Select Committee on Education and Skills Minutes of Evidence


Examination of Witnesses (Questions 300-319)

MR ROB SHED, MR BARRY WHITE, MR MIKE BLACKBURN, MR MARCUS ORLOVSKY AND MR NICK KALISPERAS

5 JULY 2006

  Q300  Chairman: Hold that for a minute, I know Nick has got to leave now but one of the things that is coming through is that you are more institutional than I thought you would be because what interests the Committee very often is the out-of-school learning that is probably the most revolutionary thing in this period of educational development that we have ever seen. Here we have a society in which little kids have to instruct their parents how to understand most of the IT in their homes, kids as young as four and five know how to handle the sophisticated television and all that sort of stuff. There is an educational revolution going on amongst very young children that is nothing to do with what they learn in school, so what is happening there, Marcus, and how do we cope with that?

  Mr Orlovsky: We take people to Halifax and we go to—

  Q301  Chairman: You could build a school right next door in Huddersfield.

  Mr Orlovsky: I have to tell you, I do not understand why—if we were building a supermarket, if we were constructing a new supermarket which was a fairly inconsequential shed, although I know the supermarket operators will say it has got a huge amount of technology in it, we would probably mock one up inside a big shed somehow, a big warehouse, and we would try it out with some test customers. For the life of me I do not understand why we do not do that with schools. We look at little components, and the classroom of the future is great, but it is just a classroom of the future, not a school of the future, so one has to go Djanogly in Nottingham and see what those guys are doing with regards to the ICT, one needs to go off to see what Mike Davies is doing with Bishop's Park in Clacton, to see what he is doing with school agendas, one needs to go to the Natural History Museum and see how they are trying to change themselves from being a collection into something else, go off to Montessori in Amsterdam and try and see how that group of people are dealing with the bottom 25% of attainment, the guys with 75% asylum seekers, and pick certain components. The difficulty with it is in picking those components and opening one's eyes we still do not obviously have a model. There is a question about what should we be doing with ICT, should we be having a national ICT framework, a national model, and imposing it? We are a little too timid to do that, so in a lot of authorities we are a little bit nervous of the power of the heads, at the same time we want to put a framework in place which is replicable around the place, we have LEPs trying to do their bit and all of it is in a bit of a rush. I am not suggesting that we cannot get innovation there, but I am suggesting that what is going to happen is that some of the early schemes—and I know we are talking about Bristol, but it is not open yet, it is not built and we do not know if it works. Sometimes you see a great idea which then gets built and you find that because of the cracked marble and because the window has a flaw in it, it is not quite as nice as it should have been. A lot of designs which you see in PFI schools may have been okay, but a couple of marginal decisions got taken which ruined it. That is where we are; I am not trying to be institutional, I am trying to work out where the issues are, or trying to help you understand where the issues are.

  Chairman: We are very grateful to all of you. Not only has Douglas been neglected, but you mentioned Clacton and I think he must respond.

  Q302  Mr Carswell: I am just curious, you mentioned Mike Davies's Bishop's Park College in Clacton, what would you regard as successful about that?

  Mr Orlovsky: What Mike has tried to do is just look back and to some extent he has almost—it is not quite what Steiner are trying to do because Steiner are trying to make education much more tangible at the individual level, but Mike has the work of having a secondary school divided effectively into three smaller schools where a group of teachers are responsible for a smaller group of students. Joining that school, therefore, you will join one of the three schools within it. There is a shared resource and the other thing he has done is to change his school week in that on Fridays there is a master class, which is a one-day class on an in-depth subject. That does not sound like very much, but it makes a heck of a difference.

  Q303  Mr Carswell: What would you regard as successful about it, bearing in mind its first set of results are due to come out any week now?

  Mr Orlovsky: That is a loaded question, is it not?

  Q304  Mr Carswell: On a very serious point though, does this not illustrate that we perhaps are losing sight of what it is all about, which is learning and education? It is all very well having these faddish ideas about this, that and the other, but despite millions and millions of pounds of investment, literally millions of pounds in this case, if you are only able to produce a set of results that is simply not good enough are we not basically losing sight of what education is still thought to be about?

  Mr Orlovsky: We have a set of results which we are using at the moment, and this is another debate, is it not? There is a set of results which we are using which is attainment at a point in time, effectively GCSE results, and we are saying it is A*-C and we are measuring everybody on that. I do not know if we have done the work on how much correlation there is between A*-C successes at a point in time—we are not measuring the curve, we are not measuring somebody who is on their way up, whether they are static or on their way down, we are measuring that point of attainment at that point in time. I do not know whether that measurement necessarily projects whether somebody will be a great contributor in our society; I suspect we may find that we do not have a perfect correlation, and I suspect we will find that some people who are wonderful contributors in society may discover their abilities at an earlier or a later stage and it may not be reflected in that particular measurement which we are using. You will find that an awful lot of the teaching profession is saying I cannot measure and I cannot tell you whether this student is on the way up and I cannot tell you that this student is a very creative individual because we do not have a course on creativity, but what we have is a set of measures. If we choose to put everything on those measures then we will drive different behaviours and we will drive teachers and schools to teach to pass the exam. I do not know—and that is a wider debate—whether that is what we want or whether we want teachers and educators to educate people to be great contributors. We might say it is the same, except I spend an awful lot of time talking to teachers and I spend an awful lot of time talking to students. We are just three-quarters of the way through a programme for 10,000 students from challenging areas to help them get into university and I must talk to maybe 700 heads a year. In some places in the country there are heads who know that some of their departmental heads may be teaching parts of a subject in order that their students will do well in that exam, and there is a debate going on within the teaching profession at the moment about what is it that we are trying to achieve. I do not want to sound negative, I am trying to be really positive because the 10,000 kids that I met are just outstandingly brilliant and we are achieving some fantastic results. We are achieving fantastic results from people who, on paper, do not necessarily look that good, so I am a little bit concerned and I am trying to defend Mike because I do not know where Mike Davies's results will come out, but if you walk around that school and you see what those students are achieving and if you see the commitment they have, it is very strong; I would like to hope that that is a great blueprint. In the same way, if you go around the Natural History Museum, and see what some of those students are achieving, it is really good, and some of the kids walk out and say "Good grief, I really want to do some stuff now." If you measured at that moment you might not measure very high attainment, so it might take six months or nine months before something comes through, and that is the debate, it is a debate about what we are trying to build.

  Q305  Mr Carswell: We shall see when those results come out.

  Mr Orlovsky: I know.

  Chairman: You missed Marcus's opening remarks when he expressed what he thought schools were about in terms of the sort of student he wanted between going into a secondary school at 11 and coming out at 16 or 18, so he had described that vision in some part. Anyway, carry on with your questions, Douglas, if you wish to.

  Mr Carswell: That is all I need to know.

  Q306  Paul Holmes: Could I just ask a very quick question. I agree with everything that Marcus has just said, however when any one of the five people giving evidence is recruiting somebody to work in their firm, do you look at their GCSE and A level qualifications, or do you assess something totally different and ignore their exam results?

  Mr Orlovsky: I am lucky because I am in a smaller firm. I used to be in charge of graduate recruitment at Ernst & Young and that is what we did, we looked at results, and then we said that that actually can stuff somebody up at quite at an early age, so we started putting in assessment tests, just to see actually how good people were at the sort of tasks we wanted, and that became a bit more mature. I am running a very small organisation and we recruit people who have got a passion and commitment, that is what we are interested in, whether people have got great results or not. I am not really so interested in what people have done in the past, I am more interested in what people are going to do if they join us and what change are they going to make in the future. I have not yet worked out how to measure what somebody can do in the future necessarily based upon what they may have done in the past at school. I might look at what their previous background has been, but I am much more inclined to go with someone who has got extracurricular activities and has done some wonderful stuff, which is the application of skills, because that is a demonstration of what a person is worth, more than necessarily what the academic results are which is the hope that they can go on to achieve great things.

  Mr Shed: Inevitably we do look at qualifications, particularly for graduates, but it is not just about qualifications, it is about the person. You are recruiting the person, not just the person with qualifications, so as a first screening process the qualification is important, but in the end when you are talking to somebody it is how you react to that person and his enthusiasm. As Marcus has said, there is more to life than just what GCSE or what qualification a kid got at school.

  Q307  Chairman: I want to get back to more of the nitty-gritty of how these things work now, and I am going to ask the team to look at the section we have described as "Cost to bidders and affordability", and that is about this whole area where it is argued that the tender process is cumbersome, long and expensive. I am certainly familiar with that, wearing my environmental hat, in that there are enormous costs, for example, for an organisation to supply an energy-from-waste plant. I always put it into perspective—I think the Belvedere has just been given planning permission after 16 years, so I do not know how much that cost to prepare, but you take my point. Part of the evidence we have already had and some of the stuff that you have given us points out this real problem of the tendering process. Is there a level at which the tendering process is a barrier—we do not have to muck about with this, the fact is that you big building companies must add that to your cost, if it costs you whatever for the tendering process it goes into the price eventually, does it not? We know that, so is that inevitable? Is the tendering process also going to cut out the smaller and particularly the medium-sized operator; is it all going to be the big people, the big architectural practices, the big contractors that are going to get these contracts because the system squeezes out those people that are not in that league? Can we start on that and then I will call Douglas to nail it down?

  Mr White: First of all you are actually right, that at the end of the day, to an extent, people do have to recover their bid costs through bids that they are successful in, and not everyone in the public sector necessarily admits that or understands it, but it is absolutely right that that is the case. Is it expensive; the early projects under Building Schools for the Future probably are reasonably expensive to bid because people are learning a new process and therefore there is an initial cost in that; we are finding that on subsequent projects that cost is less because we have learned lessons from the first projects, which is a positive. Does it mean that only big players can be there? I do not think that is the case; there is a very varied range of bidders in the market between bigger and medium-sized companies and certainly within Skanska we use different sized architectural practices as well and we are working with very small architectural practices because we believe that they can bring a new vision and a new type of innovation to what we are trying to do, as well as working with some of the more established ones. There is very much a mixed offering within the market.

  Q308  Chairman: John Sorrell from CABE said he was really worried about the smaller and medium-sized practices being squeezed out of the process; is that a genuine worry? He is a very knowledgeable chap as chairman of CABE.

  Mr Shed: There has been a discussion for some time that PFI/PPP does squeeze out the smaller players and I do not know if that is the case. Certainly, as Barry has said, we make a point of using the medium-sized and smaller architects because that is where the expertise is. If you think about where the knowledge of building schools, for example, rests, it rests in a number of regional architects that have traditionally worked in the education sector, so the bigger named architects are often not the place to go for the best architecture in education. We use a selection of architects and we try to build relationships with a few so that we can try to use them around a number of projects.

  Q309  Chairman: Why are people so cagey about telling us who is good and who is bad? Has CABE done an assessment of the five years of building new schools? I am a great addict of the Good Food Guide; it does not have any sponsorship, it has independent inspectors and when I go to a town I know in terms of the score out of 10 that the cooking is good and so on; it is a bible for me, it saves me from being poisoned in places. Why can we not have a star rating for people who actually have done these contracts in these past, so we know that this is only a two-star performer, treat with great caution because they have built a school with no natural daylight or corridors that nobody can walk down comfortably. Why can we not have a rating so that someone who is your client knows who to choose from?

  Mr Shed: I guess the answer is that it is all about the person procuring the building looking at more evidence as to what the person in front of him is actually going to deliver. We were talking earlier on about taking people to your projects that you are proud of, and that is something that we are happily prepared to do, so I guess that is probably the answer. We can all wax lyrical about what makes a good design; good design is often in the eyes of the beholder.

  Q310  Chairman: That is an extreme, is it not? It is not rocket science that a room with no windows is not a good learning environment, come on.

  Mr Shed: That is quite right.

  Q311  Chairman: There are certain things that you know are awful. The group here went to a school in the Republic of Ireland and we all came out saying we had found the builder that Basil Fawlty used to use, he was alive and well and building things. It had a corrugated roof, it was dark, it was awful; surely the consumer should be protected against that?

  Mr Shed: I agree. I would need to come and see that school and I would love to see that school and find out what actually caused that to happen, because that is exactly what gets our industry a bad name. The fact that you can recount that example, the fact that CABE can recount examples of bad architecture does our industry more harm and it ignores the fact that there are people out there trying damned hard to actually do something much better, and the longer that CABE keep on coming out with those sorts of statements the more it does the industry down. I can take you to CABE ratings for some of the hospitals we have built where they have given us five stars, where they have said it sets new standards. That never gets publicised, all that gets publicised is the negative and that is always what is disappointing. CABE have seen our schools in Bristol and CABE have given our schools in Bristol a very good rating; that never gets publicised.

  Q312  Paul Holmes: If CABE are saying that 50% of all the new schools in the last five years are poor, that is a fairly headline figure.

  Mr Shed: I would not seek to protect some of those that built some of those schools and I can understand some of the circumstances behind them, but you need to look at the circumstances that made them poor. Was it poor because it did not look nice, or was it poor because they were dark classrooms? I have seen some reports that say something is poor architecture simply because it does not look very nice; it may perform great inside, it may allow the kids to get a good education but it is not necessarily poor. One man's poor is not necessarily the same—

  Q313  Chairman: We knew that Nick could not stay the whole course, but he wants to say a word before he leaves.

  Mr Kalisperas: It is just to make an offer to the Committee that we are not-for-profit as an organisation and we are also technology neutral, so we would be more than happy to facilitate a visit to a couple of schools that we consider best practice. I can be in touch with the Clerk to the Committee if you would like.

  Chairman: That is a very good offer, thank you, Nick. Sorry, Paul.

  Q314  Paul Holmes: The specific examples they gave us on Monday afternoon were not to do with visual design, they were to do with a hall at the centre of a school so that every time the classrooms emptied out, all the kids doing exams in the hall were disrupted—there was no way around that because that was the way it was built—the one-way system because the corridors were too narrow and the library with no external windows and being able to share classrooms. All the examples they gave were just ludicrous for any building that people were supposed to work in, let alone teach kids in.

  Mr Shed: I agree, you cannot condone those standards, those standards are valid criticisms, but I can take you to other very famous buildings where some of the same issues occur. I guess you can take someone inside this building and there are elements of this building that do not work, but CABE would still see this building as a great building.

  Q315  Paul Holmes: They said that only 19% were excellent or good, so one in five of the new buildings in the last five years were excellent or good and 50% were poor. That is a pretty appalling record and if the next £45 billion goes the same way, that is a disaster for the taxpayer and it is a disaster for our kids who are going to be in those schools for the next 40 years.

  Mr Orlovsky: If we were building our own house we would be very concerned about what it was going to look like at all times and we would be involved in that process. When you ask a management team from the school to get involved in that, we know that they sign off drawings but they may not necessarily know exactly what they are signing off. We have already said we do not know the reasons why some of those buildings are bad, but that I think is the clearest case and if CABE want to make a difference then we should have a CABE enabler who is not just looking at the architecture but looking at the functionality at all times through the process, just to hold the hand of the uninformed users. That may be something which, at the moment, does not necessarily have a huge amount of resource behind it, and I cannot imagine really anybody necessarily wanting to do that, to build a classroom with no windows, it is a mistake and it has just got built. Those are things that can happen because builders want to build and architects want to design, one might have lost momentum and off it goes. Somewhere one wants to try and put in the checks and the double checks; it is almost like doing an absolute design audit. It might be a peer review, it might be a good idea, before anything gets built, just in order to check it from the users' side rather than from the deliverer's side, because if you work on something for too long you cannot see the mistake; it is there everyday but you cannot see it because you have got too close. That might be an opportunity to make that change happen. We have talked to CABE about trying to do that and CABE have their own issues over what is the role of the enabler and where does the enabler continue to be in the process and, actually, how much veto or sanction have they got. At the moment I think they have a consultative role as opposed to an absolute arbiter role, and that might be quite a good thing to have.

  Q316  Mr Carswell: I want to look further at a point you have already touched upon. You have a huge amount of public money, public procurement contract money through PFI, swirling around. Is it not the case that the BSF bidding process is a very effective barrier to entry to keep the ability to tender and receive that money in the hands of a few big corporations?

  Mr Orlovsky: Yes. The number of smaller contractors and small architects who cannot enter this is very high, and I am afraid that is because at the procurement level we want to pass risk. I am a taxpayer, so it is all our own money, is it not, and if we want to pass the risk so that if something goes wrong during a period of time we have an ability to go back, then it is not surprising that if I have a local builder who may have a not inconsequential turnover of £150 million or £200 million, they could not bid for a contract of £50 or £60 million, it would just be too great a risk for them; likewise, we would not want to choose them because we would say if they had one major claim they would go bust. If you like it is cause and effect, it is not, so of course we are asking larger and larger organisations to bid because we would have more comfort that if something goes wrong we have redress. If the risk profile changed we would have smaller organisations joining and I know that the likes of very large building organisations do sub-contract so ultimately some work comes down, it is just that they may not be as visible. It is similar with smaller architects, the vast majority of architectural practices are five or six people, so although we are talking about a lot of large and medium-sized practices, you probably would not want to get a secondary school designed by a practice of four or five people, all of whom are working on it 100% of the time, because the perception of risk would be too great. That is what we have ended up with and as projects get bigger and bigger, so we are requiring the respondees to be like that. It is cause and effect and maybe if we reduced the risk transfer we would have more people entering, or maybe if we were not doing such major big projects we would have more people entering, but then we have another element of procurement in that we will have so many smaller contracts out there.

  Q317  Mr Carswell: Do you think there is a set bureaucratic cost involved in setting up an LEP regardless of the number of schools involved?

  Mr Orlovsky: We get back to the debate about is it a thick LEP or a thin LEP and is it a LEP which is actually trying to do something, which is staffed up, or is it a LEP which is simply a poste restante for a series of contracts which get administered? An awful lot of authorities want to have the LEP structure but actually want to have a very thin LEP, so it is really a poste restante and it is a series of future purchase PFI contracts—I am trying to be non-institutional now. There is a reality on the ground about this and it is quite hard for an authority just to say okay, there is another £300,000 or £400,000 which is going to disappear in management costs to the LEP when I think I can do those things perfectly well myself, and I think that is what we are ending up with. If we have a thick LEP then, yes, there probably is a fixed price and you would not want people just kicking around because there is no project coming through at this moment.

  Q318  Mr Carswell: Before I move on to the next question, did anyone else want to comment?

  Mr White: Our experience of the market is that at the moment there are about 25 different bidding organisations bidding in BSF so there is very much a variety of size within those different bidding consortia, so for a programme that is going to actually bring to market 10 projects per year there is a very wide range of people competing in that market.

  Q319  Chairman: Have we got the capacity in this country to deliver on BSF?

  Mr White: Yes, I believe the capacity is there and we very much rely on smaller, local firms for that capacity, so in terms of actually delivering the work, we rely on local groundworks, mechanical and electrical contractors to actually work with us to deliver the actual work. In terms of the question of smaller architectural practices, we were asked by DfES to speak at a conference about using smaller architectural practices because we are one of the first people to really embrace that, and we are using a practice of five or six people to design a secondary school because we believe they can actually make a difference. In terms of the cost of the Local Education Partnership there are two important things: one is if the Local Education Partnership ends up duplicating activity with the local authority then that would be a failure and we very much set out our stall to say it must be substitution rather than duplication in nature, and as part of actually being chosen as a Local Education Partnership you have to guarantee future savings and the guaranteed savings that we have pledged on Bristol, for instance, are more than three times the total cost of the Local Education Partnership. In terms of the value for money balance, therefore, that has to be there from the public sector point of view, if the Local Education Partnership is simply an additional cost then you would be right, there would be no point in it, but if it is actually delivering better value for money and producing the savings, then actually it is well worth having.


 
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