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Further Education and Training Bill [HL]

My Lords, I must apologise for skittering in like a cartoon character a few seconds after the Minister had started his speech. I hope that I did not miss anything of huge import. I want to focus on a narrow part of the Bill, the arrangements for London, and in particular the institutional or, possibly, constitutional arrangements. I should declare an interest as a member of the London Assembly, part of the Greater London Authority. Some years ago, at the time the learning and skills councils were established, I remember being critical that five of them in London had boundaries that were not coterminous with any other sub-regional grouping. The Learning and Skills Act 2000 was, in fact, going through at the same time as the Greater London Authority Act. There appeared then to be little joining up of the two sets of proposals, as I was reminded this morning by my noble friend Lord Tope. Our concerns then were justified. I cannot speak with anything like the same authority as other noble Lords about the importance of training and education. Indeed, I do not believe it is necessary to make the case for skills. The argument is normally based on economics, but it is important too at a personal level. The frustrations at notbeing able to do something—and, conversely, the satisfaction in achievement—are often considerable. In London, there are often great contrasts. The highly skilled and highly paid are cheek-by-jowl with those who are struggling. For myself, I admit to a lack of facility with languages. I once bought an ice-cream in Switzerland. I asked for it in French and the reply from the street vendor was in English. I do not think that we can offer that sort of tourism provision in this country. I heard recently of an Englishman buying a coat from a street market in China. The stallholder went to look for the right size, leaving his young assistant who had been speaking Mandarin to her colleague. She talked to the purchaser in English, then Russian and French, but her Spanish left him stumped. In some ways, that still-developing economy is way ahead of Britain. London is a powerhouse of the UK economy, so it is particularly important that we get it right here. In the Thames Gateway, 19 per cent of the working-age population have no qualifications and only 15 per cent, as against 25 per cent nationally, have a degree-level qualification. I am told that 60 per cent of the new sectors of the economy require level 3 education and 40 per cent require degree level. In the London part of the Thames Gateway, 50 per cent of children live in workless households. The Mayor of London and the Greater London Assembly are as one, which we are not always, in identifying the importance of upskilling—a dreadful word—as a high priority. London’s unemployment rate at 7.5 per cent is the highest in the country and its employment rate is five percentage points below the national average. We are also as one in supporting the devolution of skills powers in London to the mayor and so, I understand, were about 75 per cent of the respondents to the review by the ODPM, as it then was, on the powers of the GLA. We have devolved government and the capital has its own strategic level of government. It is not a model that I or my colleagues on these Benches would choose, but we have it. The GLA ought to be able to join up, integrate even, the facilities which support skills, economic development and many other matters; for example, transport. The Bill gives a legislative framework, but only a framework. That little word ““may”” rather than ““shall”” is used in new Section 24B, which states: "““The Secretary of State may by regulations provide for the establishment of a body for””," discharging functions in London. In due course, an amendment will be tabled to allow discussion of the provision and the Minister will no doubt give an assurance that that is what is intended, which I will welcome so far as it goes. The DfES press notice in July made it clear that, as part of the new package of powers, the mayor will be given a statutory duty to promote adult skills in London. The Minister will, I hope, be able to say when the draft regulations will be published. It is important for the Learning and Skills Board—the ““body”” of new Section 24B—and its strategy to be established on a permanent and devolved basis to ensure the highest level of long-term engagement. There is a fear—I suppose one could say this of any legislation—that it might be disbanded by a future Secretary of State. The model of government that we have for London is a single-person executive with a scrutiny body. Itis also important to consider accountability and transparency. The scrutiny arm of the Greater London Authority should be able to bring the board’s statutory strategy within the assembly’s powers to scrutinise and be able to question the mayor, not just qua mayor but also in his position as chair of the board, and to question other members. The scrutiny arm should also be able to bring it into line with its powers with regard to other strategies, which will be strengthened somewhat by the GLA Bill, which has just received its Second Reading in the Commons. It is not clear whether the mayor will have any power of direction over the new body. I suspect not because it is not that sort of body, but if it is the assembly should have a corresponding check and balance over it. I will end on a less happy note. The membership of the new board was announced last week, following some negotiation between the mayor's office and the department. It is a board of 23 in which small or even small and medium-sized enterprises seem hardly to feature—there may be one person who works in the small-business sector. Many people in London work in small businesses. It may not be the majority, but more than 26 per cent of business employment is in businesses employing 10 or fewer people. Local authorities are not represented on the new board at all. They are big authorities which are not, by definition, all based in central London. Of course, their areas of responsibility are not unconnected. In these days of partnership that is short-sighted. The board met for the first time last week in private—the press and public were excluded. That is not a good start to arrangements which I wish the best of luck.