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Church Schools

13. Mr. Waterson: What proposals he has for further support for Church schools; and if he will make a statement. [14333]

The Minister for School Standards (Mr. Stephen Byers) rose--

Hon. Members: Hear, hear.

Mr. Byers: Thank you so much. I felt the same myself.

We have had detailed discussions with the Churches about the new school framework. We recently announced developments to that framework to meet representations made by the Churches, with a view to safeguarding the ethos of Church schools within an education service based on partnership and co-operation. I am pleased to say that the Churches have welcomed those developments.

Mr. Waterson: I notice that it has taken until nearly 3.20 pm for the Minister for School Standards to make it to the Dispatch Box.

Will the Minister assure the House that voluntary- controlled schools will be able to opt to become aided schools sooner rather than later, and that if they do so they will not have to pay retrospective compensation to local education authorities?

Mr. Byers: I am delighted that the hon. Gentleman came into the Chamber at 3.15 pm. I was getting worried that I would not have a single question to answer.

The Government have listened to representations made by the Church authorities, in the light of which the Bill will be revised. The Government are prepared to take on board the views expressed by other parties because we know that any changes that we introduce will mean a better Bill which will serve the interests of the nation's children--unlike the previous Conservative Government whose policies were based on arrogance and dogma, who did not listen and who, as a result, were rejected on 1 May.

New Deal

14. Ms Drown: How he will ensure that small and medium enterprises are able to be involved in the Government's new deal to help young people move from welfare to work. [14334]

Mr. Andrew Smith: Small and medium businesses are crucial to the success of the new deal. We are working hard to secure their involvement by reflecting their views in the design and delivery of the new deal, by helping them through local partnerships and by targeting national promotion to encourage their further involvement.

Ms Drown: I welcome that response. Swindon has fewer young unemployed people than many other parts of Britain; nevertheless, they are a priority for the business community and the Employment Service. Swindon is

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aware of the Government's larger welfare-to-work programme and wants it to succeed, but the current welfare-to-work programme requires each area to go forward at the same rate. Will my hon. Friend consider bringing forward some parts of the scheme so that, from April, which is sooner than currently planned, areas such as Swindon can move forward to help the long-term unemployed and lone parents, particularly the long-term unemployed?

Mr. Smith: The programme for the long-term unemployed will start in June. I thank my hon. Friend for her constituency work in promoting the new deal. She refers to the particularly acute needs of some of those eligible for the new deal programme in her constituency. In that regard, the gateway provision is crucial, providing personal support, assessment, mentoring and help with basic skills, and it will be brought forward as quickly as possible to help the constituents of my hon. Friend and others.

Mr. Brady: Given that the Government apparently believe that the job subsidy under the new deal will create more jobs in small and medium enterprises, is it not obvious and unavoidable that the introduction of the minimum wage will cost jobs?

Mr. Smith: The new deal will result in extra employment opportunities in small and medium enterprises precisely because the prospect of that subsidy and support in obtaining a trained and ready-to-work young person can make a critical difference to whether someone is taken on. The Low Pay Commission will recommend the level of the minimum wage, taking full account of employment needs. Rather than carping about the new deal, the hon. Gentleman, like so many other hon. Members, should get behind it in his constituency to end the scandal of long-term youth unemployment and help business.

Universities (Financial Support)

15. Dr. Kumar: If he will make a statement on the level of financial support for universities in 1998-99. [14336]

Dr. Howells: We have taken decisive action to deal with the serious funding problems facing universities. For 1998-99, my right hon. Friend has announced that an extra £165 million will be spent on higher education, including an extra £125 million to enable universities and colleges to maintain and improve quality and standards, and to make a start on the backlog of maintenance and equipment replacement.

Dr. Kumar: I thank my hon. Friend for his reply. The Secretary of State's announcement of £165 million for higher education is a tremendous support. Will my hon. Friend seriously consider one aspect of the Dearing report which has been overlooked? Universities face a crisis in funding for research, infrastructure and equipment, for which £400 million to £500 million is required. I urge him to reconsider the funding proposals or make additional funding available.

Dr. Howells: We are examining the issue carefully. We are worried about the fact that some colleges and

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universities have closed important research sectors in their institutions. We are talking to colleagues in the Department of Trade and Industry and in other Departments concerned with this issue, and we shall ensure that this country retains an excellent research base.

Mr. St. Aubyn: Will the Minister confirm that he has already taken the decision to withdraw from local education authorities the power to make discretionary awards to students in higher education? Why has he done that without proper consultation? Is he aware that, in taking away those discretionary awards, he is also taking away the student's right to the appeal process? In Surrey county, that process has enabled up to 40 per cent. of students to get at least part of the award for which they had applied.

Dr. Howells: We have made no such decision; nor have we made any such announcement.

New Deal

16. Dr. Stoate: What has been the response of employers to the new deal for young unemployed people. [14337]

Mr. Andrew Smith: Employers across the country are responding positively to the new deal by pledging support, and by following up those pledges with practical action.

Dr. Stoate: I thank my right hon. Friend for that reply; it will be good news to young, unemployed people in my constituency of Dartford and elsewhere. Does he agree with me that the new deal allows employers to address the skills shortage, which causes so much damage to British competitiveness?

Mr. Smith: Absolutely. This is the right time to introduce the new deal. It maximises the opportunities for young, unemployed people to obtain work, and it helps business by ensuring that young people are equipped with skills and are prepared for work, so that they can develop their training towards a recognised qualification while in employment. That will benefit my hon. Friend's constituents and thousands of others across the country.

Mr. Rowe: Does the Minister agree that, as a result of the steadily falling unemployment inherited from the previous Government, the proportion of young people who require the scheme and who are very disadvantaged, because of their social background, lack of education or other skill shortages, is growing? None of those people will be attractive to employers. Will the Minister give us an assurance that the time taken to get those young people up to the threshold at which most other young people start such schemes will be extended, so that they are on a level playing field and can benefit from the scheme?

Mr. Smith: The hon. Gentleman raises an important point. I appreciate the understanding and sensitivity that he shows towards the young unemployed in his constituency, and towards the programme. As the overall numbers fall, those in particular need constitute a greater proportion. That is why the gateway period of up to four months of assessment, counselling and help with basic

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skills is so important. It also gives people the opportunity to try tasters of the different options available through the new deal.

In response to consultation over the summer, the Government have introduced another opportunity, whereby young people with particularly acute needs can, after the gateway period, have three months' intensive basic education and skills training, before going on to employment.

This is all about enhancing the employability of young people. It is founded on the good and wise principle that those who most need it will receive the greatest help.

Degree Courses

17. Mr. Illsley: What representations he has received regarding proposals to restrict colleges to offering degree courses by only one validating university. [14338]

Dr. Howells: We have received a wide range of responses to the recommendation by the National

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Committee of Inquiry into Higher Education on the issue. The Government will announce its response to that and other recommendations soon.

Mr. Illsley: I thank my hon. Friend for his reply.

My constituency has benefited greatly from Barnsley college's ability to offer degree courses franchised through both Sheffield and Leeds universities. The benefits to my constituency, not only educational but social, have been very welcome. May I therefore ask my hon. Friend to reject the Dearing recommendation, and allow colleges such as mine to continue to franchise degrees through more than one university?

Dr. Howells: As my hon. Friend probably knows, the majority of the responses received so far to Sir Ron Dearing's proposals have been opposed to multiple franchising, or serial franchising as it is sometimes called, arguing that it should be stopped. They recognise, however, that there might be occasions when, for geographical or subject-related reasons, that would be impossible. I am sure that my colleagues will consider the matter carefully when we formulate our responses to Sir Ron's proposals.

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