Select Committee on Education and Skills Minutes of Evidence


Examination of Witnesses (Questions 60-79)

MR MICHAEL BUCHANAN, MR DAVID LLOYD JONES, MS ANGELA RAWSON, MS JANET NEWTON AND MR ALLAN JARVIS

24 MAY 2006

  Q60  Chairman: What about David's company?

  Mr Lloyd Jones: In the last two years we have been trying for the Queen's Award for the environment and each time they have come back and found some reason why we should not get it, but this third time round we are going to get there.

  Q61  Chairman: That includes the evaluation of your own footprint?

  Mr Lloyd Jones: Absolutely.

  Q62  Chairman: Allan, you have been talking about the future. What about the schools you have been in. Have they attempted within the parameters that they are set to measure their footprint on this planet?

  Mr Jarvis: I think I can recall two cases where they have done so. We certainly aim to do so in the Bradford schools.

  Q63  Chairman: Did you do it in the schools in which you have worked in the past?

  Mr Jarvis: No.

  Q64  Chairman: Angela, you work for an organisation. Do you measure your footprint in terms of the building you are in, the company, the organisation you work in?

  Ms Rawson: Within the county?

  Q65  Chairman: Yes.

  Ms Rawson: I think we operate from a range of sites, some which are—

  Q66  Chairman: You are being a bit shifty here. These days people are saying, "What is your personal footprint on this planet? What is your corporate footprint? What is your family's footprint?" It is about time we started thinking like that in relation to sustainability, surely?

  Ms Rawson: Yes, but I think some of the issues that have been raised about the costs of some of this and where you decide to invest—

  Q67  Chairman: We are not talking about how expensive it is, whether you measure it. You cannot improve unless you as a local authority measure what it is. If you do not know what it is you cannot begin to improve it, can you?

  Ms Rawson: True.

  Q68  Chairman: Janet.

  Ms Newton: Personally I do not, but I suspect there is a little man in County Hall who would know all that information, because meeting Agenda 21 is one of the corporate priorities for the county council.

  Q69  Chairman: This is holistic, is it not? We cannot sit here now saying nice things about sustainable schools without talking about your procurement. You ought to be checking on Michael and David for their BREEAM credentials before you hire then, surely, if sustainable buildings is going to work? Many companies are at the leading edge in this.

  Ms Newton: They are indeed. Certainly the preferred bidder that we have has made a significant commitment to produce the most sustainable schools in the country. In terms of the county council's approach, when I get back to County Hall this afternoon, I shall enquire who has got the answer.

  Q70  Chairman: It would be nice when the Committee comes to your place, as we might do, to see outside what is your carbon footprint. We would be very impressed by that. Allan, one of the things we found on a very good school visit on Thursday, a very good school—I will name it. It was the Education Village in Darlington. The people there said, "We started off with high aspirations for sustainability but a lot of it was cut out because of cost." Is that going to happen time and time again?

  Mr Jarvis: It will happen if we allow it to. It will happen if Partnerships for Schools adopts a funding allocation model or continue to use a funding allocation model for BSF that does not allow for addressing sustainability issues where there is some upfront cost. If it is that important, then it needs to be addressed through the funding allocation model, DfES have to buy into it, Partnership for Schools have to buy into it, local authorities have to be prepared to buy into it. You need to get all those people on board and find the extra £500,000, or whatever it might be, in upfront costs to make these solutions affordable at the start of the project and, for example, under a PFI scheme, allow for your return only coming towards the end of the 25-year contract. Another thing you need to do, where you are doing conventional design and build in BSF, and this comes back to a question that was asked earlier on, you have got to make sure that the same quality of outputs is achieved there: so the same degree of sustainability in terms of design, in terms of building performance, and that applies also to where you are refurbishing rather than replacing buildings—the same imperatives should be applied—but they will cost money in cases where you are restoring and refurbishing existing buildings, they will cost money anyway in terms of the upfront costs to put wind turbines of worthwhile size on the roofs of buildings and in order to generate a significant amount of the building's energy requirements.

  Chairman: I want to move on now. Do not feel affronted by the questions. If you are all game after this meeting, we could go round to what I call the Eden Project, the Department for Education and Skills, to see what their carbon footprint is.

  Q71  Stephen Williams: I want to ask some questions about financing, perhaps starting off with Ms Newton, as a surveyor. The Chairman mentioned at the start there was £45 billion of taxpayers' money going into this over a period of time. If that was in one year, it is about 15p on the rate of income tax, so it is a politically sensitive amount of money. I spent a six months' sentence on the Public Accounts Committee in my first period as an MP. How confident are we that this scheme is not going to be the subject of a future investigation by the National Audit Office or the PAC? Are we really getting value for money?

  Ms Newton: Are you speaking of the scheme nationally or the scheme in Lancashire?

  Q72  Stephen Williams: Speaking from your local experience.

  Ms Newton: Certainly in terms of the scheme in Lancashire, as I mentioned earlier, we have had to go through very vigorous assessments to prove that the scheme that we are putting forward represents value for money. We have had to satisfy our own internal audit, we have had to satisfy the leadership of the county council and, indeed, the buy-in from governing bodies that what we are doing is value for money, given that they are going to make a contribution over 25 years. We have had to satisfy Partnership UK, the ODPM, the Project Review Group from the Treasury, Partnerships for Schools and DfES that the project in Lancashire is value for money. We have looked at the lifecycle costs, we have looked at the CAPEX costs, we have had to put together a very comprehensive outline business case and final business case and I believe that there are good processes in place to provide checks and balances to ensure that what local authorities are doing does represent value for money for the taxpayer.

  Q73  Stephen Williams: To most of your professional peer groups, Lancashire is a model of good practice. As far as you are aware, is that model followed by every other LA?

  Ms Newton: I could not possibly comment on whether it is followed by every other LA. Certainly, within Lancashire, as the Project Director, we are rigorous in ensuring that we go through the proper checks and balances. We are in the fortunate position that we have got very good in-house, legal and financial expertise, we draw in external advice as we need it, but at the end of the day we are a member-led authority and our members need to be satisfied at a local level that what we are doing represents value for money and, obviously, we then have the national agenda to meet it. I could not comment on what anybody else does, but we certainly run a very tight ship in Lancashire.

  Q74  Stephen Williams: Perhaps we can look a bit further afield than Lancashire. Other countries, perhaps in Europe, that are going through a similar programme, are there examples from abroad that we could learn from?

  Ms Newton: I personally do not know. I understand there are schemes in Scandinavia and I think, in terms of some of the sustainability agenda, there have been various trips to look at some of these schemes within Scandinavia. Unfortunately, my horizons have been very much focused within Great Britain and what has been happening there and looking at some of the national examples, the village in Darlington. On an international level I could not say.

  Q75  Stephen Williams: I come back to some of the questions that Paul Holmes and David Chaytor asked earlier about the funding mechanism, PFI and so on. If during the 25-year period a school were to fail, for whatever reason, your Armageddon syndrome that you mentioned earlier, who picks up the liabilities to the private sector provider?

  Ms Newton: Ultimately the county council stands covenant guarantor. We have procured this project, legally the contracts are between the county council, PFI with the SPB, and so it would be the county council, which is why we are very rigorous in ensuring it is value for money locally as well as nationally, because it is a very big commitment for us and the last thing we want is for this project to fall over after the huge amount of time, effort and money that we have put into it.

  Q76  Stephen Williams: Can I ask Mr Jarvis a question based on an earlier answer. It is about human methods. I think you mentioned there were 21 schools that Bradford visited as part of your tour to look at what was good elsewhere, and you said that some of them were better than others. Was there a pattern in the procurement method? Were PFI schools better than other schools or LA funded schools?

  Mr Jarvis: I had better keep this answer very anonymous. No, there was no pattern like that. In fact, in one case we visited two schools, both procured in the same local authority, on the same day and opened on the same day, both procured through PFI. In one case PFI seemed to be working extremely well and in the other case PFI seemed to be working extremely badly. I think the lessons will have been learnt by the local authority going forward into future work with BSF. There has not seemed to us to be a pattern. What there has seemed to be, and it comes back to another sustainability issue that was touched on earlier, we have noticed some idiosyncratic ideas where the design was driven by one particular school leader, the head teacher at the time, and where we felt that it would be very difficult for a future head teacher to run those schools. In other words, we have got unsustainable design issues there in terms of the interaction between school design and school leadership, and that is a snare and one to be avoided if at all possible. In terms of how a local authority is pretty good in schools, we have seen good design and build schemes procured through conventional capital routes, we have seen good PFI designs. The only thing I would say about PFI is that I am strongly convinced, and I have said this to Partnerships for Schools, that school design is not an activity to be pursued in the competitive environment if you can possibly avoid doing so. I believe that with local education partnerships driving BSF forward, the right thing to do about school design is to procure your LEP first and then design the school once you have got an established supply chain rather, than designing schools in competition with the artificial scenario that that leads to and the fact that it is impossible, because you are in competition and in a confidential environment, to make sure that the best features of one design can be incorporated into another.

  Q77  Chairman: In relation to local education partnerships, what is the best model you saw? It seems to be very worrying when you said two schools, the same local authority, one much better than the other, and you hinted that is down to an idiosyncratic intervention by the head.

  Mr Jarvis: Not in that particular instance, no, that was another local authority, but in this particular case—

  Q78  Chairman: You said in the same local authority.

  Mr Jarvis: I was referring in that answer to three different schools, one in one authority and two in another, but where the two schools in the same authority were concerned, yes, I think the problem there was that the school was being procured at a time when there was not a head teacher in post and the head teacher coming in came in to a design which had not been sufficiently rigorously worked through.

  Q79  Chairman: What is the dream-team to design the scheme, to make sure that there is not a head that loves Mussolini architecture or there is some mess-up because there is no head? What is the dream partnership that seems to work?

  Mr Jarvis: The dream partnership for me is where you have a strongly engaged local authority with a very strong asset-management base and lots of local in-house expertise, working with a very good architectural practice, working with a strong committed school leadership with some ideas of underpinning its educational vision rather than pragmatism ruling all the time, supported by the children, the pupils in the school, who are, after all, going to be the users of the environment you are building. If you put all of those ingredients together, I think you can achieve, and I have seen some examples of the achievements, a very good school design. If you leave any one of those ingredients out, if you do not have the full support of the local authority, the full support of school managers and leaders, the full support of the technical experts, the full support of organisations like CABE and other experts who can draw your attention to best practice that you might otherwise be overlooking, the full support of the students who will be the users of the environment and who can validate it or criticise it in ways that perhaps adults would be ill-placed to do, if you lack any one of those ingredients, you could miss a trick.


 
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