To ask the Secretary of State for Wales what procedures exist to allow him to assist a school that finds itself in financial difficulties; and how often he has aided a school by use of such procedures in each of the past three years. [9916]

Responsibility for the funding of local education authority maintained schools rests with unitary authorities. It is open to LEAs to include in their local management of schools schemes arrangements to defer recovery of any overspends until subsequent financial years.

Cwmcarn school in my Constituency had a cumulative deficit of £116,000 in the three-year period 1992–95. Accounts published by the school appear to show that the deficit has not been carried forward, but has been written off. Have those debts been written off? If so, did the Secretary of State agree to that, and will he be as generous with other schools in my constituency that are facing similar problems?

My earlier reply related to the LEA-maintained sector. As for grant-maintained schools, it is open to my right hon. Friend the Secretary of State to make a loan to any school that finds itself in financial difficulties. To date, it has not been necessary to use that power.