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
7

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Consultation by the Council
After section 14 of LSA 2000 insert—
“14A
Consultation
(1)
In exercising its functions the Council must have regard to any
guidance given from time to time by the Secretary of State about
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consultation with—
(a)
persons receiving or proposing to receive post-16 education or
training,
(b)
employers, or
(c)
such other persons as may be specified in such guidance,
10

in connection with the taking of decisions affecting them.
(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.”
15
8
Plans for academic years
(1)
Section 15 of LSA 2000 (plans of the Council) is amended as follows.
(2)
In subsection (1)(a), for “each of its financial years” substitute “each academic
year”.
(3)
Omit subsection (2).
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(4)
In subsection (3), for “any subsequent financial year of the Council” substitute
“an academic year”.
(5)
In subsection (4)—
(a)
for “a financial year” substitute “an academic year”, and
(b)
in paragraph (a), for “the financial year” substitute “the academic year”.
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(6)
After subsection (4) insert—
“(5)
In this section “academic year” means—
(a)
the period starting with the 1 April following the date on which
section 8 of the Further Education and Training Act 2007 comes
into force and ending with the second 31 July following that 1
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April;
(b)
each successive period of 12 months.”
9
Powers to form or be involved in certain bodies corporate
(1)
Section 18 of LSA 2000 (supplementary functions of the Council) is amended
as set out in subsections (2) and (3).
35
(2)
In subsection (3), for paragraph (c), substitute—
“(c)
to form, participate in forming or invest in a company unless the
Secretary of State consents;
(d)
to form, participate in forming or otherwise become a member
of a charitable incorporated organisation (within the meaning
40
of section 69A of the Charities Act 1993) unless the Secretary of
State consents.”

Further Education and Training Bill [HL]
Part 1 — The Learning and Skills Council for England
8

(3)
At the end, insert—
“(8)
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.”
(4)
In relation to the period beginning on 1st September 2000 and ending
5
immediately before the coming into force of this section, the power conferred
by section 18 of LSA 2000 is to be taken to have included power to form,
participate in forming or become a member of a company limited by guarantee
with the consent of the Secretary of State.
10
Directions
10
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”.
11
Provision of services
(1)
The Learning and Skills Council for England may make arrangements with a
15
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
subsection (1) include—
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(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
person or body to whom this section applies.
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(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—
(a)
the Secretary of State;
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(b)
the Welsh Ministers;
(c)
the Scottish Ministers;
(d)
Northern Ireland departments;
(e)
persons or bodies, wholly or partly funded from public funds, that
have functions relating to education or training;
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(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
connection with the exercise of the person’s or body’s functions relating to
40
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
with the exercise of the person’s or body’s functions relating to education or
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Further Education and Training Bill [HL]
Part 1 — The Learning and Skills Council for England
9

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;
(b)
in relation to education or training provided in Scotland, the consent of
5
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.
(7)
Consent may be given under subsection (5) or (6) in relation to particular
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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;
(b)
in relation to persons or bodies exercising functions relating only to
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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;
(d)
in any other case, the Secretary of State.
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12
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)
(arrangements for assisting persons to select, train for, obtain and retain
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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
arrangements.
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(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.
13
Assistance with respect to employment and training: Northern Ireland
(1)
The Learning and Skills Council for England may take part in any
35
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).
(2)
Before making arrangements in which the Council is to take part, the
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Department must obtain the consent of the Secretary of State to the
arrangements.

Further Education and Training Bill [HL]
Part 2 — Further education institutions
10

Part 2
Further education institutions
Further education corporations
14
Incorporation of further education institutions
(1)
Section 16 of FHEA 1992 (incorporation of further education institutions) is
5
amended as set out in subsections (2) to (4).
(2)
In subsection (1) for “The Secretary of State” substitute “The appropriate
authority”.
(3)
In subsection (3)—
(a)
for “The Secretary of State” substitute “The appropriate authority”, and
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(b)
in paragraph (b), for “his” substitute “the appropriate authority’s”.
(4)
After subsection (5) insert—
“(6)
In this section “the appropriate authority” means—
(a)
in relation to an educational institution in England, the
Learning and Skills Council for England, and
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(b)
in relation to an educational institution in Wales, the Welsh
Ministers.”
(5)
In section 17(2) of FHEA 1992 (meaning of “operative date”)—
(a)
omit the word “and” at the end of paragraph (a),
(b)
at the end of that paragraph insert—
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“(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
appoint in relation to that corporation, and”, and
(c)
in paragraph (b)—
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(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
(1)
Section 27 of FHEA 1992 (orders dissolving further education corporations) is
amended as follows.
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(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.
(4)
After subsection (3) insert—
“(3A)
An order under this section made by the Learning and Skills Council
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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.
(3B)
The council must obtain the consent of the Secretary of State before
making provision of a kind mentioned in subsection (3A).”
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Further Education and Training Bill [HL]
Part 2 — Further education institutions
11

(5)
In subsection (7)—
(a)
for “the Secretary of State” substitute “the Welsh Ministers”, and
(b)
omit paragraph (b) and the “and” preceding it.
(6)
Omit subsection (8).
(7)
After subsection (8) insert—
5
“(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
(b)
in relation to a further education corporation in Wales, the
Welsh Ministers.”
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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
25
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”.
Intervention in further education institutions
17
Intervention: England
Before section 57 of FHEA 1992, insert—
“56A
Intervention: England
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(1)
This section applies if the Learning and Skills Council for England is
satisfied as to one or more of the matters listed in subsection (2) in the
case of an institution in England within the further education sector;
and it is immaterial whether or not a complaint is made by any person.
(2)
The matters are—
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Further Education and Training Bill [HL]
Part 2 — Further education institutions
12

(a)
that the institution’s affairs have been or are being mismanaged
by the institution’s governing body;
(b)
that the institution’s governing body have failed to discharge
any duty imposed on them by or for the purposes of any Act;
(c)
that the institution’s governing body have acted or are
5
proposing to act unreasonably with respect to the exercise of
any power conferred or the performance of any duty imposed
by or under any Act;
(d)
that the institution is performing significantly less well than it
might in all the circumstances reasonably be expected to
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perform, or is failing or likely to fail to give an acceptable
standard of education or training.
(3)
If this section applies the council may do one or more of the things
listed in subsection (5).
(4)
If the council does one or more of those things, it must at the same time
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give the institution’s governing body a notice stating—
(a)
the matter or matters listed in subsection (2) as to which the
council is satisfied;
(b)
the reasons why the council is so satisfied;
(c)
the reasons why the council has decided to do that thing or
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those things.
(5)
The council may—
(a)
remove all or any of the members of the institution’s governing
body;
(b)
appoint new members of that body if there are vacancies
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(however arising);
(c)
give to that body such directions as it thinks expedient as to the
exercise of their powers and performance of their duties.
(6)
The directions that may be given to a governing body under this section
include a direction requiring a governing body to make collaboration
30
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.
(7)
Directions may be given to a governing body under this section despite
any enactment making the exercise of a power or performance of a duty
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contingent on the body’s opinion.
(8)
The council may not direct a governing body under subsection (5)(c) to
dismiss a member of staff.
(9)
But subsection (8) does not prevent the council, where it considers that
it may be appropriate to dismiss a member of staff whom the governing
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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 staff.
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(10)
A governing body must comply with any directions given to them
under this section.

Further Education and Training Bill [HL]
Part 2 — Further education institutions
13

(11)
An appointment of a member of a governing body under this section
shall have effect as if made in accordance with the instrument of
government and articles of government of the institution concerned.
56B
Intervention policy: England
(1)
The Learning and Skills Council for England must—
5
(a)
prepare a statement of its policy with respect to the exercise of
its powers under section 56A,
(b)
keep it under review, and
(c)
if it considers it appropriate in consequence of a review, prepare
a revised statement of its policy.
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(2)
When preparing a statement or revised statement of its policy, the
council must—
(a)
undertake such consultation as it thinks appropriate;
(b)
consider any representations made to it about the policy to be
set out in the statement.
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(3)
The Secretary of State may give the council guidance in relation to the
exercise of its functions under subsections (1) and (2), and in particular
in relation to the form and content of the policy.
(4)
It is the duty of the council to have regard to any guidance given to it
under subsection (3).
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(5)
The council must send a copy of the statement or revised statement
prepared by it to the Secretary of State.
(6)
If the Secretary of State approves it he shall lay a copy of it before each
House of Parliament.
(7)
The council must publish—
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(a)
the statement of its policy approved by the Secretary of State;
(b)
where the Secretary of State approves a revised statement of its
policy, the revised statement.
(8)
The council must have regard to the statement most recently published
under subsection (7) in exercising, or deciding whether to exercise, any
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of its powers under section 56A in relation to an institution.
56C
Directions
(1)
This section applies if—
(a)
the Secretary of State is satisfied as to one or more of the matters
listed in section 56A(2) in the case of an institution in England
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within the further education sector, and
(b)
the Secretary of State is satisfied that the circumstances are such
that it would be appropriate for the Learning and Skills Council
for England to do one or more of the things listed in section
56A(5) in relation to the institution.
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(2)
In such a case the Secretary of State may give to the council such
directions as he thinks fit as to the exercise of the council’s powers
under section 56A.