Can I challenge the Minister on this? I would agree that there is a world of difference when it comes to a private company, which is perhaps going to make profits to distribute to its shareholders. That is one set of circumstances, but we then start to move down a series of alternatives. I cited the example of a social enterprise company, which is a body corporate and is entitled to make surpluses. They are not called profits, but it is taking income out of the local authority and building a surplus in an organisation which is not a public body. That must have some effect on the extent to which the resources devoted by the local authority to that social enterprise are available for services in any one given year. How big can those surpluses get before they have an impact on the volume of services that can be delivered? The Minister is trying to brush this away. I am not trying to score points, but the noble Lord, Lord Watson, has raised an important issue. You cannot just say that these are not distributed-profit companies—these companies can build up surpluses which could have an impact on the revenue that is available in any one financial year for the provision of services.
Children and Social Work Bill [HL]
Proceeding contribution from
Lord Warner
(Non-affiliated)
in the House of Lords on Wednesday, 6 July 2016.
It occurred during Debate on bills
and
Committee proceeding on Children and Social Work Bill [HL].
Type
Proceeding contribution
Reference
773 c236GC 
Session
2016-17
Chamber / Committee
House of Lords Grand Committee
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Timestamp
2021-10-12 15:15:54 +0100
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