Select Committee on Scottish Affairs Fourth Special Report


Appendix 2

Memoranda submitted by the Scottish Executive

1.  We welcome the work that BAE and SEMTA are doing to develop apprenticeships for adults. However, we are concerned that apprentices aged 20 or older do not receive full funding. We believe that it is vital for Scottish industry to look at upskilling throughout the workforce, including mature workers who were not able to access apprenticeships as school leavers. We urge the Scottish Executive and Scottish Enterprise to consider increasing funding for adult apprentices. (Paragraph 60)

The Scottish Government is determined that skills will play a full role in increasing sustainable economic growth for Scotland. As part of this we will ensure that our National Training Programmes, including modern apprenticeships, continue to meet the needs of Scotland's individuals and employers. In March this year we announced a package of changes to our national training programmes, particularly modern apprenticeships, to ensure that public investment supports our Government's Economic Strategy.

The changes include refocusing of new public sector contributions for Modern Apprenticeships 20+ to construction and engineering related sectors where we can demonstrate that our investment delivers results. Furthermore we have increased the number of such Modern Apprenticeship opportunities by 500 to support individuals in industries that we recognise face particular training pressures. Adult apprenticeships are an important part of the skills development framework. However, the Government's priority will be in offering modern apprenticeship opportunities for 16-19 year olds to increase the proportion of positive and sustained outcomes for Scotland's young people.

We are committed to ensuring the availability of the right skills interventions for employers and individuals to encourage skills utilisation and upskilling for the benefit of the Scottish workforce. We would expect SEMTA to actively engage with Skills Development Scotland's review of their delivery of our National Training Programmes to ensure improved outcomes for all.

We have tasked Skills Development Scotland (SDS) with improving the quality of its delivery both in relation to information, advice and guidance. The Scottish Government, in partnership with SDS has now begun work on future business model development which will include looking at Modern Apprenticeships. We are encouraging all sectors and employers across Scotland to feed into this process. We would urge the Ministry of Defence to ensure that they engage SDS and ensure their views are known by SDS.

2.  The Scottish Executive must ensure that industry continues to see Scotland as a good area for investment due to the highly skilled workforce. Scottish Enterprise also has a role to play in promoting Scotland to industry and working to develop existing Scottish industry. We are concerned that Scottish Enterprise has not been sufficiently pro-active to date and hope that the re-launch of Scottish Enterprise on 1 April 2008 will lead to greater success in promoting and supporting Scottish industry. (Paragraph 69)

We reject this assertion. Scottish Enterprise is, and will continue to be, pro-active in promoting Scotland to industry and in working to develop existing Scottish industry. The Aerospace, Defence & Marine industry group in Scottish Enterprise, formed from the previous industry groups in this sector (Aerospace & Defence and Shipbuilding & Marine) has been, and will continue to be, extremely active in promoting Scottish opportunities and the industry generally, both at home and overseas.

From an employment and skills perspective Scotland is significantly more advanced in its coordinated approach and actions than the rest of the UK. This is set to intensify with the adoption of an even more industry-led and focused approach and the creation of a revised and expanded Industry Advisory Group. This will provide an important forum where industry and public sector partners work together to agree a shared vision for sectoral growth and where industry and public sector partners identify and agree respective roles and priorities for action.

3.  We urge all stakeholders, including the Ministry of Defence, Skills Development Scotland, the Scottish Enterprise and defence companies to work together to promote careers in the defence sector and support the work of education providers in widening access to skilled employment or further training. We urge the Scottish Executive and local authorities to examine the apparent biases within the education system in favour of the academic stream and urge them to take appropriate action to boost the standing of vocational options. (Paragraph 70)

Scottish Government agencies (formerly Scottish Enterprise, and now a combination of Scottish Enterprise, Skills Development Scotland and other public bodies) have been acknowledged by the industry as being the most advanced in the UK in addressing the skills needs of the Scottish shipbuilding industry (eg in the CVF project). A comprehensive partnership approach has been, and will continue to be, adopted. This will be supported by substantial marketing funds, aimed at addressing all appropriate target audiences from school pupils to the long term unemployed, all aimed at promoting career opportunities in the shipbuilding industry. This approach also is designed to use the current vibrancy of shipbuilding sector to develop a pipeline of skilled personnel to serve the wider engineering industry in the long term.

In the wider sense the Scottish Government is fully committed to building a smarter Scotland by equipping people with the skills, expertise and knowledge for success. This commitment to skills is reflected in Curriculum for Excellence and in the recently published curriculum guidance 'building the curriculum 3—A framework for learning and teaching'[1] which clearly states that every child and young person is entitled to develop, through the curriculum, skills for learning, skills for life and skills for work. These skills include the development of pre-vocational, enterprising and employability skills, personal skills, high levels of cognitive skills and the opportunity to put learning into a practical context. The Scottish Government is also committed to developing curriculum guidance on how Curriculum for Excellence can support young people in developing these skills.

This focus on skills reflects the Scottish Government's commitment to all types of learning. Skills for Scotland—A Lifelong Skills Strategy for Scotland[2] includes commitments to:

  • Parity of esteem between vocational skills and qualifications and academic skills and qualifications;
  • Address the issue of capacity which acts as a barrier preventing young people from accessing vocational learning opportunities; and
  • Engender a change in attitude by undertaking research into changing attitudes to vocational learning and challenging those providing advice to young people.

This Government's commitment to providing more school pupils with opportunities to experience vocational learning is already reflected in the concordat between the Scottish Government and COSLA[3].

One way in which young people can access vocational learning is through a Skills for Work qualification. These qualifications have been designed to provide school-age learners with opportunities to develop employability and specific vocational skills through practical experience. Following a 2 year pilot Skills for Work qualifications are now available to all schools and colleges across Scotland. An independent evaluation of Skills for Work[4] published in February 2008 concluded that schools, colleges, providers and young people were committed to the value of the qualifications which they considered to have raised the status of vocational learning. A range of Skills for Work qualifications are available, including in Engineering Skills, with new qualifications in development.

In addition, a new HNC Shipbuilding award has been developed, the only one of its type in the UK, to provide candidates with appropriate technical and vocational skills to work within the shipbuilding industry. This qualification not only helps support the campaign to recruit into the shipbuilding industry by providing an aspirational qualification, but it also sends out a clear signal of Scotland's intent on remaining in, and indeed developing, its increasingly high-technology shipbuilding industry. However, recognising the need to ensure transferability of skills to the wider engineering sector, the curriculum for the HNC in Shipbuilding comprises modules and qualifications in a wide range of engineering skills that will be equally of use in other engineering sectors. Successful HNC candidates will therefore effectively have a series of appropriate qualifications, endorsed by the Sector Skills Council (SEMTA). The award has a solid foundation of theory and practice upon which candidates can enhance their practical skills and gain an understanding of Naval Architecture and Shipbuilding Principles.

The development of this award was enhanced by the involvement of relevant employers in the shipbuilding industry. These employers were involved in the development of the award structure and content of the Units of the award to ensure that their business requirements were being met.

4.  With a limited amount of guaranteed work after the CVF programme it is possible that the majority, or the entirety, of the work for the Joint Venture could be carried out in the VT yard in the south of England rather than Scotland. We urge the Ministry of Defence, BAES and VT to ensure that any decisions are communicated clearly and early to the workforce and consulted on. The Scottish Executive and Skills Development Scotland must ensure that education and training in Scotland continue to produce a highly skilled, highly motivated workforce. (Paragraph 81)

Skills Development Scotland (SDS) is working in partnership with the Scottish Enterprise Aerospace, Defence and Marine industry team on its campaign to promote careers in the defence industry and, in particular, in shipbuilding with strong links to the Carrier programme. Work is already underway on a recruitment campaign and a DVD-ROM marketing tool is already in use with the main shipbuilders, colleges etc to assist in their recruitment techniques. Marketing and PR agencies are now appointed and detailed creative and planning work is now underway with the aim of a campaign launch in Autumn 2008. We intend to incorporate links to this campaign into our proposed broader campaign 'the Path is Science and Engineering' which will promote these career opportunities more widely.

SDS is also working with Scottish Enterprise on the Scottish Marine Technologies Training Project (SMTTP) to co-ordinate skills provision and ensures the training infrastructure to deliver the volume and quality of skills required. This project is fully supported by Babcock Marine and BVT Surface Fleet.

The SMTTP will maximise the benefits of a skills supply pipeline that is designed to meet employers' needs and maximise local employment impacts. The pipeline will encompass training at all levels from pre-vocational through to graduate design and generic programme management skills, as highlighted by MoD, DTI, SEMTA and industry. Actions include:-

  • developing a skills programme that corresponds to the modern industry's needs by including both traditional craft and critical transferable, generic skills, eg supply chain management, project management, negotiating, influencing, team building, and top leadership skills.
  • work with a range of organisations, including SDS (Careers Scotland), Local Authorities, Jobcentre Plus and Further Education who have the expertise and resources in school vocational work, pre-vocational training, community engagement, and training delivery.

Specifically SDS has contracted for 1652 new Modern Apprentice places in engineering in 2008-09 with anticipated support for Babcock of 50 new Modern Apprentice places and support for BVT Surface Fleet of 90 new Modern Apprentice places. These 140 MA places directly support the CVF project delivery. For information, there were 1292 MA Engineering starts in 2007-08.

Following the anticipated reduction in peak shipbuilding employment after the carrier programme, SMTTP will also support the re-skilling of the shipbuilding workforce to help meet the needs of related sectors such as Naval Ship Refit, Renewable Energy, Marine Engineering and Construction.

Additionally SDS is developing a "Key Labour Market Sectors Approach", the aim of which is to provide a continuing supply of people taking up a career in the areas of Science, Engineering, Technology and Maths.

All of this is aimed at broadening the skills base in advanced engineering in Scotland—both in shipbuilding and in the wider engineering sector.

5.  The defence industry is vital for Scotland. As well as contributing to the economy the defence industry also provides skilled employment opportunities. The defence industry, particularly the ship building industry, is in a more stable position than it has been for some time, largely due to the CVF programme. Scottish engineering and manufacturing is supported by a highly skilled workforce. However, once the carriers have been constructed, there are a number of challenges that the industry will have to prepare for. Those challenges include the potential impact of possible constitutional change with consequential loss of automatic access to the UK home market, limited success to date in the export market and the formation of a Joint Venture which could lead to more work being carried out in England. To prepare for these challenges, all stakeholders including the Ministry of Defence, the Scottish Executive, Scottish Enterprise, Skills Development Scotland, the Scotland Office and industry, need to work effectively together to ensure that Scotland's engineering and manufacturing base continues to be world class. (Paragraphs 87 and 88)

As Scotland is the natural home of warship building, we welcome the opportunities the manufacture of the carriers will provide. The performance of the Scottish yards and the Scottish workforce is second to none—on reputation, deliverability, quality of output and the skills of the workforce and in all circumstances will secure orders on the basis of their formidable skills, and a record of delivery which is second to none.

Right now, Scotland's defence and shipbuilding sector is trailing that of comparable, independent countries. Indeed, if our shipbuilding industry had the same share of manufacturing turnover and employment as the average across Denmark, Finland, Norway and Sweden, turnover would be £400 million higher than the current level and employment over 2,000 higher.

Since Labour came to power in 1997 we have lost almost 5,000 defence jobs in Scotland.

Scottish Government provides support to Scottish engineering and manufacturing companies with a specific focus on adding value and improving Scotland's economic growth rate. We encourage Scottish businesses to create and retain high value jobs in globally competitive manufacturing companies and we encourage closer networking and communication among engineering firms in Scotland.

To do this, the Scottish Government provides a wide range of support to manufacturing companies delivered through Scottish Enterprise and Highlands and Islands Enterprise, Local Authorities, Skills Development Scotland and Scottish Development International. This includes innovation and investment grants, help with trade overseas, practical support for companies to improve productivity and efficiency and business and product planning services. We have a comprehensive range of support specifically aimed at encouraging innovation—including innovation in engineering and manufacturing—from its earliest stages through to commercial outcome. The Scottish Government is also committed to supporting manufacturers in Scotland to improving their productivity and ensuring that they can compete globally. Our Scottish Manufacturing Advisory Service (SMAS) is delivered by Scottish Enterprise. Currently 151 manufacturing improvement projects have been initiated, 81 of which have been completed and have achieved approx £17m GVA.

August 2008


1   http://www.scotland.gov.uk/Resource/Doc/226155/0061245.pdf  Back

2   http://www.scotland.gov.uk/Resource/Doc/197204/0052752.pdf  Back

3   http://www.cosla.gov.uk/attachments/aboutcosla/concordatnov07.pdf  Back

4   http://www.scotland.gov.uk/Resource/Doc/213863/0056853.pdf Back


 
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