Academies Bill [Lords]

Dan Rogerson Excerpts

Thursday 22nd July 2010 Commons Chamber

Let me finish with this point, which I raised before. The Secretary of State said on his website that schools would get “more money”. How will that happen when the Government are saying that the money is not there for BSF in the first place? Those schools that follow his line will get more money and the rest will be left with none.

[Dan Rogerson (North Cornwall) (LD)]

It is a pleasure to serve under your chairmanship again, Mr Caton, as we debate in a little more detail the Government’s proposals on additional school provision. I have made it clear, both yesterday and in earlier debates, my position of being sceptical—

[Mr Ben Wallace (Wyre and Preston North) (Con)]

Is that a personal view?

[Dan Rogerson]

Personally—yes, absolutely—I am sceptical about this sort of additional provision. However, the coalition agreement sets out our intention to explore avenues to make these opportunities available to communities where there is demonstrable demand for them. The Secretary of State has made it clear that he has received proposals from people in certain areas of the country who want to explore this idea and move forward, so it is sensible to make provision to do that.

Yesterday, I asked for clarification whether, in areas where such schools are to be brought into existence, the facilities will be of a high enough standard that any young people enrolled in those institutions will have the same sort of protections as other young people. I hope that any providers that wish to enter the market will make sure that, as far as possible, they provide sufficient resources for that rather than seeking to draw down moneys that might otherwise have gone elsewhere. That is the sort of provision that people might expect.

My hon. Friend the Member for Bradford East (Mr Ward) has laid out some of the political realities of the situation and the difficulties that some have in understanding where the money might come from in the current situation. Given some of the comments and remarks that Opposition Members have been making, one would have thought that everything was perfect under the previous Government and that everyone was getting all the resources they wanted in both capital and revenue terms. The school funding in my constituency was about £300 or so below the national average, so people there feel strongly that they have not had those resources. I expect that you will rule me out of order, Mr Caton, if I continue down that line, but it is important to get on the record that although some hon. Members might have experienced huge investment in their constituencies and although I welcome the fact that the Government put resources in when the money was available to do so, that money did not reach all people and not everyone was satisfied with the deal they had.

[Toby Perkins]

I am interested in the hon. Gentleman’s comments because we in Derbyshire are also campaigning for more funding for our schools. He says that north Cornwall did not benefit from Labour’s investment; is he saying that education funding has not increased dramatically in north Cornwall in the past 13 years?

[Dan Rogerson]

I am talking about the funding formula. As we have been talking about different parts of the country benefiting in different ways, I thought it important to get on the record that my students were disadvantaged by that formula.

The amendment is useful in that it has prompted a discussion on these issues, but there are problems with it. I note in passing the phrase in proposed subsection (1A)(c):

“any other persons deemed appropriate.”

In yesterday’s debate, the Opposition argued that it was not sufficient to deem people appropriate and that the list should have been much longer, and included staff, for example, so a little inconsistency is apparent.

Putting that point aside, the problem with the amendment is that it is a little vague. Essentially, it relates to situations in which anyone in the local community might think that their school needs a bit more investment for a project, but no level of investment is specified. I can see how the amendment could kick in when a school has been identified by Ofsted and everyone else as needing drastic investment, but it talks about

“whether there are outstanding requirements for capital investment”.

Presumably, the consultation would leave it up to those who responded to a request to define what they deem to be “outstanding requirements”, so the amendment would effectively mean that if anyone said, “We want a bit more in our existing school for this”, no money would be provided. The amendment is intended to toughen up the criteria governing such requests, and I am tempted by that, but it is flawed because, in practice, it would act as a block.

I am sympathetic to some of the issues that have been raised, and I hope that the Minister will respond to them and clarify how local people may be reassured that the Government’s proposed capital programme will meet as many demands for improvements to existing schools as possible.

[Ian Mearns (Gateshead) (Lab)]

I want to support the amendment and I am concerned about the implications of the Bill on the review of expenditure on capital programmes into the future. In my borough, five Building Schools for the Future secondary school projects have been cancelled very recently. The first one that I want to talk about is the proposed amalgamation between two schools, Ryton and Hookergate, which are on the western fringe of the borough and in the constituency of my hon. Friend the Member for Blaydon (Mr Anderson). That proposed merger was the result of prolonged negotiations regarding those two schools, and the cancellation is a matter of grave concern.

Hookergate—a school that has long served the communities of Chopwell, Rowlands Gill, High Spen and Greenside, as well as many smaller, isolated rural settlements—is sadly subject to a declining pupil population, and it was set to be amalgamated with a school a few miles to the north, in the town of Ryton, on a site that the local authority was negotiating for with several landowners in the area.

Ryton school serves a very broad catchment area, including Ryton and Crawcrook. It also serves communities on the western fringe of Blaydon such as Stella, and the areas of Clara Vale, Stargate and Emmaville. Indeed, the formal part of the consultation on the local authority’s proposal for amalgamation was due to start the day after the Secretary of State made the announcement in the House cancelling the programme.

Another school affected by the cuts proposal is Whickham comprehensive, a large, successful school with some 1,500 pupils in the town of Whickham. It serves surrounding villages such as Marley Hill, Byermoor and Sunniside. It is very popular, but it is in grave need of renewal, as it is in a 1960s CLASP-style building, CLASP being the consortium of local authorities special programme. It is also bursting at the seams, having suffered a fire in one of its blocks several years ago.

St Thomas More Catholic comprehensive school is very popular and successful, with high levels of academic achievement, despite the poor and cramped conditions on its site. The Joseph Swan school, named after the inventor of the incandescent light bulb, who lived in Low Fell in Gateshead, is a successful school serving the community of central Gateshead and Low Fell, where there are three Liberal Democrat councillors. It was to have its dining block and humanities area rebuilt, on the back of the highly successful rebuild of the school’s main body through the traditional capital programme of the late 1990s.

Government Members have criticised us for not investing enough in schools during the 13-year tenure of the Labour Government. In my borough, we had the five schools that I mentioned left to do, but Lord Lawson of Beamish school was rebuilt using the private finance initiative; Kingsmeadow comprehensive was completely rebuilt using PFI; and the Heworth Grange and Thomas Hepburn schools are at the on-site stage. I have to declare an interest: I am still nominally the chair of governors of Thomas Hepburn school. The steelwork is now being erected so that the school can be rebuilt. Numerous primary schools were rebuilt or refurbished through combinations of old-style capital spend and PFI.

The £80 million that was due to come to us as part of Building Schools for the Future included the opportunity to adapt four schools to ensure that they were able to offer inclusive education for children with special needs, where it was the choice of parents to include youngsters with SEN in mainstream schooling. That was part of the transformational aspect of BSF to which my hon. Friend the Member for North West Durham (Pat Glass) referred. That additional SEN money that BSF talked to us about recognised the SEN review in our borough, and our ability to deliver; we could generate, according to the ready reckoner, approximately £10 million to invest in special schools, thereby completing our secondary school investment programme.

In Gateshead, we have built the angel of the north, a millennium bridge, and the Sage Gateshead concert hall and music complex, at which many Members from across the House have attended conferences. We have completed many capital projects, but what I am most proud of is the improvements in education for the children of our borough, and I hate the prospect of that improvement coming to a halt.

When the Secretary of State announced the axing of BSF, and when hon. Friends and I first raised the issue, Government Members accused us of feigning anger and outrage. After 27 years as a local councillor in Gateshead, and after a decade as the lead member on education serving the Gateshead community, I can reassure all Members of the House that I am not feigning anything. In particular, there is no pretence in my profound sadness that the much-needed continued investment in schools in my borough has been snatched away from the children who we all seek to serve.

I welcome the undertaking given by the Deputy Prime Minister yesterday to meet the borough’s MPs and discuss this issue. I hope that at that meeting he will reassure us that the Building Schools for the Future programme for Gateshead has a future and has not been sacrificed on the ideological altar of investment in academy school buildings or new free schools for other, more favoured parts of the country.

In that vein, I was struck by the suggestion made by the hon. Member for Bermondsey and Old Southwark (Simon Hughes), the deputy leader of the Liberal Democrats, on the BBC last week that he would use his influence to lobby on behalf of places such as Liverpool, Sheffield and Newcastle—all places where the Liberal Democrats have had a significant foothold in local government representation. I hope that the Government will demonstrate transparency and that such decisions on school funding are made on the basis of fair criteria rather than behind-the-scenes deals.

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[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

I strongly echo the closing remarks of the hon. Member for Portsmouth South (Mr Hancock), and I welcome the amendment.

The Government’s announcements on Building Schools for the Future and the progress of this Bill, which have happened roughly at the same time, are very much related to each other. As my hon. Friend the Member for North West Durham (Pat Glass) said, Building Schools for the Future was not just about new buildings— it was about school improvement and educational transformation. I understand that that is the Government’s thinking on the Bill.

These developments are having significant impacts in schools in communities up and down the country. On Second Reading, I mentioned three examples of schools in my constituency in Liverpool. De La Salle Catholic boys’ school in Croxteth, an outstanding school that was due to become an academy under the Building Schools for the Future programme, now does not know whether it is going to get the extra investment, which it desperately needs. Another school, St John Bosco, also in Croxteth, and also an outstanding school that was due to be rebuilt under Building Schools for the Future, also needs that investment. Last weekend the head teacher asked me, “Should we now apply for academy status?” That is not because those at the school have a new plan in addition to their previous plans on educational transformation, but simply because they think that might be the way to secure the extra investment that they were going to get under Building Schools for the Future.

[Dan Rogerson]

Does the hon. Gentleman not feel that there were people who thought exactly the same when the previous Government were in office? There were conversations such as that. I know that the current Government will be listening closely to what he says, and I am sure they will want to underline the fact that there will be a wider capital programme but, as other Members have said, what the hon. Gentleman describes was surely sometimes the perception under the last Government.

[Stephen Twigg]

The difference on this occasion is that the schools affected have worked for years on a programme for their own improvement, and they came together in Building Schools for the Future. Now that has all been stopped, except for schools that will potentially have academy status. The problem is the uncertainty. I want schools to make the decisions that are best for them. The head of De La Salle wants his school to be an academy and sees the educational advantages, whereas the head teacher and chair of governors of Holly Lodge, another school that was due to be rebuilt under Building Schools for the Future, have decided that they do not want that for their school. I do not want schools to make such decisions simply on the basis of whether the extra money is available.

I wish briefly to make a point about where we go from here. Although there is a real sense of loss and devastation in Liverpool that we are not getting Building Schools for the Future funding, there is also a hard-headed pragmatism. We recognise that there will be a new show in town, and we are starting to consider what the alternatives might be for securing the much-needed capital funding for the city.

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[Mr Wright]

I thank the Minister for his contribution. I am keen for him to intervene again, because I still think that the word “review” is very vague. It does not set out in any degree what the process would be, so that the proprietor of the academy could be reassured that appropriate processes had taken place. Our amendments 62 and 63 would tighten up the language of the Bill. They would ensure that there was not a review, to use that broad, somewhat ambiguous word, but an appeal. That would help to clarify certain matters in the Bill. I would be happy for the Minister to respond further on that point.

[Dan Rogerson]

I am intrigued by this role reversal: the hon. Gentleman is standing up for the proprietor of the academy against the local authority in this instance. It seems a reversal of the way in which the arguments have gone throughout the day. It strikes me that we are talking about a one-off instance, not a continuing relationship. Once the decision has been made, the academy is in the area, doing things with the local community. On his point about the provisions being a centralising measure, what he describes may not happen in every case, and the measure is a one-off.

[Mr Wright]

The hon. Gentleman makes a fair and reasonable point. I am anxious to proceed with business; I want to put it on the record that that is one of the reasons why my hon. Friend the Member for Gedling (Vernon Coaker) and I did not press amendment 71 to a vote. I understand what the Minister is saying, but I still think that this is a centralising Bill. The comments of the hon. Member for North Cornwall (Dan Rogerson) put the matter in a wider context. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

--- Later in debate ---

[Mr Wright]

I thank the Chair of the Education Committee and I entirely understand his point. Perhaps I should moderate my language in Committee. However, the point is essentially the same: how do we ensure that local taxpayers get good value for money? Like the equalities impact assessment, the impact assessment of the Bill is somewhat vague and light on detail. It states:

“Total one-off costs incurred by schools converting to an academy are estimated to be an average £78k including VAT.

Since the VAT costs are a transfer payment from DoE to HMRC, they are not economic costs. The total economic costs per conversion to academy are therefore £66k.

However, there is scope for Academies meeting these costs from within their existing balances which could reduce the cost to DFE to as little as £25,000 per Academy.”

Will the Minister outline the evidence base for this? No mention whatever is made of the transfer of surpluses in this regard. In preparing for the Bill and with regard to the impact assessment, what work has been done in relation to surpluses that could be transferred to the academy? I would be interested in any information that he could provide about that.

The purpose of amendment 76 is to address those concerns about transparency and accountability and to try to ensure that there is an appropriate process.

[Dan Rogerson]

I am not sure whether the hon. Gentleman intends to discuss amendment 66, which is grouped with amendment 76. I may be misreading those amendments, but as I understand it, they are contradictory, because one of them seeks to remove liability while the other seeks to offset liabilities and surpluses. What is the thinking behind that?

[Mr Wright]

I will come to that, but I assure the hon. Gentleman that the amendments are not contradictory—they are trying to address a similar problem and to ensure that we can resolve this issue.

Amendment 76 would ensure that all existing and contingent liabilities, including any liabilities that have been incurred on behalf of the school by the local authority, should also be considered. In this context, I take the contingent liability to mean a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence of one or more uncertain future events not wholly within the existing school’s control. An example could be outstanding legal cases. We discussed in Committee last night the possibility of legal challenge from staff who might not have had the opportunity or the time to consider properly the TUPE arrangements of moving from a maintained school to an academy—a point that has been well articulated by my hon. Friend the Member for Blaydon (Mr Anderson). That might be considered a possible contingent liability.

Another example, which has been discussed this afternoon, could be any liabilities arising under current private finance initiative arrangements. We had an interesting debate about amendment 70, with particular regard to PFI. One of the risks is that a local authority could have a potential 25-year period of liabilities arising from PFI, and converting a maintained school to an academy means that the academy has no way of being liable for that payment over that quarter of a century. What reassurance can the Minister give in that regard?