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Further Education Colleges

Volume 493: debated on Thursday 11 June 2009

5. What estimate he has made of the costs incurred by further education colleges in seeking (a) application in principle and (b) application in detail status for the capital expenditure programmes. (279004)

The Learning and Skills Council and independent property consultants are working with colleges to understand the extent of the costs. Until that work is completed we will not know the exact expenditure that colleges have incurred, but no college that has acted reasonably will be left unable to meet its financial obligations relating to that matter.

How many colleges have had to abandon building projects over the past nine months, and what impact will that have on their ability to cut costs to meet Treasury efficiency targets?

It is important to acknowledge the concern felt as a result of what happened, the fact that there was a review subsequently, and the fact that there is a process in place through which colleges will receive decisions in a way that is objective and meets the priorities involved. It is also important to remember that we are talking about not whether, but how investment will be made. I wonder whether the hon. Gentleman could pledge that his party will meet the investment in further education that this Government are promising.

My hon. Friend knows that his new Department will be judged on how well it does its job, so may I urge him to prioritise the decisions on colleges? When a constituency college of mine, Kirklees college, Huddersfield, took over the failing Dewsbury college, it was given clear promises that it would have a rebuilding scheme. It has been delayed and delayed, however, so it is about time that that bureaucratic nightmare ended and we allowed people to get on with such schemes, which are good for education and good for the regeneration of our towns.

Yes, and may I acknowledge my hon. Friend’s work in his constituency and in his role as a Select Committee Chairman? There is a process in place, and all parties agree that it is the right process to deal with what occurred following the Foster review. The Learning and Skills Council will very shortly take decisions on those projects that meet the priorities and criteria that the Foster review set out. I can promise my hon. Friend that he will not have to wait long for those decisions to be announced.

Colleges throughout the country will have been dismayed to receive from the Learning and Skills Council yet further correspondence stating that the decisions that were supposed to be taken on capital programmes last week have been delayed. Indeed, the LSC’s national projects director said:

“We made an erroneous assumption that 30 to 40 projects might be shovel-ready, but there are an awful lot more.”

Does that not indicate to the House that the LSC is still in turmoil? Perhaps the Minister will reassure the House today. Exactly when can our colleges expect to know whether they will get the money that they so badly need?

The hon. Lady will know that the previous chief executive of the Learning and Skills Council resigned over the matter and that Ministers came to the House and gave an explanation and an apology for what had occurred at the LSC. The new chief executive wrote just last week to all college principals to explain that he was hopeful of announcing the projects that will go through to the next stage of the process very soon, and I have no reason to believe that that is not the case.

May I congratulate my hon. Friend and fellow MP4 band mate on a well-deserved promotion to his new post? We look forward to hearing the song that he will no doubt write about it.

On the colleges issue, my hon. Friend will be well aware of the worry that has been caused, the delay to the capital programme and the money that colleges have already expended in order to be shovel-ready. In my constituency, Goole college, which is part of the Hull college campus, is trying to push forward a project as part of the town’s renaissance project; and, in north Lincolnshire the excellent John Leggott college is shovel-ready and a local contractor, Clugston, is ready to go in and deliver. Will my hon. Friend look into the issue as a priority and give those people the news that they hope to hear?

I thank my hon. Friend for welcoming me to my post. Being shovel-ready—to use the phrase that appears in some papers relating to the issue—is one of the criteria, along with a scheme’s impact on the local economy and local learning, and so on. Those criteria are now being used to come to an objective decision. On his concerns about the expenditure and costs that have been incurred so far, as I said in my answer to the hon. Member for Henley (John Howell), reasonable costs will be reimbursed to colleges. I also assure my hon. Friend that the Learning and Skills Council’s decisions will be announced shortly.

I, too, welcome the Minister to his new job or, should I say, jobs, because he has a couple. He has inherited a lamentable situation, but I wish him personally very well and success.

Further education colleges are strongly rooted in their local communities and characterised by their localness and accessibility. They successfully attract many learners from non-traditional backgrounds. What message does the Minister have for the thousands of learners and lecturers who now have to use sub-standard Portakabins and other accommodation as a result of the continuing delays that have been caused by the mismanagement of the capital programme and budget? When does he expect them to have proper classrooms again?

I thank the hon. Gentleman for his welcome. He and I worked closely together when we were both Whips, and I am sure that that will aid our working relationship in our new roles.

My message to those learners and to people across the country would be that I am positive that far fewer students are in Portakabins now than under the hon. Gentleman’s party when it was in power. During its last year in power, it invested not a penny in further education colleges; there were 7 per cent. real-terms cuts in further education budgets during its last four years of power. From what we heard yesterday, I am afraid that it is clear that if it came back to power, there would be more of the same.

Barnsley college has spent £12 million in preparing for its capital programme refurbishment. It is halfway through a four-phase redevelopment, two phases of which have already been completed. The third phase led to the demolition of the college. We are not only shovel-ready, to use the silly phrase, but the shovels have been on site since last year. Our programme has been interrupted, but there is absolutely no reason why the Learning and Skills Council cannot allow the project to continue. Barnsley college is £12 million in debt—technically, it is insolvent.

I can reassure my hon. Friend by repeating the commitment that no college will be allowed to become insolvent as a result of the process. My hon. Friend raised the matter with the Prime Minister yesterday at Prime Minister’s questions, and he was probably reasonably pleased with the answer. Barnsley college is one of the colleges being considered by the Learning and Skills Council under the objective criteria following the publication of the Foster report. I am pleased that there has been a high level of investment so far in the college, and I am sure that my hon. Friend will not have to wait long to hear from the LSC about whether Barnsley college has been successful in its next phase.