My Lords, I will pick up where I left off on Amendment 11 and also speak to my Amendment 20. I welcome my noble friend to the Front Bench. There was a period when she was my Whip; she probably thought that she had finally escaped having to deal with me, but now she is back, front and centre of my interests.
I apologise that my first action will be to vote with the noble Lord, Lord Watson, if he pushes his amendment. Like him, I absolutely support the objectives of the Bill, but I will vote with him because I am really unhappy and unclear about it in its current state. I want us to be able to continue this conversation as the Bill winds its way through the Commons. As the noble Lord, Lord Watson, said, the key element of this discussion—the local skills improvement plan trailblazers document—arrived today, at least for me, and I have not managed to look at it properly. There is a lot there that needs attention.
I thoroughly support the idea of local employer involvement in skills provision. For a long time, local employers have complained to me that their local
colleges and other providers are not doing the courses they need: the engineering kit that the FE college has is 20 years out of date, and graduates have to be completely retrained if they enter engineering; the building courses do not align with the methods used at the moment; nothing is available for the local foundry; and so on. The need for local employers to be involved in local skills provision is very clear to me.
However, to get successful employer engagement you need both status and longevity. You are asking employers to get senior, good and effective members of staff to spend time on collaborative bodies and arriving at results. They need to do that over a period of years to build up relationships and understanding with each other, among the employer community as much as with education providers. That takes time and an attitude to these bodies that is not, “Oh, we’ve had this for five years—let’s throw it out of the window and start again”. Starting again takes you back to zero.
If I have understood the document right, the trailblazers will exist only for a year or two. Why will any sensible employer spend time trying to make something right when it will be torn up after two or three years? There will be a few, but there will not be the comprehensive effort that would be made if the Government gave themselves a bit more time and, when they know what they want to do, set out to provide employers with something that has a hope of lasting 10 or 20 years.
We have a new ministry for levelling up, which gives it an opportunity to make a decision about what is happening to local enterprise partnerships. These are a source of relationships, understanding and established ways of doing things which might well be drawn on to make a success of local skills improvement plans, but they appear to be ignored entirely. Why? Let us have some coherence in this across government. This is already at least the second way in which the Department for Education is proposing to consult employers; it already has a reasonably well-established network in IfATE, but it does not appear to be tying that in at all to what is happening with local skills improvement plans. There are also networks based in BEIS and in the Department for Work and Pensions. There needs to be more thought and coherence before we set out on this, so that we can really make a success of the idea.
If I read this document right, there is a budget of £4 million for the seven trailblazers, so that is about half a million quid each. In our local area, this is the whole of Sussex, and because of the way Sussex has evolved, the Sussex Chamber of Commerce knows very little about what happens down at the town level. There is almost no relationship between the Sussex chamber and Eastbourne; Eastbourne is dealt with by the Eastbourne Chamber of Commerce. There is also very little relationship between the Sussex Chamber of Commerce and that huge employer of people in Sussex: London. So you are asking this body to build from nothing a knowledge of the skills needs of a very large area—four or five million people’s worth, if you embrace the south of London—on a budget of half a million quid. It is a comfort to the noble Lord, Lord Adonis, that there is no possible way they will have money to
pay consultants; they will be really pushed to do this on a few local people. It does not seem to be a recipe for success.
To pick a quote from the document, these partnerships are supposed to look at
“opportunities created by emerging technologies, cleaner growth and new global markets.”
How can you do that based in Sussex, for goodness’ sake? You are not exactly at the middle of any of these industries. Where is the source of knowledge and information to enable them to do that? That sort of thing requires national co-ordination and there is no sign in this plan of how that national understanding will develop.
As the noble Lord, Lord Bird, said, you need an organisation which is looking ahead; ideally, 10 years ahead—though it is getting pretty speculative—but certainly five years. If you talk, as I do, to the jobs board providers, they will say, by and large, that employers look at what they want today and, if you push them hard, they will look a year or so ahead. Local employers do not have that understanding of where their whole industry is going; they have to deal with the problems of today. You need to build in something which is looking further ahead, and there is no reason to try to do that locally. Also, there is a lot of commonality between local problems: the problems we face in Sussex will be replicated in East Anglia, the north-east and elsewhere, one way or another. We do not want to have to create individual, from-the-ground-up solutions to each of these problems; we want to have a mechanism for sharing the problems and approaches and putting the best solutions forward, rather than just creating new things locally. Again, I do not see a sign of that in the Bill.
The system of careers advice for children at school set up by this Government in the Careers and Enterprise Company, of which I have a high opinion, is based on their relationship with local enterprise partnerships. What is proposed under this new system to enable them to continue the rollout of local career hubs? Again, I do not see anything. Where in this structure do we encounter the interests of students? Somewhere in Eastbourne is the engineer that the noble Lord, Lord Ravensdale, wants. Under the LSIP, as described here, the only training available for us will be for hoteliers—that is the main business in Eastbourne. There is no engineering contractor, let alone a nuclear industry. There is not much IT at the moment; there is no obvious source of green growth jobs within our patch. Where is this understanding to come from? Why should our children be restricted in their opportunities to what happens to be available in Sussex? An awful lot of people who live in Sussex work in London. How is the source of demand and need to be factored into the local skills improvement plan in Sussex?
I hope that when the Bill comes back to us from the Commons we will end up with a nationally coherent, long-living system of involving local employers and other sources of information in producing a structure of training that works for local people and local industries. What the noble Lord, Lord Watson, suggests
is the right way to do it. As for Boris—if I am allowed that shorthand for my right honourable friend the Prime Minister—he was talking about that last time I read one of his speeches regarding raising the leaders of counties to the same status as local mayors and giving them the same sort of powers and ambit. We will see how that direction works out but at least the understanding is there. A lot of support is available at county level, including a lot of knowledge, skills and people in the workforce, which would really support an enterprise like a local skills improvement partnership. If the two aspects are embedded together, they are likely to work together and benefit from each other. In terms of sending a message to our colleagues in the Commons, the amendment of the noble Lord, Lord Watson, does that pretty well.