Tuesday 1st November 2011

(12 years, 6 months ago)

Lords Chamber
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Lord Layard Portrait Lord Layard
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My Lords, I warmly welcome the government amendments that have been proposed, and I think the same goes for the noble Lords, Lord Wakeham, Lord Willis and Lord Sutherland, with whom I tabled a related amendment in Committee. Our aim was very simple; it was to ensure that there was a clear route to skill via an apprenticeship for young people who did not want to go down the academic route and, for this to become a well understood reality, that the National Apprenticeship Service had a clear duty to make reasonable efforts to ensure that the provision was there for all who wanted to take advantage of it. That is what this amendment now proposes.

I would have preferred a stronger duty on the National Apprenticeship Service, like the noble Lords who spoke earlier. However, I believe that this government amendment is a major step forward, and I pay a warm tribute to John Hayes, the Minister in the other place who is responsible for this, for his passionate commitment to apprenticeships and his vision in proposing this new clause. It is a major improvement in the Bill and it will be a major improvement in our whole educational system for 16 to 19 year-olds, although an even better one would be that proposed by my noble friends.

Lord Willis of Knaresborough Portrait Lord Willis of Knaresborough
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I support particularly Amendment 89ZZB in the name of my noble friend Lord Hill. I echo the comments of the noble Lord, Lord Layard, who has done a remarkable job in seeing this all the way through Committee and Report, and I compliment the Minister, and indeed his friend in the other place, John Hayes, for the way in which they have listened to the arguments. To have had an education Bill that did not actually mention apprenticeships was a mistake. It is always good when a sinner repents and comes forward with a confession. This is a confession that is worth noting. The Minister will go home happy tonight in that knowledge.

The whole move back towards an apprenticeship service is something that the previous Government should rightly be proud of. It was supported on all sides of the House, but it was an initiative that was long overdue. The fact that this week we have seen such a dramatic rise in the number of apprenticeships, despite the fact that we have a severe downturn in the economy—I will not say recession—is something that again we should welcome very strongly indeed. Apprenticeships are very much here to stay. I am delighted to be going up to Newcastle on 22 November to open a new apprenticeship centre organised by Siemens, which is trying to work with other employers in the north-east. That is the next step.

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Lord Young of Norwood Green Portrait Lord Young of Norwood Green
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I tried to be measured in my words and I do not think that I have been ungracious: I acknowledged the progress that has been made. I do not want to get too much into an argument about the current state of the economy, as we are going to disagree about how it is being handled. On the entitlement question, I changed the date from 2013 to 2015 as an acknowledgement of the difficulties. However, youth unemployment is in a crisis situation, and crisis situations call for crisis measures. That is the point that I am making and I am not going to resile from that. Therefore, I do not think that it is a question of me being ungracious. There is a real difference of approach and—

Lord Willis of Knaresborough Portrait Lord Willis of Knaresborough
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I was about to refer to the noble Lord as the honourable gentleman. He is an honourable gentleman. I do not think that anyone in the House would deny the passion and commitment that the noble Lord, Lord Young, has for this area of apprenticeships. That goes without saying. However, I have to ask him a key question. What strategy will he undertake to force—that is what he is talking about—employers to take on apprentices? What will he do?

Lord Young of Norwood Green Portrait Lord Young of Norwood Green
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I was coming to the noble Lord’s contribution and I was going to address that very word. I do not believe that you can force employers other than in one area. If, as an employer, you bid for a government contract, you have to indicate how many apprentices you are going to take on. That is what we said to those who bid for the Olympic contract and it is what we said in relation to Crossrail. I do not see any problem with that. Why on earth cannot the Government accept that commitment? If you want to do something positive that demonstrates the Government’s commitment, that is it. If I have to use the word “force” in that circumstance, so be it, as I believe that that is an intrinsic part of it.

The noble Lord, Lord Elton, made a very valid point. If we made a mistake as a previous Government, it was that at one point we emphasised the academic side so heavily that that somehow created the impression that the vocational or apprenticeship route was second class. It is not a second-class route; indeed, it is not an either/or choice, because many young apprentices go on to take degree courses as well. I have dealt on previous occasions with the question of ensuring that we give proper credence to the value of apprenticeships— I am conscious of the time.

Once again, the noble Baroness, Lady Verma, talked about extra burdens on SMEs. Requiring people to take on apprentices does not impose a burden on them. It is the employers who do not take on apprentices who often live to regret it when they find themselves suffering from a skill shortage. I do not see apprenticeships as some kind of panacea for youth unemployment but I do see them as an essential prerequisite in helping to resolve the problem.

I welcome the fact that the Government have made some progress but in our view it is not enough; more could be done. I make it clear that I shall wish to test the opinion of the House on Amendment 89ZZAA, which refers to procurement contracts, but, for the moment, I beg leave to withdraw Amendment 89ZZA.