Select Committee on Education and Skills Minutes of Evidence


Examination of Witnesses (Questions 224-239)

DR JOHN BRENNAN, MS PAULINE WATERHOUSE, MR ALAN TUCKETT AND MR COLIN FLINT

28 NOVEMBER 2005

  Q224 Chairman: Can I welcome Pauline Waterhouse, Colin Flint, Alan Tuckett and John Brennan to our deliberations. Pauline, it is your first time in front of the Committee, so welcome indeed. It is very nice when we have someone whose MP is on this Committee. He is probably going to ask you some very nice questions, but I will not. Any other close relationships with constituency MPs that anyone wants to admit to, or a special interest? John, who is your constituency MP?

  Dr Brennan: Andrew Murrison.

  Q225  Chairman: Okay. We are post-Foster, post your conference, is there anything you want to say to kick us off or do you want to go straight into the questions?

  Dr Brennan: Can I just make one or two general remarks?

  Q226  Chairman: You can, yes.

  Dr Brennan: Thank you for giving us the opportunity to give evidence. This is a very important inquiry that you are undertaking here, the first that the Select Committee has looked at on FE in a wider scale since 1998, so this is a substantial opportunity. I would like to say a few words, if I may, about Foster just to set the scene and a couple of words about some other issues which are linked to that. The first is simply to say that we very much welcome the Foster report as a comprehensive statement of the issues that are facing the FE sector at the present time. In welcoming that, I think we do welcome the recommendation that there should be a sharper focus on employment as being the primary purpose of further education but, in recognising that, we do recognise that there is a range of issues that throws up for individual institutions which we want to see debated through the sector as we take that forward. We do believe that it is possible within the formulation that Andrew Foster has come up with to accommodate many of the key and important activities which colleges undertake. My second point would be to regret the kind of media coverage which accompanied the launch of the report. It was unfortunate that the focus was so much upon failing institutions and contestability. I would want to put it on the record, for the Committee's benefit, that the number of failing colleges is actually only about 4%, about 16 institutions in total. That is very similar to the proportion of failing schools in the system. I would say in that context that we do not have a problem with contestability per se and I would be happy to elaborate on that, if you want, in a minute. In other respects, we recognise that the report raises a range of issues for colleges which I think, on the whole, the sector is ready to grasp and wants to tackle around things like workforce development, ethnic minority representation and learner voice and so on. I think we are ready to respond to all of that. The bulk of the recommendations, about 75% of the total, are addressed to Government and government agencies. We think it is very important that Government should give very serious consideration to the full range of those recommendations because we do share the view that Andrew has developed that many of the issues which face colleges have to do with the structures within which they operate rather than the way in which they manage themselves. The report itself pays fairly limited attention to funding issues but, following the issue of Bill Rammell's letter of 21 October and the Priorities for Success document from LSC, we think there is a whole raft of funding issues which the sector is facing which I hope you will allow us to develop a little bit later on in questions.

  Q227  Chairman: We have got yet another inquiry coming up with the Treasury soon, would that not more appropriately address funding?

  Dr Brennan: You may wish to do that as well but I am happy this afternoon to develop some of that, particularly because of the impact on adult learning. Over the next few weeks, with DfES and LSC, we will be facilitating a debate across the sector about the report and the recommendations. We will be looking forward to a Government response in the spring and early movement then towards implementation of a whole range of recommendations to be taken forward. I think broadly that is the position that we would see in relation to Foster at this stage.

  Mr Tuckett: Can I say something from NIACE's point of view? Firstly, for colleagues who may not know us, we are a loose and baggy non-government organisation in which most people concerned with adult learning right across post-compulsory education work together. There is no doubt that we welcomed in Foster a willingness not to lose time and energy by restructuring the whole thing all over again, but on balance we were much disappointed with a report whose focus was on how this system needs to be five or 10 years out from now when we face two in three of the jobs of the next decade needing to be filled by adults because there are just not enough young people to go round, and no significant attention in the report at all to the inherited structural imbalance that might have been fine at the time of the Learning and Skills Act 2000, which says you meet the needs of 16-19-year-olds and spend what is left on adults, and the result of success with young people—not an intended consequence of government policy—with 16-19-year-olds is that up to a million adults are likely to lose their places over the next three years, structural changes to European Social Fund leading to an intensification of the pressures on budgets on adults, and yet where are the new jobs to come from? They will come from migrants, for whom there is a set of educational issues in the post-school arena. They will come from older people being motivated to stay on at work, but for whom the balance of motivation and of skills learning will be in a different mix than you would expect in young people preparing for their entry into the labour market. They will come from groups of women who are currently not participating in the labour force, particularly from ethnic minority groups. For each of those issues there is quite a set of challenges about the balance between full-time and part-time learners in the operation of the system and for the balance of funding that needs to be struck to make sure that we do not rob Peter to pay Paul, that we do not enable opportunities for young people to develop, as we are very pleased to see happen, but not at the expense of adults. I think NIACE's feeling about the report, but also the broader place we now find ourselves with the Skills Strategy, is that the Government has created a really impressive infrastructure for lifelong learning over the last seven or eight years and now seems not to be able to find the resources to sustain it. We were very struck by the speed and effectiveness of intervention in the school dinners issue when we clearly found we did not have enough money as a state to do something that was sensible and proper. It seems to us to be inappropriate to be disinvesting in the adult learning sector just now at a time when we think the economic and the social case is very powerful. We have had a long history in the UK of stop/start investment in adult learning. We too agree with Foster that the focus on preparation for engagement in the labour force is the right focus, but to our mind that focus is young people and adults both, not one at the expense of the other. Our concerns are a little more than the AoC's. We published a report, Eight in Ten a week or two before Foster and we launched it last week with the All-Party Group on Further Education and Lifelong Learning in Parliament. It makes a case for employability, for access to workplace learning, but also for culture and creativity to be fostered through the further education system, and we can see no case that says today in a civilised society we need less of that than we needed a generation ago. That is our stance.

  Q228  Chairman: Pauline, you are at the sharp end of all of this. Would you like to say anything? I do not want it to seem as though I am favouring the institutional spokespeople here.

  Ms Waterhouse: From the college perspective, we would very much welcome the focus that has been given to the recognition of the contribution we make to economic development in our communities. I think Foster recognises that, albeit he is saying that colleges can do more, but nevertheless there is a real recognition of what we do. That is very welcome. Also welcome, in saying that we need to give a greater focus to employability and to economic development, he also acknowledges the important role that colleges play in terms of social inclusion and our renewed focus on the employability agenda should not be at the expense of social inclusion and widening participation or, indeed, the work that we do in terms of academic pathways. From my own perspective, my college very much welcomed that message. What I would like to say is perhaps what I feel the report does not emphasise sufficiently is that economic development and social cohesion are inextricably linked and we really cannot promote and foster economic development if we are not also underpinning and nurturing social cohesion as well.

  Q229  Chairman: Certainly, John, I think we would all agree here that some of the press coverage was poor at the launch of the report and concentrated very narrowly on the issues that you suggested, plus getting out of proportion the notion that the private sector might come in at certain levels. We do find great difficulty getting the media to attend these. Is there any media here today? Just one. TES? We had the Learning and Skills Council with a two and a half billion pound budget and not one person from the media put their hand up. It shows an amazing lack of interest. When we deal with special educational needs, the place is full of journalists. I would have thought they are both important subjects but for some reason we just cannot crack media interest in skills. We will carry on with that campaign. Can I start the general questioning? Someone from outside looking at the figures might say you are a bunch of whingers really: "Here am I as a taxpayer, I pay my taxes and taxpayers' money flows into education", if you look at the real increase in taxpayers' funding of FE over the last eight years, it has been very generous but you are really not happy, are you? You have not said one nice thing about the Government, not one nice thing about an increase of 52% in real terms, it is all, "Why don't they do more?" or "Why don't they do it better?" Are you not being a bit ungrateful?

  Dr Brennan: The answer to that is clearly no. I think you are unfair in suggesting that we have never acknowledged the huge improvements both in funding and in the policy environment within which we work. I think you will probably know that I have paid regard to that in evidence to this Committee in the past and, indeed, in many other ways in public statements. I think in that sense, Chairman, that is not what the issue is about. We acknowledge the progress which has been made and we acknowledge that many of the policy objectives which have been set are ones which the sector itself would have wanted to aspire to which represent a considerable movement forward in terms of trying to improve the learning opportunities in our society. Where I think the problem lies is in the multiplicity of the demands which are made upon colleges and the very different pressures and pulls which are exerted on them which exceed the totality of the resources which are available, and therein lies many of the problems, coupled with an approach to the management of the system which has produced layers of bureaucracy which has imposed a considerable degree of micro-management and multiplicity of agencies within which it has to deal. It is a combination of all of those things, I think, which have created the stresses and strains for institutions; it is not the broader environment that you have drawn attention to.

  Mr Tuckett: From my perspective, Chairman, not at all. I have celebrated the Government's success in achieving improved participation by young people and I think NIACE over a decade have supported, as a critical friend, developments the Government has made in work with adults. It is extremely difficult, if you are one step along the journey to the transformation of your life as an adult, if programmes which the Government is to be congratulated for developing disappear, not because anyone thinks they are not worth supporting any more but because money is tight. At that point, you would argue, there is a serious political choice for politicians of all parties to make about whether the short-term shortages of money are best dealt with by short-term intervention by Government while structures are changed, or whether individuals should have to stop/start in their engagement with the system. We are behind and have encouraged the Government in the view that there should be a higher fee, higher volume provision for adults, the balance between certainly company and state investment needs to be the right one but that nobody in the kind of international economic competitive climate that we are in can settle back to saying, "Actually we are investing enough already". We are not. To change the culture so that individuals pay more and we get levels of investment comparable with other people in OECD from companies will take time. What is to happen during that time? It seems to us that adult learning is not an optional extra once you have done the job, it is critical to the economic prosperity of the country and to social inclusion. It has got a number of benefits the Government has highlighted and then, as it were, parked. The double-dealing dollar issue: if you teach a woman to read and write, her children thrive as a result of it. Every time you inhibit someone from developing the confidence as an adult learner that they are after developing, you do not only affect their chances, you affect the chances of the people around them. I do not think Government's job is an easy one about where you invest, but it would be irresponsible of us representing the interests, in particular, of adults who benefited least before to say it is okay to go three years with no significant investment and then find we are sometimes desperate with skills shortages because we have not got enough adults ready for the jobs that people need to fill.

  Mr Flint: If I can just add to that. We would hope for a change in the statutory basis of the funding for adult learning. We do not think it is sensible, given the changes in demography that we are going to face, that the only amount of money that is available for adult learning is what is considered reasonable, which in effect means what is left over when other priorities have been met. We are concerned with the unintended consequences of policies rather than criticising the policies themselves.

  Ms Waterhouse: There is a concern about the coherence of policy across the different sectors. If we look at the situation in relation to post-16 within further education, and if I can take my own college in Blackpool—Fylde—as an example: last year we exceeded our funding target with the LSC and effectively recruited more 16-18-year-olds and more 19+ students than we were actually funded for. That was to the tune of just under £900,000 worth of education that was delivered without any financial support from the LSC. We are likely to exceed our targets significantly again this year. At the last count we looked to be exceeding our targets by some 232 students. At the same time as we are in this situation in Blackpool, we have discussions going on with the Local Education Authority about the provision of a new 11-18 academy in Blackpool. My concern would be why are we fostering and stimulating these debates from DfES in respect of additional post-16 provision when the Learning and Skills Council cannot fund the provision that exists already in particular areas. That is of very, very great concern indeed, that there is not a coherence and a discussion between what is going on in respect of secondary schools and in respect of what is going on in the college sector.

  Q230  Chairman: We can park that one for a little bit later, but I hear what you say. If you read Foster and the evidence we got when Sir Andrew came in, if you go back to the Dearing principles of who should pay for higher, I think there are some suggestions there for continuing education, it is between the individual, the taxpayer and the employer. Does not the employer, yet again, get let off rather lightly?

  Mr Tuckett: Absolutely.

  Q231  Chairman: When are we going to get to the stage when employers actually stump up a significant amount of money for the training of the people who add tremendous value to their businesses? What do you believe in terms of that kind of deficiency?

  Mr Tuckett: For a long while I have been arguing that regulation is the best way and you can see an effective parallel in the way that health and safety has become a perfectly normal part of the regulatory environment within which British business works. A generation ago we had lots of industrial accidents because we had a high level of voluntarism about the level of safety that operated in industrial places. If you move, as we did with health and safety, a small bit at a time and say in five years' time we will have workplace agreements, or we will have a plan together, you will find long before the five years are up that the vast majority of people operating in the economy will have adjusted to dealing with it. For those people who have not, if it is part of the terms of trade eventually that you develop the people who work with you, then that becomes a price that is shared right across the competitive environment. At the moment we have not got that right. There are things that are very positive about the aspirations of the Employment Training Programme to secure increased participation by adults, but with a pretty gloomy outcome in the first place with very, very high percentages of deadweight of either people who were previously training getting funded or people who because of regulatory arrangements in the wider economy are getting funded to do it. I think regulation is something which we have put because of experience in the 1960s as a sort of shibboleth, you cannot move in that direction, but we have tried voluntarism for a quarter of a century and clearly it is not providing the kind of step change politicians of all kinds arguably need to retain the competitiveness as a knowledge economy we need in the kind of changing international economy we are in.

  Dr Brennan: I think we would equally question a number of aspects of the current Government approach to this. Like Alan, we see there is a need to embed a commitment to developing staff and training in businesses in a way which does not exist at the moment. The average amount which companies spend on training per employee per annum is £205 from the last survey. That is totally inadequate as an investment in human capital. We would see a series of issues relating to the current policy framework which really do call this whole approach which is being developed at the moment into question. On the one hand, you have got the Train to Gain programme, which is due to be launched next year, which effectively is free training for employers. Whereas up until now they may have had to pay for Level 2 training, in future that will be free and they will not have to commit to that. Equally, there is no guarantee that any of the money that they release from their existing training budgets as a result of the new programme is going to be reinvested in further training. There is no obvious benefit to the nation in terms of enhanced investment in training as a result of going down that particular road. There is a series of issues about whether that is going to inculcate an increased commitment to training and whether, in fact, the Government has thought seriously enough about a whole range of mechanisms to try and influence the demand-side of the equation, of which regulatory mechanisms are one but there may be others, financial incentives and so on. Just to give a small example: in the care sector, the introduction of regulatory and mandatory qualification levels for care staff has transformed the state of that industry and it has transformed employer willingness to train. I think we have done far too little in that sense of trying to up-skill our workforce through those kinds of mechanisms. The other part of the equation is the price which is being paid for developing that strand of policy is we are seeing a reduction over the next three years of some 700,000 in the places available for adult learners and an increase for those who remain in the system who are outwith those priority categories of something of the order of 65% in the fees they would expect to pay. Just to explain that arithmetic in case it is not clear to the Committee how you arrive at that figure: the starting point for last year was that the assumption in the system was that an individual would pay 25% of the cost of provision and over the next two years that is going to move to 37.5%. That in itself is a 50% increase in the assumed level of fee. If you add three years' worth of inflation that takes you to something of the order of 60% over that three year period. I do not believe that any serious research has been done about the sustainability of that policy or about the willingness of individuals or, indeed, employers who are outwith those priority categories to pay those kinds of increases and all the past evidence has been that, in fact, there is a huge resistance to fee increases on that kind of scale. I think that one of the real worries we have about this policy is not simply we are going to see 700,000 places disappear, but actually we will see far more than that number disappear because individuals and employers will feel unable to pay for the enhanced fees that they are going to be charged.

  Q232  Chairman: Some people who are not in this field would find that quite technical. What does that mean in terms of real prices for real courses? Standing outside, if one of my constituents said to me, "How much does a person have to pay for a course?" and I said it is going up from 25% to 37.5%, they would say, "Somebody else is still paying" and they might feel that is quite a good deal. Pauline, what does it mean in terms of real courses and how much are they going to cost?

  Ms Waterhouse: If you look at it in terms of course hour—John will correct me if my arithmetic is incorrect in this respect—over the next couple of years you might be looking at an increase from about £1.45 an hour to something like £1.95 an hour. It is a significant amount, I do not want you to think it is something you can dismiss.

  Q233  Chairman: Can you give us an example of real courses?

  Ms Waterhouse: Somebody might decide to enrol on a GCSE English course because they feel that would really raise the stakes in terms of their employability and they might wish to have a Level 2 qualification in English. That would be a course probably of about 90-96 hours, so it is a question of doing the arithmetic in relation to that sum. That is a fairly significant increase for people.

  Mr Tuckett: If you think of a full-time Level 3 course, you are dealing with very big sums of money. Of course we are encouraging employers to pay in that area but not everybody is fitting the frame of how our Skills Strategy works out for people. If you are studying part-time within an entitlement area but you are not likely to finish within 12 months, which frankly is most adults who are not young adults without responsibilities, even within our priority areas you end up asking people to pay substantial amounts of money over time or to find huge amounts out of a family budget to get skills which properly we say now there is a public investment for. Beyond the 37.5% there is a swathe of courses where colleges, in anticipation or along the way with the changes LSC has been leading, have shifted from investing 180 to 30 million in courses that do not fit within the National Qualifications Framework over the last two years. The result of that is masses and masses of people who have grown used to the public offer being affordable, either paying not 37.5 but 100% of the real cost or going without provision at all.

  Dr Brennan: I wonder if I could just offer you a couple of other examples. One is in relation to a college that I was at a few weeks ago which for a little while had run a programme of about 10 weeks or so four times a year. This was very much taster provision, trying to get people back into learning. They charged a very nominal fee, about £10 for this course for 20 hours or something of that order, because they wanted to encourage people back into learning. They were recruiting about 800 students per entry, something of that order. They recognised earlier this year that they could not sustain that, they were going to have to move to something more like a realistic fee, and they pushed the fee up to £50 for one of those courses. The result was there was a two-thirds drop in enrolment. That is not untypical of the kind of experience that colleges have.

  Q234  Chairman: Could not my man on the Huddersfield omnibus say that perhaps you did not market it as well as you could, or perhaps the course was not as good as it should have been? If it was £10 for a 10 week course they would put up with a pretty sub-standard course, but if you are going to charge £100 for the 10 weeks then you need to be a bit sharper.

  Mr Tuckett: It is just how you get the maximum return to the public interest and at what pace. I am in favour of higher fee contributions, I think the pattern of the way the Further Education Funding Council's awards to institutions worked inhibited fees staying alongside a kind of publicly defensible balance between individuals, the public interest and employers, but you have got to do it over a period of time. Night school adult education has traditionally charged significantly higher fees. What you find if you do a fee hike too quickly is people go away and they may come back in two or three years' time as long as you stabilise your fees, but what you cannot do is rush from being "pile 'em high, sell 'em cheap", to "let's run an expensive boutique" overnight, and I am afraid that is the way our fees policies look like they are working.

  Mr Flint: We were encouraged to make a lot of free provision in the interests of widening participation which was one of the main aims of the Further Education Funding Council, if you remember Helena Kennedy's report. Colleges did that very enthusiastically and very well. There has not really been any kind of government-led programme to prepare the public or, indeed, employers for a major change in the way we do fund education. People in this country think education is free and believe it ought to be to some extent. Remember the row about fees in higher education. We have not had the same sort of debate in further education at all. Within a year, we have moved almost from heavily subsidised adult provision to no adult provision at all. There is another technical issue here about what is called "other provision", which you might not want to get into at this stage. Colleges are having to come out of "other provision" because it is not recognised within the National Qualifications Framework and that is another area in which the offer to the public is being seriously reduced.

  Q235  Chairman: We are very interested in other provision and we are going to come back to that. A quick word from Pauline and then Helen wants to take up the questioning.

  Ms Waterhouse: In relation to other provision, we were doing quite a significant amount of other provision for some of our employers and when it became clear this was no longer going to be funded we then, fleet of foot, as colleges tend to be, worked very hard to get the provision on to the National Qualifications Framework, and were successful in this. But then, having been urged to start to charge our local employers fees for this, I can give you an example of a very large employer in Blackpool who, when being asked to pay fees, and the fee amounts to £80 per head for each employee over the course of a year for the particular programme that Blackpool and the Fylde College is running for them, refused to pay that amount. They will not make that investment of £80 per head in their workforce. That is the kind of attitude that we are facing.

  Chairman: I want to call Gordon quickly because, this being a constituency interest, we will give him a go.

  Q236  Mr Marsden: I would not ask you on this occasion, although I might ask you privately, to indicate the company concerned. Is that not a pretty damning and disgraceful indictment of the attitude of business in today's world? Obviously there is an issue over what period of time and how many employees, but if you cannot get a major employer to put that sort of money upfront for what is clearly going to be a significant course to benefit all of their employees, how are we going to move more generally in the direction that is being discussed?

  Ms Waterhouse: I would agree with you entirely, not least in a town where the future prosperity of that town is very, very much dependent, as you know as well as I do, on its capacity to regenerate itself. Intrinsically linked to regeneration is the need to improve customer service levels and customer service skills in the town, and that was precisely the area in which the training was focused in actual fact. That particular aspect of the picture is a very despondent one indeed, yes.

  Mr Tuckett: It is difficult, is it not, to add up the interest of the country by adding individual employers' interests together and saying, "That will add up to be what the country needs" because it could be perfectly rational for an employer facing tight circumstances to think, as so many of them do, including our own sector, that training is something to save on when money is tight, but that ends up being something that is completely not in the national interest.

  Q237  Mr Marsden: I would suggest—at the risk of sounding too sharp—you can make the argument between the national interest and community interest but, and I have just come from a major conference where all of the key speakers were making this point, that is not just a question of national interest, that is a question of business short-sightedness and bad business practice. Any decent, successful employer wants to invest.

  Mr Tuckett: Beating people up for the kind of culture we have created together in this country and how you move people from there seems to me to be a real challenge and to suggest, as John was saying, that we do not only have to think about what funding measures we put in place and what provision we put on offer but how we go about an active process of cultural change, I do not disagree with him.

  Dr Brennan: If I may reinforce that. I think this is a message which we have been trying to convey to Government for some considerable time. What we need here is a significant shift in cultural attitudes in this country and Government needs to take a lead in that. Ministers need to preach the gospel that we need to have a very different approach to investment in learning, individuals need to recognise the need to invest more and employers need to recognise the need to invest more. We need policy mechanisms and levers which encourage people to do that. At the moment much of that is missing and until we put some of that in place, I think we are going to struggle to achieve the kind of shift that we all accept is desirable.

  Q238  Chairman: The Government keeps coming up with initiatives and one of the most recent is the four Skills Academies. Are they not a sign of the Government wanting to change the culture?

  Ms Waterhouse: They are, but, going back to the issue of coherence, if you consider the Learning and Skills Council as it was under its previous chief executive, we had the introduction of Centres of Vocational Excellence, which are making a difference, they are enabling colleges to engage more actively and proactively with employers and they are enabling us to raise the whole agenda in respect of training but, as far as the national Skills Academies are concerned, there is a need to link those with the very strong work that is being done by the Centres of Vocational Excellence. I think there is a danger presently that sometimes when new initiatives are introduced, like the Skills Academies, there is no reference back to existing work that is already taking place on the ground successfully. That is not to say that it could not be improved, it could not be made stronger and more robust, but sometimes there is a tendency to look at initiatives in a kind of silo way without linking across the sector with previous initiatives which are being embedded and becoming successful.

  Q239  Chairman: Were not the Sector Skills Council supposed to be consulted about where the skills shortages were? After consultation out came these four Skills Academies, that was the Sector Skills Council's response. Was that not the way it worked or were you consulted? Were you consulted, John?

  Dr Brennan: I do not think the system worked that way. When the original CoVE initiative was launched we did not have Sector Skills Councils and LSC struggled to gather in industry intelligence, sectoral intelligence, about the needs of particular areas. The framework has been developed largely without reference to those sectoral interests. As Sector Skills Councils have come on stream they have begun to build up the database and exert influence, quite rightly, over the system. The initiative in respect of Skills Academies was one of Government saying to SSCs, "Would you like to bid for an academy in your sector?" Although there was encouragement to link into existing patterns of provision, that encouragement was not that strong and the models which have emerged are somewhat variable in that respect. It is certainly our view that unless you link those initiatives very strongly into the base which exists and use the influence which those initiatives can create to shift patterns of activity across the sector as a whole, then those initiatives are not going to be particularly helpful in terms of transforming the way in which the system works.

  Mr Tuckett: Early on in the Skills Strategy we asked the Sector Skills Council to hit the ground running with a great deal of wisdom straight away. Our observation of the first few of the Sector Skills Agreements made is they all share a kind of fairly intelligent analysis of the demographic challenges facing the sectors that they represent but there is a serious gap between that analysis and any practical measures affecting adult provision in those areas. The worry we have is that an initiative like the academies will rebalance towards the things they already see how to do, the recruitment of young people, in ways that really will not work. If you add the first four of those agreements together they assume the recruitment of twice as many young people as there will be entering the economy over the next five years, and there are 20 more agreements to follow it. Where are they going to be recruited from? Our view is the BBC and media might work on a reasonable assumption that it will recruit as many young people as it wants but further education and shipbuilding are going to be struggling.

  Chairman: Is that why the BBC cannot get anyone here? I thought it was a shortage of licence fee payers' money.



 
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