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A noble Lord: Nonsense!

Lord Gilbert: My Lords, if the noble Lord thinks that it is nonsense, he should be prepared to get to his feet and say why. That is the attitude at the moment, and it is not good enough.

Baroness Williams of Crosby: My Lords, I strongly support the Liaison Committee's report. I understand the strength and vigour with which the noble Lord, Lord Gilbert, argues his case. There are limited resources for conducting studies of this kind. It seems wise to pursue a part of the counter-terrorism Bill which—for reasons that we all understand—could not

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be proceeded with at the time but to which many minorities in this society had been looking forward. We strongly support the proposal to go ahead as urgently as possible with a Bill such as that introduced by the noble Lord, Lord Avebury.

As to the other demand on the committee's resources—namely, the proposal for a communications committee—I commend the Liaison Committee on the wisdom that it has shown in proposing an experiment based on an ad hoc committee in an area peculiarly appropriate for consideration by this House, cutting as it does across several disciplines. It affords an opportunity to examine one of the most significant developing influences on politics in this country; namely, the inter-relationship between the political process and the media. I commend the committee's report to the House.

Lord Campbell of Alloway: My Lords, in relation to the Bill introduced by the noble Lord, Lord Avebury, I wholly support the committee's recommendations. I say that, having asserted at Second Reading that the Committee stage, were there to be one, should ensue on the Floor of the House and that the matter should not go to a Select Committee. I support in particular the recommendation which widens the scope in terms of religious offences without reference to criminalising religious hatred as the Bill does. I particularly welcome that in our multi-ethnic, multi-religious society. It is of great importance, in particular as regards the law on blasphemy. In my opinion, the Liaison Committee has come to entirely the right conclusion.

The Chairman of Committees: My Lords, I am grateful to the noble Lord, Lord Avebury, the noble Baroness, Lady Williams, and the noble Lord, Lord Campbell of Alloway, for their comments. I understand the problems that the noble Lord, Lord Gilbert, has expressed. However, there is so much expertise on so many subjects in this House that we could have 50 or 60 Select Committees based on it. The Liaison Committee has to prioritise the work that we do. That is what it has attempted to do in this case. I commend the report to the House.

On Question, Motion agreed to.

Education Bill

3.13 p.m.

The Parliamentary Under-Secretary of State, Department for Education and Skills (Baroness Ashton of Upholland): My Lords, I beg to move that this Bill be now read a second time.

It is with a sense of privilege as well as pleasure that I rise to speak on the Second Reading of the Education Bill. It begins a new phase of educational reform: a phase of reform that starts from the belief that schools themselves have the capacity to lead change; renews our programme to raise standards and strengthens the teaching profession; and seeks to create a culture of collaboration between schools. It is a Bill that looks to

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what has already been achieved in our schools and takes the next important steps to ensure that we continue to push back the boundaries of excellence and offer support to our most challenged schools. It can do so from the knowledge of real progress in education.

I shall take a moment to set out the changes that make this Bill possible. First, we have seen real and sustained progress in our schools. The latest report from the Chief Inspector of Schools tells us that we have the best ever generation of teachers—with more good lessons than ever before. The recent OECD PISA study showed that our 15 year-olds are now performing well above the OECD average in literacy, mathematics and science. Performance at all levels has improved—so that 150,000 more children begin secondary school with the sound foundations in literacy and numeracy that they need to succeed; and almost half a million infants benefit from reductions in class sizes.

Secondly, we now have a highly developed accountability framework based on clear standards, national targets and well-established inspection arrangements. Alongside that framework, we have better data about school performance than ever before. At the touch of a button, it is possible to tell how a school is doing, how its performance compares with other schools in similar circumstances and how quickly it is improving.

Thirdly, major national investment in continuing professional development for teachers means that now, more than ever, we can trust the informed professional judgment of teachers.

With this clear national framework in place, we can take the next step—a step which I believe deserves support across your Lordships' House. We can look to our schools and local education authorities to lead the way, to be the innovators in education so that our children and young people get the skills they need to take their place in a fast-changing world.

We know that many of the best ideas in education begin in our best schools—schools that have risen to the challenges facing them and found new ways of working that have benefited their children, and often their communities. We want to free them further to develop those ideas, to share them with other schools and to help our school system to take the next big steps forward to higher standards for all our children.

The Bill will enable government, for the first time, to respond quickly and effectively to schools and to LEAs which come forward with good ideas that do not fit the rules as they stand. Where schools come up against legislative barriers, they will be able to seek to have them removed for a pilot period under Chapter 1 of the Bill.

It is important for noble Lords to understand the role of the Secretary of State in this process, for this power may be used only where she is satisfied, on the basis of professional advice, that the proposals will raise standards. She may neither impose, nor instigate:

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she may only respond to schools and LEAs with good ideas that benefit pupils. And, of course, existing freedoms to innovate are not reduced.

Schools and LEAs will be able to propose a wide range of changes. We do not have a fixed wish list—those on the ground will lead the way. We expect that proposals for legislative change will often be on a small scale. For example, if a school wishes to introduce a continental day, then it may simply need to be freed from requirements to register pupils in the afternoon and have a break between sessions.

In recent years, schools have wanted new flexibilities. Some of these can be given permanently under this legislation. In so doing, we are seeking to preserve important existing safeguards, while enabling schools more easily to develop the arrangements best suited to their needs.

First, there will be new opportunities for schools to do more to support other schools. Under Clause 23, there will be new freedoms for schools to federate, so that, for example, weak schools can benefit from the effective leadership and management of good schools; small schools can work together more easily; and schools can formalise close links.

Under Clauses 10 to 12, schools will be able to give others the benefits of their strengths by joining together to provide LEA services where the LEA chooses to contract these out. On the same basis, schools will be able to join together to purchase goods and services, so creating economies of scale.

Governing bodies of different schools will be allowed to form joint committees under Clause 29 to carry out some of their work together. That could mean partnerships to develop specialisms, to maintain shared sites or to work together in any of a range of areas where schools can benefit from sharing strengths.

So at the heart of the Bill are measures to support schools to work together ever more closely. From informal approaches; to joint committees; to full federation—the Bill creates a range of options. Schools will have far greater freedom to determine for themselves their preferred model of governance; and they will be able to tailor their approach to suit their circumstances.

Secondly, through Clauses 34 and 35, schools will gain significant new flexibilities in staffing. This is not flexibility for flexibility's sake. It is fundamentally about the quality of education that we are offering to our children. It is about helping schools to put in place new ways of delivering the more individualised education that we all want to create. In short, it is about raising standards to benefit all children. As a result of the Bill's provisions, schools will be able to share staff and so share good practice, with perhaps several schools benefiting from a strong subject department—for example, modern foreign languages, music and ICT. There will be new opportunities for schools to make use of other skilled professionals, such as lecturers from further and higher education. And schools will have greater freedom to involve properly trained assistants in supervising classes.

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The Bill recognises in Clauses 128 and 129 the fundamental importance of qualified teachers, there to teach our children and young people. But it recognises too the valuable contribution that properly trained assistants can make in strengthening support for pupils and reducing workload for teachers.

This Bill creates a flexible framework within which schools can develop the model of staffing that best suits the needs of their pupils.

Thirdly, Clause 25 makes it possible for schools to become "extended schools". It will enable those that wish to do so to provide additional services to the community, such as childcare or adult education. We know that the local school is at the heart of many communities—associated with care, with teaching and learning and with safety for children. Many schools have wanted the opportunity to be directly involved, often in partnership with others, in providing high quality services. They know that the provision of services for the family and the community helps to support their children and helps to raise educational standards for all.

Fourthly, there will be even greater freedoms for the best schools, as set out in Clauses 5 to 9. The best schools, defined against their achievements with the students they have, compared to similar schools, will be able automatically to gain greater autonomy over the curriculum and over teachers' pay and conditions. We will define the qualifying criteria at a challenging level—perhaps 10 per cent of schools will initially meet them—but they will be objective criteria, to which all can aspire. There will be no compulsion to use this earned autonomy, but where schools believe it can improve standards for all their pupils, they will be able to take advantage of it.

Let me be clear that none of this will be freedom without accountability. Far from it—in the interests of children, we must not discard the accountability framework, which is at the heart of our approach to school improvement. And there must be powers to intervene when things go wrong, because our interest here is that every child has the opportunity to succeed.

So our simple principle continues to be: intervention in inverse proportion to success. And just as that principle suggests that we should free the best schools to achieve more, so it means that we must intervene decisively where necessary to bring up the standards of the weakest schools in the system.

Ofsted estimates that over a quarter of a million children have received a better education because failing schools have been tackled. Some 850 schools have come out of special measures since 1997 and the number of schools in special measures has been sharply reduced, to around 300 now.

We now want to step up our efforts, finding new ways to tackle failure in the hardest cases on the one hand; and new ways to ensure that weak schools do not slip into failure on the other. Our principle is simple: we must give children the quality of education that is their right as quickly as possible.

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The Bill gives us new reserve powers to deal with the very hardest cases. If, for example, the problems at a school are deep-seated, and the LEA has not been able to solve them, then the powers in the Bill could be used to involve another partner in turning the school round. That could be a nearby successful school, another LEA, or one of a range of public, voluntary or private sector bodies, which have the capacity to help schools to raise standards. If the governing body is part of the problem, Clause 54 provides powers to replace it with an interim executive board for the period of the turn-around.

Through this Bill we are going further still. We already have in place a range of measures to challenge and support weak schools that are not in special measures. But as the number of schools in special measures falls, we are preparing to raise the bar and to take powers to intervene if necessary to prevent a weak school falling into failure. Through these measures we will continue to help schools to turn failure into success; weakness into strength; and raise the minimum standard.

The funding we have given schools is an important part of the equation that results in better standards for all. Capital investment alone is three times higher than in 1996-97. More goes directly to schools. So we believe that it is essential that resources raised nationally for education should be passed on locally to education. That is why Clause 40 contains a reserve power to require local authorities to set a minimum level of schools budget. My honourable friend has made clear in the other place that where an LEA plans to passport funding increases in full, there will be no use of this reserve power. Indeed, we expect this power to be used very rarely. But we do believe that we have a responsibility to ensure that increases in government education funding benefit schools as we intend.

So there is more funding; a greater proportion going directly to schools; and now a backstop to ensure that money for schools reaches them. And the Bill creates a schools forum, so that, where it is appropriate, schools can play their part in taking decisions about the level of delegation in an authority.

Furthermore, we will build on our reforms of the Standards Fund, which are breaking down bureaucracy for schools—welcomed by schools. Through Part 2 of the Bill, we are sweeping away a number of powers for the Secretary of State to pay grant, and putting in their place a single, simple power. The savings in time and effort are clear.

All of this is essential if we are to ensure that every child receives a sound basic level of education. But we have never believed that this alone is enough. What we want to achieve—what we know everyone involved in the education service wants to achieve—is an education system more closely tailored to helping each individual to fulfil his or her potential. That idea permeates this Bill and our recent Green Paper on 14 to 19 education.

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We are seeking to create a new, coherent 14 to 19 phase of education that will enable each individual to develop more fully their talents and aptitudes. We are committed to consulting very widely on how best to achieve that goal. In this Bill, we separate key stage 4 of the national curriculum from the other key stages, and so create the framework that will enable the conclusions of that consultation for the curriculum to be implemented.

As we move towards a more innovative system, more closely tailored to the individual, we want to move towards greater innovation in the provision of new schools. So this Bill introduces a new approach to the supply of new secondary schools. When a new school is needed, any interested party will be able to bring forward a proposal and have it considered on an equal basis with all others. It will create a level playing field between those who have traditionally promoted new schools and potential new partners for the schools system. Through this process, we will encourage new thinking as well as new partners for the education service. I assure the House that the basis for decisions will be the quality of the proposals for the education of our children, the value for money that they provide and the opinions of local people.

Whatever the framework of schools, fairness in admissions is critical, too. Through the School Standards and Framework Act 1998, the Government brought forward major reforms of admissions law, strengthening arrangements that ensure that all children are treated fairly. Research evidence has shown how positively parents have responded to the reforms; and we are now in a position to build on them further.

We remain committed to ensuring that admissions policies work in the best interests of all, and that parents' preferences are met as far as possible. Clause 44 will now make admissions forums compulsory, with an advisory role, so that in every area they can make recommendations about the best way to serve the interests of local children and parents. We plan to include on the forum the elected parent governor representatives to offer advice from the perspective of parents.

Clause 46 will introduce co-ordinated admissions arrangements in every LEA area, so that every child receives a single offer of a place at the appropriate time and, most importantly, no child is left without a place at the end of the admissions round. As we continue our reform, we continue to put the interests of parents and children first.

The Bill also takes forward a number of other reforms. Though I will not spend long on each, they are none the less of great importance. The first are the steps we are taking to enable the repayment of student loans for teachers of shortage subjects. This is one of a range of measures that we have discussed many times in your Lordships' House to attract and retain high quality graduates to our teaching profession.

We are also taking the opportunity to strengthen the workings of the exclusion appeals panels to support better behaviour in schools—an issue of great

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importance to our teachers, which we are addressing in a number of ways, not least in bringing support to the classroom from other professionals.

We want, too, to continue our transformation of early education and childcare. Already our commitment that every four year-old whose parents want one should have an early education place has been met in full, and we are on target to complete our pledge for every three year-old.

There are a number of measures in the Bill to build on our commitments: to ensure proposals are published if a nursery school is to be established or closed; to ensure our registration and inspection of nursery education and childcare is efficient and high quality; to provide for each nursery school to have its own governing body; to place a duty on LEAs to carry out annual reviews of childcare provision in their area, and to establish and maintain an information service.

Finally, the reforms in this Bill of the regulation of independent schools will overhaul an out-of-date system and implement the recommendations of the Utting and Waterhouse reports. They have very widespread support from the independent school sector. In many respects we are simplifying and clarifying legislation to make it more transparent and more usable.

Before I finish I want to say a little about what is not in the Bill. First, the Bill does not water down our commitment to inclusion. Noble Lords have heard me say before that it is our firm belief that the inclusion of every child in mainstream education who wishes, and is able, to be there is paramount. Secondly, there are no measures in this Bill to promote faith schools. Within the Bill we seek to ensure that those who put forward proposals to a school organisation committee and are not represented on that committee shall have the right of appeal to an independent adjudicator in the event that their proposals are turned down. Thirdly, this is not a Bill that seeks to centralise but to devolve: to devolve to our teachers and governors the kinds of flexibilities that will enable them to improve the education they offer to our children.

The past five years have seen teachers, young people and all those involved in education achieve remarkable things. They deserve our praise and gratitude. But we must not rest until we have an education service that leads the world, until every teacher has enough support to tailor their work to the needs of every child and until every child achieves their potential in full. This Bill is reform for a purpose. I commend it to the House.

Moved, That the Bill be now read a second time.—(Baroness Ashton of Upholland.)

3.32 p.m.

Baroness Blatch: My Lords, I thank the Minister for setting out the details of the Bill. I say at the outset how much I look forward to working with the noble Baroness on what I believe is her first major education Bill. The noble Baroness has earned a reputation for diligence and fair-mindedness in

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debate. Both attributes no doubt will be called upon in considerable measure over the next few weeks as the stages of the Bill unfold.

My noble friend Lord Roberts of Conwy, when winding-up the debate for these Benches, will deal with those aspects of the Bill relating to Wales and my other Front Bench colleague, my noble friend Lady Seccombe, will record her concern about child protection issues.

We on these Benches support the aims of this Bill—to give schools greater autonomy, to support teachers, to promote innovation and to involve new partners including the private sector. However, as I shall point out, this Bill will not achieve those aims. It is centralising and puts unprecedented powers in the hands of the Secretary of State.

Detailed scrutiny and revision of the Bill by Members of this House is crucial in order to restore some parliamentary democracy which was almost absent from another place. A pernicious procedure called, menacingly, "the knife" has been added to that of the guillotine. The "knife" has been used liberally to eliminate discussion on large parts of this Bill. That is a constitutional outrage. The irony will not be lost on all those who are involved in the world of education; that is, that the elected Chamber, when considering this Bill, chose to ride roughshod over the democratic process whereas the appointed Chamber will, as is customary, be assiduous in carrying out its duty to scrutinise and revise legislation and to hold the Government to account. It would seem that time can be given to debate fox-hunting, but not enough time can be allowed for consideration of a subject that affects the daily lives of all families throughout the land. Such a dereliction of duty by the Government tells us much about their so-called priority, "Education, Education, Education"!

It has been said by some—and with, I believe, some force—that this could be the last education Bill. Certainly, if one looks at the power to be taken in Clause 2, any education statute, past, present or future, could be altered or swept away by order of the Secretary of State.

On the face of this Bill there is no protection for the rights of a child enshrined in previous education Acts of Parliament and no protection for children with special educational needs, even though we have only recently passed an Act of Parliament for young people requiring special educational needs. Those who care for such children are naturally concerned about the power in Clause 2 which allows the Secretary of State to exempt any piece of education legislation. We are looking to the Minister not just for reassurance across the Dispatch Box, but for it to be placed on the face of the Bill.

There is hardly a mention in the Bill of parents or parental rights, even in the consultation process. If we are to consider giving the Secretary of State wide powers to alter the nature of schooling in this country, parents, staff and local education authorities must by right be consulted.

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The Bill is a massive contradiction; it advocates an extension of autonomy and freedom but within a strait-jacket of central power and prescription wielded by the Secretary of State. Without more detail no one can predict the impact of this Bill, containing, as it does, the mother of all Henry VIII powers.

All of the detailed implementation of this Bill will follow by order, guidelines, circulars and regulation entirely at the whim of the Secretary of State. That is serious because we know that changes are afoot by the Government to reduce the powers of this House in relation to secondary legislation. Even as the rules stand at present, we are unable to amend secondary legislation and therefore it is essential that the scope and qualification of these powers are made clear on the face of the Bill. Certainly, there will have to be greater use of the affirmative resolution procedure.

We shall almost certainly hear from the Government today that there is no way that the Clause 2 powers will be used to invalidate important rights and safeguards set out in previous statutes. However, let us record again what Clause 2(1)(a) states:


    "On the application of one or more qualifying bodies ... the Secretary of State (in relation to England) or the National Assembly for Wales . . . may for the purpose of this Chapter by order make provision—


    (a) conferring on the applicant exemption from any requirement imposed by education legislation".

There is no restriction or limitation on any part of any previous statute. Indeed, the true interpretation of this clause, as I have pointed out, is that any education legislation, past, present or future, can be exempted by order. In fact, this, or any future Secretary of State, could by order change the whole nature of education without the need for primary legislation. That cannot be right. There must be some qualification for the use of that power.

One of the claims made by the Secretary of State for this Bill is that it will,


    "set out plans for supporting teachers to raise standards in secondary schools".

The Secretary of State will not impress teachers by making that claim against a background where the pupil-teacher ratio in secondary schools has worsened; where there is a crisis in teacher recruitment and retention; where there are problems of discipline in the classroom; at a time when far too many temporary supply teachers are employed in our schools and when an unprecedented number of teachers are being required to teach children subjects for which they are not trained; when the burden of bureaucracy and additional responsibilities which detract from teaching is not lessened but increased by this Bill; when the Government have not fully funded the teachers' pay and performance awards; when post-16 examinations are in disarray and when, according to the financial appraisal of this Bill, some of the additional costs are to be met from within councils' and schools' own budgets.

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As the Secondary Heads Association has said,


    "The Bill is a ragbag of peripheral proposals which fail to address the central concerns of school leaders—teacher shortages, excessive workload, inequitable funding and the failure to finance the next stage of the Government's own performance pay system".

While I am on the subject of finance may I say that any control over the wholesale confiscation of funding by the Secretary of State is singularly absent from this Bill. Unprecedented sums of money from the overall budget for education are held back by the Secretary of State. The costs of running the department have soared. The number of civil servants in the department has grown and the number of pet schemes which require excessive bureaucratic work from schools and LEAs has proliferated. Why does not the Department for Education and Skills set an example by improving its own cost-effectiveness and pass the benefit to schools where it will really add value?

The more funding held back by the Secretary of State and local government, the more the core funding for schools is reduced. It is no surprise that each time the Government boast about the additional money that they claim will go into education, teachers at school level are baffled about why they are not benefiting.

While we do not support the taking of industrial action by teachers, are the Government not troubled in particular about the possible ballot by members of the NAHT and the Secondary Heads Association? Whatever plans the Government propose for the School Teachers' Review Body, the Minister will know that there is great anxiety about the Government's negative response to the STRB's 2002 recommendation, which was that:


    "Sufficient resources should be made available to ensure that teachers who meet the (Government's own) performance criteria for progression on the upper pay scale can in fact progress".

It also recommended that the grant should be,


    "increased to enable a substantial majority of teachers to progress".

That the Government have not done. It is a fact that taking into account teachers' basic salary, plus the shortening of the "mainscale" costing a further 0.5 per cent, plus fees for membership of the General Teaching Council and 1 per cent additional pension contributions—not to mention the additional financial burdens arising from the Bill—there will be a large shortfall in the funding of our schools. To claim that it can be made up from within budget without serious adverse effects on the education of children is deeply misleading.

Another measure in the Bill that will dissipate yet more funds is the establishment and servicing of admissions forums and schools forums. Why oh why must schools be subjected to attendance targets? The target for attendance should be 100 per cent. Authorised and unauthorised absences are already recorded and inspected by Ofsted. What is the point of adding yet more bureaucracy?

The clauses dealing with earned autonomy on the basis of performance are unnecessarily complex. Why should schools have to apply and be subject to assessment—that is another costly and bureaucratic

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diversion—in order to exercise autonomy? Grant maintained schools proved the success of self-management. Surely there should be a presumption of autonomy for all schools, unless a school is giving cause for concern. Schools are more openly accountable these days, thanks to many of the reforms that the Conservative government put in place and which have been accepted by the present Government. Also, thanks to the work of Ofsted, there is now enough information to record and identify those schools that would not qualify for local autonomy. So why not cut Whitehall control and give the cost savings to schools?

Why should schools have to apply for flexibility at key stage 4, when all secondary schools should be able to operate a more flexible approach? In fact, the Bill appears to be in conflict with the recent proposals for the 14 to 19 age group.

When it comes to exemptions under the Bill, I ask the Minister: what is the status of compulsory subjects such as the core curriculum, religious education and daily worship and the newly imposed subject of citizenship, about which we have reservations, especially if proposals come forward that link the dropping of those subjects with the raising of standards? There is nothing on the face of the Bill to protect them. If the answer is that that will be addressed in secondary legislation, I say to the Minister that she must spell out on the face of the Bill the scope and limitations of earned autonomy.

It is clear that the clauses dealing with the formation of companies have not been thought through. Ministers in another place did not answer adequately many of the searching questions and points that were put by my honourable friends. I must ask the Minister: what is the liability of governors, head teachers and other partners if a company fails? Who assesses the risks? If it is the Secretary of State who does so, would he or she be the guarantor—as with the new Railtrack—of a company by government guarantee?

Also, if local authority consent has to be sought before a company can be set up, would the Government consider making it clear that, where a consent by a local authority is withheld, reasons should be given?

The subject of exclusions, which is addressed in the Bill, is, we can all agree, a serious issue and the proposals are to be welcomed. Indiscipline in the classroom rates very highly on the list of reasons why teachers are leaving the profession. The Warwick report, which was commissioned by the National Union of Teachers, confirms that very strongly. The U-turn performed by the present Secretary of State following the restrictions that were put in place by the right honourable Mr Blunkett was welcomed by teachers. However, in a consultation document, the Government promised to extend the range of parenting orders. The NAHT and others welcomed that because problems that are thrown up by disruptive and violent parents are also serious. There is no proposal to that effect in the Bill. I ask the Minister: is that because any changes relating to

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parenting orders must be dealt with in a criminal justice Bill? If that is so, I suggest that, rather than waiting for parliamentary time, an amendment to amend the relevant Criminal Justice Act be put into this Bill. That is a perfectly acceptable procedure and there does not appear to be any argument about what is needed. Schools certainly require that change as soon as possible.

Is it the case that governors will no longer have an involvement in the appointment of staff? If so, I must record my concern and intention to return to that matter in Committee. However, the Minister may agree with me that the involvement of governors in the appointment of staff is important. My reading of the Bill may be incorrect.

I cannot hide my dislike of the unaccountable learning and skills councils. To learn that the Government intend to hand over the reorganisation of post-16 education, including that of sixth forms, is alarming. We were given reassurances on many occasions in this place by the Minister's predecessor that school-based sixth forms were not under threat from the establishment of learning and skills councils. There are already problems of funding which have not been resolved. However, as many teacher representatives have said, the learning and skills councils could ride roughshod over local decision-making in relation to sixth-form provision. One's suspicions are certainly aroused by the proposal that the learning and skills councils are tempted to look for a tertiary solution for all post-16 education. The Government's plans will raise the level of anxiety among schools, especially those with small but viable sixth forms. It is a known fact that for many teachers a school with a sixth form is a particular attraction. We will do all that we can to persuade noble Lords to remove that proposal from the Bill.

On a separate but related issue, can the Minister confirm that sector skills councils, which were announced by the Secretary of State last October, are still to be set up? If so, when, and what is their justification?

One also cannot help but conclude that the Bill is a further step on the road to regional government and involves an end for shire counties. Would the Minister care to prove me wrong on that point?

The way in which the education system is now regulated is over-burdensome and the Bill makes matters even worse. The labyrinthine system of councils, committees, forums and advisory bodies, most of which are unaccountable, together with the required plans, information returns, assessments and endless second guessing of local authorities and schools, has become complex and inefficient, not to mention the fact that it has become costly. When one takes into account the cost of the time spent providing information and statistics, much of which gathers dust in the DfES, plus the cost of the time given by heads, teachers and all those who sit on those bodies—I refer to endless meetings and the hours spent consulting, co-ordinating and co-ordinating the co-ordinators—it is

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not surprising that there is a shortage of funding for the running of decent, high-quality schools in which teachers can teach and pupils can learn.

As if all that is not enough, I understand that under race relations law yet another statutory code of practice is being produced requiring schools to admit quotas of ethnic minority children to reflect the racial mix of the local population and to record the national origin of all children. That would require unacceptable intervention into parental choice. Head teachers have been sent a 73-page document, which they believe has not been thought through, and which is designed to cause even greater tension between schools and parents. It has even been said that there could be conflict between the CRE document and education law. Our schools can do without even more tension.

I can hardly believe the U-turn on governing bodies covering more than one school. During the passage of the School Standards and Framework Act, the Government were so determined that each school should have its own governing body that it overturned an amendment that was agreed to in this House for Church, junior and infant schools to continue to have a joint governing body. That arrangement had been in existence for more than 100 years. That was a mean-spirited act of spite, and it will be undone by this Bill.

They say imitation is the sincerest form of flattery. It is a fact that many of the education reforms that were introduced by a Conservative government, and which were opposed tooth and nail by the then Labour opposition, have been adopted by the present Government. Therefore, we are fully in support of the extension of city technology colleges, which are now to be called academies. I am pleased that the rural areas may also benefit from that development.

However, we shall be vigilant in ensuring that the academies have all the freedoms enjoyed by CTCs. I take this opportunity to congratulate, and thank most warmly, my noble friend Lord Harris of Peckham on the impressive support that he has given to their development. Not only has my noble friend been involved from the outset with their development by providing generous funding; he has also taken a practical interest in their progress. My noble friend has now embarked on another project to establish one of the new academies in his home town of Peckham. Ever since my noble friend Lord Baker of Dorking, who will speak later, established the first tranche of CTCs, the partnership between education and the private sector has been a great success.

The Government's plans to pay off student loans for newly qualified teachers in shortage subjects will inevitably cause tensions. For example, religious education has been a shortage subject for a very long time and yet it has never been included in the Government's qualifying list. There is also the inequity of waiving student tuition fees for postgraduate students and not for Bachelor of Education students. How can that be justified?

No doubt an amendment along the lines of that discussed in another place will be tabled in relation to faith schools. We shall never support the imposition of

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quotas which force schools to accept children who do not share the schools' religious commitments. The Government have caused some confusion about whether or not there is to be a considerable expansion of faith schools. My own view is that the present system works well. Whenever a request to establish a faith school is received, it is considered on its merits.

This is an unwieldy Bill. It is very fragmented and impossible to cover adequately in the time allowed. Therefore, I look forward to debating its next stages. Although I predict that it will provoke lively debate and will be time-consuming, I know that the Minister will give a fair hearing to those of us who have concerns and wish to improve the Bill. Meanwhile, we shall support its aims: to promote diversity; to allow for innovation in order to raise standards; and to provide more freedom and autonomy with accountability to our schools. However, we shall not support increasing Whitehall control and unnecessary interference and bureaucracy.

Heads and their teachers will not hold their breath in anticipation of a new dawn in education from the Bill. There is already a discernible groan about this ill-thought-through legislation. Teachers are restive and their concerns are more immediate. We must be conscious of that as we fulfil our duty to scrutinise and revise the Bill.

3.52 p.m.

Baroness Sharp of Guildford: My Lords, I, too, thank the Minister for her clear exposition of the Bill and I look forward to debating with her over the next few weeks all its complications. Like the noble Baroness, Lady Blatch, I regret very much that the other place dealt so little with the detail of the Bill. I echo the noble Baroness in pointing out the irony that it is we, the unelected Chamber, who must provide the true scrutiny of the Bill.

We on these Benches share with the Government a desire to improve the quality of primary and, in particular, secondary education, as embodied in the Bill, and the reform of the 14 to 19 curriculum. But I cannot hide my great reservations about the Bill as it stands today. There is very little in it that I welcome unreservedly. The proposals for paying off loans to those training to be teachers, I welcome. The institution of a proper curriculum and the Government's regime for early years, I welcome. I also welcome extending the community role of schools, giving pupils a proper voice, and introducing some kind of order into the chaos of admission procedures.

But in other respects I echo the words of the noble Baroness, Lady Blatch, in saying that this is a ragbag of a Bill. It brings together bits of legislation which the department considers useful but there is no rhyme or reason in gathering them together in the Bill as a whole.

I have three main reservations about the Bill. My first question is: is it really necessary? What is the Bill for? Let us consider the Government's present agenda on education—the provision of specialist schools; bringing in private sector and not-for-profit providers;

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and extending the number of faith schools. All those can go ahead without new legislation. But the Bill does nothing to address the biggest problem faced by the education profession at present; that is, the recruitment and retention of teachers.

The one aspect of the Bill which is really required—legislation for the reform of the 14 to 19 curriculum—is surely premature. A Green Paper has just been issued and we are going through a period of consultation. Is it not an insult to this House to bring forward proposals on that issue before the consultation period has finished? Do we really need a Bill of 210 clauses and 22 schedules when all those other matters are proceeding? As I said, the main agenda is, in any case, being taken forward.

The Minister made clear in her exposition that the Government see the main purpose of the Bill as promoting innovation and encouraging diversity. But, again, I raise the question: do we need a Bill in order to achieve that? What good school does not constantly innovate and do new things? Yet, when pushed in Committee about what was meant by innovation, the Minister, Mr Timms, came up rather lamely with the response that "it implies something new". Why must we legislate to encourage schools to do new things? In some senses, the Minister provided the answer because she presented the Bill as a measure of deregulation. Schools are to be given permission to innovate in ways which break the current rules of the game set down by Ministers. She presented it as "setting them free".

Is that not an admission of the shocking state in which we now find ourselves—an admission that the labyrinth of rules and regulations that we have now wound around our schools and colleges stifles innovation and creativity? Is it not also naive to think that more rules and regulations will help the situation, especially when, as in so much of the Bill, it is a question of granting plenipotentiary powers to the Secretary of State? Clause 1 says it all:


    "innovative projects that may . . . in the opinion of the Secretary of State".

Is that not a case of "Please Miss, may I have permission to innovate"?

Surely we know better than to regulate to innovate. Have we learnt nothing from the Soviet experiments in eastern Europe? Over the past 10 years, we have set up a panoply of targets and performance indicators; we have consumed valuable and potentially creative management time in filling up forms to satisfy the bureaucrats that the targets have been measured and met; and we have created further rules and regulations to reinforce the whole process. And then we wonder where the innovation and creativity have gone.

Surely the lesson that we learnt from the Soviet Union was that all such top-down planning and bureaucracy stifled creativity—or, rather, that it drove people into finding creative ways around the performance indicators. Now, here we are, just like the Soviets, trying to legislate for innovation. The answer is not further rules and regulations which give the Secretary of State powers to decree who may and who

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may not innovate; it is to set the whole lot free. We should be legislating to encourage every school to innovate.

I return to where I started. Creativity and innovation are in the genes of every good teacher and every good school and have, in the past, characterised all that is best in our education system. They have been stifled by the regime of rules and regulations imposed over the past decade. Yes, we need to set our schools free, but that should include every school and not only the one in 10 envisaged by Mr Timms when he was pressed in the other place as to who should benefit. Only 10 per cent of schools will benefit from earned autonomy. Above all, that freedom should not be at the behest of the Secretary of State. That is my first main reservation about the Bill.

My second main point concerns the heinous concentration of powers for the Secretary of State. Henry VIII clauses abound in the Bill. There are two different aspects of that. First, time and again they give powers to the Secretary of State: power to decide who may innovate; power to set up companies; and power to lay down the allocation of schools' budgets. But they also confer power to lay down the detail by secondary legislation and by regulations and guidance, which cannot be amended by this House.

If the Government had their way, as the noble Baroness, Lady Blatch, mentioned, we in this House would not have the power to question or to delay secondary legislation. Not only would that prevent Parliament from fulfilling its scrutiny role, but it is also a lazy way to legislate. It indicates a failure to think through clearly what is wanted, allowing half-baked ideas to emerge in the legislation, such as the power for school governors to set up companies, described by the National Association of Governors and Managers in an editorial as an idea "from out of this planet".

Secondly, concentrating powers in the Secretary of State takes power away from the accountable, local democratic institutions. It is no secret that this Government have little time for local education authorities. Nor did the Opposition when they were in government. Over the past two decades, successive education Acts have diminished the powers of local education authorities and have given powers to the Secretary of State to deal directly with schools. There it is again.

I have already instanced the power of the Secretary of State to decide who may and who may not innovate, but the matter goes further than that. There are powers to finance schools directly; powers to determine how much a local authority has to spend on schools; the setting up of the new unnecessary and wholly unaccountable schools forums to allocate the budget between schools; powers to set up academies; and powers to appoint interim boards of governors.

In effect, that accretion of power to the centre amounts to the nationalisation of our education system, which, traditionally, used to be one of the main responsibilities of local government. Now it is to be all but removed from local democratic control. That is a dangerous path. Not for nothing was the control of

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education in post-war Germany vested in the La nder and not in the federal government. In the 1930s we saw how dangerous it was to have a malign, totalitarian regime dictating the education agenda. I know that the Minister will assure me that neither she nor her colleagues are malign in any sense. I shall believe her when she says that, but we may not always have such a benign government. That is a dangerous route. The Liberal Democrats have always believed that decisions should be taken as close as possible to those who are affected by them.

It is interesting to note that the Euro-barometer indicates that those countries that are most satisfied with their education systems are the Scandinavian countries. They run education at a local level. In that regard there is something to be said for taking lessons from countries such as Sweden and Denmark. They delegate decisions down to a local level. It is also somewhat surprising that currently the DTLR is encouraging local authorities towards greater flexibility and yet their colleagues at the DfES are decreasing the degree of local autonomy given to local education authorities.

My third reservation is about hierarchy and diversity. Can we separate the two? Sadly, in Britain we never appear to have been able to divorce education from the class system. From Victorian England we inherited the hierarchy of the public schools with their classical education for the upper classes; the grammar schools which do their best to mirror that system for the middle classes; and the elementary schools and, post-1944, secondary modern schools for the lower classes. In the 1960s the movement for comprehensive secondary education was, in modern parlance, a massive attempt to develop a more socially inclusive system of secondary education in Britain. Where it was followed through, as in Scotland, it has achieved considerable success. Compare, if you will, success rates in Scotland in GCSE and its equivalent with success rates in England; look at post-16 participation rates; and look at the class profile of those going on to university and you will find that in Scotland, where the comprehensive agenda has been pursued without the hang-ups of its English counterparts, it has performed very well.

In many parts of England the comprehensive principle is working as well as it is in Scotland and comprehensive secondary schools are providing high quality, stimulating and exciting educational opportunities for their communities. But, that is not always the case, particularly in our cities. The Government's chosen response has been in this, as in other areas, to opt for competition. The Bill paves the way for that competition.

In addition to the programme for specialist schools, the way is now open for other groups from both the private and the not-for-profit sectors, including the faith communities, to promote new secondary schools with voluntary-controlled or voluntary-aided status. The agenda is—I understand this—to offer choice through diversity. In many ways it is an exciting

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agenda. Communities which have seen little or no new investment in school buildings since Victorian times and have been making do with those towering Victorian three-deckers for decades, are seeing new investment, new schools, and new ideas burgeoning.

However, can we really be confident, amidst all this diversity, that investment is going where it is most needed? With the specialist schools' agenda and its requirements for co-funding, we have already seen a tendency for investment to go into those areas where middle-class parents can find the sponsorship and co-funding required. Can the Minister assure us that such new investment will go where it is needed? Is there not a danger, in the competitive world that is being created, that all the prizes, all the earned autonomy, will go to those schools that are regarded as "good"—predominantly middle-class schools which are already confident and capable of handling experiments—leaving the problem schools in problem areas as persistent poor performers and poor relations? Far from cementing those schools into their communities, is there a danger that such diversity will fragment the whole situation much further, setting school against school, and, dare I say it, faith against faith?

That brings me to the final issue of faith schools. Other noble Lords will have much to say in this debate and in Committee on the subject and I look forward to hearing them. In the other place the Secretary of State has stressed that there is no clause in the Bill that directly relates to faith schools and I hope that this issue will not dominate debates in this House, for there is so much else in the Bill that I regard as objectionable.

However, I share, with my colleague, Phil Willis, who led the debate on the Bill for our party in the other place, an uneasiness about the degree to which this Government have changed the agenda overnight and, bearing in mind the well-established and well-respected compromise between Church and state, which has stood the test of time since 1944, they have made it known that they would welcome substantial numbers of new faith-based secondary schools. It is totally reasonable that Parliament should be given an opportunity to debate such a marked change in policy and, as the Government have provided no such opportunity, my colleague used this Bill as a vehicle by which to initiate such a debate in the other place.

On these Benches, we are concerned that such schools should not only serve their faith communities, but also their local communities and should not, as in Northern Ireland, segregate effectively one faith from another, allowing deep-seated prejudice to be passed on too easily from one generation to another.

I have made it clear that we on these Benches have many difficulties with the Bill. We contend that it is of quite unnecessary length and, in so far as it has a purpose—namely, to reform post-14 curriculum—that it is premature. We are still in the midst of consultation. In addition, it is a bad Bill, in that it continues the process of concentrating power in the hands of the Secretary of State, giving her wide discretion to rule by regulation and guidance which cannot be subject to proper parliamentary scrutiny. It also further

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diminishes the decision-making powers of democratically elected local authorities. If that were not enough, we contend in addition that, far from helping to build communities and ensuring that their schools are embedded within them, the measures being promoted by the Bill risk fragmenting communities and setting school against school. Our greatest fear is that, far from helping those whose needs are greatest, the rewards and the resources will go disproportionately to those who are already successful.

As we take the Bill through its stages in this House, we shall constantly try to make it a better Bill; to restrict the powers of the Secretary of State; to disperse power down to local education authorities and schools; to encourage all to innovate, but also to work together as communities; and to ensure that the rewards and the resources go to those who need them most.

4.10 p.m.

Lord Dearing: My Lords, I apologise for not being in my place at the beginning of the debate. I had an engagement to speak in Barnsley at a diocesan conference organised by the diocese of Sheffield. I shared the platform with the noble Lord, Lord Ahmed. My doing so may reassure the noble Baroness, Lady Sharp, that neither of us is in the business of setting faith against faith. I had limited faith that my train would arrive on time and warned the noble Baroness, Lady Ashton, that I might be a little late.

I want to be brave and welcome the Government's policies. I have some reservations. I am particularly concerned that we should do more to help those who are doing least well in our schools. Fundamental to that is the freeing up of the system to enable the schools to respond to existing needs rather than to provide a curriculum into which they should fit. That is particularly relevant when pupils are becoming young adults and are not prepared to accept that something is good for them. They vote with their feet. I believe that it was the chief inspector who reported that 10,000 just disappear; and many more stop listening.

I welcome the freeing up of the key stage 4 curriculum to respond to those people. I welcome, and have respect for, the new thinking that the Government are attempting on a vocational approach. I have one reservation. A reading of the Green Paper is fundamental to understanding the Bill. The paper raises the question of whether the standard should be called GCSE (Vocation). Vocational education must have high esteem. But if the two are put in the same basket, the very characteristics that make a vocational approach to education so valid will be lost through having to conform to the mores of the academic standards of a GCSE. We shall lose what we seek to achieve.

I want to be a touch wicked. With regard to the various categories, I understand why the Government are saying, "Let loose the top performers in those categories". But for those schools which are doing best, the school curriculum is not a problem. So why do we need to free them up? Is not the real problem the schools where the system is not working? Do not they

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need to be freed up to offer an education that is apt for those children? Perhaps it is not beyond the bounds of thought that an LEA might have some discretion under Clause 1 of the Bill. If the school has a good head and comes forward with a good programme, there should be more freedom to adapt the curriculum in order to engage those children in education.

A principal objective of any education is for the child to switch in to education before he leaves school. For him to say, "I have shaken the dust of school off my sandals and never again" is a disaster. Our principal objective should be to engage those who are faring least well and who will be a burden to themselves and to society all their lives.

We are all concerned about the 60,000 prison population. I understand that the figure is 70,000; I am out of date. The noble and learned Lord, Lord Woolf, has commented that time spent idly in prison is badly spent. Of course we must keep people safely in prison if they are a danger to society. But one of the reasons why they are in prison is that they fared so badly in education. They had nowhere to go. Let us use the time constructively to help those 70,000 into education and to become useful citizens rather than returning to prison in a year or two.

That is my principal concern. On that basis I encourage the Government to promote vocational education and open up the barriers between schools and FE. I welcome their concern about FE teachers and heads being qualified to be good at their job. I have this fear. Some 14 year-olds will go into FE institutions and have a bad experience. Perhaps I may counsel Government: in your concern to introduce change—for example, on vocation or with regard to foreign languages in primary schools—abate your enthusiasm until you have teachers who can do a good job and have the equipment they need. We remember the design and technology issue under the noble Lord, Lord Baker. We needed to change the nation's thinking about design and technology. But I used to go into classrooms in primary schools which had ordinary desks and no kit. The teachers were as bewildered as the students. It was and is a good idea but it has to be done well and that takes time. So the Government must take time over these changes.

The noble Baroness, Lady Blatch, opposed the idea of attendance targets and said that the aim should be 100 per cent. As noble Lords may remember, once upon a time I was chairman of the Post Office. We had an excellent medical service which undertook a lot of statistical analysis. It demonstrated a close correlation between attendance at school and attitudes to attendance throughout working life. The proposal does not relate to playing truant but to the kind of absence which is authorised. Believe me, different parents have different attitudes on whether the child should turn up that morning. I do not want penalties; I do not believe that the Government want them. Perhaps there could be a John Harvey crate of champagne for a school which improves its achievements. Schools should try hard to improve attendance levels.

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