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 2 — Further education institutions
14

(3)
Where the Secretary of State gives the council a direction under this
section, he must at the same time give the council a notice stating the
matter or matters listed in section 56A(2) as to which he is satisfied.
(4)
The council must comply with any directions given to it under this
section.
5
(5)
Where the council does a thing listed in section 56A(5) in relation to an
institution in compliance with a direction under this section—
(a)
the council must give the institution’s governing body a copy of
the relevant notice under subsection (3), and
(b)
the requirement to give a notice under section 56A(4) does not
10
apply.”
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Intervention: Wales
(1)
Section 57 of FHEA 1992 (intervention) is amended as set out in subsections (2)
to (4).
(2)
In subsection (2) (conditions for intervention), for paragraph (d) substitute—
15
“(d)
they are satisfied that the institution is performing significantly
less well than it might in all the circumstances reasonably be
expected to perform, or is failing or likely to fail to give an
acceptable standard of education or training.”
(3)
After subsection (5) insert—
20
“(5A)
The directions that may be given to a governing body under this section
include a direction requiring a governing body to make collaboration
arrangements (within the meaning of section 166 of the Education and
Inspections Act 2006) with such bodies and on such terms as may be
specified in the direction.”
25
(4)
After subsection (6) insert—
“(6A)
The Welsh Ministers may not direct a governing body under subsection
(5)(c) to dismiss a member of staff.
(6B)
But subsection (6A) does not prevent the Welsh Ministers, where they
consider that it may be appropriate to dismiss a member of staff whom
30
the governing body have power under their institution’s articles of
government to dismiss, from giving the governing body such
directions under this section as are necessary to secure that the
procedures applicable to the consideration of the case for dismissal of
that member of staff are given effect to in relation to that member of
35
staff.”
(5)
After section 57 of FHEA 1992 insert—
“57A
Intervention policy: Wales
(1)
The Welsh Ministers must—
(a)
prepare a statement of their policy with respect to the exercise
40
of their powers under section 57,
(b)
keep it under review, and
(c)
if they consider it appropriate in consequence of a review,
prepare a revised statement of their policy.

Further Education and Training Bill [HL]
Part 2 — Further education institutions
15

(2)
When preparing a statement or revised statement of their policy, the
Welsh Ministers must—
(a)
undertake such consultation as they think appropriate;
(b)
consider any representations made to them about the policy to
be set out in the statement.
5
(3)
The Welsh Ministers must lay before the National Assembly for Wales
a copy of any statement or revised statement prepared by them under
this section.
(4)
The Welsh Ministers must publish any statement or revised statement
prepared by them under this section.
10
(5)
The Welsh Ministers must have regard to the statement most recently
published under subsection (4) in exercising, or deciding whether to
exercise, any of their powers under section 57 in relation to an
institution.”
Foundation degrees
15
19
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)—
(a)
the words from “specify any institution” to the end become paragraph
(a), and
20
(b)
after that paragraph insert “;
(b)
specify any institution in England within the further
education sector as competent to grant in pursuance of
this section an award of the kind mentioned in
subsection (2A) below.”
25
(3)
In subsection (2) (kinds of award) for “subsection (1)” substitute “subsection
(1)(a)”.
(4)
After subsection (2) insert—
“(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
30
study and satisfy an appropriate assessment.”
(5)
After subsection (2A) (as inserted by subsection (4)) insert—
“(2B)
Where the Privy Council is considering whether to make an order
under subsection (1) above specifying an institution as mentioned in
subsection (1)(b) above, the Privy Council may not make the order
35
unless—
(a)
the institution gives the Privy Council a statement setting out
what it proposes to do as regards making arrangements for
securing that any person granted an award under or by virtue
of any power that would be conferred on the institution if the
40
order were made (other than the power described in subsection
(4A) below) has an opportunity to progress to one or more
particular courses of more advanced study, and

Further Education and Training Bill [HL]
Part 2 — Further education institutions
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(b)
the Privy Council considers that the proposals are satisfactory
and are likely to be carried out.”
(6)
In subsection (3) (power to grant awards), after “subsection (2)(a) or (b)” insert
“or (2A)”.
(7)
In subsection (4) (power to grant honorary degrees etc), after “such an order”
5
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”.
(8)
After subsection (4) insert—
“(4A)
An institution specified in such an order as competent to grant in
pursuance of this section the kind of award mentioned in subsection
10
(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.”
(9)
In subsection (5) (powers comprised in the power to grant awards), for “Any”
15
substitute “Subject to subsection (5A) below, any”.
(10)
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
mentioned in subsection (2A) above may provide that the institution’s
20
power to grant such awards does not include the power described in
subsection (5)(a) above.”
(11)
In subsection (6) (power of institution to determine appropriate course of study
etc) for “It” substitute “Subject to subsection (6A) below, it”.
(12)
After subsection (6) insert—
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“(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
institution at the time he completed the course of study for which the
30
award is granted.”
20
Report
Within the period of four years beginning with the commencement of section
19, the Secretary of State must lay before Parliament a report about the effect of
that section.
35
Other provisions relating to further education institutions
21
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
corporation) is amended as set out in subsections (2) to (6).
40

Further Education and Training Bill [HL]
Part 2 — Further education institutions
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(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
section 69A of the Charities Act 1993),”.
5
(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.
10
(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—
20
(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”
25
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—
30
“(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
35
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.
22
Consultation by governing bodies of further education institutions
After section 49 of FHEA 1992 insert—
“49A
Consultation
40
(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—

Further Education and Training Bill [HL]
Part 3 — Industrial training levies
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(a)
persons who are or are likely to become students of the
institution, or
(b)
employers,

in connection with the taking of decisions affecting them.
(2)
Any guidance under this section about consultation with persons
5
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—
(a)
in relation to an institution in England, the Secretary of State,
10
and
(b)
in relation to an institution in Wales, the Welsh Ministers.”
23
Qualifications of principals of further education institutions
(1)
Section 137 of the Education Act 2002 (c. 32) (power of Secretary of State or
Welsh Ministers to make regulations requiring principals of further education
15
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
on subsection (2).”
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(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
(b)
after “an institution” insert “in England or Wales”.
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Part 3
Industrial training levies
24
Conditions relating to levy proposals
(1)
Section 11 of the Industrial Training Act 1982 (c. 10) (levies imposed for
industrial training board expenses) is amended as follows.
30
(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
views of persons who the Secretary of State considers
35
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
are necessary to encourage adequate training in the
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industry;”.

Further Education and Training Bill [HL]
Part 3 — Industrial training levies
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(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
the Secretary of State considers are likely to be liable to make
payments by way of levy in consequence of the levy proposals;
5
and
(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.”
10
(4)
After subsection (6A) (as inserted by subsection (3)) insert—
“(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—
15
(a)
provision for ascertaining the views of persons with respect to
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
20
respect to levy proposals.
(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
25
organisations”.
25
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—
30
“(2A)
Levy proposals must provide for one or more periods (in this Act
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.
35

Levy proposals may not provide for more than three levy periods.
(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
40
provide for a single levy period that falls within the period of one year
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
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Further Education and Training Bill [HL]
Part 3 — Industrial training levies
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provide for a single levy period that falls within the period of one year
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
5
emoluments are to be calculated.”
(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
10
that the condition in paragraph (a) above applied, and
(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 24) insert—
“(6E)
The period mentioned in subsection (6)(b)(ii) above is—
15
(a)
if the earlier levy order provides for such levy periods as are
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
20
referred to in subsection (2C) above, the period beginning with
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—
25
(a)
that no exemption certificates should be issued; or
(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—
30
(a)
the proposals in pursuance of which the earlier levy order was
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
35
the current proposals the exemption certificates will not exempt
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.”
40
(5)
In subsection (8), in the definition of “the relevant emoluments”, for the words
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
45
order”) giving effect to levy proposals submitted by an industrial
training board will be made—