Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 500-513)

BRITISH COUNCIL

25 APRIL 2006

  Q500  Mrs Curtis-Thomas: Could I say that it is particularly good to see Victoria Grant here because I think the UK Indian Education Research Initiative is fantastic news, and it was something we were made aware of when we went to visit the British Council office in Delhi and everyone was there was very excited. It struck me that it addressed a gap that had been there for quite some time, although the sum of £10 million does not seem an awful lot of money and maybe out of it we might see another £10 million if we can release it from business. My question is, within the British Council we have people who are very interested in the development of cultural links and the provision of education, but do not strike me as natural sales agents who can do a hard sell to Indian companies and get them to liberate funds from their pockets and support this particular initiative. It does not come easy asking for money from companies; you need to be a certain sort of person to do that. The UKTI seem to have a harder staff that might be very prepared to ask for money, so it seems to me that there has to be a significant relationship between the UKTI, who obviously have their fingers on companies coming into India, and the British Council that now wants to liberate some of their funds in order to do well by the British education establishment. So what about the relationship between the British Council and the UKTI? We went to visit the UKTI and they are not overly populated with staff themselves. So it seems to me a fantastic initiative but where is the personnel capacity to deliver that and release that extra £10 million?

  Ms Grant: I think you have made a number of very good points. Firstly, I would just like to add that the British Council sponsorship manager has managed to secure almost £5 million in sponsorship from the UK industry, of which £1.75 million is in cash, the rest in kind from UK industry in terms of corporate partnerships from BP, BA, GSK and Shell, and the next stage, as you say, is to identify and work with Indian partnerships. The Tata Group has already said that they are interested in coming on board as a corporate partner and we are working with them at the moment. As you rightly say, the British Council works in the cultural as well as the educational arena. I would say that we do have a lot of the contacts with industry and corporate partners that would be relevant to this initiative, but also that we would in no way wish to exclude our other partners, our other government partners, FCO, OST, DTI, and I know that Rob Daniels in Delhi is working very closely with the Indian side team of UKIERI. The British Council has initially taken over the sponsorship role for the design and set up phase because we have the capacity; similarly, we put in a lot of the work for the strand development, the actual higher education design for the initiative, but we have not taken it on in perpetuity for the initiative. The details of who will be doing what will be finalised before September this year, so the roles in terms of identifying who will be the sponsorship managers in the UK and India is to be determined and the British Council will certainly be working with OST, DTI and other partners until then.

  Q501  Mrs Curtis-Thomas: Do you think your partners are adequately resourced to do the job that they are actually undertaking?

  Ms Grant: Which partners?

  Q502  Mrs Curtis-Thomas: If we could just concentrate on the UKTI, the announcement of doubling the capacity of UKTI, is that a long time coming and well overdue?

  Ms Grant: I have to say that I am not familiar enough with UKTI and their staffing structures to be able to comment on that, I am afraid. My colleague may wish to add to that.

  Ms Stephens: Could I just come in here because I think we would agree actually that if we have ambitions in this area—and we clearly do—I think we do actually have to look at the resource on the ground. We work very closely with UKTI; in fact as you may know we have UKTI staff in two of our centres in India. So we see very clearly the pressures that are on them. Also, talking to the UKTI person in Mumbai, who has just arrived, who is very experienced and very interested in doing more, I think we do get the impression from them that they do need more resource. We are working at the moment on a joint paper with them to sort out our roles and responsibilities where we are clearly on the education promotion side and wanting to very much focus on that and these kinds of opportunities we have talked about a bit, and they, we feel, should be working on other aspects of education, perhaps the kind you have talked about, with companies. But we do not think that they have the capacity to do that at the moment.

  Q503  Mrs Curtis-Thomas: Victoria, you have just said that you have liberated £1.3 million, was it?

  Ms Grant: £1.75 million in cash and £4.8 million total cash in kind.

  Q504  Mrs Curtis-Thomas: From British companies?

  Ms Grant: Yes.

  Q505  Mrs Curtis-Thomas: And there is an appetite from Indian companies, and I presume that if there was more resource do you think there would be more money?

  Ms Grant: I think that is a general approach that you could apply to a lot of things—if there is more resource then there is going to be more outcome of whatever it is. So, in that respect, quite possibly.

  Q506  Mrs Curtis-Thomas: What I am trying to get at is that you have the capacity in this marketplace and there are funds there to support this initiative, if you have the bodies to go out and get them, and my question is: are you at a saturation point or is there a lot more money and if you had the resources you could get a lot more in?

  Ms Grant: I do not think we are at saturation point at all. I think we have identified initial corporate champions in this country and that was the priority. We now want to extend that to an extent in this country but also go and work with the Indian interested corporate partners, and yes there is definitely a capacity to do that.

  Q507  Mrs Curtis-Thomas: My next question is about your relationship with the Regional Development Agencies, the British Council's relationship with the Regional Development Agencies here in the UK and the devolved assemblies. What relationship do you have with them? Are they aware of what it is that you are trying to do? Are there comparable organisations with India? To me it seems such a massive exercise that it is not worth undertaking unless people come to you with an expression of interest. How do you send your message? Do they know who you are? If I walked into my RDA and said, "Steve, who is your contact?" would he be able to tell me if I said, "What about this UK Initiative for Research?" Would he know about that?

  Ms Grant: Certainly on UKIERI, yes, and I would expect the same would be true of major initiatives. I have a contact in the Northern Ireland Office, the Wales Office and in the Scottish Office. They are also in touch with our British Council's offices in those countries; so, yes.

  Q508  Chairman: Can we just turn to the squalid question of money, very briefly? In India we were told that your turnover in the year just finished was just under £11 million, of which £4.5 million was grant in aid and the rest you had to earn yourselves, through English language teaching and that kind of thing. Is that kind of rate of return, that contribution required for activities by British Council organisations elsewhere in the world or is that unique to India?

  Ms Stephens: No, that level is unique to India although there are other places in the world where we have a similar level near it. We are not actually required to reach a target, in a sense. What has happened is that there has been a demand for UK qualifications, in particular, which I think is a very important point in terms of signalling that there is a huge respect and appetite for UK education and what it stands for. So there is this growing examinations market which contributes to it quite a lot, and to resource that we have had to grow our infrastructure. If that market for some reason diminished or we took another view of it then obviously we would have to trim the size of the operation accordingly.

  Q509  Chairman: How is the process arrived at—and I should know this—how do you decide how much money you spend in India as opposed to China or a European country? Is that a decision that you take unilaterally or you discuss with the Treasury? How does it work?

  Ms Stephens: We discuss it through the Spending Review mechanism, of course; we have to put our further spending plans through the CSR, like other Whitehall bodies.

  Q510  Chairman: But in great detail?

  Ms Stephens: Yes, in quite a lot of detail, indeed. So it is discussed with the Treasury in that sense, but of course our sponsoring body is the Foreign Office and it is with the Foreign Office that we talk about most of the detail. Having said that, I would like to emphasise that we make our own strategic resource directions and we have to then supply the rationale for that and account for it, of course. For example, we have recently moved a million into the Indian recurrent budget, for very obvious reasons, and that was our decision to do that; we did not have to go to anyone else for that decision.

  Q511  Chairman: So do you think you have the balance right in terms of the money you spend on India? Obviously the British Council would like the money for all this work, that goes without saying. Are you convinced that you have your priorities right?

  Ms Stephens: We certainly think we have our priorities right in investing more in India and we will continue to do so and we will invest in education in India, that is what we have put that million into.

  Q512  Chairman: It is a huge country, one point whatever it is billion people.

  Ms Stephens: Yes, indeed.

  Q513  Chairman: Is £10 million, £11 million enough to reach out to that audience?

  Ms Stephens: It depends what level of impact we want. We segment the audience. We reckon that there are about 25 million of what we would call our focal audience in India. I still do not think that £11 million is enough to reach the 25 million, although we have had things like these very successful road shows recently, where we have reached staggering numbers, actually. The problem is not so much reaching them of course, but engaging them in meaningful impact, sustained activity that leads somewhere in a relationship building sense so that there is an outcome for industry or for education or whatever. I would double the budget tomorrow if I could.

  Chairman: I am sure you would always like money and I am sure we would like to write you a cheque here and now for the important work you do, but I am afraid we cannot do that. We are very grateful to you for bringing to a conclusion our evidence sessions on our trade and investment relationship with India. Thank you very much indeed.





 
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