Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 120-140)

BRITISH COUNCIL & FOREIGN & COMMONWEALTH OFFICE

23 JUNE 2008

  Q120  Mr Dunne: Turning to the income you generate from exams, could you clarify for us the relationship that you have with existing British exam boards and the extent to which you are complementary or compete? I understand you have essentially a joint venture arrangement with Cambridge University, is that right?

  Mr Davidson: We have joint ownership with Cambridge of the one exam, which is the IELTS examination, which is this tripartite arrangement with ourselves, Cambridge University and IDP. That is the only examination where we have a direct interest in the exam itself. Otherwise, we provide a service to British examination bodies and make that available to all examination bodies. So in various different markets and different countries we certainly support Cambridge examinations, we are a significant deliverer of the ACCA examination, we deliver examinations on behalf of other examination bodies including Edexcel and City & Guilds, and we provide a service for individuals who are wanting to take examinations where we might have had a direct relationship. So, for example, with individual leader universities, if someone is wishing to take university exams then we would offer that facility as well. Also in certain markets, in particular markets like Pakistan, we deliver a significant number of IGCSEs.

  Q121  Mr Dunne: In Gaza, I think you said, you have recently had a facility torched. In aligning with Government's strategic priorities, obviously finding a settlement to the Middle East difficulties is an important one. I was in Gaza last autumn and went round schools which were run by the UN. Have you given any thought to taking a more proactive role in areas like Gaza or the West Bank or some of the refugee camps in Syria or Jordan?

  Mr Davidson: We have offices in Gaza, Ramallah and East Jerusalem; we also have offices in Damascus, Aleppo, Beirut and in Tripoli. So we do have offices across the region, and areas of work like support to schools, support to English language, but most particularly important, providing the opportunity for young people in those regions to have access to the outside world is very much the core of our role.

  Q122  Mr Dunne: But you do not consider extending your role into running schools, either with support from the UN or the British Government?

  Mr Davidson: We have not considered that, no. I am not sure I would feel we had the skills in the organisation to be able to run effectively basic schools.

  Q123  Mr Dunne: But you do run schools. I am very surprised that my colleague, Mr Davidson, did not pick this up because it follows the line of questioning he was going down. On page 21, in Figure 10, it says you run a fee-paying school in Spain and have since 1940, so you run a private school in Spain—

  Mr Davidson: We do.

  Q124  Mr Dunne: --- but you are not prepared to consider running schools in parts of the world which are closer to Britain's strategic priorities?

  Mr Davidson: We run one school as an organisation and it has been a school which we have run since 1940.

  Q125  Mr Dunne: Sorry, so you do not still run it? You do still run it?

  Mr Davidson: We do still run it, yes, we do. It is a school which we have historically run for over 65 years but it is very much sui generis, it is very much a one-off, and it is not a method of cultural relations which we would see ourselves necessarily wishing to repeat elsewhere.

  Mr Dunne: Thank you.

  Q126  Chairman: I am a great enthusiast for the French Government system of having a French Lycée in every capital city. It has been enormously influential in spreading French culture and ethos around the world and creating a cadre of people who understand the French language. I went to the Lycée for a time in London, all my children have gone there, it has an all-ability intake and heavily subsidised fees. You mention this school in Madrid but it has always been a mystery to me why you have not created all-ability schools around the world. It is one thing to summon in young people for a few English classes, but if you can get them young, like the Jesuits, you can get them on your side forever. Why have we never developed the equivalent of French Lycées around the world funded by the British Council? They would be hugely over-subscribed.

  Mr Davidson: We at one point did look at the possibility of expanding our schools operation. I think it is one of those stables where the horse has now bolted.

  Q127 Chairman: What do you mean?

  Mr Davidson: There are a large number of British schools now in different parts of the world.

  Q128  Chairman: A lot of them are quite expensive to get into. They are very much more for the elite, the international elite. I would have thought creating an all-ability intake, heavily subsidised schools, as the French do, would do so much for British culture and extending British influence around the world.

  Mr Davidson: I do not disagree. As far as I am aware, I am not sure that the resources are going to be available. The amount of money the French put into their lycées are very, very considerable and they are based upon the right of French people anywhere in the world to get the same education as they would get in France.

  Q129  Chairman: That is not a bad idea, surely? Certainly in the Lycée in London, a third of the people there traditionally are French, a third international and a third English. You could create a similar system around the world so that English people working abroad would have the ability to go to an English comprehensive school and it would also be for local people to come along as well.

  Mr Davidson: We simply do not have the resource which is attached to the lycée system in France, which is exactly the same as the per capita support given to them as if they were in France. That simply is not the case.

  Q130  Chairman: You think it is a good system, do you?

  Mr Davidson: I think it has the potential to be very powerful but at the moment I am not sure I see the—

  Chairman: That is the best sort of "Yes" one is ever going to get from a senior official! Mr Mitchell and then Mr Bacon have supplementaries.

  Q131  Mr Mitchell: Of course some of the public schools have set up franchise operations in China.

  Mr Davidson: Yes, they have.

  Q132  Mr Mitchell: I wish them luck with the Chinese upper classes, they are as useless at business as ours. My question is about higher education because there is intense competition now between higher education systems in different parts of Australia, Canada, New Zealand and us and between individual institutions. The Grimsby Institute has developed a lot of very fruitful contacts with China, with Chinese people coming here and some of ours going over there. This is obviously good business and a flourishing opportunity. Why are you only working with it in India, as we have seen from the Report? Why are you not providing a service for them which operates through you, rather than having to set up their own contacts and sending their own expeditions over, and then you can charge them a fee for it?

  Mr Davidson: We do do precisely that. We have a service which we offered to—

  Q133  Mr Mitchell: Just in India.

  Mr Davidson: No, globally. It is not in every single country—

  Q134  Mr Mitchell: The Report instances India.

  Mr Davidson: The Report has one particular instance in India but we do have a programme, it is called the Education UK Partnership and individual institutions are members of that, and it is everything from higher education, further education and language schools. I am pretty certain, but I will check, that Grimsby is a member of that and will be drawing upon support from the British Council. It would be foolish for me to pretend it is just the British Council which drove the increase in numbers in China, but I personally was there in the mid-90s when we had only 1,500 students coming to this country and I was told by institutions there was no market there. Through the efforts we have made with those institutions we now have 60,000-odd students coming to this country. The same is true with a whole range of partners.

  Mr Mitchell: Thank you.

  Q135  Mr Bacon: I was very pleased by your answers on the Customer Relationship Management points in the Report, because when I first read paragraph 3.16 which talks about things you could not do I thought I was going to read, "Oh my God, here comes another dreadful IT project", but instead I found you had spent very little money and you were very sceptical, which I have to say warmed the cockles of my heart. I would like more answers like that and your scepticism, I suspect, is well justified. Indeed, when you say the requirements are not well defined, it says that one of the risks to it is that user take-up may be slow, well if they have not got something people want plainly it will be slow. Is it possible, and it mentions in 3.15 that various Excel databases are in use, that if you are slow enough—as in paragraph 3.18, " ... if the Council does not soon define a corporate solution, regions will develop their own ... ."—but keep on pumping out good advice, for example, sensible, really useful templates of all the things that anybody would want to know on an Excel database, you can get basically more or less where you need to go without spending any serious money at all? Or is your business too big for that?

  Mr Davidson: I think there would be real benefits, as I think Mr Burstow pointed out, if we were able to draw on data across the whole world, but I do not want to spend millions of pounds to be able to do that. That is why our pilot programmes are looking at what it is we need to know, what it is our customers want to know from us, and to what extent we are going to be able to stay in touch with them and how we build a sufficient understanding which allows us to have a long-term relationship. It is not a one-size-fits-all, either in terms of the type of people we are working with or indeed different parts of the world, and different cultures have completely different approaches as to how they want to stay in touch with big organisations like ours.

  Q136 Mr Bacon: Thank you. I am sure you have come briefed for this question, which is about your font. You spent £50,000 on it. Apparently, according to your spokesman, you saved £500,000 and "Without a bespoke font every user and every supplier in the 110 countries we operate in worldwide would have had to have bought legal versions of Century Schoolbook and the Universe fonts previously used". I have been counting up, I reckon I have got access to 11 legally-owned copies of Century Schoolbook and Universe knocking around on various different computers I have got, some of them in the shed, but they are all legal. Did you really need to do this?

  Mr Davidson: Certainly at the time the view was that it was value for money to have this font, that it was wholly owned by us.

  Q137  Mr Bacon: Was the decision taken to spend the money or was the commissioning done before you became chief executive?

  Mr Davidson: The commissioning was done before I became chief executive, nonetheless I am not going to abrogate all responsibility as I was a member of the executive board which took that decision.

  Q138  Mr Davidson: Can I ask a further point about the work you do under contracts. Just to clarify, what sort of work is that and can I ask whether or not that has an impact upon the general ethos of the organisation?

  Mr Davidson: The sort of work we are doing under contract is generally development programmes on behalf of mainly either DFID or the European Commission. They are critical components of our work because, particularly in parts of Africa, parts of Central and South Asia and parts of East Asia, they provide access to a very wide range of people who otherwise we would have quite a lot of difficulty in contacting. The programmes we work on are principally in the areas of education, law and development of civil organisations; those are the principal areas in which we work.

  Q139  Mr Davidson: Can I just clarify the question of contracts from the EU Commission. I take the view they are generally a bad lot and I want to clarify whether or not there are any rules that they lay down that would not be applied to, say, contracts from the UK, whether you have to fly the flag, whether you have to have a logo on all the stuff. Are there any issues that perhaps imperil the concept of you being the British Council, because you are not the EU Council, or are you when you are working for them?

  Mr Davidson: I am not aware of any particularly onerous obligations they place upon us other than they are extremely difficult sometimes to get repayment from. No, I think the programmes are tendered in an open way and we are very clear in applying for those tenders the conditions under which we will attempt to deliver them.

  Mr Davidson: Thank you.

  Q140  Chairman: That concludes our hearing. Thank you for all you do, we are very grateful for the work you do on our behalf around the world, and your staff, please thank them.

  Mr Davidson: Thank you very much indeed.

  Chairman: Thank you.





 
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