COMMITTEE FOR EMPLOYMENT AND LEARNING

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

Report 01/01R

70.        A key criterion for an effective careers education and guidance system is to have a clear understanding on current job opportunities, hard-to-fill vacancies/job shortages and current trends. This information appears to be notable by its absence.

71.            Improved careers education and guidance are critical to improving the quality of decision making by individuals and should lead to a more efficient and effective education and training system.

Strengthen Vocational/Technical Education and Training - the role of Further Education (FE)

72.            Northern Ireland performs poorly in the provision of high quality sub-degree level vocational education whereas there is a general perception that this sector has been a key underpinning resource in the success of the Republic of Ireland economy. In the Republic there appears to be a much stronger economic focus to the FE sector with close links with business.

73.        In Northern Ireland the FE sector appears to be trying to be too all-embracing, and is thus lacking sufficient economic focus or direction. Links with industry are patchy and inconsistent yet there are good examples of close and effective linkages between FE Colleges and business. We would strongly argue that the FE sector should be provided with a much stronger economic focus to assist its strategic planning, and this should be reflected in funding mechanisms. Other weaknesses identified are

n     concern that the former Government Training Centres (now part of FE institutions) have not been training the unskilled with relevant and specific skills

n     the need for concerted marketing activity to employers of the results of occupational training - NVQs have worked well in many sectors and are felt to be an excellent concept. But better marketing and delivery are needed

n     limited funding available for the sector

74.        The FE sector is also a great deal more difficult to come to grips with compared to the HE sector - there are a confusing range of qualifications - much greater efforts are required to simplify and promote the range of qualifications now available, and the importance of a coherent qualifications framework can not be over-emphasised.

75.        For many the FE sector is also perceived as the second class route - this has been partially reinforced over the years by an "over-supply" of graduates but this is starting to change as the labour market tightens and as the credibility of other qualifications gain momentum. The proposal to introduce a new Foundation Degree may help to overcome perceptions and indeed provide a qualification more relevant to employer's needs. However it is important that in the development of the new Foundation Degree the following issues are addressed:

n     expansion at this level should not inhibit further growth at honours degree level

n     there is a need to ensure that confusion is not added to - there is a clear need for a coherent, transparent and simple qualifications system

n     there is a need to establish market demand

n     consideration should be given for providing sub-degree credit to all HE students

76.        The quality of teaching throughout the education system is critical if students are to be motivated and their potential fully realised. CBI Northern Ireland is concerned that in the FE sector key staff in subject areas of high economic importance (eg IT, engineering and electronics) are leaving to take up more highly paid positions in the private sector. It is vital that colleges are provided with sufficient flexibility to offer higher salaries to retain key staff. Indeed, as CBI Northern Ireland argued in the latest public expenditure review, higher salaries are needed throughout the entire education and training system to recruit and retain highly performing teachers and lecturers, particularly in science and technology.

77.        The CBI's own vision for the system of post-16 learning is one where young people develop to their optimum so that by the time they reach 25 the vast majority have attained employability to Level 3. Modern Apprenticeships are a vital part of this post-16 system and much valued by CBI members, bringing significant business benefits as well as enabling many young people to achieve their potential. The scheme in Northern Ireland appears to more successful than in GB, partly because it was introduced later and lessons from early mistakes were learnt. Compared to GB completion rates are good and standards appear to be high. We are keen to see a key skills qualification incorporated as soon as possible in all Modern Apprenticeships.

Higher Education - improving key skills and awareness of the world of work

78.        CBI Northern Ireland believes that the universities could and should act as a power house for the regional economy. We believe they should set out to become "the jewels in the Northern Ireland economy". Good progress has been made in improving linkages between business and the universities (through work placements, advice on course content, etc) but much more remains to be done - our views on research activities are set out in the latter section of this submission.

79.        In general employers are satisfied with the availability and competences of graduates although there are a small number of subject areas where considerable concerns have been expressed regarding the quantity of graduates currently, and forecast to be, available - this is largely in the information technology and electronic engineering areas, both addressed under skill shortages.

80.        In the recent CBI Northern Ireland survey of SMEs covering the employability of recently recruited graduates, three broad competencies were identified and rated. The results are as follows (figures are given as a percentage).

81.        In overall terms the quality of graduates is considered good with intellectual quality highly rated (93%). Some companies are concerned with the level of specialist knowledge - however it is unlikely that universities will be able to satisfy all demands in this area. Of more concern is the number of respondents who identify transferable (or key skills) as unsatisfactory - indeed only 60% of respondents rated these as satisfactory/very satisfactory.

82.        These findings support extensive anecdotal evidence that CBI continues to receive from members on the need to improve key skills.

83.        The second area identified as a concern by a significant number of employers is the importance of increasing the preparedness of students for the workplace - greater workplace experience was recommended to ensure that graduates have a better understanding of the workplace and increased commercial awareness.

"We need graduates to have increased business awareness and experience of non-academic working practice".

84.        The issue of the availability of university places in Northern Ireland has been of considerable interest in recent years. CBI supports the Dearing recommendations for an increase in higher education places as we support a demand led system. But in terms of current priorities within education and training this would not be the top priority for additional expenditure allocation. CBI members see a more pressing need to focus resources on improving vocational/technical training. We would however also support additional resources targeted at increasing HE places in subject areas where there is an identified need eg software and electronics.

85.        Indeed on international comparisons university output measured by number of degrees compares favourably with our competitors - this is not the case in relation to sub-degrees in further education. In-depth research is needed on the relevance of existing degree output to the needs of the economy.

Addressing Skills Shortages

86.        For many years Northern Ireland has experienced a loose labour market with a plentiful supply of graduates, high levels of unemployment, an increasing labour supply and generally low levels of staff turnover. However over the last few years the labour market has tightened considerably:

n     The short-term unemployment rate is below the levels in several other GB regions including less than in Wales and Scotland

n     the rapid growth of the ROI economy has attracted increasing numbers of skilled and semi-skilled people (IT, construction trades, engineering and certain professions)

n     relatively strong employment growth in Northern Ireland especially in ICT industries and in call centre/ customer service activities

n     staff turnover/churn has been increasing, again largely in these 'new' growth sectors

n     significant labour cost increases in some specific areas ie the ICT sector for software engineers

The labour market had now become increasingly competitive and there are increasing concerns about the lack of skilled people. In certain sectors and occupations wage rates are being driven upwards - this is a concern where increasing labour costs cannot be offset by increasing productivity. If the general wage levels continue to increase some sectors will find that it extremely difficult to fill vacancies and will need to re-position their businesses and restructure their operations. A key factor for the unemployed and those on low wages is to ensure that the welfare system encourages employability and that progress into work pays.

87.        We have already welcomed the establishment of the Northern Ireland Skills Task Force. While CBI believes that skills forecasting is a complex and difficult area we support the development of a body which can help monitor and forecast development in the labour market. This must also be reflected in the ability of the "establishment" to respond quickly to identified needs. The ability to respond rapidly to developing skill needs will be of significant value in facilitating the growth of a knowledge- based economy.

88.        With respect to ICT occupations available evidence suggests that employment will continue growing at a much faster rate than other types of employment. Whilst we welcome recent advances that have been made to increase provision, it seems that supply continues to lag behind demand. Research by Cisco Systems shows that in the UK e-commerce industry alone there will be a shortage of 81,000 qualified professionals by 2002. The National Skills Taskforce has also recently reported on IT skills shortages suggesting that priority is given to funding the training and development of a cadre of highly capable IT trainers for new IT learning centres, the need to widen adult access and simplifying the range of certificated general IT and e-commerce learning programmes. The importance of having an excellent careers information and guidance service is also a key issue.

89.        On a more general level CBI Northern Ireland surveys continue to receive feedback across a range of sectors and occupations relating to what could be described as 'lack of good people' - we interpret this as meaning lacking in all the necessary aspects of employability.

Addressing Cross-border Issues

90.        Cross-border transfer for work and learning between Northern Ireland and the Republic of Ireland provides a boost to the working of the labour market, and measures to facilitate that transfer are as important here as anywhere in the European Union. Some work has been done in higher education, and in establishing transferability of qualifications in some trades. More work is needed to extend the understanding and compatibility of qualifications. The EURES and Europass projects are useful mechanisms here.

91.        Greater attention needs to be given to the emergence of an island of Ireland labour market, and in particular the impact that continuing strong employment growth combined with skill shortages in the Republic of Ireland will have on Northern Ireland. In recent years this movement in people has expanded from the IT sector to more traditional areas of work including construction, electronics, engineering and to some professions.

In the final section of this submission we turn to the issue of University Research.

UNIVERSITY RESEARCH

92.            University research is critically important to the future development of the Northern Ireland economy. Wealth creation will increasingly depend on technological and knowledge assets. As we have stated CBI Northern Ireland believes that the universities should be the "jewels in the Northern Ireland economy" - but we have some way to go to achieve this goal. There are important funding issues, outside Northern Ireland's control, relating to the direction of R & D funding which need to be addressed. Every effort needs to be made to ensure that universities play a full role in the emerging knowledge-driven economy.

93.        Within the universities there are pockets of research excellence which combine academic rigour with strong relevance to the needs of the Northern Ireland economy - these need to be developed. However we are led to believe that the current system based on the Research Assessment Exercise is failing to deliver consistent quality of output to support business in Northern Ireland and it is unclear what proportion of the overall research funding is relevant to industry, or even more broadly to Northern Ireland needs. The problem is not confined to just one area of activity but covers research, people (both graduates and post-graduates), application activities, advice and expertise (consultancy), and on-going lifelong learning. It is accepted increasingly by the business community that we must work more closely with universities in order to exert influence on the sector to deliver specific requirements. Equally there must be a change in culture in the higher education (HE) sector to enable it to respond to both the needs of business today and to likely future requirements. We welcome current initiatives designed to enhance industry - university linkages.

94.        The major weakness in the current approach is the reliance on the Research Assessment Exercise (RAE) which is badly flawed, particularly from a Northern Ireland perspective where the universities are the key research capability. The main concerns relating to the RAE are outlined below:

n     The existing system is a costly and burdensome exercise that drives (unwelcome) behaviours and cultures within the HE sector ie an almost total concentration on getting academic papers published in specific journals with much of the research having little economic or regional value

n     The assessment gives little weight(?) to content and even less to relevance

n     The RAE has done little to encourage the HE sector to engage with industry and discourages local policy- based research

n     The exercise wastes an enormous amount of time and resources and the real cost of the RAE has never been acknowledged or addressed

n     It creates a counterproductive tension between research and other activities in universities

n     Assessment by peer review has also been considered a weakness due to the make-up of the review panels. It is essential to get the right peers to do the review, including strong industrial representation. We are encouraged that some 25% of the reviewers for RAE2001 will come from the research user community

95.        We recognise that the 2001 RAE will take more account of 'industrially relevant research' than has hitherto been the case. However we are concerned that some university departments will merely pay lip service to engaging with industry, seeing it as just another route to gain maximum marks in the RAE. In other words, the RAE is their driver, rather than the research and the needs of potential users.

96.        For the future, it is essential that quality/excellence is better defined - key criteria need to be set out with relevance to the economy being an important criterion. We suggest that the following factors should be considered although recognising that different subjects may require different weightings:

n     research quality and outputs (e.g. basic research, work done for/with industry and other users, and research not in the public domain because of confidentiality agreements)

n     future plans for the research group

n     future potential, i.e. the trajectory of the group - improving or declining

n     the amount and nature of external income

n     relationship with users, and in particular with industry

n     relationship with teaching units

n     research training activities

n     international, regional and local significance of the research group

n     relevance to the national and regional strategic plans

n     an analysis of research impact (based at least partly on bibliometric data), and

n     an assessment of research value.

97.        This multi-dimensional framework with appropriate weightings for each factor would be set in light of national and regional strategic plans for research and complementary activities, and benchmarked against international excellence. The framework should be widely published and its context made clear to users.

98.            Recently CBI Northern Ireland has undertaken some research into university -industry links focusing on links with SMEs (and in particular companies employing up to 100 people). The objectives of the survey included assessing the use and value of support programmes to encourage university-industry links, the use of the thirteen Centres of Excellence by SMEs and identification of barriers to increasing linkages.

99.        The key findings of the relevant aspects of this study are shown below

Programmes to facilitate university - industry links

n     there is a low level of awareness of many programmes designed to facilitate links with universities and promote technology transfer. In many cases less than 20% of companies are aware of these. However the Teaching Company Scheme (43%) and Graduate Work Placement (68%) have much higher levels of awareness.

n     companies that do utilise existing programmes generally rate them highly, although improvements can be made

Centres of excellence

n     there is a very low level of awareness and usage amongst SMEs of the 13 Centres of Excellence linked to the Universities. In most cases less than 10% of companies are aware of these facilities. The highest level of awareness relates to the Polymer Processing Research Centre (17%) - this is well used and highly rated.

n     less than a quarter of respondents stated that they were aware of the Northern Ireland Technology Centre and less than 10% had used the facilities - yet those that had used the facilities rated them highly

100.      Key recommendations emerging are:

n     customer orientation and responsiveness of the universities need to be improved

n     a comprehensive marketing strategy for both universities is required to increase awareness of the resources and the programmes available to assist and facilitate improved linkages with SMEs

n     it is vital that the benefits of involvement in university-industry links are made apparent to SMEs

n     companies need to be prepared to make use of the existing resources and knowledge and also be prepared to contribute to ensure that education provision and research activities become more relevant to their needs - this must include the provision of quality workplace experience

101.      Both universities are currently working to address the weaknesses identified in this study largely through funding provided under the Higher Education Reach Out Fund. However it is clear that a significant cultural change will be required to create a more enterprising HE sector.

102.      With respect to funding, CBI Northern Ireland supports increasing the level of R&D funding to the universities, provided that the research to be undertaken is of relevance to Northern Ireland businesses - this may best be achieved by ensuring that additional research undertaken is partly funded by industry.

NIGEL SMYTH
Director

November 2000

WRITTEN SUBMISSION BY:
CONSTRUCTION INDUSTRY TRAINING BOARD (CITB)

1.            Background

1.1        As one of the largest employers in the Province, engaging approximately 43,000 people and with a turnover in excess of £1.5bn per annum, the construction industry makes a major contribution to the economy of Northern Ireland.

1.2        The importance of training cannot be ignored in such a large and diverse industry. The construction industry in Northern Ireland is unique in having a structure of contractors and sub-contractors, many of whom are self employed or working in small groups. Therefore it is essential to have an effective umbrella organisation to be responsible for high quality training, which might not otherwise take place. The Construction Industry Training Board fulfils this role.

1.3        The Construction Industry Training Board (CITB) was established in 1964 under the Industrial Training (Northern Ireland) Act and the Industrial Training (N.I) Orders of 1964 and 1984. The Board's purpose is the encouragement of adequate training of persons employed or intending to be employed in the industry.

1.4        CITB operates within the framework of the Training and Employment Agency, which was established in 1990 as an Executive Agency to ensure the provision of training for Northern Ireland businesses. The working relationship with T&EA is viewed as one of partnership.

1.5        CITB is funded by statutory levy payments, which under current legislation it is empowered to collect from all employers within the construction industry who are in scope to the Board.

1.6        CITB is governed by a Board of 15 members, chaired by Mr. Bill Gillespie, OBE and comprising employer, employee (Trade Union) and education representatives. The Chief Executive, Mr. Allan McMullen, is responsible for the 64 staff currently employed. The Board has a commitment to staff development, achieving the Investors in People award in Spring 1998, which is currently being assessed for re-recognition.

1.7        The mission of CITB is "to ensure a sufficient pool of competent people, trained in the skills needed to allow the industry to remain competitive and achieve growth". This mission is amplified into five key strategic objectives:

1.         To facilitate the industry in identifying its needs for trained people.

2.         To enable the industry to meet its needs for people trained to required standards of competence.

3.         To facilitate the development of standards for training and qualifications in the various crafts and skills in the industry.

4.         To maintain and monitor the standards of training for the industry.

5.         To spread the costs and benefits of training across the industry, with economy, efficiency and financial accountability.

2.            Introduction

2.1        The key emphasis of CITB's five year strategic plan for 2000-2005 is the need for the Board to work in closer partnership and in consultation with industry, the higher and further education sector, Government bodies and National Training Organisations in order to encourage and facilitate training which meets the current and future needs of the construction industry training based on equality of opportunity.

2.2            Through the implementation of its strategic plan CITB will contribute to the creation of the strong regional knowledge-based economy as envisaged by Strategy 2010. The main implications for CITB will be:

n     Enhanced understanding of the construction labour market by a programme of research and improved information on skills monitoring and forecasting will be a pre-requisite for improving policies and programmes

n     Finding a solution to the issue of recruitment into the industry will remain a high priority

n     Improving the skills levels and competence of the workforce will be ever more important

3.         Aim

3.1        The aim of this paper is to respond to the Departmental Committee Enquiry and to make the Committee aware of CITB's views on the education and training needs of the construction industry in Northern Ireland.

4.         The Education and Training System

4.1        Any education and training system should offer all those working within industry the opportunity to participate in high quality training leading to the achievement of industry-recognised standards or qualifications.

4.2        The education and training system should be structured in a way that enables it to train to achieve these occupational standards and to meet employers' needs, rather than be driven by the constraints of bureaucracy or funding mechanisms.

5.            Apprentice Training

5.1        A number of commercial considerations, such as the economic downturn and the increased amount of sub-contracting have prompted a decline in employers' involvement with apprentice training since the mid-80's. It is recognised that a shortfall of formal training has produced a gap between industry's requirement for skilled workers and the trained output.

5.2        A real culture change away from the "benefit culture" is required in order that employers no longer view apprentice training as being removed from day-to-day on-site production. However to facilitate this, training providers must offer an education and training scheme that meets employer needs and enables an apprentice to contribute effectively and productively on-site throughout the apprenticeship programme.

5.3        CITB has been working in consultation with the Training and Employment Agency and training providers to ensure that the arrangements for the delivery of vocational and technical education and training take particular account of the needs of the industry and are adequately resourced.

5.4        The Building Engineering Services sector of the construction industry has had a structured apprenticeship training programme for over 10 years, owned by the Joint Industry Board for mechanical and electrical engineering. NVQ level 3 has been the preferred sector outcome requirement since the commencement of vocational training and a sector-wide uniform approach to training has been implemented with entry criteria and employer involvement in providing work placement for apprentices from day one.

5.5        Using the JIB scheme as a model the Joint Council for the Building and Civil Engineering Industry adopted the Construction Craft Apprenticeship (CCA) in 1998 as an industry-recognised training initiative to attract and recruit more young people into the industry. CCA complements the T&EA's Jobskills Programme and is linked to the Construction Skills Register.

5.6        Last year, CITB and the Construction Employers Federation in partnership carried out research into apprentice training to determine employer views of the current training system, potential logjams in the current provision of training and best practice of apprentice training in other countries, with a view to recommending a unified training scheme, which is acceptable to the industry and deliverable by training providers.

5.7        The key elements of CCA that have been addressed are:

n     Entry Criteria

n     Qualifications

n     Off-the-Job Training

n     Assessment

n     Employment

n     Construction Skills Register

            The following recommendations are respectfully suggested:

Top

<< Prev / Next >>