COMMITTEE FOR EMPLOYMENT AND LEARNING

Report on the Inquiry into Education and Training for Industry (Continued)

Report 01/01R

In terms of funding, the report argued that a simple and transparent method of allocating core research funding, based on rewarding excellence, (as defined by the RAE) is the appropriate way forward for Northern Ireland. The proportion of core funding allocated in this way should be about 90%. At least 10% of core funding should be used for strategic regional development purposes. There should be an inclusive R&D and Innovation Strategy for Northern Ireland that informs the use of funding for regional development purposes, and levers additional funding from other public and private sources [45] Other policy initiatives should be funded from outside the core research quantum. In particular, the Higher Education Reach Out to Business and the Community Fund (HEROBC) should be used to meet the particular needs of Northern Ireland. The Department of Enterprise, Trade and Investment (DETI) should fully or partly match, out of existing industrial assistance funds, the universities' incremental external income generation from industry and commerce.

Overall, NIEC argued that increased funding for research and innovation from all public and private sources is required as a long-term policy objective in Northern Ireland.

The Dearing Report recommended that higher education institutions and representatives from industry should examine ways of giving firms, especially SMEs, easy and co-ordinated access to information about higher education in their area. The Report recommended that higher education institutions establish more technology incubator units, within which start-up companies can be fostered for a limited period. It also recommended that the institutions encourage entrepreneurship through innovative approaches to programme design and through specialist postgraduate programmes.

However, concern has been expressed about linking higher education too closely to the 'changing and somewhat capricious demands of market forces' [46]

1.3.4             Information Communication Technology and higher education

The issue of ICT and higher education (and education in general) can be considered from two perspectives: the use of ICT as an educational tool; and the production, through education, of ICT-competent workers and ICT professionals. It has been argued that the increased use of ICT in higher education should not be seen as a cheap option. There are significant costs in developing a proficient ICT system and its essential support mechanisms. The report of the Lifelong Learning Committee in Wales, which looked at, among other things, ICT and higher education, stressed that the use of ICT must be linked to learning outcomes -'learner empowerment is the crucial issue in the use of new technology, not the technology itself' [47] In terms of the production of ICT-competent workers and ICT professionals, the general opinion is that the demand for such people will continue to grow. Fears that the 'computer revolution' is drawing to a close appear to be very premature. The importance of ICT is of particular importance given that:

Perhaps the greatest area of expansion in the next few years will be in 'e-commerce' whereby increasing number of firms will use the Internet to conduct business. This opens up global and domestic markets in new ways and will lead to increased competition from around the world [48]

            Northern Ireland

A study conducted by the Northern Ireland Economic Research Centre (NIERC) found that less than 30% of firms surveyed expressed any difficulty in recruiting non-graduate technical support staff or new graduates in ICT [49] However, 70% had difficulties in recruiting other categories of staff. The highest incidence of shortages was in project management and software development, installation and integration. Shortages in these areas can have a considerable impact on company performance.

Generally, firms were satisfied with both the technical and interpersonal skills of their current workforce, but there was some concern regarding business awareness skills. In terms of new entrants, the highest level of dissatisfaction was with people entering the labour force from post-graduate ICT conversion courses [50]

1.4       Other education and training providers

Skill demand resulting from technological change will probably continue to grow. Consequently it will be necessary for larger proportions of education and training to be acquired in adult life [51] The commitment to flexible and appropriate training provision from employers and public and private providers should be matched by a commitment from individuals to invest in learning throughout their life:

.a new social contract where the right to education is complemented by a new civic and social obligation to undertake learning and self-development throughout life [52]

1.4.1            National Training Organisations and Sectoral Training Councils

The UK Government wishes to ensure that employers invest in the skills and talents of all by setting clear and auditable targets for training.

In this regard, National Training Organisations (NTOs) provide a link between employers and the education and training systems in each country. A consultation document on NTOs proposed a smaller, stronger and more focused NTO network that would concentrate on three core roles: assessing and articulating the current and future skills needs of their sectors; leading action on sector skills development; and actively reviewing progress in meeting skills priorities [53]

In recent years, three new processes have been introduced to support NTO work on skills: skills foresight; skills dialogue; and sector workforce development plans. While the broad picture of skills needs and trends are well known, there needs to be more detailed sectoral analysis as a basis for effective skills planning. Skills Foresight reports document each NTOs analysis of its sector's skills needs. Skills Dialogues work through broad industrial groupings rather than by individual NTOs. A report follows each Skills Dialogue. Sector Workforce Development Plans are strategic documents that cover a period of three to five years. Such a Plan includes a description of the sector and its workforce; stakeholder maps showing roles and responsibilities; key skills issues; the identification of between three and six priorities for the sector; and the expected impact of action on the skills available to the sector. It is important to note that the use of the three processes discussed here varies between the different countries of the UK.

The consultation document claimed that larger and stronger NTOs will be able to propose and provide a test bed for new workforce development policy initiatives. Innovation and creativity will be needed in order to tackle the skills shortage. There were currently no consistent comprehensive performance indicators for NTOs. Consequently, it was proposed that an agreed set of indicators be introduced that will offer a clear focus for NTOs, and assist them in becoming more strategic in their approach [54]

            Northern Ireland

In Northern Ireland, a unique arrangement of Sectoral Training Councils (STCs) in the key private sector areas with strong links to NTOs has evolved. The growth in the regional economy and the impact of growth rates in the Republic of Ireland, has increased North-South mobility. This has driven a need for cross-border recognition of vocational qualifications. Local STCs have played a key role in the process of achieving mutual recognition of NVQs and Irish equivalents in several skill areas, with further recognitions expected [55]

The response by the Committee for Higher and Further Education, Training and Employment to the NTO's consultation paper supported the proposed aims and recommended that a speedy conclusion and implementation plan is put in place in Northern Ireland to address the current gaps. Furthermore, the Committee recommended that the Northern Ireland structures, which should contribute to a better-equipped workforce and a more competitive economy, must be efficient, transparent, easily understood by all, compatible with other countries and also have measurable outcomes.

1.4.2            Distance learning

There is widespread agreement of the value of providing education and training in varied and flexible ways. Distance learning has been heralded as one of the ways in which education may increasingly be delivered. However, distance learning will not suit everyone. It appears to suit the learner who likes to take personal initiative rather than the learner who is in need of support. Furthermore:

Open and distance learning may overcome barriers of distance and working hours, but it is unlikely to address the social inclusion agenda unless there are developments in access and support [56]

Nevertheless, the Open University has had a great deal of success in reaching people who might otherwise have had little or no contact with education provision. Additionally, the UfI learndirect is another initiative that facilitates distance learning, among other things. It works as a brokerage service that attempts to match potential learners to courses. It has developed a huge electronic database of all learning opportunities in the UK, and it promotes learning by marketing both nationally and locally. In Northern Ireland, the Educational Guidance Service for Adults (EGSA) manages the database and UfI's freephone service.

UfI is involved in developing and providing learning materials in certain areas, such as ICT, basic skills, business and management, environment, retail and distribution, and multimedia skills. It emphasises non-traditional learning principles and presents most of the materials in 'bite-sized' chunks. There is a particular focus on using the Internet and individualised learning.

1.4.3            Workplace learning

According to a DfEE report there was considerable variation between employers in terms of the provision of training. One third of all employers provided training for less than 10% of employees, and one fifth provided training for over 90% of their workforce [57] However, there was a well-developed training culture in some sectors. For example, in the ICT sector, 63% of firms in Northern Ireland provided off-the-job training, and 75% provided on-the-job training [58]

Three main reasons are commonly put forward as to why employers do not train their workforce either at all, or to only a limited degree: 'poaching' the employer fails to recognise, or underestimates, the benefits of training; and finally, financial constraints limit the ability of firms to provide training. The factors which restrict the level of investment in training by employers are likely to be felt most keenly by smaller employers. Small firms are more likely to offer on-the job training, and use informal learning as this reduces costs and causes less disruption to employee productivity.

There was evidence to suggest that companies with recognised training and development systems are shifting their training emphasis towards on-the-job training. This is due, in many cases, to involvement in Investors in People, which emphasises closely relating training to the objectives of the business. Overall, the DfEE report considered that the workplace is becoming more important as a site and source of learning, and that on-the-job learning is becoming more structured and systematic [59]

The Report also noted that on-the-job (informal learning) has both strengths and weaknesses compared to more formal off-the-job provision. Informal learning can enhance job-specific and transferable skills, but may not always offer the depth and stimulation of off-the-job training. Furthermore, it does not usually provide any form of recognition or certification that can be used to support career progression. It has been suggested that the low level of Level 3 qualifications of the UK workforce, in comparison with its competitors, may reflect the propensity for unrecognised and uncertified informal learning. An effective process of accrediting informal prior learning would help to recognise existing skills of unqualified adults. Such a process might help people to take up further learning [60]

The effectiveness of informal learning depends to a large extent on whether a company's way of working, and its reward and recognition system, encourages and facilitates such learning. Important elements include the following:

n     well trained supervisors, mentors or coaches;

n     promotion and performance systems that reward the sharing of information;

n     the introduction of variety and complexity into jobs, which lead to problem solving and decision making;

n     interaction between different departments in a company;

n     systems that encourage the codification and transmission of the outcomes of informal learning;

n     career paths and pay structures that reward coaching skills;

n     national systems for encouraging workplace learning (such as those in Japan and the German Meister system); and

n     the adoption of new work practices, such as team working.

Many of the 'new' work practices that are becomingly increasingly widespread in the UK provide opportunities for informal learning. They promote flexibility and responsiveness and enable productivity gains.

The National Skills Task Force made eleven recommendations, five of which are of particular relevance here:

n     NTOs should actively promote the use of informal learning approaches in firms, particularly SMEs, and develop, promote and fund accreditation of prior learning, to help adults attain formal qualifications building on their prior work experience.

n     New learning networks for SMEs should be developed, built around group training arrangements and University for Industry (UfI) learning centres, to help pool learning resources, strengthen links between industry and learning, and support adult learners in smaller firms.

n     The new Small Business Service should encourage and promote best practice in management and the organisation of work to small firms, through the facilitation of peer-group networks, the involvement of business schools and the training of key managers/workers in relevant management techniques and learning methods.

n     A tax credit should be introduced for small firms who demonstrate a significant commitment to developing the skills of their workforces and to effective business planning through the achievement of Investors in People, and the Government should review the tax position of other employer activities which support workplace learning.

n     The roles and responsibilities of employers and individuals in the promotion, delivery and monitoring of workplace learning should be recognised in a statement of workforce development principles between employer representative bodies and trade unions.

1.4.4            Training costs

The costs involved in training their workforce is a major factor for many companies, especially SMEs. An initiative that attempts to address this problem is that of Job Rotation. This initiative is currently running in Scotland under the management of the Workers' Educational Association (WEA) Scotland. It supports company and staff development by providing free vocational training for selected staff, and supplying and training previously unemployed people as workers to substitute for the staff released for training.

1.5            Qualifications and the curriculum

The UK Government recently announced that it planned to build a 'world class vocational and technical education system' via a major rationalisation of vocational qualifications up to technician level [61] 1.5.1            Recognition of qualifications

The recognition of qualifications can be considered from two perspectives. It is widely stated that qualifications gained in Northern Ireland should be recognised elsewhere in Europe (especially in the Republic of Ireland) and further afield. However, there is also the issue of the recognition of educational and vocational qualifications gained overseas. This is an important factor in terms of equality of access to education, training and employment for people coming to Northern Ireland who have received an education elsewhere. It is also important to the economy that the skills of those that are resident in Northern Ireland are developed and exploited. Connolly and Keenan, who made a number of recommendations regarding education, training and employment for people from minority ethnic groups, suggested that DHFETE should review this issue [62]

1.5.2     The curriculum and the role of industry

There is concern that the teaching of science, at all levels, needs to be developed:

We must start at the base, with better education for all our children in science. And we must open up opportunities for the best research. That means top class research within the best universities and more R&D in industry. Public investment is vital but also making sure we get the best science possible. That means being sure we have the right university structure, that there is a proper funding framework, and that academic careers are rewarding [63]

As children move to secondary school, many lose interest in science. Nevertheless, according to a DTI report, the overall number of young people taking science and technical A levels has gone up in recent years. The situation with first degrees is of more concern. The number of graduates in science, engineering and technology is increasing but not as fast as the increase in all subjects. In Northern Ireland, the number of students taking chemistry and physics fell during the period 1991-1999. Furthermore, there has been a decrease specifically in the number of physics, chemistry and engineering graduates [64] The problem of producing adequate numbers of graduates in mathematics and the sciences is not confined to Northern Ireland and the rest of the UK. A recent report stated that mathematics, science and technology courses have the highest drop out rate in the Republic of Ireland [65]

1.6           Removing barriers to education

The best defence against social exclusion is having a job, and the best way to get a job is to have a good education, with the right training and experience. Tony Blair, 1999 [66]

In order to target social need and address the issue of social exclusion there needs to be a focus on tackling unemployment and increasing employability. Education and training are important to ensure that everyone can enjoy the same levels of choice and life chances. Writing with reference to the experiences of minority ethnic people, Connolly and Keenan argue that it is 'only through a co-ordinated strategy of intervention in relation to employment, training and education that "opportunities for all" can become a reality for all sections of society' [67]

Widening access initiatives are expensive, as additional support mechanisms are required in order to improve student retention. The Committee for Lifelong Learning in Wales made the point that: 'Widening access does not imply opening doors to everyone irrespective of their stage of ability. To do so is to provide heartache for individuals who are subsequently failed or referred in their studies' [68] Providing support for non-traditional students is not just a matter of preserving good retention rates - it is important that students with low levels of confidence are not subjected to experiences in which they may experience failure. Collaboration between the higher and further education sectors is crucial, both in encouraging progression into higher education, and in adapting their supportive techniques for the non-traditional student.

The House of Commons' Education and Employment Committee made the following points, which are relevant to this issue:

We recommend that the Government should give very careful consideration to any further expansion in the number of places in higher education and ensure, before proceeding, that such expansion is fully funded and that existing places can be filled with students who are successfully retained [69]

and

.The Government's priority of widening access and improving retention in higher education should be reflected by sustained overall increases on a per student basis in the level of funding for teaching [70]

The Committee also recommended that funding bodies and individual institutions should consider earmarking funds for outreach activities and pastoral care. This would help to increase access to, and retention within, higher education, particularly for non-traditional students.

1.6.1            Financial barriers

It is accepted that young people from poor families do not want to take on student loans and huge debts. Such aversion to debt may mean that they are deterred from entering further or higher education. However, the fact that many such students would not have to pay fees, suggests a need for more publicity and information regarding this matter. Financial considerations affect students' behaviour in a number of ways. There is evidence to suggest that students from poorer backgrounds choose shorter courses, courses that lead to lower qualifications, select from a limited range of subjects, and avoid the more prestigious institutions. This has been referred to as 'a hidden form of exclusion', and the observation has been made that: 'Discontinuation of grants and the introduction of fees may run counter to policies for widening access or attracting mature students and is therefore discouraging the very students which the Government is keen to attract into higher education' [71]

Many students need to work part-time during term time. Consequently they miss out on some aspects of their course. This leads to a high drop-out rate, which in turn affects the supply of good postgraduates.

Individual Learning Accounts (ILAs) were launched in September 2000 and offer a package of discounts to make it easier for people to take up a course of learning. The discounts are skewed so that certain subjects, such as ICT and maths, attract more generous discounts. By the end of January 2001 almost 11,000 people had taken out accounts, and within a year 20,000 had done so. However, one possible criticism of their allocation is that it is on a 'first come, first served' basis, contrary to the Government's commitment to Targeting Social Need (TSN) and promoting social inclusion [72]

1.6.2     Other issues relating to barriers to education

            Disabilities

Students with disabilities are under represented in higher education. A study in Wales found that only 3.8% of first-year students have a disability compared with 18% in secondary schools. Figures for enrolments on higher education courses in Northern Ireland show that disabled students make up 4% of the student population [73] This is an area of access that needs to be examined.

            Childcare

The House of Commons' Education and Employment Committee recommended that higher education institutions should be prepared to guarantee childcare places to potential applicants with children under school age. In March 2001, the Minister of Higher and Further Education, Training and Employment (now Minister for Employment and Learning), Dr Seán Farren, announced the introduction of a childcare grant to assist students on low incomes with dependant children and help to reduce the disincentive to full-time higher education [74]

            Ethnic minority groups

The study undertaken by Connolly and Keenan indicated that people from ethnic minority groups in Northern Ireland may suffer a range of social disadvantages. The authors made a number of recommendations for action in the field of education, training and employment. For example, they recommended that DHFETE develop a more strategic approach to outreach work with the Chinese community, with the aims of increasing the community's awareness of training and employment opportunities, and of identifying their particular training needs [75]

A further recommendation is that all Government departments, bodies and agencies should develop clear programmes of racial equality training. They also recommended that DHFETE should encourage institutes responsible for teacher training to give suitable emphasis to issues of racial equality [76]

            Travellers

A study of the 'Traveller Economy in Belfast' recommended that statutory bodies, with responsibility for training, should develop 'Traveller-specific' policies that recognise the disadvantages experienced by young members of the Travelling community. Special access measures need to be adopted by DHFETE to support Traveller entry into mainstream training. The Department, in conjunction with Traveller organisations, should develop a Traveller apprenticeship scheme around the skills, knowledge and attitude required for particular identified positions [77] Connolly and Keenan recommended that DHFETE should identify the particular needs of those working, or wishing to work, in the Traveller economy, and facilitate and co-ordinate provision of relevant training [78]

1.7            Careers Education and Guidance

Previous publications have highlighted the problems associated with the current system of careers education and guidance, in particular the sometimes problematic relationships between careers teachers in schools and the Department's careers officers. However there was little agreement on how to address these problems and whether the current system should be replaced [79]

Some careers officers felt that their service was not reaching out to many young people and that 'it needed to be more flexible and break from the traditional 9 - 5 approach.' They spoke of schools, with which they worked, restricting the information which they felt young people should have. One comment from a careers officer was 'the Service Level Agreements that now exist usually mean that the school can dictate what they want. This is not a partnership approach' [80]

There was general agreement that Service Level Agreements between schools and the careers service needed to be reviewed to ensure an emphasis on partnership, development and the achievement of high standards. Additionally, consideration should be given as to how Service Level Agreements between the careers service and both further education colleges and other training organisations can be formalised and periodically reviewed.

A recent report from a Review Committee in the Scottish Executive [81] outlined the need for their careers system to be altered to reflect the modern curriculum and economy. More people were entering higher and further education in Scotland and not making career choices until completing post-secondary education. They were also now expected to change careers paths and develop different skills over their working life, making the focus simply on the first destination of those leaving secondary education less appropriate.

The Review Committee also heard strong evidence of substantial benefits to be derived from national co-ordination of the careers guidance service, especially in the provision of information, improved access and professional development. It noted that 'careers guidance is best received when founded on a solid base of careers education'. Their views were welcomed by the Scottish Executive, and a new, independent, national all-age careers guidance service for Scotland was announced in May 2001. 'Careers Scotland' is to deliver new national standards, one-stop skills advice shops and will maintain the necessary links to provide lifelong learning opportunities and the jobs of tomorrow.

Similarly, following extensive consultation into an Action Plan produced by the Education and Training Action Group [82] a national all-age guidance service was launched in Wales in April 2001, provided by 7 companies operating under contract to the National Assembly. The Group had underlined the importance of ready access to information and advice and proposed the service, operating independently under a common brand across Wales, with a guarantee of services delivered to national standards, to counteract the fragmented range of services at local level.

Given the Government's commitment to social exclusion, it is important that full and equal access to high quality careers education and guidance is available to all. Increased funding, especially directed towards the recruitment of more careers officers and the improvement of ICT resources, is needed to enable the careers service in Northern Ireland to become more effective.

1.8            Developing the enterprise culture

'In the knowledge economy, entrepreneurial universities will be as important as entrepreneurial businesses.' Tony Blair, 1999 [83] The UK is perceived by business to have one of the most competitive economies among the group of the seven leading industrialised nations (according to a survey by the Institute of Management Development). However, the level of business start-ups is significantly behind countries such as the USA and Italy, and the entrepreneurial culture is often not well developed. The UK Government proposes to introduce new policies that will remove barriers to enterprise. It will launch two new schemes to attract business talent and ideas to the UK. One proposal is an Enterprise Scholarship scheme to attract the best young graduates to the UK to start new businesses; the other is to encourage experienced British entrepreneurs abroad to establish companies in the UK. [84]

1.8.1     Higher education and entrepreneurship

The role of higher education is becomingly increasingly important in the push to develop a knowledge- based economy, which is considered to be crucial for the competitive survival of the U.K. in the 21st century. The general academic activities of teaching and basic research feed indirectly into the economy. However, there is an increasing debate as to whether, and to what degree, higher education should be actively and directly involved with the economy. A study undertaken on behalf of the Association of University Teachers (AUT) and the Institute of Education found mixed views on this matter: while 40% of those questioned were in favour of moves to foster a new entrepreneurial spirit in universities, a quarter of academics surveyed were not. The study found that more than half of the academics surveyed do not spend time on activities directly linked with the economy and only 7% spend more than five hours a week in this way. However, more than a third of academics said that their work had involved them in developing links with local or regional businesses. A quarter had been involved in developing business ventures, and a fifth had had contact with university business activities such as science parks and incubator units. Not surprisingly, the degree of involvement in such activities varied with disciplines: academics in science, engineering and technology were far more likely than academics in other subjects to be involved in these sort of activities [85]

According to the study, it appeared that higher education institutions had only partially addressed the issues of recognising and rewarding staff for their involvement in activities related to business and the economy. There were also problems of a different kind that may need to be addressed if further developments in this field are to be successful. There were conflicts of interest between academic freedom and commercial confidentiality. There was a conflict between the goals and interests of academics and businesses: academics were interested in knowledge for its own sake; business parties were chiefly interested in the commercial relevance of research. There can also be conflict between the official agenda of a university (of supporting academic-industry links) and the 'less explicit or internal' agenda (where activities that contribute towards the next Research Assessment Exercise are what really count) [86]

The study concluded that the 'third leg' of funding, HEROBC (Higher Education Reach Out to Business and the Community), which was introduced as an addition to funding for teaching and research, could be effective if its level of funding were to be increased.

            Northern Ireland

Queen's University, in their evidence to the Committee for Enterprise, Trade and Investment, spoke of the University Challenge Fund's capacity to stimulate business start-ups. It pointed out the need for more resources at the very early stages of a business, when there is potential for an idea to be developed - 'to see whether it is worth the investment of venture capital' [87]

There are examples of successful collaborations between universities and business. For example, the Centre for Knowledge Based Systems for Industrial and Medical Applications (KBSIMA) was established in 1995. It is a collaborative venture between the University of Ulster and ICL, which fuses the partners' specialisms in knowledge engineering, bio-engineering and information technology and specialises in research themes with commercial application and exploitable technology development. Two successful spin-out companies have already been formed by KBSIMA (MINEit and the Synergy Centre). Future developments will concentrate on medical informatics and electronic commerce applications, involving both research and technology transfer [88]

Section 2: summary of oral and written evidence - findings

In this Section, the findings from the Committee's Inquiry, based on the oral and written evidence received from a wide range of groups, is discussed.

2.1.            Skills

Many respondents and witnesses to the Inquiry raised a number of issues regarding skill shortages. These ranged from a widespread concern with the shortfall in the basic skills of literacy and numeracy, to concerns about specific professional and technical skills at intermediate and advanced levels.

2.1.1     Basic skills

Literacy and numeracy

Many of the respondents in their written and/or oral submissions referred to the need for an improvement in the level of basic skills [89] Poor standards of literacy and numeracy were frequently commented upon. The observation was made that the high rate of illiteracy in the population indicated serious flaws in the educational system [90]   Many respondents called for the problem of adult illiteracy and innumeracy to be addressed, by allocating more funding and resources. It was noted that the main problem lay with those who had left school some time ago [91]

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