BEING a not-for-profit venture has been key to the success of the GTA University Centre, its chief executive has said.
Simon Le Tocq said that turning it into a profit-making enterprise would make it unable to support the island’s workforce in the way it does at present.
Commenting on the PwC report into how savings can be made at Education, Sport & Culture, Mr Le Tocq said the GTA University Centre had a very clear mandate.
‘The GTA exists to ensure a highly skilled and capable workforce for the Bailiwick of Guernsey by facilitating learning and development and promoting lifelong learning.’
PwC suggested that by making it into a profit-making enterprise, the £740,000 annual grant from Education could be removed.
‘The GTA currently receives a grant of £703,000 (not £740,000 as stated in the PwC report) and it would not be possible for the organisation to generate this sum through pricing increases whilst fulfilling its current mandate,’ said Mr Le Tocq.
‘The status of the organisation as a not-for-profit has been key to the GTA University’s success.’
PWC was critical of the large reserves built up by the GTA with no way for the States to claw any money back.
While there is a contingency reserve to cover long-term liabilities, Mr Le Tocq said that any surpluses derived from courses are reinvested ‘in pursuit of the mandate’.
If it became a for-profit business, its profits would go to its shareholders rather than being recycled to help boost the skills of local businesses.
‘The PwC report focuses solely on cost savings without an appreciation of value, i.e. what is delivered for the grant which we receive and how this benefits the wider economy,’ said Mr Le Tocq.