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Further Education and Training Bill [HL]

Perhaps I may first say that far from being irritating, the generally constructive approach taken by the noble Baroness, Lady Morris, to our proceedings has been greatly appreciated, particularly by the Government, and worth every cough and splutter. In respect of the powers that we are discussing in Clauses 13 and 14, I reassure the Committee that under those clauses the LSC will be required to publish proposals for dissolving or incorporating institutions, as now, and to carry out structured consultations taking account of local needs, as now. The Bill makes no changes in those respects; what it does is to give the LSC final responsibility for decisions in that area subject to the power of the Secretary of State to intervene when he considers that the council has acted unreasonably in relation to any of its statutory duties. So there is a reserve power for the Secretary of State in cases in which he believes that the council has not acted reasonably. We believe that this is the right way forward. The Learning and Skills Council for England is the body responsible for planning and funding high-quality education and training for young people and adults. It is best placed, we believe, to ensure the most appropriate arrangements for delivery of such provision. By transferring these powers to the Learning and Skills Council, we expect that the process of establishing institutions will be simpler, quicker and less bureaucratic. I stress that most incorporations and dissolutions take place as a result of college mergers, where one corporation is dissolved and subsumed by another or where two corporations are dissolved and a new one is formed. In practice, very few merger proposals have raised concerns and all of those proposed in recent years have been brought into effect. We need to get this power in perspective. Let me give some concrete figures. Since 1997, 13 new further education corporations have been established; 11 of them have been set up as a result of merger proposals. Similarly, since 1997, 68 further education corporations have been closed but 67 of them were closed as a result of merger proposals. In the overwhelming majority of cases, these have not been contentious proposals. The powers in Clause 14 will require the Learning and Skills Council to publish all proposals before a decision is made to establish a new further education corporation or to dissolve an existing corporation. The process for publishing proposals is set out in existing regulations, which we intend to keep in their present form. Through maintaining these regulations, we can be sure that there is an appropriate level of communication and engagement at local level. We will need to make minor changes to reflect the transfer of powers from the Secretary of State, and we believe that Amendment No. 39 would prevent those changes being made. Simplifying the decision-making process in the way that we intend will, we believe, encourage the FE system to ensure that it is fit for purpose and properly meets the needs of learners and employers. However, in doing all this, we want to ensure that in exceptional circumstances, the Secretary of State, as the elected Minister ultimately responsible for the education system, retains a reserve power to direct the Learning and Skills Council in relation to its functions regarding the establishment or dissolution of further education corporations. In taking account of all the points I have made, I hope that the noble Baroness will be reassured.