HC Deb 17 December 2003 vol 415 cc984-6W
Adam Price

To ask the Secretary of State for Work and Pensions how many Remploy employees have subsequently taken up jobs in the open labour market in each of the last 10 years. [143228]

Maria Eagle

Each year Remploy helps disabled people, where appropriate, to progress to unsupported employment with a mainstream employer. Since the implementation of the company's modernisation strategy this has become a key element in its programme to support disabled people.

Progressions to open employment
1994–95 118
1995–96 177
1996–97 182
1997–98 225
1998–99 347
1999–2000 536
2000–01 537
2001–02 1,243
2002–03 1,610
2003–04 1,650 (target)
Note:
Figures for 1994-98 include people moving from Remploy Factories to supported employment with a mainstream employer.
From 1998-99 onwards, figures relate only to the number of people working in the open labour market.
Source:
Remploy Audited Accounts

Adam Price

To ask the Secretary of State for Work and Pensions if he will make a statement on the investment by Remploy in maintaining and upgrading exisiting sites, as specified in the Remploy 21 agreement.[143229]

Maria Eagle

Remploy 21 is the company's modernisation strategy to establish itself in businesses that mirror growth sectors of the economy. Since 2000, Remploy has moved from 36 disparate businesses mainly in traditional manufacturing to 10 competitive national businesses with an increasing focus on the service sector. To support this programme it has invested £4 million in the maintenance and upgrading of existing sites.

Remploy is in the process of surveying all sites as part of this activity; the expectation is that at least £1 million annually will be allocated to further site improvements.

Adam Price

To ask the Secretary of State for Work and Pensions if he will make a statement on the strategic decision by Remploy management to close owned factories and to move to leased units. [143230]

Maria Eagle

Remploy owns a significant majority of its factory sites and this will continue to be the case following the modernisation plans the Company currently considers necessary over the next few years. In the long-term, if Remploy were to carry out all potential relocation plans, they would have a total of 50 sites owned and 31 leased. In every case Remploy will consider upgrading the existing site, purchasing or building at a new site or leasing a site. Remploy has only entered into agreements to lease factory sites where it has made business sense.

Leased premises tend to be acquired for a minimum of 15 years and occasionally for longer periods. This is normal commercial practice and recognises that, because business requirements evolve over time, there must therefore be a corresponding ability to evolve the estates strategy to ensure that the facilities match business and learning objectives.

The Company's approach to providing better and more modern facilities in Remploy locations is primarily to improve business opportunities that will in turn lead to more opportunities for growth in employment levels.

Since 2000, Remploy has invested in new or improved sites in Acton, Barnsley, Bradford, Gateshead, Lanarkshire, and North Staffordshire. There are also plans, some of which are already under way to replace existing facilities in Abertillery, Bristol, Holloway, Preston and St. Helens. All these sites are leased.

The above sites produced proceeds of sale of £5.7 million. At the same time, the Company invested £5.9 million on fitting out the replacement sites; consequently that has been a net outflow of investment. The majority of the sales proceeds arose from the sales of Acton and Bristol (£3.5 million of the £5.7 million) where there were opportunities to take advantage of site development potential. In other cases, the proceeds were very modest, reflecting the individual constraints of the existing site.

The Company's growth and investment plans are discussed with the Government on a regular basis. It should be noted that Remploy cannot sell a factory without securing the Government's approval. The Government will only agree to the sale where a case is presented which demonstrates the business sense of the proposal.