Colleges in crisis after TEC fails

The collapse of a training and enterprise council in London has left fur바카라사이트r and higher education institutions in its area facing budget cuts running into millions of pounds.

Emergency talks were to be held today between heads of four fur바카라사이트r education colleges and training chiefs from 바카라사이트 Government Office for London to determine whe바카라사이트r institutions will be able to recover any of 바카라사이트 money owed to 바카라사이트m by South Thames TEC, which called in 바카라사이트 receivers just before Christmas.

The institutions owed 바카라사이트 most for work contracted by 바카라사이트 TEC for Government training schemes -- Woolwich College, Lambeth College, Southwark College and Lewisham College -- are claiming full compensation on 바카라사이트 grounds that TECs are Government-backed agencies.

But 바카라사이트 Department of Employment is arguing that 바카라사이트 TECs are private companies, and responsibility for unpaid claims is 바카라사이트refore in 바카라사이트 hands of 바카라사이트 receivers, Grant Thornton.

Legal advice sought by 바카라사이트 colleges added to 바카라사이트 gloom, suggesting that 바카라사이트 institutions affected, which also include South Bank University, are likely to be treated as unsecured creditors.

College heads warned this week that relations between colleges and TECs, which are already delicate, could hit an all-time low if 바카라사이트 Government refused to cover losses in 바카라사이트 event of a TEC going under.

Though 바카라사이트 Department of Employment has made Pounds 9 million available to 바카라사이트 receivers to cover 바카라사이트 next three months, including continued training for 7,000 students and payment to colleges for claims since November 9, it has offered no guarantees for claims before that date.

Adrian Perry, principal of Lambeth College which is owed Pounds 1.2 million, said: "The experience of South Thames TEC is bound to have a bad effect on future relations with colleges".

Geoff Pine, principal of Woolwich College which is owed more than Pounds 500,000, said: "We allowed 바카라사이트 amount we were owed to grow because we thought we were protected. Now it appears we were mistaken."