Re-skilling for recovery: After Leitch, implementing skills and training policies - Innovation, Universities, Science and Skills Committee Contents


Examination of Witnesses (Questions 20-39)

MS LIZ WALLIS, PROFESSOR GEOFF LAYER, DR ROGER BENNETT, MR GARY WILLIAMSON, MS LINDA FLORANCE, MR MARK ANDREWS, MR TOM SMITH AND MS RUTH ADAMS

14 MAY 2008

  Q20  Chairman: Liz and Linda, I want you both to come in here and then I want to come to Tom because Barnsley has got some particular problems which I want to discuss. On this business about bite-size chunks and funding mechanism?

  Ms Wallis: Yes, I think the key here is the mismatch, as we have already identified, that if we want to create a demand-led system then it needs to be demand-led, and if you make it demand-led, employers will want things that fit very specific purposes that are usually quite short term and do not necessarily lead to qualifications, and similarly individuals themselves will be focused on acquiring a skill to do a thing, and that is particularly the case for small employers. I think that has been an interesting issue in the context of future-proofing. The bit where it falls down on demand-led is taking the views of small employers or even employers generally as the indicator of what we need in the future. I think there has to be an industry component in the IT industry and in the media industry saying what kind of skills and qualifications will be needed in five or ten years' time because if we rely only on employers dictating the system then those employers will have, of necessity, quite a short-term view; less so the big employers but certainly the smaller ones.

  Ms Florance: I think that point is very important and it leads back to a couple of things that we have touched on: one is qualifications reform that is going on in parallel with the Leitch recommendations, and the other is that old chestnut of labour market intelligence and who is doing which bit of it and what is it for. Leitch was very clear that the best way to engage employers, be they large or small, was in sectors—I stress just sectors—and by doing that you can actually explore what are the issues for that sector in a global context and future-proof anything that needs to be put in place for that sector. At local level we then need the delivery mechanism but if there is not a join-up between the information coming out for the sector, and what is specifically right for that sector and what is then being delivered on the ground, or offered on the ground or even understood on the ground, what you are going to get is individual employers in small businesses not really understanding that their competition is not Bradford and Barnsley, it is Beijing and they have to be able to compete in that market, so the brokerage service actually needs to be raising their aspirations as well as delivering what they need to get them on the next step on the ladder in that direction. If they are leading in the wrong direction, because (that is going to lead to business failure in the competitive market that they are facing) then we have wasted a lot of public service and money along the way.

  Q21  Chairman: Tom, I want to bring you in before I bring in Tim to deal more with the implementation of training and skills in the region. Barnsley traditionally has had a low-skills economy. It was very focused obviously on mining and heavy industry. Does the Leitch agenda mean anything to you?

  Mr Smith: Yes and I think, similar to colleagues, we applaud a lot within it. I suppose from my perspective where I am coming from in Barnsley, one of our issues is pre sub-level two.

  Q22  Chairman: Pre sub-level two?

  Mr Smith: Sub-level two and pre any level at all, if I am being honest. We are just somewhere short of 50%, round about 42.3% of adults in Barnsley with no qualifications at all. One of the biggest barriers and blocks for our adult population is literacy and numeracy skills for life, which I will come on to later on. 20,000 people are on incapacity benefit as well, so a large part of our work at the moment is about targeting those people who are not anywhere near that level two qualification—and it was interesting talking about qualifications and qualifications frameworks—and getting that right so that those people can be reengaged. Some of those may well already be in the labour market but a lot of them are outside of that and it is finding a route through, and often it is through a community route, to get those people reengaged and upskilled. A lot of it is about confidence and aspirations and that is not always the nicest thing to say, but it is, to help those people get on there. For a lot of them it is a learning journey but the end result is often employment, it is higher level skills and benefits around that.

  Q23  Chairman: Is that going to happen with this current policy agenda?

  Mr Smith: That is the bit, I suppose, that is weak in this. I suppose it is the adult learning that sits beneath that. It is the routes in; it is the personalised pathways; it is the IAG; it is all about that package that can support those adults, and there are significant numbers in Barnsley, on that route through to higher level skills and then to better employment and the whole economic agenda really. I think that from our perspective in Barnsley, we are looking at this model now, we have an infrastructure that is within the community that is working with somewhere in the region of 12,000 to 14,000 adults, and what we are finding is routes and ways of accelerating those adults from no qualifications (and I do not necessarily mean no skills because they often have the skills and the abilities and what they do not have is the qualifications) and, as I said, the biggest barrier is literacy and the numeracy. As a way to accelerate that through, in a sense to get into that whole Leitch thing really, there has been some interesting work. We have been working with Yorkshire Forward and the HE institutions on accelerating people through and delivering `year zero' courses within the community and then a supported thing through. I think there is a bit of a mismatch, it feels, and part of that is funding because I think we need some permissions with the funding that we have on sub-level two in terms of moving people. Some of it is around the qualifications framework and the progression routes and some of it is focusing on individuals and communicating to them skills opportunities, employment opportunities, and that route there as well.

  Q24  Mr Boswell: I would like to talk about another area of potential confusion, and maybe we will leave Ruth out of this first question and start with the two employers in the shape of Gary and proxy of Mark. We are looking at the regional agenda for delivery, which is Linda's point. Do you think that the priorities and approaches represented by this excellent panel this afternoon can align sufficiently to make co-operation effective and practical in delivering this? Firstly, would you like to work together—and I hope the answer is yes and, secondly, practically, given different funding streams, slightly different interests and slightly different requirements, can you do so?

  Mr Andrews: That is a very good question. Having just agreed to take on the Regional Skills Partnership board chair in the last days, my answer has to be yes—and I have to say there are a lot of people in industry who have told me I am absolutely mad to take it on—however I do think there is a real lack of clarity from the Government as to what the role of the RSP is. In fact in a meeting just last week of the Regional Skills Partnership, I have almost taken the approach that we need to take a step back from the morass out there and say, "We all know there are some issues in the region. Some of them are being adequately dealt with by other parts of the system and if that is the case, let's just monitor that and let it carry on, but let's also have a look to see whether there are things that are falling through the gaps."

  Q25  Mr Boswell: So management by exception?

  Mr Andrews: Absolutely and, as I say, it is very early days in the process and literally this was a week ago that we have just had this new meeting, but I do believe that the partners, which is just about everybody from the skills components that exist within the county, are absolutely committed philosophically to making this work. What we have got to come up with is the means to do that. One of the issues is where does the RSP stop and the work and skills boards that exist in cities start? To me again, there is no point in trying to duplicate that regionally. We have got to see whether there are things we can do that could add value at the more local level. It is really part of the management machine. Unfortunately, I do not think we have been given any steer from government as to what the role is, so we are making it up as we go along. I did put this to the Rt Hon John Denham a week ago quite vociferously. Some clarity would be nice but in the meantime, as I say, we all know what the problems are; it is trying to find some solutions to move them forward.

  Q26  Mr Boswell: Can I slightly pick up on a specific point and then ask Gary to come in. How do you see the relationship between the city efforts, which of course involve local government as well, and Jobcentre Plus and that city strategy which government is moving towards with the wider regional strategy? Are there different sorts of needs and can you tune the band between those two sorts of requirement?

  Mr Andrews: I think they are different sorts of needs. You made the comment earlier that if you look at Yorkshire it is a very disparate county and the needs within the centre of Leeds compared to the outback of North or South Yorkshire are very, very different. For me I feel it is a case of trying to provide a support mechanism, a best practice networking arrangement for the work and skills boards that exist in some of the cities (and need to exist in some of the others because they do not exist across the board) we need to provide a learning networking arrangement for them but then fundamentally let them get on with it, and then try and take the Regional Skills Partnership to a level where it is looking at issues that cannot be addressed by competent boards that are already in place.

  Q27  Mr Boswell: Gary, do you want to come in on that?

  Mr Williamson: I think Mark is very brave and I think his colleagues are quite right to say to him, "Goodness me, what have you let yourself in for?" because that is exactly the response our skills board members have had in the first 14 months since they have been there trying to make an impression or trying to change things. We are not so different in Leeds from everywhere else in Yorkshire. If you look at the figures, we have a higher level of regional unemployment as a city, we have great swathes of our area where there is second- and third-generation unemployment, similar to you, it is just the numbers are different (they are probably bigger given the size of the city). Employers are importing labour from across West Yorkshire, South Yorkshire and North Yorkshire, that is why the M62 is so busy. There is a recognition by all employers in Leeds that we need to do something. The problem is it is the "how", which I think is what Mark was saying. There are so many agencies with so many good intentions that it just bamboozles us.

  Q28  Mr Boswell: Can I come back to Mark on this, and if anyone on the education side might like to join in feel free, as I understand your first thoughts on looking at the RSP, you are talking about a network so you can share best practice around and so forth, and also an ability to if not intervene at least interest yourselves in cases where there is a local deficiency.

  Mr Andrews: I think that is part of it. I think the RSP has struggled a bit during the last year but during the course of that last year we have been able to get a fairly coherent view as to what the real priority issues are on a regional basis. A lot of work was done by Ruth with colleagues in the LSC and all of the other people involved in the partnership and now we have got this so-called "helicopter" view with five priorities for the region. What we are doing with those five priorities is saying if a couple or three or four of the partners have already got that under control, great, just keep us posted, but if there are some glaring holes in there, then flag them up and we will try and find some resource funding, whatever, to see if we can make a difference.

  Mr Williamson: It sounds very negative and I think there are lots of people and groups out there trying to make a difference. I go back to a point I made earlier on, Leitch was not just about the end game, the qualifications and the targets, it was about engaging employers in developing some of the qualifications and engaging the schools to improve the attainment level which we know in Leeds needs improving. If you build people in at the start of the process, funnily enough, you might actually have buy-in at the end of the process. We appear to be always looking at the end and what is the target; it has not changed. There is almost a fear I get sometimes from the various groups and organisations responsible for "education": that for example they have got 1,600 customers, really is what you are saying, or employers, but how involved are they in the process of what you are delivering and how it is delivered? If you take in Leeds an example of that, the Chamber has been working with educators on the new diplomas which are industry-led. Unlike a lot of the country, we have got employers enthused and engaged but we cannot get the schools engaged, we cannot get the teachers to be advocates for this diploma for the young people who will listen to them so there is a mismatch.

  Q29  Chairman: Who does it?

  Mr Williamson: We cannot work that out. There is a warehouse in Milton Keynes apparently with all the literature in! I am showing my age now but when Captain Kirk landed on an alien planet they all spoke American because there was a universal translator, and our skills boards and employers often need that universal translator to understand many of the things some of my colleagues round here are trying to explain.

  Q30  Mr Boswell: I think we might be included in that. Linda, did you want to come in on that just to make the point because I do not think Skillfast-UK, wool, textiles, Yorkshire, are a priority.

  Ms Florance: No we are not but of course our industry uses STEM subjects and therefore as part of our strategy that is really important to us, but it gets sidelined because the sector is not a regional priority. Where I was going to come in here is I think you have asked quite a key question, Tim, which is the interface between national, regional and local, and I think it is the area that perhaps Leitch made some recommendations on but when it came to world-class skills, it was skirted around slightly. In thinking about the timing, there was a national sub-regional review going on with the Lyons Report at that very time and actually this question was never addressed. Mark has touched on it in saying should we not just provide a clear remit for what should happen at national, what should happen at regional and what should happen, where appropriate, at sub-regional level. Leitch actually recommended the establishment of employment and skills boards at a local level where it was right to have them, but he also said they should be licensed by the UK Commission for Employment and Skills, and we need to re-look at how might that infrastructure really work and whether it is licensed or not, whether we have got the right remits in the right place, and whether that would that make it sensible for employers.

  Q31  Mr Boswell: The elephant in the room—sorry, that might sound ungracious—the one I kept out of this was the RDA and somebody might like to lead before Ruth comes in on the relationship between the RSP and the RDA. If I can just wrap this up, we have got a lot of people at the party already, which you have all accepted, there are large numbers of interests, but is there anybody being left out? I tend to mention the self-employed as an example; the active participation of trade unions, and not just employers, and employees as opposed to proxy interests for them. If we are really going to throw everything at it, do we need to add more people in? Two separate but related questions: who is really taking the lead between the RSP and the RDA and is everybody really engaged?

  Mr Andrews: We are very much wandering into new territory with the RSP, but it is my view that part of the agreement that I have got in taking on the role here is the absolute backing of the RDA and the LSC and the other partners. The RDA and the LSC in some ways were always going to be a bigger part of this simply because that is where a lot of the money is in this part of the agenda. The LSC is obviously coming into a period of some transition but we have had a lot of dialogue to try to ensure that everybody is joined up. I have likened my own role in this to a non-executive capacity in the RSP. I am therefore as a non-executive not prepared to do it unless I have got executives who have actually got the purse strings and resource who are willing to work together and get on and do things. For me the commitment is there and there has been a lot of dialogue with Ruth, with Ruth's boss's, and with Ruth's boss's boss, as well as with similar people in the LSC. I feel that most of the others are on board philosophically but I do not believe there is anything in the system that is really helping us. As I say, some further clarity on the role of the RSPs from the Government and the points that both Linda and Gary made would be very helpful in this.

  Chairman: I think we have covered that so I am going to move on to Gordon.

  Q32  Mr Marsden: I just want to chip away a bit more on the whole issue of plans and targets and if I could just start with you, Ruth, because you submitted a draft Regional Skills Partnership document to us and that included a number of targets and, as you said, the scale of the challenge is significant and many measures exceed many of our RES targets. Given that and given what we have heard already about disparity and the various challenges across your region, are these Leitch targets generally achievable in Yorkshire and Humber or they just something on a sheet of paper that we are all making aspirational?

  Ms Adams: I think they are incredibly ambitious for this region.

  Q33  Mr Boswell: Is that the same as courageous?

  Ms Adams: Courageous, yes.

  Q34  Mr Marsden: Before I put you on oath, Ruth, before you go any further, I would remind you of the famous TV series Yes, Minister, and when the Minister was told "That's a very bold statement," it meant that it was all going to end in tears. Is that what you are saying about Leitch?

  Ms Adams: I think it is going to be very difficult for us to deliver those targets unless we can do lots of work bringing about some quite significant culture change in the aspirations of both people and businesses to demand this. If I go back to Tom's comment in Barnsley, lots and lots of effort and work is needed to bring people to the point of thinking, "Well, that actually is going to be useful for me and that is something that I aspire to have as a qualification" and unless we can do something on that I think it is going to be quite difficult for some of the basic skills and lower level targets to bring that about. The one we are more optimistic about is the higher level skills. If we can really do some work with businesses there we think that is achievable.

  Mr Andrews: Just a brief point, I think the other side of what Ruth said on engaging with small businesses is a particular challenge in this area as well. There are an awful lot of small companies. I think there was a piece of research done recently for the RDA by Leeds Met where they went around and talked to a lot of small business and, frankly, the level of interest of those businesses in getting their employees trained was negligible. I have had personal experience in this region of putting on open days at our apprentice training centre to try and encourage small businesses to come in and listen. I have done it through the IoD where you can access 2,600 members, and you have only 30 people show up. It is a monumental challenge to get both sides of this—to get to the individuals and get them more motivated to get higher skills and qualifications, and to get to the many, many small businesses that exist here and get them really engaged.

  Chairman: Could we have a brief run round the table to answer your question.

  Q35  Mr Marsden: Is there anybody here who thinks this is achievable?

  Mr Andrews: I think you have to be aspirational but I do not think any of us should under-estimate the magnitude of the challenge.

  Q36  Mr Marsden: So you think it is going to be really hard.

  Dr Bennett: I think it is beyond aspirational, and that is only a word, because I do not think they are achievable. I think you have to be realistic on that and it is all about trying to motivate to achieve and some of these targets actually do not motivate employers or the colleges up and down the country, which are one of the engine rooms for the delivery of skills more than qualifications. We want challenges but we want challenges that we can actually achieve. I think it is really important that you take that on board because the way forward, if I just pick up on one of Mark's points, is apprenticeships and it also goes back to Tom's point about his position in Barnsley because you have young people's apprenticeships and adult apprenticeships.

  Q37  Chairman: Does anybody disagree? Does anybody think we can achieve these targets?

  Professor Layer: I am with Ruth on this in the sense that I think the high-level skills target—

  Q38  Chairman: Another 583,000 people qualified to level four by 2020 in this region?

  Professor Layer: I think it is the most achievable and that is probably to do with the fact that a lot of what you have heard about is some of the barriers and obstacles, et cetera, and they are not necessarily the same barriers at different levels, and there are different ways you can work that through and there are different ways you can open this up. I did not say I was confident—I would be more confident of meeting the level four targets.

  Q39  Chairman: More confident is more confident than confident.

  Professor Layer: More confident relative to the other areas.



 
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