Oral Answers to Questions

John Hayes Excerpts

Thursday 8th July 2010 Commons Chamber

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

5. What the eligibility criteria will be for further education colleges for funding from the recently announced renewal and enhanced renewal grant schemes.

[The Minister of State, Department for Business, Innovation and Skills (Mr John Hayes)]

The additional investment in further education college infrastructure that we announced on 24 May will be used to support further education institutions to develop the best facilities possible and will be prioritised to support colleges that have yet to benefit significantly from the college building programme. As I announced on 21 June, the Skills Funding Agency has identified institutions that are eligible to apply for the additional funding and has issued guidance to those colleges on how they can apply for funding from both the renewal and enhanced renewal grants.

[Geoffrey Clifton-Brown]

I warmly welcome the introduction of the funding, which will help colleges affected by the previous Government’s moratorium on Learning and Skills Council funding. However, independent specialist colleges, such as the National Star college in my constituency, which train some of the most affected disabled people in the country, were transferred before the election from my hon. Friend’s Department to the Department for Education. Such colleges look set, therefore, to lose out on the opportunity to apply for capital funding for the second time in a row. Is there anything my hon. Friend can do to deal with that unfair situation?

[Mr Hayes]

My hon. Friend has been a champion of National Star college, which does outstanding work for the learners he describes. I share his concerns. He is right about the transfer of responsibility. Nevertheless, because of the overtures and the strong case made by others, and my own commitment to learners with those difficulties, I have today initiated discussions with the Department for Education to see how we can move with coherence to a position where all colleges benefit in the way my hon. Friend describes.

[Kevin Brennan (Cardiff West) (Lab)]

In fact, is the scheme not typical of the way the Department for Business, Innovation and Skills has been rolled over by the Treasury since the election? Can the Minister confirm that we invested more than £2 billion in our FE colleges and that the £50 million fund has been pilfered from his skills revenue budget and, therefore, represents a cut in future years, not an investment? He will want to be straight with the House about that after yesterday’s debacle.

[Mr Hayes]

Speaking of debacles, FE capital funding under the hon. Gentleman’s Administration was indeed a debacle, obliging Sir Andrew Foster to conclude that it was due to mismanagement. The hon. Gentleman knows that the FE capital that we have announced is in addition to the spend we will make in 2010-11 on capital in FE. It is time FE was given a new future, and it will be under this Government.

[Simon Wright (Norwich South) (LD)]

6. What plans he has to ensure the financial viability of the Post Office network.

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[Charlie Elphicke (Dover) (Con)]

10. How many further education colleges will receive capital funding from his Department in 2010-11.

[The Minister of State, Department for Business, Innovation and Skills (Mr John Hayes)]

One hundred and sixty colleges, including 28 sixth-form colleges, will receive further education capital support totalling £407 million in 2010. In addition, a further £50 million will be invested to support those colleges that have yet to benefit significantly from the capital programme. We expect that extra resource to increase significantly the number of colleges that receive capital grant support, with potentially 293 colleges receiving capital support in 2010-11.

[Charlie Elphicke]

Will funding be available for Hadlow college’s plans for Betteshanger business park, near Deal? The business park was created by the regional development agency, £18 million was spent, and it has been left empty. It would be great to bring it into use.

[Mr Hayes]

It is essential that my hon. Friend and the House understand that that resource is on top of the existing investment programme, which is supporting a large number of current projects. That resource will enable real investment, bringing genuine benefits to learners and enabling colleges to plan for the future. I do not want to be unkind to Opposition Members, but it is important to recognise the disappointment that colleges felt under the previous Government. The Foster report said that that was due to inadequate management information, poor monitoring, a poor long-term financial strategy, meetings that led nowhere and monitoring that was focused on the wrong things. Now, I do not want to be unkind, but that is not good enough.

[Joan Walley (Stoke-on-Trent North) (Lab)]

Given that we are where we are in respect of capital funding for colleges, will the Minister look very carefully at the urgent need for increased capital expenditure in Stoke-on-Trent and at whether we can apply for the £5 million to get investment in the Burslem and Shelton campuses? Our college has no reserves, and I need the Minister to address that urgently.

[Mr Hayes]

I cannot make promises about individual colleges, but I hear what the hon. Lady says—she makes a powerful case—and I will be happy to meet her with my officials to discuss that matter further.

[Mr David Evennett (Bexleyheath and Crayford) (Con)]

May I welcome the Minister’s response and his plans to give further education colleges more freedom? Will the new freedoms that he is offering extend to capital projects, to make it easier for colleges to get alternative sources of finance?

[Mr Hayes]

Indeed, and it is perhaps also important to let the House know that the Government money that is available will leverage in other moneys. We want to look at all kinds of ways in which colleges, enjoying the new freedoms that this Government are determined to give them, can invest in their future. By the way, I know that my hon. Friend is a great champion of further education. I add that because he deserves that plaudit.

[Barry Gardiner (Brent North) (Lab)]

Will the Minister accept my invitation to come and visit the College of North West London in Brent so that he can spread some of his largesse there?

[Mr Hayes]

My largesse is legendary, and I can hardly wait to visit. I would make one request—that there are tea and cakes when I arrive.

[Mike Crockart (Edinburgh West) (LD)]

11. What recent steps he has taken to increase access to finance for small businesses.

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[Robert Halfon (Harlow) (Con)]

T2. Following the excellent plans for apprenticeships, is my hon. Friend the Minister aware that the local apprenticeship scheme run by Essex county council and Harlow college has agreed to place an Essex apprentice in my office from October? Will he also look into boosting apprentices in Whitehall and Westminster, and through Government contracts?

[The Minister of State, Department for Business, Innovation and Skills (Mr John Hayes)]

My hon. Friend has been a champion of apprenticeships since he arrived in the House and before. I congratulate him on his initiative in that respect. He will know that this Government have already transferred £150 million into the apprenticeship budget to create 50,000 more apprenticeships. I can announce today that one of them will be joining my office in Whitehall, and I invite other Ministers to do the same.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Can the Secretary of State clear up the confusion on the future of regional development agencies that has arisen out of conflicting statements? On the one hand, there is an apparent open-mindedness on the part of the Secretary of State; on the other, his counterpart in the Department for Communities and Local Government has taken a more hard-line and ideological approach. If there is a desire in any region, including the west midlands, for the retention of a strong regional structure—albeit with sub-regional arrangements, including local employment partnerships—will the Secretary of State be open to the retention of a strong regional development agency there?

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[Brandon Lewis (Great Yarmouth) (Con)]

T6. Learners at colleges across England such as Great Yarmouth college have contributed something like £28 billion to our economy over the past 15 years. Does the Minister agree that those colleges need the support of our Government? What freedoms can we give them to ensure that they develop even further in the future?

[Mr Hayes]

I entirely agree with my hon. Friend. He is right to raise that issue in those terms, because it is through freedom that colleges will be able to innovate and excel. It is vital that colleges become more responsive to learner demand and to employers. That is why I have already announced certain important freedoms that they want and that were denied to them by the Labour Government.

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[Jake Berry (Rossendale and Darwen) (Con)]

May I say that the announced 50,000 new apprenticeships are hugely welcome in my constituency, as Rossendale and Darwen has many young people working in the manufacturing sector? Given that an apprenticeship should be only the start of a journey of lifelong learning, what steps have been taken to encourage those who have completed an apprenticeship to go on to university?

[Mr Hayes]

My hon. Friend makes an important point about progression. It is important to have a ladder of training opportunity, going from re-engagement of those who have been disengaged from education, training and employment through to apprenticeships, and then to higher level skills, too. We will certainly do that.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

Will the Secretary of State confirm whether he will go ahead with previous plans to introduce financial incentives of about £5,000 for people buying new electric vehicles?

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[Mr Marcus Jones (Nuneaton) (Con)]

The Minister may be aware that the selections for the UK WorldSkills squad are due to take place in anticipation of the 60th WorldSkills competition, held in London next year. One of the selection events is taking place in my constituency at the excellent North Warwickshire and Hinckley college during November. Will the Minister consider accompanying me on a visit to the college during that week, to see the excellent work that the students are doing?

[Mr Hayes]

I can see that I will be busy travelling the whole country. Of course I will—WorldSkills matters and celebrates success; there was cross-party agreement about that. I will support the event in his constituency and WorldSkills more generally.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

On a point of order, Mr Speaker.