Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 570 - 579)

TUESDAY 6 MARCH 2007

DFES

  Q570  Chairman: Minister, we are very grateful indeed to you for coming to this first half of the last evidence session we are having into our inquiry on manufacturing skills. It is one of these cross-over issues and I appreciate not an issue that you normally scrutinise so we are all the more grateful to you for coming and bringing with you your colleagues. Perhaps I could ask you to introduce them?

  Mr Down: Tim Down, deputy director within the Department for Education and Skills.

  Ms Fender: Alyson Fender, part of the skills group in the Department for Education and Skills.

  Q571  Chairman: Can I begin as the Conservative Chairman of a Labour dominated Committee by seeking to strike a note of consensus and take you back into the history of this long and troubled subject? I am told that Parliament and government have agonised over this issue about the decline in skills base relative to our major competitors since a select committee report on scientific instruction in 1867. On average, I am also told, there has been a major report on this subject we are discussing this morning from a select committee or government department at a rate of one every two and a half years since then. What is going wrong?

  Bill Rammell: Firstly, it is a pleasure to be here. It is an issue that has been around for a considerable time. I get the sense I could be wrong that there is a degree of consensus and urgency about this issue that genuinely, in my experience over the last 10 to 20 years, has not been there. When we come to look at some of the prospectus that has been set out in our successive skills White Papers, within the FE White Paper and particularly within Sandy Leitch's report, there is an opportunity for consensus and some real action to make progress on this issue. Certainly the challenge we face is very significant.

  Q572  Chairman: Given this long history, 140 years of navel gazing over this subject, I was going to ask you what makes you confident that the government's new approach and the Leitch report will deliver the goods. Arguably, that is the consensus point you just made in answer to my first question.

  Bill Rammell: I think it is. What has been particularly significant about the Leitch report is that it was a genuine, external challenge to government. My sense is that there has been almost universal acceptance of its analysis and prospectus of the way forward. It has linked education and training to the performance of the economy in a way that previous reports have not done. Again in a way that previous reports have not done, it very helpfully sets this within an international context and sets out the very stark challenge that—I would say this, wouldn't I?—even with the significant improvements we have made in the last 10 years, if we simply maintain the current trajectory, we are going to stand still in terms of our relative performance. It is very helpfully a long-term report. If you look at the previous reports that have taken place, they have looked at a three, four or five year timescale. This is looking forward to 2020. Very helpfully, the Leitch analysis and report does two very important things. One, it very firmly endorses the demand-led approach, that employers have to be in the driving seat in shaping the kind of delivery that we are taking forward. Secondly, given the scale of the challenge, it sets out very clearly that, yes, government has a role to play within that, particularly in terms of resources, but there has to be a shared responsibility. If you look, for example, across the further education sector in the last 10 years, we have increased investment by something like 50% in real terms. Yet, even with that level of increase, without an additional contribution from the individual and the employer, we are simply not going to face up.

  Q573  Mark Hunter: One of the major causes of skill shortages which has been identified by witnesses to this Select Committee's investigation has been the public perception of manufacturing. Indeed, we have seen a Manufacturing Foundation report into the attitudes of children and students who found that they were overwhelmingly negative about the prospects of a career in manufacturing. These perceptions were reinforced within the education system, for example, when covering de-industrialisation in geography or exclusively shop floor, factory visits. Do you agree that there is a problem with the perception of manufacturing and how can the perception of manufacturing as "dirty and in decline" best be countered in schools and colleges?

  Bill Rammell: That is a serious challenge. It affects not just manufacturing but science and technology subjects more broadly. There is a lot that I think government can do. Partly, this is about processes that take place within society, particularly the world of the media and the way that science, technology and manufacturing are presented and depicted. Certainly we do need to ensure that there is really decent careers advice to young people and adults. One of the things that we need to get across and this is certainly true for science and technologies is that the earnings premium through undertaking a qualification in that subject is substantially higher than it is for non-science and technology subjects. At the end of the day, money has an influence on the choices that people make. We need to involve the industry which crucially has to take responsibility, going out, engaging with schools, colleges, careers advice exhibitions. An example of that is that, at the moment, as part of enhancing the careers advice to young people, we are funding—with the Sector Skills Council involved in manufacturing—an initiative to improve quality comprehensively and accessibility of information about manufacturing. Ensuring that the employer voice through the Sector Skills Council in shaping the kind of educational provision that we put forward is crucial. Additionally, initiatives that Sandy Leitch set out of a new universal adult career service, pulling together the different elements at the moment, initiatives like a skills health check for every adult where you can analyse what your gaps are and what you can do about them can help as well. At the higher skills levels, I very firmly believe that Foundation Degrees which I think are proving a significant success story, where you very much shape the qualification alongside and with the employer particularly in this kind of area can really help.

  Q574  Mark Hunter: If we share the analysis that the perception of manufacturing is a real issue, are there any specific initiatives that you can bring to our attention today that your Department is responsible for, which are addressing those concerns in particular?

  Bill Rammell: In terms of the perception, certainly within science and technology more broadly, we are doing a hell of a lot to stimulate the interest of young people. For example, piloting 250 science after school clubs to enthuse and engage young people with science subjects, the measures to guarantee the availability by 2008 of an opportunity for a triple science GCSE option, the initiatives we are undertaking with the Institutes, with the higher education sector, to promote the additional graduate earnings premium for science and technology based subjects. There is the kind of initiative I was referring to earlier where we are working with the manufacturing SSC to improve the availability of information about manufacturing. There is a whole range of initiatives that we are engaged with. This is a bit repetitive but government cannot do this on its own. The industry has to work with us, not only by directly communicating with young people and adults about the opportunities that exist, but also trying to change hearts and minds in the wider society world, to get across the importance of these areas.

  Q575  Mark Hunter: Can I move to careers advice in schools and colleges? A concern that we have heard repeatedly from witnesses to the Committee is that careers advice is often very poor when it comes to opportunities in manufacturing, particularly tending to reinforce gender stereotypes about sectors such as engineering, electronics and textiles. Could you tell us a little bit more about steps that the government is taking to give better, more balanced advice to children and students and particularly to female students about career opportunities in this area?

  Bill Rammell: It is a very important area. Look, for example, at the differential pay levels for women as opposed to men in the area of apprenticeships. It is almost exclusively driven by the occupational areas that they gravitate towards. Therefore, in conjunction with the Equalities Commission, we have been pursuing programmes to raise awareness about the increased earnings potential in particular apprenticeship programmes. We are reviewing the careers advice that is available to young people through the school system. We need to do much more to get the industry to come out and engage with that Careers Advisory Service directly with young people. It is about getting a young person to go into a manufacturing environment and see that this is quite interesting and exciting and there are some real opportunities that exist here. Moving forward, it is also looking towards the adult workforce, the universal adult Careers Advisory Service, pulling the different strands together so that we begin to ensure, either within a job centre or elsewhere within the college system, there is an accessible level of advice that is available to the potential student.

  Q576  Mark Hunter: Did you say as part of that answer that you are currently reviewing the activities of the Careers Advisory Service and the information that they have?

  Bill Rammell: Yes.

  Q577  Mark Hunter: Is that by way of a formal review or just one of these ongoing things?

  Bill Rammell: It is not explicitly my area of responsibility but within the school service we are looking at the relationship between the Connexions Service and the local authority responsibility for that, seeking to ensure that the advice and guidance are as accurate as possible and that it is also up to date. One of the challenges within this is that the people who directly give the advice sometimes have their own experiences rooted 10 or 20 years in the past. We have to bring that up to date.

  Q578  Mark Hunter: When that review is completed, will the conclusions be available to us to look at?

  Bill Rammell: Most certainly.

  Chairman: The careers sector and the HE sector too could probably do with some shaking up as well, but that is a wider issue.

  Q579  Mr Hoyle: Do you think there is too much emphasis by universities and colleges to put portfolios together and show the trendy part, so that people want to enter television and media studies? The problem is they are attracted to that and it is very hard to make it attractive to go into engineering. Do you think there is some failure there?

  Bill Rammell: Are you talking specifically within the higher education system?


 
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