Further Education and Training Bill [HL]

House of Commons

Session 2006 - 07
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Other Bills before Parliament

Further Education and Training Bill [HL]

Further Education and Training Bill [HL]
Part 3 — Industrial training levies
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(b)
the class must include such persons as the Secretary of State
considers are together likely to be liable to make payments by
way of levy in consequence of the levy proposals which amount
to more than half the aggregate amount of those payments.”
(4)
After subsection (6A) (as inserted by subsection (3)) insert—
5
“(6B)
The Secretary of State may by regulations make provision as to what
constitutes “reasonable steps” for the purposes of subsection (6)(a)
above.
(6C)
Regulations under subsection (6B) above may include—
(a)
provision for ascertaining the views of persons with respect to
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levy proposals by means of a sample of those persons;
(b)
provision for treating a person who is represented by an
organisation of such description as may be prescribed by the
regulations as having the same view as the organisation with
respect to levy proposals.
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(6D)
Regulations under subsection (6B) above shall be made by statutory
instrument which shall be subject to annulment in pursuance of a
resolution of either House of Parliament.”
(5)
In subsection (8) (interpretation) omit the definition of “the relevant
organisations”.
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Duration of levy orders
(1)
Section 11 of the Industrial Training Act 1982 (c. 10) is amended as set out in
subsections (2) to (5).
(2)
After subsection (2) insert—
“(2A)
Levy proposals must provide for one or more periods (in this Act
25
referred to as “levy periods”) by reference to which a person’s liability
to levy is to be established and the levy period or periods must fall
within the period of three years beginning with the day on which the
levy order giving effect to the proposals is made.

Levy proposals may not provide for more than three levy periods.
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(2B)
Subsection (2A) above is subject to subsections (2C) and (2D) below.
(2C)
If the levy order giving effect to levy proposals submitted by an
industrial training board would be the first or second levy order giving
effect to proposals submitted by the board, the proposals may instead
provide for a single levy period that falls within the period of one year
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starting with the day on which the levy order giving effect to the
proposals is made.
(2D)
No levy order may be made in reliance upon subsection (6)(b) below
unless the proposals in pursuance of which the order would be made
provide for a single levy period that falls within the period of one year
40
starting with the day on which the levy order giving effect to the
proposals is made.
(2E)
Levy proposals must specify, for each levy period, a period (in this Act
referred to as a “base period”) by reference to which the relevant
emoluments are to be calculated.”
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Further Education and Training Bill [HL]
Part 3 — Industrial training levies
16

(3)
In subsection (6), for paragraph (b) substitute—
“(b)
that the order will be made—
(i)
after the making of a levy order (“the earlier levy order”)
in respect of which the Secretary of State was satisfied
that the condition in paragraph (a) above applied, and
5
(ii)
within the period described in subsection (6E) below,

and the condition in subsection (6F) or (6G) below is satisfied;”.
(4)
After subsection (6D) (as inserted by section 22) insert—
“(6E)
The period mentioned in subsection (6)(b)(ii) above is—
(a)
if the earlier levy order provides for such levy periods as are
10
referred to in subsection (2A) above, the period beginning with
the third anniversary and ending with the fourth anniversary of
the making of the earlier levy order;
(b)
if the earlier levy order provides for such levy period as is
referred to in subsection (2C) above, the period beginning with
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the first anniversary and ending with the second anniversary of
the making of the earlier levy order.
(6F)
The condition in this subsection is that the proposals relating to the
earlier levy order included proposals for securing—
(a)
that no exemption certificates should be issued; or
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(b)
that the exemption certificates to be issued should not exempt
employers from any of the levy payable in respect of any levy
period.
(6G)
The condition in this subsection is that—
(a)
the proposals in pursuance of which the earlier levy order was
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made included proposals for securing that exemption
certificates should not exempt employers from a portion of the
levy payable in respect of a levy period; and
(b)
the percentage of the relevant emoluments from which under
the current proposals the exemption certificates will not exempt
30
any person will not exceed the percentage of the relevant
emoluments in respect of any of the base periods specified in
the earlier levy order from which that person was not exempted
under that order.”
(5)
In subsection (8), in the definition of “the relevant emoluments”, for the words
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from “the period specified” to the end substitute “a period specified in levy
proposals as a base period.”
(6)
In section 12 of that Act, after subsection (1) insert—
“(1A)
Subsection (1B) below applies where a levy order (“the new levy
order”) giving effect to levy proposals submitted by an industrial
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training board will be made—
(a)
after the making of a levy order (“the earlier levy order”) that
gives effect to earlier proposals submitted by the board, and
(b)
within three years or, where the earlier levy order provides for
a single levy period in accordance with section 11(2C) or (2D)
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above, within one year after the making of the earlier levy order.
(1B)
The proposals for the new levy order must include proposals for
securing that no liability to levy is imposed under the earlier levy order

Further Education and Training Bill [HL]
Part 4 — Miscellaneous and general
17

by reference to such part of a levy period provided for in the earlier levy
order as falls on or after the day on which the new levy order is made.”
Part 4
Miscellaneous and general
24
Powers of a higher education corporation to form or be involved in certain
5
bodies corporate
(1)
In the Education Reform Act 1988 (c. 40) (“the 1988 Act”), section 124 (powers
of a higher education corporation) is amended as set out in subsections (2) and
(3).
(2)
In subsection (2), for paragraph (f), substitute—
10
“(f)
to form, participate in forming or invest in a company for the
purpose of carrying on any such activities;
(fa)
to form, participate in forming or otherwise become a member
of a charitable incorporated organisation (within the meaning
of section 69A of the Charities Act 1993) for the purpose of
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carrying on any such activities;”.
(3)
At the end, insert—
“(7)
The reference in this section to investing in a company includes a
reference to becoming a member of the company and to investing in it
by the acquisition of any assets, securities or rights or otherwise.”
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(4)
In relation to the period beginning on 1st April 2001 and ending immediately
before the coming into force of this section, the power conferred by section
124(2)(f) of the 1988 Act is to be taken to have included power to form,
participate in forming or become a member of a company limited by guarantee
for the purpose mentioned in section 124(2)(f).
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Powers of National Assembly for Wales
(1)
Part 1 of Schedule 5 to the Government of Wales Act 2006 (c. 32) (Assembly
Measures) is amended as follows.
(2)
In field 5 (education and training), after matter 5.10 insert—

“Matter 5.11
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Provision for and in connection with securing the provision
of facilities for post-16 education or training.

Matter 5.12

Provision for and in connection with the establishment and
dissolution of—
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(a)
institutions concerned with the provision of further
education, and
(b)
bodies that conduct such institutions,

including the circumstances in which an educational
institution becomes or ceases to be an institution concerned
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with the provision of further education.

Provision about—
(a)
the conduct and functions of such institutions and
bodies that conduct such institutions;

Further Education and Training Bill [HL]
Part 4 — Miscellaneous and general
18

(b)
the property, rights and liabilities of such institutions
and bodies that conduct such institutions;
(c)
property held by any person for the purposes of such
an institution;
(d)
the governance and staff of such institutions.
5

Matter 5.13

Provision for and in connection with securing
collaboration—
(a)
between bodies that conduct institutions concerned
with the provision of further education, or
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(b)
between one or more such bodies and other persons
or bodies that have functions relating to education or
training in Wales,

including, in particular, provision for and in connection with
the establishment of bodies for the purpose of discharging
15
functions on behalf of one or more persons or bodies that are
party to arrangements for collaboration.

Matter 5.14

The provision of financial resources for and in connection
with—
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(a)
education or training provided by institutions
concerned with the provision of further education;
(b)
post-16 education or training provided otherwise
than by such institutions;
(c)
the carrying out of research relating to education or
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training falling within paragraph (a) or (b).

Matter 5.15

The inspection of—
(a)
education or training provided by institutions
concerned with the provision of further education;
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(b)
post-16 education or training provided otherwise
than by such institutions;
(c)
the training of teachers and specialist teaching
assistants for schools;
(d)
services of the kinds mentioned in matter 5.8.
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Matter 5.16

The provision of advice and information in connection with,
and the carrying out of studies in relation to, any of the kinds
of education, training or services mentioned in matter 5.15.”
(3)
In that field, immediately after the heading “Interpretation of this field”, insert—
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“In this field—
“post-16 education” means—
(a)
education (other than higher education) suitable to the
requirements of persons who are above compulsory
school age, and
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(b)
organised leisure-time occupation connected with such
education;
“post-16 training” means—
(a)
training suitable to the requirements of persons who are
above compulsory school age, and
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Further Education and Training Bill [HL]
Part 4 — Miscellaneous and general
19

(b)
organised leisure-time occupation connected with such
training.

References in this field to an institution concerned with the provision
of further education are references to an educational institution,
other than a school or an institution within the higher education
5
sector (within the meaning of the Further and Higher Education Act
1992), that is conducted (whether or not exclusively) for the purpose
of providing further education.”
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Orders and regulations
(1)
Any power to make an order or regulations under this Act is exercisable by
10
statutory instrument.
(2)
A statutory instrument containing an order or regulations made by the
Secretary of State under any provision of this Act other than section 30 is
subject to annulment in pursuance of a resolution of either House of
Parliament.
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(3)
A statutory instrument is subject to annulment in pursuance of a resolution of
the National Assembly for Wales if the instrument contains an order made by
the Welsh Ministers under section 11.
(4)
A statutory instrument is subject to annulment in pursuance of a resolution of
the Scottish Parliament if the instrument contains an order made by the
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Scottish Ministers under section 11.
(5)
The power of the Department for Employment and Learning in Northern
Ireland to make an order under section 11 shall be exercisable by statutory rule
for the purposes of the Statutory Rules (Northern Ireland) Order 1979
(S.I. 1979/1573 (N.I. 12)); and any such order shall be subject to negative
25
resolution within the meaning of section 41(6) of the Interpretation Act
(Northern Ireland) 1954 (c. 33 (N.I.)) as if it were a statutory instrument within
the meaning of that Act.
(6)
Any power to make an order or regulations under this Act includes power—
(a)
to make different provision for different cases or areas;
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(b)
to make provision generally or in relation to specific cases;
(c)
to make such incidental, supplementary, transitional or saving
provision as the person making the order or regulations thinks fit.
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Amendments
Schedule 1 (which contains miscellaneous and consequential amendments) has
35
effect.
28
Repeals
The enactments specified in Schedule 2 are repealed to the extent specified.
29
Interpretation
In this Act—
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“FHEA 1992” means the Further and Higher Education Act 1992 (c. 13);
“LSA 2000” means the Learning and Skills Act 2000 (c. 21).