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Building Colleges for the Future Programme

Volume 492: debated on Tuesday 5 May 2009

To ask the Secretary of State for Innovation, Universities and Skills on what date he received a copy of the report commissioned by the Learning and Skills Council's Director of Property and Infrastructure on capital budgets in the further education sector which was published on 11 February 2008. (269963)

The report commissioned by the Learning and Skills Council's (LSC) Director of Property and Infrastructure on capital budgets in the further education sector was an LSC internal report.

The report was not published and was not seen by the Secretary of State for Innovation, Universities and Skills.

To ask the Secretary of State for Innovation, Universities and Skills how many projects delayed by the Learning and Skills Council’s moratorium on capital spending for further education colleges he expects to be re-tendered as the original tender will have become invalid. (270787)

Capital funding for further education colleges is administered by the Learning and Skills Council (LSC). As the information requested pertains to records held by the council, I have asked Geoffrey Russell, the acting LSC Chief Executive, to write to the hon. Member with the further information requested. A copy of his letter will be placed in the House Libraries.

To ask the Secretary of State for Innovation, Universities and Skills how many of capital projects in further education colleges were at the time of the announcement of the Learning and Skills Council's moratorium on capital spending for further education colleges were at post-tender stage with a selected contractor; and what assessment has been made of the merits of allowing projects which had reached this stage of development to proceed notwithstanding the moratorium. (270788)

Budget 2009 announced that an additional £300 million of capital funding will be made available in the current spending review period. This will allow us to take forward a limited number of the most urgent and greatest need projects during this spending review, although the precise number will depend on the projects chosen. In order to determine which projects will be funded, the LSC are consulting with the sector on prioritisation criteria and they have established a reference panel of college principals convened by the Association of College to inform the approach for prioritising schemes.

As the information requested for the first part of your question, regarding college projects at the post-tender stage, pertains to records held by the Council, I have asked Geoffrey Russell, the acting Learning and Skills Council (LSC) Chief Executive, to write to the hon. Member with the further information requested. A copy of his letter will be placed in the House Libraries.

To ask the Secretary of State for Innovation, Universities and Skills what estimate he has made of the costs incurred by those colleges bidding for contracts which have been affected by delays caused by the Learning and Skills Council’s moratorium on capital spending for further education colleges. (270789)

We recognise that some colleges have incurred significant costs particularly, but not exclusively, where the project is at an advanced stage of development.

The Learning and Skills Council’s (LSC) new acting Chief Executive, Geoff Russell, has appointed an external team to review the current financial data held by the LSC, as well as a team of property specialists to assist the LSC to ensure information held about individual projects is accurate, comprehensive and a sound basis for taking future decisions. The LSC will work with each college, with the help of independent property consultants, to assess how the longer term value of expenditures that can be incurred, as well as to understand the nature and extent of any liabilities.

Through its normal financial intervention process, the LSC will ensure that no college is unable to meets its financial obligations as a result of decisions on capital projects. Once this work by the property specialists has been completed, and there is a full analysis of the costs incurred, then the contribution that can be made to such costs from the LSC will be confirmed. The LSC plan to be able to confirm this to colleges at the beginning of June.