Further Education Colleges and Training Organisations

John Hayes Excerpts

Thursday 17th June 2010 Written Statements

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

I am pleased to inform Parliament that the Government are announcing today a series of measures aimed at boosting economic recovery. These measures will give further education colleges and training organisations greater freedom to deliver the education and training that employers and individuals need, and to raise opportunities for lifelong learning through a system that is freed of unnecessary bureaucracy, and driven by empowered, informed learners.

The main measures are:

All colleges, except those which are performing poorly, to be given new freedoms to move money between budgets. This will allow them to respond quickly to local demand.

Working to bring colleges into line with schools in respect of Ofsted inspection, so that colleges which achieve outstanding results do not face inspection unless their performance drops.

Refocusing £150 million of resources to expand the number of apprenticeships available; and £50 million to support FE capital development;

Giving learners the information they need to drive the system, through the publication of clear and consistent information about performance, quality and standards.

I will be writing today to all colleges and training organisations about these and other changes, which will help them to focus on meeting the demands of employers and learners in their areas.

The Secretary of State for Business, Innovation and Skills will also be writing to the chief executive of the Skills Funding Agency—the body responsible for funding colleges and training organisations—confirming his priorities for the adult education and skills budget in 2010-11, including the refocusing of £150 million to pay for 50,000 extra apprenticeship places this year, and £50 million for new capital grants to colleges. A key goal will be to strengthen the supply of qualifications that are valued by employers; and to secure high-quality training opportunities to help unemployed people get the skills they need for work-readiness and sustainable employment; as well as encouraging an increasing number of people to participate in adult and community learning, both to re-engage those disenchanted by previous educational experience and to offer people opportunities to enrich their lives through learning.

Underpinning these changes, we are seeking to empower learners so that they can drive the learning and skills delivered by colleges and training organisations. A professional and impartial advice and guidance service will be available to support learners. Publication of clear information about the performance of colleges and training organisations will allow learners and employers to make well-informed choices. This will include information about learner success rates, learner and employer satisfaction, and the destinations of those who leave learning. As a result of the freedoms that we are announcing today, colleges and training organisations will be able to respond quickly and flexibly to their choices, offering a wide range of programmes that drive both high-tech innovation and new enterprise and support adult recreational learning.

Over the coming months, the Government will be looking at a wide range of other ways to remove unnecessary bureaucracy from the system, and we will be making further announcements in due course.

Industry (Government Support)

John Hayes Excerpts

Wednesday 16th June 2010 Commons Chamber

[Andrew Miller]

That is a bit rich, coming from the hon. Gentleman. He really is rewriting history. He must acknowledge how slow his party has been to wake up to the calls from people like me who were demanding a move towards nuclear power. I find it ironic that the amendment to our motion starts with the words “leave out from ‘power’”. I just wonder how much of a row there was in the coalition about that, given the fact that the two words before “power” are “civil nuclear”. I am pleased to see that the Government’s amendment would allow those words to stay in the motion, but I bet there is going to be trouble in the coalition when it comes to agreeing on some of the decisions that the hon. Gentleman is quite right to suggest are mission critical to the success of the UK economy.

This Government’s delays in decision making have also had a dramatic impact on the supply chain and, as a consequence, on many of the apprenticeships in the supply chain. We have heard all the stories about the creation of 50,000 new apprenticeships, but, goodness me, those delays have slowed down the creation of apprenticeships in my constituency and in the travel-to-work area around it. That includes the constituency of my hon. Friend the Member for Wrexham (Ian Lucas) and others, all of which are affected by the decisions at Vauxhall and the other big manufacturing operations around us.

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

I could not intervene on a less experienced or distinguished hon. Gentleman than the one who is speaking. On apprenticeships, he will understand that recessions do make things difficult, but will he not celebrate and welcome the commitment of this Government to creating more apprenticeships, particularly in small and medium-sized enterprises, in constituencies such as his?

[Andrew Miller]

I am counting every one of them, and if I have to come back and agree with the hon. Gentleman in a year’s time, I will do so. I just hope that he is not double-counting the commitments already made by those on the Labour Front Bench before the election. As long as he is not double-counting the number of apprenticeships, I will celebrate them with him. I look forward to seeing them.

We have also heard mention of FE colleges this afternoon. One thing I am immensely proud of—photographs of it feature on my website if anyone would like to look at it—is the new FE college that was built with funding provided by the Labour Government. It was chosen to be part of the network of colleges that would be built because of the importance of manufacturing to constituencies like mine. Apprentices from Vauxhall and the petrochemical sector, as well as from the retail and leisure sectors, study in that college, which is going to be a centre of excellence in the middle of Ellesmere Port, where manufacturing genuinely matters. I welcome that investment.

I move on to the second issue that is particularly important for the future of manufacturing. I welcome the fact that the Minister for Universities and Science has taken over the science portfolio, and I look forward to working with him in my new position as Chair of the Science and Technology Select Committee. We have already had some exchanges. I also put on record my thanks to my hon. Friend the Member for Blackley and Broughton (Graham Stringer) for the civilised way in which the election between him and me was conducted.

The Minister of State, Department for Business, Innovation and Skills, the hon. Member for South Holland and The Deepings (Mr Hayes) knows how passionately I feel about the role of science. He and I have talked about information technology issues in the past. I will press the Minister for Universities and Science in particular to ensure that he protects our science base, without which our future will genuinely be bleak.

To return to what I said at the beginning of my remarks, the impact of technological change on manufacturing and the globalisation of manufacturing mean that if we are to have a place in the manufacturing of tomorrow, part of it is going to have to be science-led and driven by the highest levels of research. It is mission critical—I hope this commands support from all corners of the House—that we maintain our investment in the science base. In areas of scientific endeavour that are close to market, we cannot afford—because of the pace of change—to take our eye off the big picture either. When it comes to our commitment to CERN or the European Space Agency, we need to realise that these blue-sky areas are incredibly important for our children and their children in turn. They are crucial if we are to maintain our position in this incredibly competitive field.

Another important issue for my new responsibility is ensuring that we work together—I hope in a collegiate way—across parties to improve public understanding of some of the complex scientific challenges that face society today. On that note, despite our odd disagreements on manufacturing issues, I hope that there will be common ground between the parties. Some aspects will divide the parties and other aspects might divide people within the parties, but I hope that serious progress can be made during this new Parliament. Nothing can be more important to our children than making sure that we are at the leading edge. If we do not stay there and if we do not invest in science and technology, we will start slipping down the ladder.

In seeing you join us, Mr Deputy Speaker, I note that this is the first time I have had the pleasure of speaking with you, another Lancastrian, in the Chair. I will conclude my remarks. I know how dearly you, Mr Deputy Speaker, hold manufacturing to your heart and how importantly you view it as the cornerstone for our future. It has to be manufacturing that is led by investment in science and technology; we need to deliver that at all levels in every aspect of our endeavours.

--- Later in debate ---

[Rachel Reeves (Leeds West) (Lab)]

I welcome you to your position in the Chair today, Mr. Deputy Speaker. It is a pleasure to speak in the debate after so many excellent speeches, not least from the hon. Member for West Suffolk (Matthew Hancock). Ten years ago, he and I started work on the same day at the Bank of England. We had many good debates there and I am sure that they will continue in the House.

It is also a pleasure to follow the maiden speeches of so many Members: the hon. Member for Bracknell (Dr Lee), and my hon. Friends the Members for Bolton West (Julie Hilling), for North West Durham (Pat Glass), for Middlesbrough South and East Cleveland (Tom Blenkinsop), for Wansbeck (Ian Lavery), and for Barnsley East (Michael Dugher). I know that my hon. Friend the Member for Barnsley East shares my concerns about the future of Yorkshire Forward, our RDA.

We have heard lots of stories from Members on the Government Benches about the waste of RDAs. I can only tell them what Phil Thompson, managing director of Resource Print Solutions in my constituency, says. His business, like many in all our constituencies, was hit hard by the recession, but he got through it because of a grant from Yorkshire Forward, which enabled him to buy new machinery and equipment and to keep jobs in-house that he had previously had to contract out. During the recession, he did not lay off a single worker. Because of the support from Yorkshire Forward and changes to shift patterns, he managed to keep people in work. The company is now growing again as we recover from the recession. What Phil’s business needs now and what the British economy needs now is economic growth.

[Mr Hayes]

The hon. Lady is already a distinguished and articulate advocate of her cause—I note it from her many interventions in the debate. In an effort to be helpful on RDAs, may I recommend to her the National Audit Office report and the report that preceded it from the Public Accounts Committee, which make it absolutely clear that in many instances the RDAs are cost-ineffective and insensitive to the very local circumstances that she champions?

[Rachel Reeves]

I thank the hon. Gentleman for that intervention. I think that we can tell from the debate today that different Members, representing different areas of Britain, have different views about their RDAs. I plead with the Minister. Labour Members representing Yorkshire, the north-east and the west midlands have spoken with huge passion about their RDAs. They have related the stories that they hear day in, day out from businesses and the people they represent. Let us keep our RDAs and let them continue to do the work that they are doing in our regions. That is all that I ask.

Oral Answers to Questions

John Hayes Excerpts

Thursday 3rd June 2010 Commons Chamber

[Andrew Percy (Brigg and Goole) (Con)]

4. What his policy is on support for adult community learning.

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

My strong commitment to adult and community learning is well known. It is shared by my Secretary of State and the Prime Minster, who in a recent interview with “Adults Learning” made clear his belief that learning is

“about broadening the mind, giving people self-belief, strengthening the bonds of community”.

That is why in 2010-11 we are developing a skills strategy with increasing importance placed on those with disabilities, learning difficulties and disadvantaged families and communities, spending £210 million in that year alone.

But that is insufficiently elegiac for you, Mr Speaker, and for this House. Lifelong learning feeds hope—builds and rebuilds lives by seeding a hunger for knowledge. It shapes people, families and communities and feeds social justice.

[Andrew Percy]

I thank the Minister for that response. Does he agree that the success and value of adult education is measured not only in terms of qualifications and certificates? Will he assure us that, as this Government move forward, the past cuts in adult education, for courses that do not lead to qualifications, will if possible be reversed, and that value will be placed on all layers of community adult education?

[Mr Hayes]

I welcome my hon. Friend to the House. I know of his rich experience in learning as a former teacher, and he, like me, understands that learning has a value for its own sake. I do not want to be unkind to my predecessors, because that would be slightly vulgar; nevertheless, it has to be said that the dull utilitarianism that permeated the previous regime’s thinking on this subject has now, thankfully, come to an end.

[Mr Wayne David (Caerphilly) (Lab)]

The Minister will be aware of the huge contribution that the Workers Educational Association has made to adult education. Can he confirm that his Government will support the WEA in its current form?

[Mr Hayes]

I am not only an admirer but, I would go so far as to say, a devotee of the WEA. The value that learning brings, in elevating lives and building strong communities, is exemplified by such organisations, and I look forward to an early meeting with the WEA to discuss how we can move forward together.

--- Later in debate ---

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

By July 2009, around 200,000 employers had staff involved in training through the programme. In the 2008-09 academic year, learners started 817,400 Train to Gain courses.

[Mr Bailey]

I thank the Minister for his reply and welcome him to his portfolio. The figures he gave demonstrate that the programme is very successful. Local manufacturers in the west midlands have recognised and welcomed it in the past. Can he give assurances that the programme will be continued, particularly as it was used effectively during the global recession, for companies on short-time working? In the event that we relaxed back into a double-dip recession, it could be there for them to use again.

[Mr Hayes]

The hon. Gentleman will know that the problem with Train to Gain is its deadweight cost—a fact that the last Administration were unwilling to face up to. The evaluations of Train to Gain suggest that it is used to support all kinds of training that employers would have funded anyway and to accredit skills that already exist—

[Mr Bailey]

indicated dissent.

[Mr Hayes]

Well, that is not just my view; it was the view of the National Audit Office, which looked at the scheme and said that it has not provided good value for money.

[Mr Robert Buckland (South Swindon) (Con)]

18. What steps his Department plans to take to support businesses seeking to offer apprenticeships.

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

I refer the hon. Gentleman to the answer given by my right hon. Friend the Secretary of State a short time ago.

[Mr Buckland]

What steps will be taken to ensure that the new system of apprenticeships reaches out to the very smallest businesses in my constituency and elsewhere? All too often in the past the very smallest businesses have had great difficulty in getting the information that they need to engage apprentices.

[Mr Hayes]

My hon. Friend is right. The apprenticeships system needs to be built from the bottom up, which is why the Government are determined, as the Secretary of State said earlier, that small and medium enterprises should be supported in securing apprenticeships. We intend to introduce an apprenticeship bonus, which will help those small businesses to participate. We want to look at supply-side barriers and at root training organisations that will help small businesses to take on more apprenticeships. We are committed to apprenticeships in a way that has not been seen for years, perhaps not ever.

[Andrew Miller (Ellesmere Port and Neston) (Lab)]

That is breathtaking. How can businesses in the supply chain in my area be expected to take on apprenticeships while there is so much uncertainty surrounding the reviews being undertaken on Vauxhall Motors and Airbus?

[Mr Hayes]

There is no uncertainty. Let me be clear about this Government’s commitment to apprenticeships. Even in the short time that we have been in office, we have transferred money into the apprenticeship programme that will allow the creation of 50,000 more apprenticeships. That is just the start. My ambition is no less than to build a system that facilitates more apprenticeships in Britain than we have ever seen before.

[Bob Russell (Colchester) (LD)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Mr Peter Bone (Wellingborough) (Con)]

Just before BIS questions, I received a phone call from the chief executive of a leading company in my constituency who is keen on apprenticeships and welcomes what the new Government are going to do. However, the company is just bigger than a small or medium-sized enterprise, and he does not feel that it gets the help and encouragement that it needs. Are we taking such companies into account as well?

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

Yes, we are indeed. I am having a dialogue with all the representative organisations of small businesses, and I am of course speaking to the sector skills councils, which play a key role in that regard, in building apprenticeship frameworks that are pertinent. However, as I said earlier, we need to look at the supply-side barriers and bureaucratic burdens that discourage small businesses, and we also need to offset some of the costs through our apprenticeship bonus scheme, and we will do that. We will build apprenticeships from the bottom up, for firms such as that which my hon. Friend has so nobly represented in the House today and the many others like it.

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

Business, innovation and skills are the engine that will drive forward our economic recovery. Given that, could the Secretary of State tell me the number of high-value engineering apprenticeships that he intends to fund from his Department in the north-east this year, and how it will increase over time? Further, as he has already accepted £836 million of cuts to his important Department, will he acknowledge that any further cuts would undermine our future economic recovery?

--- Later in debate ---

[Alison McGovern (Wirral South) (Lab)]

T9. Businesses both small and large in Wirral are showing great faith in our young people and their future by investing in apprenticeships. However, that work has the potential to be undermined by the great many reviews that the Government are now carrying out. Will the Minister confirm that if those reviews are truly necessary, they will be carried out swiftly and in liaison with businesses, so that their support for apprenticeships will not be undermined?

[Mr Hayes]

It may be that I have not made the position sufficiently clear, so let me do so now. No review that is taking place would impact in a negative way on apprenticeships. The hon. Lady can go back to her constituents with pride and say that this Government are committed to apprenticeships there and across Britain. She can also come back to the House and challenge me on that if I do not deliver.

[Mr Graham Allen (Nottingham North) (Lab)]

I congratulate the Secretary of State on his appointment. May I also congratulate him on what he said before the election about ensuring that bank lending would be improved, so that cities that are in recovery from the recession, such as the city of Nottingham, can see the cash flow coming into businesses to ensure that they go from recovery to prosperity?