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Volume 205: debated on Tuesday 3 March 1992

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To ask the Secretary of State for Employment what progress has been made in establishing a new financial arrangement with Remploy.

Discussions have been taking place between my Department and Remploy to establish arrangements which would enable the company to operate a more flexible financial regime within an agreed planning framework which would include quantified annual performance targets. Tomorrow, I will join the chairman of Remploy, Sir Ivor Cohen, to sign documents setting out the financial arrangements under which Remploy will operate from 1 April 1992.These new arrangements, which will be operated on my behalf by the chief executive of the Employment Service, will enable the company to improve its efficiency, competitiveness and value for money. The greater commercial freedom which will be enjoyed by Remploy should benefit the workforce of severely disabled employees for whom the company was established.I will arrange for copies of the documents describing the new arrangements, and in due course the annual performance agreement that I will have with Remploy, to be placed in the Libraries of both Houses. Copies will also be made available by the Employment Service on request individuals or organisations with a genuine interest in the arrangements.