English for Speakers of Other Languages

Debate between Catherine West and Gordon Marsden

Wednesday 3rd July 2019 Westminster Hall

[Gordon Marsden (Blackpool South) (Lab)]

It is always a pleasure to serve under your chairmanship, Ms Dorries. First I want to congratulate my hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill), on a speech that not only was superbly constructed but got to the heart of the individual issues. It gave us information about how to address strategy more broadly than the Government have previously done. That breadth was particularly apparent when she listed the different types of refugees she had been dealing with in her constituency, and when she said that starting to speak English fluently means people can get a good job and make their dreams come true.

That applies not only in Birmingham; the hon. Member for Henley (John Howell) may have seen what I thought was a moving piece on BBC Oxford the other day about an Afghan cricketer who came to this country as a refugee and asylum seeker and now plays in the city league in Australia. It was the support of the people of Cumnor, and particularly the cricket club there, that got him through the Home Office barriers. It is important to talk about structure, but we should never forget individuals, and my hon. Friend the Member for Birmingham, Edgbaston did not do that. She rightly paid tribute to the report by Refugee Action and pointed out that there has been no new money. She also made the important point that informal ESOL learning groups are run by volunteers and community organisations. The Minister and I have often jointly supported adult education, but I recall her talking a couple of years ago, at the Learning and Work Institute, about the importance of informal learning and how to coax people into doing things that they might not otherwise do.

There is a moral as well as an economic case for the Government to address. I pay tribute to other Members for their comments and observations in interventions and speeches. My hon. Friend the Member for Manchester, Gorton (Afzal Khan) is of course the Labour Home Office spokesperson on such matters. He talked about how provision for children is a key element of the matter, and also a barrier. My hon. Friend the Member for Sheffield Central (Paul Blomfield) made the important point that the European social fund had been a significant contributor to ESOL and asked whether the Minister would guarantee to match that. As far as I am aware, that will probably come substantially from the shared prosperity fund that the Government have talked about.

My hon. Friend the Member for Barnsley Central (Dan Jarvis) and other colleagues tried to get some detail about that from the Under-Secretary of State for Housing, Communities and Local Government, the hon. Member for Rossendale and Darwen (Jake Berry), in an excellent Westminster Hall debate two months ago—but detail came there none. I do not know whether the Minister today is in a position to say any more today.

My hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) talked about the importance of first steps and colleges. The hon. Member for Henley talked about the need to get people’s motivation right, and about issues of loneliness and participation. My hon. Friend the Member for Halifax (Holly Lynch) rightly paid tribute to the work being done in her constituency, and also the work of the all-party parliamentary group on social integration. She and my hon. Friend the Member for Hornsey and Wood Green (Catherine West) made a particular point about the needs of older women. The stats that my hon. Friend the Member for Halifax gave and the two examples that my hon. Friend the Member for Hornsey and Wood Green talked about powerfully illustrated that argument.

My hon. Friend the Member for Keighley (John Grogan), as well as telling us about the challenges in Bradford and Keighley, probably gave the most memorable soundbite of the afternoon, by combining driving with English, but it is an important point because people want to learn English for specific reasons. That relates to the discussion of and concerns about older people—not just older women—who need ESOL.

Finally, the hon. Member for Motherwell and Wishaw (Marion Fellows) spoke on these matters from the Front Bench for the SNP, with her customary crispness and warmth. She illustrated some of the challenges, particularly in relation to teaching and further education in Scotland and other parts of the United Kingdom, and discussed changes in the profile and the specifics of what is happening in Scotland.

ESOL classes offer vital support for people across this country whose first language is not English. They offer them the ability to get the knowledge and skills they need to live more active lives. People rely on those services for many reasons—to be able to speak English and enter work, or as a starting point for education here—in order to feel able to integrate and participate in their communities. Those are important aims, and I know that the Minister will agree with me and colleagues present in Westminster Hall that we must give everyone the support and opportunities to achieve them. In fact, I hope there is cross-party consensus on the issue.

As I have already said, the Minister and I have at various times talked about motivation and the need to reach out to people. The Secretary of State himself has said:

“Improving literacy is vital to improving social mobility”.—[Official Report, 19 March 2018; Vol. 638, c. 6.]

In her review of integration, Louise Casey said:

“English language is a common denominator and a strong enabler of integration.”

Indeed, one would expect Ministers to have been investing substantially in these services for years, given how important they say English language is. As I am afraid has been demonstrated today—it is too often the case—that rhetoric has not been matched in reality since 2010. ESOL funding has been cut by over 50%, from £203 million to £99 million. Sadly, it comes as no surprise that participation has also plummeted. In 2009-10 there were 179,000 learners on funded ESOL courses, but by 2017 the figure had fallen to 114,000.

Will the Minister at least acknowledge that the indifference or—let us be charitable—inability to provide funding since 2010 has contributed significantly, if not directly, to the decline in ESOL participation? I know that she will say that funding has increased in recent years, and it is true that there have been small increases in ESOL funding and in specific areas, which we welcome. The Syrian refugees settlement scheme has been talked about. Given that the Government knew, and now have proof, that additional funding is needed to provide ESOL to specific vulnerable groups, it is a matter of concern that they have not gone further. Will they move beyond that piecemeal approach and offer long-term, sustainable investment to deliver ESOL in all our communities? The fact is that the lack of investment makes it impossible for those who need these vital services to access them.

As shadow skills Minister, I have been talking a lot recently about our urgent need to empower two groups of people: young people between the ages of 16 and 24 who are not in education, employment or training; and adults who are without basic literacy and numeracy, of whom there are probably between 5 million and 7 million. We cannot separate that from ministerial failure to fund ESOL properly—and not just in further education, but in the Home Office and with others who have shared responsibilities in this area. I appreciate that it is complex—I know what the silos are like in Government—but the Government have to deliver on the matter.

I hope that the Minister can tell us how many refugees and asylum seekers are not currently, and have not previously, enrolled in an ESOL course. I and many hon. Members of the House are concerned that they are not getting the support they need. Some 59% of respondents to a Refugee Action survey said that the number of hours of teaching they received were not sufficient, and 66% said that their current level of English did not make them feel ready to work in the UK. That is simply unacceptable. Can the Minister tell us what steps the Government are taking to ensure that refugees and asylum seekers get the support they need to learn English?

It seems to me that Ministers support that goal, because their own integrated communities Green Paper said that everyone should be able to learn English. I agree, but when will it become a reality? If we will the ends, we must will the means—to be more old-fashioned and colloquial about it, there is the old phrase: “If wishes were horses, beggars would ride.” Well, no money has been saddled up to power the fine words and exaltation of the Green Paper, and the Government cannot say that they have not been given chapter and verse on what needs to be done.

I pay tribute to Paul Hook and all his colleagues at Refugee Action, which is a national charity that works to enable asylum seekers and refugees to rebuild their lives in the UK. It is the

“leading provider of reception and integration services”,

and in the past three years it has been indefatigable in reminding the Government and Members of the House where we need to go. I am quoting from Refugee Action’s July 2018 reaction to the Green Paper, which lists the problems for refugees. They include long waiting lists, difficulties enrolling in a class, inadequate learning hours, gender barriers, unsuitable classes and travel difficulties, many of which have been touched on in the debate. That is what Refugee Action said last year.

As we have already heard, Refugee Action has now produced a response to the integrated communities Green Paper. I have looked at it, and I am sure that other hon. Members will have looked at it, either the whole thing or a summary. It is an excellent summary of where we are, but unfortunately what it summarises is not good. Refugee Action makes the point that there has been a real-terms cut of almost 60% between 2008 and 2018. I have already mentioned the new research: 59% of refugees do not think that they have had enough ESOL teaching hours. To probe further into that, more than three quarters of parents said that a lack of childcare had been a barrier to their ability to attend English lessons. That bears out in anecdotal and other comments that colleagues have made.

[Catherine West]

Does my hon. Friend agree that we have an enormous problem that results from that? There is isolation and there are resulting mental health problems, which add further costs to the national health service as a result of failing to provide these important preventive services.

[Gordon Marsden]

I agree. I do not wish to take us into another area, but although the significant cuts to the Sure Start programmes and children’s centres impact on native English speakers, they also have an effect on refugees and asylum seekers, particularly in areas where there is ethnic concentration and a large number of migrants.

Refugee Action’s recommendations have already been touched on. They include a fund to support all refugees to learn English; ensuring a minimum of eight hours a week teaching for refugees, which requires an investment of £42 million a year; an ESOL strategy for England; full and equal access to ESOL for female asylum seekers, with the right to access free English-language learning; and facilitating a national framework for community-based support.

This is an issue that I have taken up with the National Association for Teaching English and Community Languages to Adults, Refugee Action and others over the past couple of years. I went back to an article I wrote in FE Week in March 2018, to see whether anything I said then was not up to date. Unfortunately, I do not think much has changed at all. NATECLA said that the

“focus on informal community learning…does not go far enough to address the needs of learners…it is sustained and accredited English language learning”,

which rather supports the point that the hon. Member for Henley made on the need to have progression in those sorts of courses.

Following Brexit, when we will increasingly have to rely on a smaller pool of workers than we have done for decades, it will become absolutely clear that a skill system that is fit for the future must include a minimum competence in the English language for everyone living in the UK—and not just in London, but in other major cities. We should not neglect the challenges in smaller towns and rural areas where there are recent influxes or long-standing ethnic communities. However, ESOL funding has been whittled away, which has inevitably depleted the cohort of dedicated teachers. It is no good the Education Secretary waxing lyrical on ESOL and social mobility if the Department does not provide—either from its own resources, by lobbying the Treasury, or by combining with other Departments—the hard cash to go with it.

The shadow Secretary of State, my hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), met a group of Congolese and Sudanese refugees in her constituency earlier this year. She says:

“They told me about their experiences of seeking shelter and safety in my area and of the welcome they had received in my constituency. But they also told me that they were desperate for more opportunities to learn English”.

She wrote in an article:

“From my own experience, I know that the opportunity to learn alongside managing childcare responsibilities is crucial.”

Without the opportunity to do that, they will not be able to succeed.

This is not an issue that only well-meaning people in prosperous areas are concerned about. I have received quite a lot of letters on the matter from my constituents in Blackpool. I will quote from a letter that I received from Raven Ellis:

“Without the opportunity to learn English… Being denied this opportunity means refugees can’t integrate properly or find work. Even the smallest everyday things are hard—catching a bus, going to the doctor, or making friends with neighbours.”

To invest makes sound economic sense. The Government’s integrated communities Green Paper had some welcome proposals, but that justifies the need to move further in this area and not to continue to do nothing. Many things can be done informally. Conversation clubs and volunteers are great, but they cannot replace formal teaching. A recent survey by British Future, which talked to a large number of refugees and asylum seekers, bears out that point.

We know from history, and I know personally and practically from the history of the north-west in towns such as Preston, Barnsley, Oldham and Rochdale, as well as Blackpool—we do not have such a proportion of people needing ESOL in Blackpool—how key it is that communities, whether new or permanent, can assimilate instead of just co-existing separately. We also see that in other parts of the country, such as Yorkshire and Humber—my hon. Friend the Member for Leeds North West (Alex Sobel) is not in his place, but my hon. Friend the Member for Keighley is—and ESOL is key to that. It is key to social cohesion and individual advancement. It is key to enhancing local productivity and the local economy, especially where the number of people who need ESOL is high. It is also key to those people who are newly assimilated to learn to train and gain skills at whatever age. With that bundle of imperatives, I really hope that the Government, in whatever form or shape they take in the next six months, will put some effort into this area.

Draft Further Education Bodies (Insolvency) Regulations 2018

Debate between Catherine West and Gordon Marsden

Wednesday 31st October 2018 General Committees

[Gordon Marsden]

My hon. Friend makes an extremely good point, which illustrates the weaknesses of many of the Government’s initiatives in this area. I will not stray into the institutes of technology, but it is the same principle: the Government think a lot about structures in terms of capital expenditure, but seem less ready to address the issues with equipment that she mentions and—this is, of course, a big bugbear with the sector—the funding of progression and salaries.

The explanatory memorandum states:

“There are currently 37 FE colleges that have a ‘published Notice to Improve for financial health’”.

However, the Department estimated last month that on “today’s assumptions”, over the first 10 years of the insolvency regime, an additional 63 could—I am not saying that they will—

“meet the current triggers for a notice”.

The Department’s document goes on to say that,

“as a central estimate, we believe 100 colleges will need to fully familiarise themselves with the insolvency procedures.”

Again, I stress that that does not mean that they are in imminent danger of insolvency; it is a precautionary measure.

In Government and in legislation, we have to plan and hope for the best, but have backstops for the worst. That is the purpose of the statutory instrument. The Department states that there could be a best case scenario of 80 colleges and a worst case scenario of 150 colleges being at risk. It is therefore slightly strange that paragraph 7.9 of the explanatory memorandum rather blandly states that

“in reality we expect that FE colleges entering insolvency would be a very rare event.”

That seems to be written more in hope than expectation.

This extremely worrying situation cannot come as a surprise because the Institute for Fiscal Studies found that spending on FE and skills fell by £3.3 billion in real terms between 2010 and 2017. Those cuts have been most severe in adult education. That is extremely relevant to the proposals because it is often forgotten that adult learners are an important part of the FE learner area. If that group no longer attends FE colleges in the numbers that it has historically, that puts additional pressures on courses and on the colleges’ financial structures. The Sixth Form Colleges Association has said similar things about the shortfall for its students.

As David Hughes, the chief executive of the Association of Colleges said, while

“the regime being introduced in itself is not a bad thing, the problem is that it is likely to come into effect at an historic low point in college funding.”

I also agree with the University and College Union, which said in its briefing for this debate that the Government’s focus on college insolvency, without considering some of the broader issues, sends the wrong message about the importance of FE. The focus on facilitating market exit in FE rather than strengthening the sector and investing in the necessary resources to help institutions thrive sends a negative message to the public about the importance that the Government ascribe to the sector.

I want to ask several specific questions and make a number of observations that arise from the explanatory memorandum. Paragraph 10 talks about the consultation outcome. The Minister has already referred to the 30 formal responses that the Government received. Paragraph 10.3 states that in response to a question whether

“any specific modification to normal insolvency legislation were needed to allow it to apply effectively to FE and sixth form corporations”

there was

“strong support for the FE insolvency regime mirroring standard insolvency procedures for companies, which is the approach that we have taken.”

There is then a reference to several respondents saying there should be an interim moratorium.

In cold grey terms, those are of course some of the necessary things that the insolvency regime must include, but the difference between the companies that the memorandum uses for comparison and further education is that at least three groups of people are affected. One is the staff and the second is the creditors. Some of those are likely to be small business suppliers and others in the local supply chain, of which FE colleges are often a significant part. It is likely that they would be negatively affected by the insolvency proceedings. The third group is students and lecturers.

I appreciate that it is not an easy thing to include in a statutory instrument, but I appeal to the Minister and to the Department for Education in general to take account, when they consider how to take the matter forward, of those broader audiences. I ask them not simply to look at the question with the narrow scope that a bank might apply.

Paragraph 11 of the explanatory memorandum deals with guidance. It states:

“The Department will publish two sets of guidance before this instrument comes into force.”

It does not tell us when they will be published, and it would be helpful if the Minister could tell us—if not today, then by a note to members of the Committee. That is important, because she has talked about the support that the Government want to give, so as to have more experienced governors and clerks. She gave some examples, and I am pleased to hear that the Further Education Trust for Leadership will be involved in the process.

I am bound to say—and I think that it is also an issue in school governance—that at the moment, although it may change in future, the support that Governments of all hues have given governors in piling on to them various responsibilities, including difficult responsibilities for finance and insolvency, has not been commensurate with the extra time and effort involved, and the extra knowledge they are supposed to possess. I do not think it would be out of place if I were to ask the Minister what amounts of money or, for that matter, practical support from the Education and Skills Funding Agency or the Department, are going to be forthcoming on this occasion. I say that because the issue is important.

I want to touch on the special administration procedures. Concerns were expressed during the passage of the Technical and Further Education Act 2017 about how long they would take. The Minister might be interested to know that her colleague who had responsibility for the Bill in the House of Lords showed, in Committee in March 2017, that he recognised that:

“Concerns have previously been expressed…about the time a special administration might take. I share these concerns. However speedily the special administration is concluded, it will be too long for those involved. Staff, students and creditors will want certainty about what will happen to them at the earliest opportunity.”—[Official Report, House of Lords, 1 March 2017; Vol. 779, c. GC215.]

Again, I ask the Minister whether such certainty, or those timescales, will appear in the sets of guidance. If they will not appear in the guidance, will she give the Committee some idea—perhaps through a note, after consulting her officials—of how long that period is likely to be?

These regulations have been deemed necessary. They would have been necessary under any circumstances, but they are particularly necessary because of the sector’s fragility, which has been caused by the cuts that it has faced. I am sorry to say to the Minister—I know she would like not to be challenged on this today—that that was not helped by the Chancellor’s complete failure on Monday to offer any sort of funding uplift to colleges or their staff. That is not to mention the disastrous advanced learner loans policy, for which more than 50% of the allocated funding has been unused and returned the Treasury. Not much of that has been distributed to the colleges that are in dire need of it.

I appreciate that the Minister feels strongly that FEs should have more funding. She has acknowledged that, and made that point again today. She may say, in attempting to erect an air-raid shelter over her Treasury colleagues, that some relief might come on the back of the Augar post-18 report, as a result of issues to do with the Office for National Statistics investigation on resource accounting and budgeting in higher education, which is expected in the new year. The reality, as the Minister just acknowledged, is that the comprehensive spending review will be the first opportunity to offer significant financial relief if the review recommends financial help to FE. That means, in the normal scheme of things, that none of that money will feed through to FE colleges until the academic year 2020-21.

In the meantime, it is fair to ask how many other colleges will slip into a fragile state that might—I stress the word “might”—produce the need for insolvency regulations. It is instructive, in that respect, to quote the FE commissioner, who has been called upon to look at a number of the country’s biggest colleges, which are facing significant challenges as a result of funding cuts and the loans policy. These are simply examples; they demonstrate by no means the full extent of the fragility that has been exposed over the last 12 to 18 months. According to an intervention report from the FE commissioner, Northumberland College has undergone a cashflow crisis. The report says:

“After several years of growth, the college faces a substantial shortfall in income for 2017-18, which is forecast to fall short of the budget target.”

It warns that income is set to decline even further in the college in 2018-19. In July, the Northumberland Chronicle reported that more than 40 staff had taken voluntary redundancy after the college reduced the number of courses on offer.

That is an inevitable consequence of the drip, drip, drip of funding cuts over recent years. To thrive and survive, most FE colleges rely on a diverse mixture of activities, and on money. Money comes from the adult education budget. If there is a shortfall, there are problems. It comes from apprenticeships. Similarly, if something does not take off, there are problems. There are trading activities, and colleges are increasingly reliant on the European social fund and other funding.

That brings us back to the statutory instruments we have debated over the past few weeks and the issue of replacing the European social fund. The Minister is very active in those areas, so perhaps she will say whether she has had more conversations with the Treasury about that since the Budget or before it.

Let me give another example of a college that is in dire straits. Birmingham Metropolitan College was rated in March last year as requiring improvement for the second time in March last year. It is one of the largest colleges in the country, with an income of £61.3 million, total debt for the year of £23.4 million and 16,000 learners. It has had a notice of concern for financial health since July 2015, when it received a visit from the further education commissioner. My third example has been raised on the Floor of the House and elsewhere by my hon. Friends who represent Hull constituencies. It is the dire financial straits in which Hull College has found itself since November 2016, when it was forced to request exceptional financial support from the Education and Skills Funding Agency after its bank withdrew support.

In the light of the things that I have described, the idea that this insolvency thing will be bedded in and called on fairly sparingly might need to be revisited. The Minister was very clear about the timescale for cutting off exceptional financial support for colleges once the insolvency regime is introduced. To be clear, is she saying that her Department will curtail that funding completely? Is she not concerned that, owing to the number of colleges at risk, withdrawing those funds so quickly could have a significant impact on a large number of colleges? What timescale does she envisage, if one has been envisaged, for a transition period between the implementation of the regime that the order will put into place—we all know that such changes do not take place overnight—and the cut-off of that last-resort funding?

The Minister will be pleased to know that I will not rehearse our long-standing criticisms and concerns about the area-based reviews that took place largely under her two predecessors. However, I was hoping that she might be able to tell us how those reviews had reduced the possibility of future financial failures. The statistics I have listed suggest a different picture. What assessment has she commissioned of the impact of the review or their contribution to reducing the possibility of insolvencies? If she has not commissioned an assessment, will she do so—preferably as an external examination, undertaken outside the Department?

I have talked about guidance. The order alludes to the position of students with special educational needs, about whom we have particular concerns. Given the Government’s keenness to be seen to be doing the right thing on disability and equality issues, how does the Minister intend to ensure that there is no disruption to the particular requirements of students with special educational needs in these circumstances, who often require tailored support?

It seems that, as always in these cases, the devil is in the detail. However, the detail is not always there in the memorandum. I raise with the Minister a fairly fundamental issue that we discussed to some degree during the passage of the Technical and Further Education Act 2017 but which does not, needless to say, find itself in these specifics terms today. A primary concern of the Opposition and other organisations, including the UCU, was that the Act basically allowed for the assets of an insolvent college to be handed over to private companies, as long as they were delivering education. Regulation 15, which deals with section 107—the distribution of a statutory corporation’s property—goes into the detail of that, but it does not specify that the college assets that are taken over by a private company should serve the same cohort as the insolvent provider. The regulation reads as if it might allow a college’s assets to be handed to a school or university, or to a much smaller and narrower education institution, possibly for significant profit, without placing any requirement on them to continue to deliver further education as opposed to initial or higher education.

[Catherine West (Hornsey and Wood Green) (Lab)]

Does my hon. Friend agree that given some of the cowboys—for want of a better word—in the training industry, many of whom face allegations of corruption, it would be a dangerous state of affairs were any of those smaller companies to pick up the work of an FE college?

[Gordon Marsden]

My hon. Friend is absolutely right to flag that up. That would be of considerable concern. I will not mention particular issues, although readers of FE Week and other publications will have seen some of the references out there, but this is a serious issue that may be disadvantageous to local people in terms of choice. Nor is it simply hypothetical—there are examples of such jiggery-pokery. The Minister was not in the Department between 2011 and 2012. If she is not familiar with what happened then with the Apollo Group and various other organisations, I suggest she consults her officials, because those scandals embodied some of the issues to which my hon. Friend refers.

I do not want to take up too much more time, but let me finally discuss the banks. This issue is partly a result of cashflow problems and the banks removing investment from the sector. The 2018 report on college finances by the Association of Colleges provides more information about those issues, and we should be careful to ensure that the new college insolvency regime considers their consequences. There is an old saying that banks are institutions that lend people umbrellas when it is dry but take them away when it is raining. I am afraid that that is increasingly borne out, not just in banks’ cavalier closure of local branches to the public but in their treatment of some FE and other learning institutions. FE is particularly exposed because, on the whole, colleges, for historical and operational reasons, do not have the resources or the reserves that many—although not all—higher education institutions have.

One of the problems with the Technical and Further Education Act and the statutory instruments that flowed from it is that they have little tie-in with the Higher Education and Research Act 2017, which deals with the protection of students in the event of institutional failure. That is a pity, because one in 10 higher education students study in further education colleges.

The Government’s plans are designed to change behaviour among college leaders and lenders. The UCU acknowledges that and does not criticise it, but states that that means colleges will be forced to aim at bigger surpluses, conserve cash, control staff costs and cut capital spending. As abstract things, those are all very prudent, but at a point at which the country faces difficult economic times, that is not really the response anyone wants from colleges—especially when it is not matched by the investment in the sector to which I referred.

Post-Brexit and post-automation, demand among young people for this type of education will rise, as will businesses’ need for skilled staff. The challenge for the Government is to make sure that they match the backstop of the draft regulations with the positive investment that the FE sector desperately needs.

Technical and Further Education Bill

Debate between Catherine West and Gordon Marsden

3rd reading: House of Commons & Legislative Grand Committee: House of Commons & Report stage: House of Commons
Monday 9th January 2017 Commons Chamber

[Catherine West (Hornsey and Wood Green) (Lab)]

Does my hon. Friend agree that there is a particular issue in higher value areas, where it may be tempting to build some more flats on public land that should actually be used for the common good?

[Gordon Marsden]

My hon. Friend has a double qualification to speak on the subject: as the Member of Parliament for the constituency she represents and through her previous career as a distinguished local government leader in London. She knows whereof she speaks and she is absolutely right that the problem is accentuated in those areas.

Money has come in over the years including pre-1992 and in the major Building Colleges for the Future programme that the Labour Government introduced in the 2000s. Then, of course, significant sums of money were put in by regional development agencies and sometimes through regional growth fund developments and offshoots of European structural funding. As I said, FE colleges deliver not just FE, but higher education. If 10% to 12% of total HE provision is being delivered by FE colleges, it is really important that we do not lose that position.

I do not want to rehearse—indeed, we do not have time to tonight—the arguments that were made in 2011 about the private for-profit sector training coming in and being involved with various equity funds whose investment platforms were very much focused on a broad area. However, I would say, as many in the sector would, that although the private equity funding sector can be extremely profitable and useful, it is based on a relatively short-term view of providing management and initial capital to buy other companies and then taking them off the public share markets. It is entirely reasonable for us to be concerned about the possible disposal of lands with significant amounts of public assets. The question is not simply whether it is a good thing to transfer a significant number of public sector assets to a private provider, but what the financial guarantees are. More importantly, there are issues regarding the nature of the body and the guarantees to the students and the people employed there if such organisations use the insolvency to take on those colleges.

Ministers may talk about guarantees for staff under TUPE, but I am sure that hon. Members realise that TUPE does not offer protection forever and a day. I have had significant experience of that in my constituency in Blackpool over the years with people who have been outsourced from the civil service and TUPE-ed into other organisations that have then passed on to someone else, at which point those people’s automatic rights and security of tenure have almost become extinguished. Those are our concerns and they are not irrelevant. They are concerns of pragmatics and of principle. It is not as though there have not been concerns in the area previously.

In December 2014, the Public Accounts Committee severely quizzed officials from the Department for Business, Innovation and Skills, which then had responsibility for the matter, about why private providers were allowed to engage in untrammelled expansion without proper quality checks. In February 2015, the Committee published a report that said that BIS has repeatedly ignored advice from the Higher Education Funding Council for England about vast sums of public money going to for-profit colleges without due process and consideration. There is the potential, as Martin Doel, the former chief executive of the Association of Colleges, said, for private organisations to

“asset strip colleges’ buildings and facilities”

or “pick” assets.

So, for the avoidance of doubt, we are not saying that we would oppose any private sector takeover of a college in any circumstances; we are saying that the education administrator will have to make a judgment. We are also saying that, without the protection in this amendment, the potential for the things I have described to happen would be very high, and that is why we are determined to press the amendment this evening.