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 1 — The Learning and Skills Council for England
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Directions
In section 25 of LSA 2000 (directions), in subsection (6), after “Directions” insert
“with respect to powers conferred or duties imposed on the Council by or
under this Act”.
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Provision of services
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(1)
The Learning and Skills Council for England may make arrangements with a
person or body to whom this section applies for the provision by the Council
of services that are required by the person or body in connection with the
exercise of the person’s or body’s functions relating to education or training.
(2)
The services that may be provided under arrangements made under
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subsection (1) include—
(a)
providing accommodation and other facilities to a person or body to
whom this section applies or managing such facilities on behalf of such
a person or body;
(b)
procuring, or assisting in procuring, goods and services for use by a
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person or body to whom this section applies.
(3)
The terms and conditions upon which the arrangements are made may include
provision for making payments to the Council in respect of expenditure
incurred by the Council in performing any function under the arrangements.
(4)
The persons and bodies to whom this section applies are—
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(a)
the Secretary of State;
(b)
the Welsh Ministers;
(c)
the Scottish Ministers;
(d)
Northern Ireland departments;
(e)
persons or bodies, wholly or partly funded from public funds, that
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have functions relating to education or training;
(f)
persons or bodies specified, or of a description specified, by order made
by the appropriate national authority for the purposes of this section.
(5)
Before making arrangements under which it may provide services to a person
or body falling within any of paragraphs (b) to (f) of subsection (4) in
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connection with the exercise of the person’s or body’s functions relating to
education or training provided in Wales, Scotland or Northern Ireland, the
Council must obtain the consent of the Secretary of State.
(6)
Before making arrangements under which it may provide services to a person
or body falling within paragraph (a), (e) or (f) of subsection (4) in connection
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with the exercise of the person’s or body’s functions relating to education or
training provided in Wales, Scotland or Northern Ireland, the Council must
obtain—
(a)
in relation to education or training provided in Wales, the consent of
the Welsh Ministers;
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(b)
in relation to education or training provided in Scotland, the consent of
the Scottish Ministers;
(c)
in relation to education or training provided in Northern Ireland, the
consent of the Minister for Employment and Learning in Northern
Ireland.
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Further Education and Training Bill [HL]
Part 2 — Further education institutions
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(7)
Consent may be given under subsection (5) or (6) in relation to particular
arrangements or arrangements of a particular description.
(8)
“The appropriate national authority” means—
(a)
in relation to persons or bodies exercising functions relating only to
education or training provided in Wales, the Welsh Ministers;
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(b)
in relation to persons or bodies exercising functions relating only to
education or training provided in Scotland, the Scottish Ministers;
(c)
in relation to persons or bodies exercising functions relating only to
education or training provided in Northern Ireland, the Department for
Employment and Learning in Northern Ireland;
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(d)
in any other case, the Secretary of State.
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Assistance with respect to employment and training
(1)
The Learning and Skills Council for England may take part in arrangements
made by the Secretary of State, the Welsh Ministers or the Scottish Ministers
under section 2 of the Employment and Training Act 1973 (c. 50)
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(arrangements for assisting persons to select, train for, obtain and retain
employment).
(2)
Before making arrangements in relation to Wales or Scotland in which the
Council is to take part, the Secretary of State must obtain the consent of the
Welsh Ministers or (as the case may be) the Scottish Ministers to the
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arrangements.
(3)
Before making arrangements in which the Council is to take part, the Welsh
Ministers or (as the case may be) the Scottish Ministers must obtain the consent
of the Secretary of State to the arrangements.
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Assistance with respect to employment and training: Northern Ireland
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(1)
The Learning and Skills Council for England may take part in any
arrangements made by the Department for Employment and Learning in
Northern Ireland under section 1 of the Employment and Training Act
(Northern Ireland) 1950 (c. 29 (N.I.)) (arrangements for assisting persons to
select, train for, obtain and retain employment).
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(2)
Before making arrangements in which the Council is to take part, the
Department must obtain the consent of the Secretary of State to the
arrangements.
Part 2
Further education institutions
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Further education corporations
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Incorporation of further education institutions
(1)
Section 16 of FHEA 1992 (incorporation of further education institutions) is
amended as set out in subsections (2) to (4).
(2)
In subsection (1) for “The Secretary of State” substitute “The appropriate
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authority”.

Further Education and Training Bill [HL]
Part 2 — Further education institutions
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(3)
In subsection (3)—
(a)
for “The Secretary of State” substitute “The appropriate authority”, and
(b)
in paragraph (b), for “his” substitute “the appropriate authority’s”.
(4)
After subsection (5) insert—
“(6)
In this section “the appropriate authority” means—
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(a)
in relation to an educational institution in England, the
Learning and Skills Council for England, and
(b)
in relation to an educational institution in Wales, the Welsh
Ministers.”
(5)
In section 17(2) of FHEA 1992 (meaning of “operative date”)—
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(a)
omit the word “and” at the end of paragraph (a),
(b)
at the end of that paragraph insert—
“(aa)
in the case of a further education corporation in England
established under section 16 of this Act, such date as the
Learning and Skills Council for England may by order
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appoint in relation to that corporation, and”, and
(c)
in paragraph (b)—
(i)
after “further education corporation” insert “in Wales”, and
(ii)
for “the Secretary of State” substitute “the Welsh Ministers”.
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Dissolution of further education corporations
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(1)
Section 27 of FHEA 1992 (orders dissolving further education corporations) is
amended as follows.
(2)
In subsections (1), (2)(a) and (6), for “the Secretary of State” substitute “the
appropriate authority”.
(3)
In subsection (3), omit paragraph (a) and the “or” following it.
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(4)
After subsection (3) insert—
“(3A)
An order under this section made by the Learning and Skills Council
for England in respect of a further education corporation in England
may provide for the transfer to the council of property, rights and
liabilities of the corporation.
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(3B)
The council must obtain the consent of the Secretary of State before
making provision of a kind mentioned in subsection (3A).”
(5)
In subsection (7)—
(a)
for “the Secretary of State” substitute “the Welsh Ministers”, and
(b)
omit paragraph (b) and the “and” preceding it.
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(6)
Omit subsection (8).
(7)
After subsection (8) insert—
“(9)
In this section “the appropriate authority” means—
(a)
in relation to a further education corporation in England, the
Learning and Skills Council for England, and
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(b)
in relation to a further education corporation in Wales, the
Welsh Ministers.”

Further Education and Training Bill [HL]
Part 2 — Further education institutions
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Publication of proposals
(1)
Section 51 of FHEA 1992 (publication of proposals for establishment or
dissolution of further education corporation) is amended as follows.
(2)
For subsections (1) and (2) substitute—
“(1)
The Learning and Skills Council for England may not make—
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(a)
an order under section 16(1) or (3) establishing a body
corporate, or
(b)
an order under section 27 dissolving a further education
corporation,

unless it has satisfied the requirements in subsections (2) and (2A).
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(2)
The first requirement is that the council publishes a proposal relating to
the order, giving such information as may be prescribed, by such time
and in such manner as may be prescribed.
(2A)
The second requirement is that the council considers any
representations about the proposal made to it within the prescribed
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period.”
(3)
In subsection (3), for the words from the beginning to “he has” substitute “The
Welsh Ministers shall not make an order under section 16(1) or (3) unless they
have”.
(4)
In subsection (3A), for “A draft proposal or order” substitute “A proposal or a
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draft order”.
Foundation degrees
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Power to award foundation degrees
(1)
Section 76 of FHEA 1992 (power to award degrees etc) is amended as follows.
(2)
In subsection (1) (power of Privy Council to specify institutions by order)—
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(a)
the words from “specify any institution” to the end become paragraph
(a), and
(b)
after that paragraph insert “;
(b)
specify any institution in England within the further
education sector as competent to grant in pursuance of
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this section an award of the kind mentioned in
subsection (2A) below.”
(3)
In subsection (2) (kinds of award) for “subsection (1)” substitute “subsection
(1)(a)”.
(4)
After subsection (2) insert—
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“(2A)
The kind of award referred to in subsection (1)(b) above is a foundation
degree granted to persons who complete an appropriate course of
study and satisfy an appropriate assessment.”
(5)
In subsection (3) (power to grant awards), after “subsection (2)(a) or (b)” insert
“or (2A)”.
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Further Education and Training Bill [HL]
Part 2 — Further education institutions
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(6)
In subsection (4) (power to grant honorary degrees etc), after “such an order”
insert “as competent to grant in pursuance of this section either or both of the
kinds of award mentioned in subsection (2)(a) or (b) above”.
(7)
After subsection (4) insert—
“(4A)
An institution specified in such an order as competent to grant in
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pursuance of this section the kind of award mentioned in subsection
(2A) above may also—
(a)
grant honorary foundation degrees, and
(b)
grant foundation degrees to members of the academic and other
staff of the institution.”
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(8)
In subsection (5) (powers comprised in the power to grant awards), for “Any”
substitute “Subject to subsection (5A) below, any”.
(9)
After subsection (5) insert—
“(5A)
An order under subsection (1) above specifying an institution as
competent to grant in pursuance of this section only the kind of award
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mentioned in subsection (2A) above may provide that the institution’s
power to grant such awards does not include the power described in
subsection (5)(a) above.”
(10)
In subsection (6) (power of institution to determine appropriate course of study
etc) for “It” substitute “Subject to subsection (6A) below, it”.
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(11)
After subsection (6) insert—
“(6A)
An order under subsection (1) above specifying an institution as
competent to grant in pursuance of this section only the kind of award
mentioned in subsection (2A) above may provide that the institution is
not to grant such an award to a person unless he was enrolled at the
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institution at the time he completed the course of study for which the
award is granted.”
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Report
Within the period of four years beginning with the commencement of section
17, the Secretary of State must lay before Parliament a report about the effect of
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that section.
Other provisions relating to further education institutions
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Powers of a further education corporation to form or be involved in certain
bodies corporate
(1)
Section 19 of FHEA 1992 (supplementary powers of a further education
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corporation) is amended as set out in subsections (2) to (6).
(2)
In subsection (4), for paragraph (bb), substitute—
“(bb)
form, participate in forming or invest in a company,
(bc)
form, participate in forming or otherwise become a member of
a charitable incorporated organisation (within the meaning of
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section 69A of the Charities Act 1993),”.

Further Education and Training Bill [HL]
Part 2 — Further education institutions
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(3)
For subsection (4A) substitute—
“(4A)
The power conferred by subsection (4)(bb) above may not be exercised
for the purpose of—
(a)
conducting an educational institution, or
(b)
investing in a company conducting an educational institution.
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(4AA)
The power conferred by subsection (4)(bc) above may not be exercised
for the purpose of—
(a)
conducting an educational institution, or
(b)
becoming a member of a charitable incorporated organisation
conducting an educational institution.
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(4AB)
But a restriction on the exercise of a power imposed by subsection (4A)
or (4AA) above shall not apply to the extent that the appropriate
authority consents to the exercise of the power in a way which does not
comply with the restriction.
(4AC)
In subsection (4AB) above “the appropriate authority” means—
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(a)
in relation to a further education corporation in England, the
Learning and Skills Council for England;
(b)
in relation to a further education corporation in Wales, the
Welsh Ministers.”
(4)
In subsection (4B), for the words from the beginning to “be exercised”
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substitute “Neither the power conferred by subsection (4)(bb) above nor the
power conferred by subsection (4)(bc) above may be exercised”.
(5)
In subsection (4C), after “subsection (4)(bb) above” insert “or the power
conferred by subsection (4)(bc) above”.
(6)
At the end, insert—
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“(8)
A 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.”
(7)
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
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19(4)(bb) of FHEA 1992 is to be taken to have included power to form,
participate in forming or become a member of a company limited by guarantee.
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Consultation by governing bodies of further education institutions
After section 49 of FHEA 1992 insert—
“49A
Consultation
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(1)
In exercising their functions the governing body of an institution within
the further education sector must have regard to any guidance given
from time to time by the appropriate authority about consultation
with—
(a)
persons who are or are likely to become students of the
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institution, or
(b)
employers,

in connection with the taking of decisions affecting them.

Further Education and Training Bill [HL]
Part 3 — Industrial training levies
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(2)
Any guidance under this section about consultation with persons
falling within paragraph (a) of subsection (1) must provide for the
views of such a person to be considered in the light of his age and
understanding.
(3)
In this section “the appropriate authority” means—
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(a)
in relation to an institution in England, the Secretary of State,
and
(b)
in relation to an institution in Wales, the Welsh Ministers.”
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Qualifications of principals of further education institutions
(1)
Section 137 of the Education Act 2002 (c. 32) (power of Secretary of State or
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Welsh Ministers to make regulations requiring principals of further education
institutions to have specified qualifications) is amended as follows.
(2)
After subsection (2) insert—
“(2A)
Regulations under subsection (1) may limit the period of time during
which a person may serve as the principal of an institution in reliance
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on subsection (2).”
(3)
In subsection (3) (regulations made for England or Wales not to apply to
persons already appointed to institutions)—
(a)
for “under subsection (1)” substitute “made under subsection (1) by the
Welsh Ministers in relation to Wales”, and
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(b)
after “an institution” insert “in England or Wales”.
Part 3
Industrial training levies
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Conditions relating to levy proposals
(1)
Section 11 of the Industrial Training Act 1982 (c. 10) (levies imposed for
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industrial training board expenses) is amended as follows.
(2)
In subsection (6) (conditions relating to certain levy proposals), for paragraph
(a) substitute—
“(a)
that the Secretary of State is satisfied that—
(i)
the board has taken reasonable steps to ascertain the
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views of persons who the Secretary of State considers
are likely to be liable to make payments by way of levy
in consequence of the levy proposals, and
(ii)
a class of persons, who together satisfy the requirements
in subsection (6A) below, considers that the proposals
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are necessary to encourage adequate training in the
industry;”.
(3)
After subsection (6) insert—
“(6A)
The requirements referred to in subsection (6)(a) above are that—
(a)
the class must consist of more than half of those persons who
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the Secretary of State considers are likely to be liable to make
payments by way of levy in consequence of the levy proposals;
and