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Mrs. Margaret Ewing (Moray): The hon. Gentleman referred to young people in our colleges. Does he accept that further education colleges also have a significant role for women whose families have grown up and who wish to return to college to undertake courses? One of the difficulties that these women face is that some of the colleges charge for creche and nursery facilities. This aspect should be looked at in depth. Women should be encouraged back into employment.
Mr. Canavan: I agree with the hon. Lady. Many of the courses that appeal to women may be discontinued if the Government do not provide adequate funding, which will severely limit education opportunities for many women throughout Scotland.
The colleges have traditionally played an important part in Scottish life, enabling many people to continue their education--whether it be for their individual development and enlightenment or for the acquisition of the types of vocational qualifications that are so essential for industry, commerce and the economy. If the colleges are to continue their excellent work, they must be given sufficient resources.
Mr. William McKelvey (Kilmarnock and Loudoun):
Good morning, Madam Speaker. I congratulate my learned Friend the Member for Falkirk, West (Mr. Canavan) on securing this important debate and on covering it so eloquently. He has left little for other hon. Members to say, other than to mention important issues that concern the colleges that he did not mention, such as Kilmarnock college.
Mr. Tam Dalyell (Linlithgow):
On a point of order, Madam Speaker. Is there a precedent for a colleague saying good morning to you?
Madam Speaker:
No, I do not think that there is. In four and a half years, I do not think that anyone has ever said good morning or good afternoon to me--which is why I appreciated it this morning, after a rather late night.
Mr. McKelvey:
Madam Speaker, the point that you raise is valid: late nights and early mornings sometimes mean that we lose our sparkle.
Kilmarnock college is in my thoughts at the present time because of the Government's proposal to decrease the overall amount of funding for further education over the next two years. The proposal flies in the face of the success of all the colleges that have been mentioned, such as Kilmarnock college which is in my constituency. Evidence from Government reports has identified the need for a well trained and well educated work force, particularly at technician level in industries such as electronics, textiles, food and drink, and engineering.
All those industries are well represented in Ayrshire, particularly in Kilmarnock. In fact, the area used to be even better represented by these industries, before the loss of Massey Ferguson and almost 1,800 jobs at the stroke of a pen. That was some time ago. No multinational company of that size ever came back to Kilmarnock or to many other areas of Scotland. However, the small firms have done extremely well and we hope that their success continues.
Kilmarnock college has an effective working relationship with Enterprise Ayrshire and local authorities to deliver innovative training schemes. Kilmarnock college is working with small and medium-sized engineering companies, offering work-based training in a flexible, multi-skilling project. One has to ask why--at a time when ambitious national training targets have been set--are the Government squeezing the very organisations that are making the greatest contribution to achieving their targets?
Why are the Government reducing funding to further education colleges when, at the same time, they are producing competitiveness documents that indicate the need for Scotland to have a well trained work force to compete in European and international markets? Electronics, textiles and engineering are the industries in
which we need to have a highly skilled and well qualified work force. These industries are already in Ayrshire, but why have the Government reduced the amount of money available to further education when an increase is needed?
At the same time, I see no logic in allowing colleges to expand their full-time provision at higher national certificate and higher national diploma levels in areas where there is a proven need for engineering, science and technology. The Scottish Office further education funding unit should be working much closer with colleges to allow growth in areas that are vital to our local economies, particularly in engineering and electronics. They are holding at current levels the courses in soft areas, such as arts and social science. I am not a critic of holding the places in those so-called soft areas.
I am concerned that further education colleges do not have the necessary modern buildings and equipment to provide the appropriate courses to meet local needs. Some of the buildings are modern, but they have proved to be totally inadequate for the Scottish climate, particularly those that have flat roofs. Kilmarnock college has to spend some £500,000 on roof repairs at its Kilmarnock campus and some £250,000 on roof repairs at its Irvine campus.
I would have expected the college to receive a generous capital allocation from the further education funding unit so that it could tackle the problems. There is no point taking people into a building if the roof is likely to fall in at any time. Roofing repairs cannot be put off until next year so far as capital expenditure is concerned--they have to be done now. What did the further education funding unit give Kilmarnock college to tackle this pressing problem? Nothing.
It is also important that colleges are able to purchase modern equipment that allows relevant and appropriate training to take place. In engineering, computer-aided design and manufacturing equipment, electronics equipment and science equipment are essential if we are to keep up the struggle with the competition in Europe and beyond. Electronic equipment and science equipment are vital, and my learned Friend the Member for Falkirk, West covered those points very well. However, they are worth underlining and I want to hear what excuse the Minister will give for not providing the funding necessary to purchase that equipment.
Unlike the higher education sector--universities have diverse sources of funding--further education colleges struggle to provide such equipment. As I have said, the Scottish Office allocation to Kilmarnock college this year is zero. How long can that be allowed to continue? It must not continue and I hope that the Minister will announce today if not a solution to the whole problem, at least some capital funding that will enable Kilmarnock college to begin to repair its roofing.
Mr. Andrew Welsh (Angus, East):
I congratulate the hon. Member for Falkirk, West (Mr. Canavan) on his choice of subject for debate. While there has been considerable concentration on nursery, primary and secondary education due to the Government's interference and bungling in those areas and upon university education due to massive under-resourcing, the further education sector has been left out of the limelight. This debate gives credit where it is due. I know from my time as a senior lecturer at Angus college and at Dundee college the massive value of further education and the range of subjects that are taught at FE level.
Further education colleges have always been at the innovative and the pioneering edge of the education system. The hallmarks and the strengths of the FE sector are flexible courses, staff who are willing to adapt and reflect changing needs and the ability to cope with a wide range of demands for different courses--from the practical to the out-and-out academic. I enjoyed teaching in further education and I witnessed at first hand a period of growth at Angus and Dundee colleges which showed the FE system in its best light.
More than 200,000 students participate in either full-time or part-time further education--an increase of more than 50 per cent. since 1993. There is certainly a demand for further education. It has always been particularly important in the Scottish context as a provider of education and employment. According to the McNicholl report, further education colleges generated an estimated £600 million and 19,000 full-time equivalent jobs for the Scottish economy in 1993-94. They sustain many Scottish communities as both employers and education providers. I believe that we should invest in the sector--greater investment will be repaid handsomely in the future.
Under Government policy, which has consistently attacked local authorities, the right to award bursaries has been removed and the colleges are now funded directly by the Secretary of State for Scotland. The move to a new funding methodology was established through the use of a formula which directly links the level of funding to the volume and quality of learning. The key criteria in formula funding are student recruitment and retention. It represents an abrupt change from historic funding and has caused major difficulties for individual colleges.
While grant allocations are based entirely on the number of students at respective colleges, the Government have sought to encourage the growth of private finance initiatives. I believe that the loss of control associated with the development of PFIs undermines accountability. The Government have cut capital grants assuming that PFIs will step in, but the lack of proper investment has hit developments in science, engineering and technology. I am told that there are no funds to prepare for and implement "Higher Still" in 1998. I hope that the Minister will address those problems directly.
Some £11 million was axed from the Government's previous funding plans for further education colleges in 1995, despite a projected increase of 12 per cent. in the number of young people aged 17 and 18 in the period 1995-98. Thus the success of further education colleges is leading to their being penalised. The cuts also ignored the fact that the Government are already under-performing in terms of their training targets.
The effect of the cuts has been twofold. First, the need to make savings has caused huge staffing problems. The hon. Gentleman underlined that point admirably when he pointed out that Falkirk college of technology was forced to save £670,000, which is equivalent to 35 jobs. Lecturers at Coatbridge college have not had a salary increase since April 1994, which led to a strike by Educational Institute of Scotland members.
Secondly, there has been an attack on the national character of further education colleges, as increased funding for one college reduces funding for another. Simple numbers of students is a crude means of evaluation, which ignores special needs and the importance of the continued existence of a diverse choice of colleges at a time when increasing numbers should be a prime objective. FE colleges contribute greatly to the Scottish economy and we should build on that strength.
The Association of Scottish Colleges has offered some possible solutions to the problem and I recommend its suggestions to the Minister. They include an increase in the overall recurrent grant, a relaxation of capping, stronger policy support for vocational training, support to implement "Higher Still" in 1998 and more capital funds to bring buildings and equipment up to modern standards. Instead of greater investment, the Government propose further cuts in resources.
I note with despair that grant aid to colleges will be reduced by £15 million in the next three years--a cumulative reduction of 12.5 per cent. Those cuts are not sustainable without hefty redundancies of staff and a loss of quality and/or range of teaching--which is the strength of the FE sector. The PFI certainly cannot renew or replace dilapidated buildings or obsolete equipment. There is a danger that funds for bursaries in vocational further education will be frozen and that there will be a shortfall in key training targets.
The Government are failing the further education sector which would amply repay the extra investment that it needs. I have worked in further education and I know its strengths and the immense benefits that it offers across society. I echo the point made by my hon. Friend the Member for Moray (Mrs. Ewing): some of the best students I taught were women with families who returned to education. Many of them went on to university and they now have degrees. They are a credit to the further education sector, and their progress should be developed rather than hindered by a lack of investment.
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