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Further Education and Training Bill [HL]

moved Amendment No. 36: 36: After Clause 9 , insert the following new Clause— ““Directions In section 25 of LSA 2000 (directions), in subsection (6), after ““Directions”” insert ““with respect to powers conferred or duties imposed on the Council by or under this Act””.”” The noble Lord said: We have set out our expectation that, in the normal course of events, the Learning and Skills Council will be responsible deciding whether to establish or dissolve further education institutions. We believe that those activities sit firmly within the LSC’s planning activities. We have, however, included in the Bill provision for the Secretary of State to intervene and to direct the Learning and Skills Council regarding its powers and duties under Sections 16 and 27 to establish and dissolve further education corporations. We want to ensure that the Secretary of State retains a reserve power to act; and we would be rightly criticised if legislation were drafted leaving the Secretary of State powerless to act in cases as important as these. However, the Delegated Powers and Regulatory Reform Committee raised concerns about the loss of parliamentary scrutiny as a result of the transfer of the Secretary of State's powers to establish and dissolve institutions to the Learning and Skills Council. In particular, the committee was concerned about the lack of constraint on the Secretary of State’s power to direct the Learning and Skills Council in the exercise of its order-making powers, with the LSC being obliged to comply with any such directions. In response to those concerns, we have tabled the amendment. We now propose that Clause 16, which sets out broad powers to enable the Secretary of State to direct the LSC in relation to the establishment or dissolution of further education corporations, should not stand part of the Bill. Instead, we propose to use the Secretary of State's existing powers of direction set out in Section 25 of the Learning and Skills Act 2000 as amended by this clause. The amendment will ensure that only where the Secretary of State is satisfied that the Learning and Skills Council has acted or proposes to act unreasonably can he issue a direction to it in relation to the exercise of its powers under Sections 16 or 27 of the Further and Higher Education Act 1992. Accordingly, the Secretary of State would be able to intervene by making a direction only where he is satisfied that there are reasonable grounds to do so. That is a significant change in the way in which the power is framed and is a direct response to the Delegated Powers and Regulatory Reform Committee. I hope that the Committee will find it welcome. I beg to move. On Question, amendment agreed to. Clauses 10 to 12 agreed to.