Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 80-99)

BRITISH COUNCIL & FOREIGN & COMMONWEALTH OFFICE

23 JUNE 2008

  Q80  Mr Mitchell: At the same time you are closing down centres which run at a small overall loss. You have closed ten "Mission Critical" centres, whatever they are, in countries. Why is that? Can you give us an indication or perhaps report back to the Committee telling us why they were closed and what the numbers were because it says nothing about numbers, it just says a small financial loss.

  Mr Davidson: I can certainly give the Committee a note which indicates each of the centres we have closed and the reasoning for that. Fundamentally, we have closed those centres which were making a significant loss and where we did not believe they worked effectively.[8]

  Q81  Mr Mitchell: It says a small loss, not a significant loss.

  Mr Davidson: I would argue that we would only close where there is a significant loss. It is a combination of loss and a failure to deliver an effective contribution to the UK's cultural presence in the country.

  Q82  Mr Mitchell: Why do you concentrate so heavily on capital cities, both in your cultural activities and in the English teaching? If Britain was a foreign country you would never come to Grimsby, would you? We would hear nothing of you!

  Mr Davidson: Again, part of the whole of our future development programme is about finding ways of operating outside simply the capital cities. Obviously the UK is very different from a range of those countries where we are working. For example, in Zimbabwe we are in Harare and Bulawayo, in Burma we are in Rangoon as well as Mandalay and we have four centres in China and 9 centres in India, so we are spreading ourselves where we believe it is appropriate to do it. I think there is no question that we can and should be looking at branch operations in second and third cities in some of those countries where at present we do not have them.

  Q83  Mr Mitchell: Presumably that would enable you to offer a less expensive option. One of the reasons given as to why it is so pricey—it says at 2.29—is the teaching of English is carried on in expensive offices.

  Mr Davidson: We did make a decision, and I think it was the right decision, that we should teach along with the rest of our work. We are not simply a teaching organisation, we are a cultural relations organisation and we wanted people who would come in to learn English to also see the other work we are doing, whether that is information work or seminar work or activity with different people, so I do think that does add some cost to it. Personally, I believe it is appropriate that we try and build out from the teaching centres into the rest of the work that the organisation does.

  Q84  Mr Mitchell: The report gives you the impression, which no doubt Mr Davidson will follow up, that you are going for the classes, not the masses, both in your cultural contacts, your relationships and in your English teaching.

  Mr Davidson: I do not think that is appropriate.

  Q85  Mr Mitchell: Potentially you are picking out people, rising stars like me and members of the elite, whereas the need is to get out to the mass market.

  Mr Davidson: We are certainly picking out rising stars but I do not think we are assuming that rising stars only come from existing elites. Indeed, a critical part for us is to make sure we try and look across the entire range of people within a particular place to identify where those rising stars are going to be coming from.

  Q86  Mr Mitchell: This increased emphasis on the regional premises which you are developing, is that to save money, that you could put on one performance of Midsummer Night's Dream and cart it around India? The report says that you are going for more of a regional strategy and taking groups, cultural events, writers or whatever around a region rather than a country by country approach.

  Mr Davidson: What we are seeking to do is develop programmes which are region-wide. A good example is our School Links Programme. We have a programme which takes place in a wide range of different countries. Traditionally they have tended to be country specific and country form by bringing them together into a programme which we hope to launch the month after next called Connecting Classrooms.

  Q87  Mr Mitchell: It is not to save money.

  Mr Davidson: It will save money because instead of developing a programme maybe 20 or 30 times, we will develop it only once. It is not about taking money out of the programmes, it is about being able to deliver that programme more effectively. I think the school classroom links is a very good example of that.

  Q88  Mr Mitchell: I see that sponsorship return is down. Is that because of this regionalisation process? In other words, you could get local sponsors for a strictly local event but you cannot get sponsors for a bigger regional event.

  Mr Davidson: I think there is an aspect of truth in that, that by moving away from some very large programmes at an individual country level we have to find new ways of developing those relationships. That is one of the reasons why we have expanded, for example, our corporate sponsorship department in London because we have to deal with headquarters for some of the scale of sponsorship we are now looking for rather than the local office.

  Mr Mitchell: This friction with Russia which has hit the headlines, were you spying? Were the premises being used for spying?

  Chairman: Who were you spying on!

  Q89  Mr Mitchell: Were the premises being used for a purpose like spying, of which the Russians were rightly suspicious?

  Mr Davidson: No, they were not.

  Mr Davidson: You would say that anyway!

  Q90  Mr Mitchell: Have you experienced that kind of difficulty in other countries?

  Mr Davidson: What, difficulties like Russia?

  Mr Bacon: Spying?

  Q91  Mr Mitchell: No, sorry, difficulties of government suspicion of your activities.

  Mr Davidson: There is no question that a number of governments do not necessarily like the development of a more open society. My personal view, I do not have a huge amount of evidence for this but you will perhaps remember that our offices in Ramallah and Gaza were burnt out about 18 months ago. Why? Because we were the only people at that time providing access to the outside world for young Palestinians. Undoubtedly there are forces around the world who do not want us to do that.

  Q92  Mr Mitchell: Those will be greater in the Muslim world.

  Mr Davidson: No, I think there are a variety of countries, for example Burma.

  Mr Mitchell: Mr Lynes is nodding.

  Q93  Chairman: Your colleague was nodding at that stage; you said no and he said yes!

  Mr Davidson: I think there are certainly issues within the Islamic world, the Muslim world, but I think there are also other issues. Burma and Zimbabwe are not renowned for their openness at the moment.

  Q94  Chairman: I was going to ask you specifically about Burma and Zimbabwe. What is happening there? Are you being harassed? Are you free? Do people keep telling you what you can and cannot do?

  Mr Davidson: We have operations in both those countries and in both countries we have a large number of people coming through the offices. I think in Burma we have something like 70,000 people coming to our offices for activities and that is teaching, examinations and libraries. There is an excellent example of where the library is a phenomenally powerful tool because it is the only place in Burma where you can get access to outside literature, foreign newspapers, the BBC World Service and the Internet. We have something like 375,000 people a year coming through our offices. Obviously there are people who come in multiple times, they are not new individuals, and every time they come in they have their names taken by military intelligence. It is a service of enormous value which people take a risk in coming to get and the same is true in Zimbabwe. Again, we have a very substantial number, around 50,000 to 60,000 people per year coming into our operations in Zimbabwe, in Harare and Bulawayo. Our agenda there is to try and provide support and assistance to young professionals who want to stay on in the country and not go overseas.

  Q95  Mr Davidson: You are under the umbrella of the Foreign Office, which in previous investigations—if you can clarify—was chock-a-block with public school, Oxbridge people. Are you representative of Britain as a whole?

  Mr Davidson: We attempt to be so. How well we are doing is worth looking at.

  Q96  Mr Davidson: Is that a yes or a no?

  Mr Davidson: It was the preliminary to telling you where we are, which is that out of our 240 senior managers globally we have something like 8% from black and minority ethnic staff and something like 30% who are female. I think it is still true to say that we have a larger number of black and minority ethnic staff in the more junior ranks of the organisation, but we have targets which we have put in place to try and ensure that both women and minority staff are better represented throughout the organisation.

  Q97  Mr Davidson: None of which I mentioned, but I did mention public schools and Oxbridge and you did not mention either of those in your reply, so I presume that was a no then, was it?

  Mr Davidson: Out of my executive board of five, one person has an Oxbridge background; out of the 12 regional directors, three have an Oxbridge background.[9]

  Chairman: You were obviously expecting this question, were you not, because you are well prepared!


  Q98 Mr Davidson: Maybe you could confirm that to us in writing, that would be helpful. Can I turn to page 11, chart 5, where we are looking at the groups you are focusing your resources on. This applies to British Council—India, but I presume it applies more generally. The top two groups both have low price sensitivity, now I presume that is a euphemism for rich, whereas the bottom two groups you have there are high price sensitivity, which I presume is a euphemism for poor. Picking up the point which my colleague made, you are basically providing services for rich people.

  Mr Davidson: No, I do not think we are. If you take China as a case in point, there is a very wide range of people who are not necessarily rich but for whom education and foreign education is seen as of such enormous value that they are not enormously sensitive to the cost of that. I think the same is true in India. We have not used this as a euphemism for rich and poor, we have tried to identify those who are genuinely price sensitive and those who are not.

  Q99  Mr Davidson: Can you clarify for us how many of the people you are dealing with, for example, in India could be vaguely described as rich and how many could be vaguely described as poor that you are dealing with? You tell us the answer and then we will try and clarify whether or not that is representative of India as a whole.

  Mr Davidson: I cannot give you a precise split off the top of my head but I will obviously try and let you have that.[10] It would be foolish for me to pretend that an organisation of our size in 9 offices across India is dealing with anything like 1.2-1.3 billion people, but clearly we are working with the mass education system. For example, we have developed a programme with the West Bengal Government to provide English to the secondary schools which delivers English.





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