Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 20-39)

BRITISH COUNCIL & FOREIGN & COMMONWEALTH OFFICE

23 JUNE 2008

  Q20  Mr Touhig: The Report does say that your approach is not systematic and it is not all that well documented?

  Mr Davidson: When we examine an operation we do so on the basis of a business plan. That business plan requires—

  Q21  Mr Touhig: It also says that you do not really do market testing?

  Mr Davidson: Again, I think I would dispute that we do not.

  Q22  Mr Touhig: You read the Report.

  Mr Davidson: I would argue that we do in a number of places do market testing. We undertake a range of market approaches. What we do not do, and where we want to develop our work, is identify different models and a different way of doing business. We tend to work on the basis of a fixed model. The criticism of the Report, which is how I read this, I think is accurate in that case.

  Q23  Mr Touhig: How many new centres are being planned at the moment?

  Mr Davidson: I do not have a figure off the top of my head.

  Q24  Mr Touhig: You are planning some?

  Mr Davidson: Yes.

  Q25  Mr Touhig: Do you know where they might be located?

  Mr Davidson: We have plans for a substantial expansion in China. We are also looking at plans for India. We have a programme which, at the moment, is examining the full range of our operations globally to identify new opportunities. At the moment we are right in the middle of a process of examining these opportunities.[3]

  Q26  Mr Touhig: When you look at these opportunities do you look at what contribution these developments can make to our relationships within countries where you want to set up?

  Mr Davidson: Yes, we do. Our approach is that we should seek them to cover their costs; where it is appropriate we seek for them to provide a surplus which enables us to develop the programme more widely; but everywhere we look to them as a contribution to the UK's international relationship. We will not open a centre where it does not provide a contribution to the public diplomacy objectives.

  Q27  Mr Touhig: Coming back again to costs and I am looking at your website, it says that one of your stated aims in the purpose and direction section is your commitment to internationalism and to equal opportunities; but how does this commitment sit well with some of the high charges that you make?

  Mr Davidson: It sits with our recognising that out of our centres we develop this wider range of other activity. Perhaps Mr Lynes could give you some examples of some of that work.

  Mr Lynes: As the Report states the British Council has got an excellent reputation in terms of English work that it does around the world, and it is regarded as a world authority. In all the cities where we actually deliver face-to-face teaching it raises the standard of direct teaching in that city and in that country. It is for that reason governments come to us and look to us to access ELT through the UK. For example in the Middle East, where I am currently working, we are working with the Yemeni government on curriculum reform, introducing UK textbooks into the market there; and we are working in Saudi Arabia supporting English language teaching in universities there. So the teaching centres are only a small part of what we are doing.

  Q28  Mr Touhig: I understand, but what I am trying to explore is that there are many countries which are not wealthy which would benefit enormously from the British Council's English teaching and could prove to us to be very useful partners in the long-term?

  Mr Lynes: Absolutely right. We do operate in places in Africa.

  Q29  Mr Touhig: Would lower charges then actually benefit us? Does not the Foreign Office have a view on this? Do you prod them from time to time and say, "We have a certain interest developing in this country. We'd like to see you expand your work and by the way, boys, knock 20% off your charges"?

  Mr Luck: We do work extremely closely together, as indeed you have implied. We work very closely on the strategic aims and objectives of the British Council; but their day-to-day operations are very much matters for the British Council.

  Q30  Mr Touhig: You provide most of their money?

  Mr Luck: We do indeed.

  Q31  Mr Touhig: So you have an interest?

  Mr Luck: We do indeed on the public diplomacy side; but again on the English language English teaching side that is a part of the operation which is very much part of the British Council's day-to-day operations.

  Q32  Mr Touhig: Profits and surpluses, Mr Davidson, might drop a little but in the long-term Britain's interest might be better served. Do you not have a degree of flexibility in your approach to this?

  Mr Davidson: We do have flexibility in our approach. As I said, because of the competition issues we make absolutely certain there is no subsidy from the grant into the teaching operation; and that is a fixed position for us. We undoubtedly subsidise, from some of our wealthier operations, some of the poorer ones. If you just look at the range of countries where we are operating—54 rather than the 13 or nine that our major competitors are working in—I think it indicates the way in which we do make substantial shifts from wealthier operations to the poorer ones.

  Q33  Mr Touhig: Finally, Mr Luck, value for money are they?

  Mr Luck: I believe so, yes. We do work extremely closely and they are a valued and valuable partner in our public diplomacy effort. As Mr Davidson has indicated at the beginning of the session, they have enormous reach, far greater than the Foreign Office could do on its own; and I think the Report points to our heads of mission saying that they feel they are a valuable contribution to the Foreign Office.

  Q34  Mr Bacon: In paragraph 1.6 the Report describes your shift from Europe towards the Islamic World. I read in my Daily Telegraph you are sponsoring a hip hop band in Libya. I am not competent to judge whether that is value for money or not; although the quote from your colleague, the Ambassador to Egypt, saying that the debate inside Islam would be helped by having professional Islamic scholars able to communicate in English, I would have thought self-evidently true. Apparently you are funding an English school in al-Azhar?

  Mr Davidson: That is correct.

  Q35  Mr Bacon: I am just wondering, might that shift lead you to the closure of offices you already have, or is it simply a case of scaling it down?

  Mr Davidson: The shift we have made out of Europe has indeed led to the closure of offices?

  Q36  Mr Bacon: Whereabouts?

  Mr Davidson: Over the last eight years we have reduced, for example, in Germany from five[4] regional offices to one; we are now present only in Berlin. We are looking at a range of other operations as well to see whether or not we should be present in the scale that we are. We will also be moving in Europe away from a public presence except where the public pays for that. For example, where we are able to teach and the public is able to cover the costs of that presence we will have a public presence; where it is not then we will be moving into private offices.


  Q37 Mr Bacon: Are you referring to the British Council office in Hardenberger Strasse in Berlin? That is still open, is it?

  Mr Davidson: It has now moved. It has now moved to a back office only; so we no longer have the library or the teaching centre.

  Q38  Mr Bacon: Not having the library is probably a benefit, and I will come on to that and why. I used to live in Berlin and I used to use the British Council office and library, at least the office, for the newspapers at any rate, regularly. Surely those ought to be capable of being self-financing because of the English language teaching, should they not?

  Mr Davidson: We have found it difficult in some operations to do so.

  Q39  Mr Bacon: In Germany I mean, of all places, there is an enormous demand for English language tuition there.

  Mr Davidson: There is. The question for us is the amount of time, effort and management we have to put into it. Is that the best way for us to deliver the cultural relations agenda we want, or do we do it in a different way?


3   Ev 17 Back

4   Note by witness: The British Council had five offices in Germany in 2000: Cologne, Berlin, Hamburg, Munich and Leipzig Back


 
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