performing. GOs manage and report upon the delivery of performance against the TEC Business Plan and hold TECs to account for meeting programme objectives. Officials will continue to monitor the effectiveness of these arrangements throughout 2000–01.

DfEE will continue to monitor TECs' compliance with their contracts throughout 2000-01 and has in place claims testing processes that will be applied to all TECs during this period. In parallel with this work, the Department is monitoring TECs' compliance with specific requirements resulting from the issue of notices of contract termination to the TECs. Audit work based on professional risk judgments will also continue.