Further Education Funding

Debate between Chi Onwurah and Richard Graham

Tuesday 2nd April 2019 Westminster Hall

[Richard Graham]

The apprenticeship levy is an issue in itself, which I do not intend to address today, because it is slightly peripheral to what we can achieve in an hour and a half on the overall situation for further education colleges. The hon. Gentleman is right that there are ongoing issues, which I know the skills Minister is doing her best to tackle, and I am grateful to him for raising them.

More funding can achieve results in a couple of slightly softer areas, which are worth mentioning. The challenge around mental health is not unique to further education but exists across the education sector. There is no doubt about it: young students in general are facing more challenges than in the past. Funding to ensure that they get the support they need while at college is incredibly important and should increase their resilience and contribute to better results and opportunities. It is worth adding that to the checklist of things that could be achieved through more funding.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

rose—

[Richard Graham]

Lastly, at the soft end of what could be done, there is a range of enrichment activities, particularly for students aged 16 to 18, where colleges have opportunities to demonstrate that they can compete with other, better funded institutions.

Before I turn to the hon. Member for Newcastle upon Tyne Central (Chi Onwurah), who is from the engineering sector and a great advocate for it, I will just touch on a few general facts, which it is useful for us to bear in mind. There are 266 colleges in England—almost one college for every two constituencies. They educate the majority of 16 to 18-year-olds and 2.2 million other young people and adults. On average, there are 1,200 apprenticeships in every further education college. Students who are over 19 generate an additional £70 billion for the economy over their lifetime.

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[Richard Graham]

I will just make a bit of progress, then I will come to the hon. Member for Newcastle upon Tyne Central and then the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss).

The average pay for a college teacher—a number of colleagues have mentioned salaries as an issue—is £30,000, compared to £37,000 for a school teacher. I find that a particularly interesting statistic because it implies that we put a lower value on further education teachers than school teachers, which cannot be right. It is also worth highlighting that in 2017 alone the turnover rate in further education was 17%—almost one in five—which is higher than the rate in schools. As a result of funding issues, 63% of colleges have been making compulsory redundancies. If this was a business, we would have to assume that it was in decline. I think we would all say that it is time that we halted and reversed that process.

[Chi Onwurah]

The hon. Gentleman is absolutely right to highlight the devastating impact that lack of funding for further education is having, particularly on young people. Colleges such as Newcastle College in my constituency are doing great work in really difficult circumstances. Does he agree that adult education and lifelong learning, such as that delivered by the Workers’ Educational Association in hard-to-reach communities in Newcastle—which has also been severely cut and is likely to be cut more in the future—provides the kind of opportunities that we need, particularly for productivity in the fourth industrial revolution, as jobs change in the future?

[Richard Graham]

The short answer is that I agree. Qualifications for workers in key sectors have dropped. Qualifications for construction workers have dropped from 98,000 to 62,000. For engineers, the sector from which the hon. Lady comes, including plumbers and electricians, the figure has dropped from 145,000 to 46,000. That is a huge drop in a relatively short space of time, precisely at the moment when we need more engineers in this country, to take forward our technology revolution.

Future of the Commonwealth

Debate between Chi Onwurah and Richard Graham

Wednesday 21st March 2018 Westminster Hall

[Richard Graham]

My hon. Friend is absolutely right. If I did not know him better, I would assume that he must have cyber-attacked my speech, because he has brilliantly anticipated what I was about to say.

Development on its own—this is where my hon. Friend’s point comes in—however noble, is not enough of a cause to realise the full potential of the Commonwealth. One of the key things is to tackle civic society changes as part of an embracing of all talent and good business practice. That boosts economies, security and standards of living for all. On the business side, I do not think that a future Commonwealth-wide free trade agreement is practical—I am sorry to disappoint those who believe it is. We might be able to make a start with a small coalition of the willing, but I doubt it would expand across the full panoply of the Commonwealth in the way that many of us would like.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

I congratulate the hon. Gentleman on securing the debate. He set out some of the reasons why today is a good day to have this debate. As vice-chair of the all-party parliamentary group for the Commonwealth and chair of the all-party parliamentary group for Africa, I want to add that today Cyril Ramaphosa is signing an Africa free trade agreement. Does the hon. Gentleman not think that the potential for free trade within Africa, combined with forward-looking trade agreements with the UK that put economic development at the heart, are real opportunities for the Commonwealth?

[Richard Graham]

The hon. Lady is absolutely right; today is an exciting day. I think it is called the continental free trade area. It brings together 21 African nations, so by no means everybody in Africa, but it is a huge leap forward. In a sense, I am leading on to that.

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[Richard Graham]

My hon. Friend is absolutely right, and I know that her experience in the International Trade Committee bears on that. Those non-tariff barriers: the ease of doing business, infrastructure issues, blockages at ports, and bureaucracy and paperwork involved are all things on which we and the Commonwealth as a whole can make huge progress. She is quite right; it would make a big difference.

[Chi Onwurah]

I thank the hon. Gentleman for being generous with his time. Does he agree that improving the regulatory capacity in Commonwealth countries is an important factor in supporting and increasing trade in services? Although most businesses want to make a positive impact, some are looking to exploit the lower regulatory barriers in some developing countries. The Commonwealth can make a real difference in ensuring that the legal and regulatory frameworks in Commonwealth countries enable a free and frank negotiation of regulatory agreements.

[Richard Graham]

The hon. Lady makes an interesting point. The question of standards and regulatory resource capacity and implementation, which ultimately boils down to the rule of law, is critical. If we say, as we often do, that among the shared values of the Commonwealth are those of democracy, language, the rule of law, accounting standards and so on, we should not be complacent about assuming that they are all the same in every Commonwealth country and that they are equally well implemented. That comes back to one of the issues from the report by the Eminent Persons Group in 2013, which the Minister will remember well because he was in the Foreign and Commonwealth Office at the time. A commissioner was going to be appointed to look at the quality and the implementation of democracy in its widest sense, including—in my interpretation anyway—the rule of law. The business of standards is absolutely critical. The Minister may want to comment on that when he speaks.

We are hearing from across the Chamber an enthusiasm for more business, and not just for business’s sake but as a catalyst for improving living standards for millions of people across all continents. We in the United Kingdom may want to look at what more we can do with our resources. It was mooted in a recent House of Lords debate that perhaps we should have more trade envoys with Commonwealth member responsibilities. I think there are seven of us at the moment who are trade envoys for the Prime Minister with Commonwealth countries, but there may be a case for increasing that number, to see whether the team would benefit from further recruits, especially from those with close links to the Commonwealth countries to which they might be appointed.

There could also be a real effort by the United Kingdom to open doors and opportunities through our large, thriving financial sector. For example, we have great fund managers such as Standard Life Aberdeen or Schroders, but I am not aware of any investment opportunity into a Commonwealth-branded fund. That would be an obvious potential opportunity. Perhaps it should be done by one of our smaller and nimbler venture capital or private equity outfits, but a Commonwealth fund could have real emotional appeal and could attract a large amount of funding that, if focused on venture capital, could encourage a resurgence of Commonwealth entrepreneurs.

At the same time, with our new and invigorated UK export finance, where we have announced huge sums of money available, particularly for the region of the Association of Southeast Asian Nations, where I have trade envoy responsibilities, surely there is an opportunity at this CHOGM to make an announcement that UK export finance will provide a large fund of perhaps £2 billion to £5 billion of finance available as insurance credit for business partnerships around the Commonwealth. That would be a good start and would demonstrate our commitment to promoting greater intra-Commonwealth trade.

Behind that, there are what I might call the two step-brothers that are critical to every country across the Commonwealth: cyber and FinTech. In these sectors, the UK can offer a huge lead for, and partnership with, other Commonwealth countries. We already do so, particularly with Singapore in the far east, but there must be greater opportunities for doing so with Commonwealth partners, particularly in Africa.

I recommend that the Foreign Office—the Foreign and Commonwealth Office, rather; let us not forget the C—proposes to the Commonwealth secretary-general, my former fellow trade envoy, Baroness Scotland, that she considers setting up a new Commonwealth cyber body as soon as possible to bring together expertise from the UK and other member states, and considers ways of increasing capacity for the protection of all digital facilities, Government and non-Government, in member states.