COMMITTEE FOR EMPLOYMENT AND LEARNING

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

Report 01/01R

Relevant issues from other Council research

16.        In 1997 the Council sponsored and published a lecture on the vital priorities in education by leading educationalist, Sir Claus Moser. In his lecture Moser advocated a systematic approach to education and suggested an annual monitoring of progress on education in all parts of the system. He highlighted the impact of the new technological age upon education and suggested that innovation at all levels of education should be prominent in the Government's plans. Furthermore, it was proposed that priorities should be set for (a) tackling educational polarisation by improving education in disadvantaged areas and (b) encouraging business and industry to financially support universities. This lecture also recommended that educational policy-making should be based upon research which includes international comparisons. The latter of course is particularly important to this inquiry, as lessons for linking education and training with industry and better provision for vocational and technical level courses, might be learned for example, from the experience of the Republic of Ireland's Regional Technical Colleges (now Institutes of Technology). The principal aim of Institutes of Technology is to meet the needs of industry, trade and commerce in their localities as well as to specialise in niche areas of excellence. It has often been argued that these Institutes are an important driver behind the Republic's rapid economic growth.

17.        The Council also responded to the consultation document Learning for Tomorrow's World. Towards a New Strategic Plan for Education Services in Northern Ireland 2000-2006 (DENI, 1999). In that response, the Council acknowledged the policy challenge of raising adult literacy standards as part of a lifelong learning programme. The Council suggested that the plan should put in place arrangements to monitor progress on a number of issues raised in the Skills and Education Cross Sector Working Group (1998) such as:

n     Northern Ireland's record in technical education and skills training;

n     Focusing further education on industry and commerce-related vocational skills and training at the sub-degree level;

n     Reducing competition, overlap and duplication between schools, colleges, universities, training organizations etc;

n     Under provision in Northern Ireland of sub-degree level technical skills education;

n     The establishment of school, college and business clusters to meet the needs of local industry; and finally

n     The establishment of a new overall strategy for further education in an economic development context.

Conclusion

18.        Past and current research endeavours by the Council have expressed the need to equip Northern Ireland with the level of skills, research and innovation necessary to face the challenges of a knowledge-driven economy. By setting internationally comparable and challenging targets in terms of participation, retention and achievement, Northern Ireland Higher and Further Education Colleges will take a step towards providing the labour market with the level of skills demanded by both a competitive economy and foreign direct investors. Education targets must be matched with a commitment to continuous education and lifelong learning, the provision of part-time education opportunities for people in work as well as high levels of company training. The primary sector too, has an important contribution to make, particularly in the development of the key skills such as communication and second language skills. Our more recent work emphasises the importance of a systematic and integrated approach to the skills formation process, which includes government departments, industry and educational institutions.

REFERENCES

Best, M. (2000) Forthcoming Publication. The Capabilities and Innovation Perspective: The Way Ahead In Northern Ireland. Belfast: Northern Ireland Economic Council.

EDSRSG (1999) Strategy 2010. Report by the Economic Development Strategy Review Steering Group. Belfast: Department of Economic Development.

DENI (1994a) Learning for Life, A Strategic Analysis. Bangor: Department of Education Northern Ireland.

DENI (1999b) Learning for Tomorrow's World. Towards a New Strategic Plan for Education Services in Northern Ireland 2000-2006. A Consultation Document. Bangor: Department of Education Northern Ireland.

Gallagher, T., Shuttleworth, I. and Gray, C. (1997) Educational Achievement in Northern Ireland: Patterns and Prospects. Research Monograph 4. Belfast: Northern Ireland Economic Council.

Gallagher, T., Shuttleworth, I. and Gray, C. (1998) Improving Schools in Northern Ireland. Research Monograph 7. Belfast: Northern Ireland Economic Council

Moser, C. (1997) Reforming Education in the United Kingdom: The Vital Priorities. Report 120. Belfast: Northern Ireland Economic Council.

NIEC (1981) Research and Development and Innovation in Northern Ireland. Report 125. Belfast: Northern Ireland Economic Council.

NIEC (1993) R&D Activity in Northern Ireland. Report 101. Belfast: Northern Ireland Economic Council.

NIEC (1995) Reforming the Educational System in Northern Ireland. Occasional Paper 1. Belfast: Northern Ireland Economic Council.

NIEC (1998) Growth with Development: A Response to New TSN, Occasional Paper 11. Belfast: Northern Ireland Economic Council.

NIEC (1999) Publicly Funded R&D and Economic Development in Northern Ireland. Report 133. Belfast: Northern Ireland Economic Council.

NIHEC (1999) Research Funding Allocation Method to be Applied to the Northern Ireland Universities. A Consultation Paper. Bangor: Northern Ireland Higher Education Council.

Skills and Education Cross Sector Working Group (1998) Final Report. Belfast: Department of Economic Development.

ANNEX A

The Northern Ireland Economic Council (NIEC) is an independent advisory body, set up by the Secretary of State for Northern Ireland in 1977. The Council has a wide remit to provide independent advice to the Office of First and Deputy First Minister on the development of economic policy for Northern Ireland.

The Council carries out its role through four series of publications. Reports generally make specific policy recommendations endorsed by the Council. Occasional papers are intended to promote discussion on topical issues while commissioned research monographs are published under the author's name. Finally, Council responses to consultation documents are included in an advice and comment series.

The Council also publishes an Annual Report and the text of the annual Sir Charles Carter Lecture, which the Council sponsors in honour of its first chairman. It also holds seminars and conferences designed to promote debate and the proceedings may from time to time be published.

The Council is composed of 15 members. There are five independent members, one of whom is usually the Chairman. Five members represent trade union interests and are nominated by the Northern Ireland Committee of the Irish Congress of Trade Unions. Five members represent industrial and commercial interests and are nominated jointly by the Confederation of British Industry for Northern Ireland and the Northern Ireland Chamber of Commerce and Industry. Members serve four-year terms, which may be renewed.

The Council has a small staff, including the Director, economists and administration support staff. Council publications are normally prepared by the economists but outside consultants are also engaged for particular projects. All publications go before the Council for comment prior to publication. It is the Council which bears final responsibility for their publication but not necessarily for the content or recommendations of commissioned research monographs.

ANNEX B: Other Education Research undertaken by the Council.

1.         The pronounced problem of underachievement in Northern Ireland schools led the Council to commission research on how this issue should be addressed and resolved (Gallagher et al, 1997, 1998). These monographs concluded that:

n     More should be done to spread information on innovation and best practice in respect of school improvement across schools in Northern Ireland; and

n     Attention should be given to mitigating some of the more negative aspects of the education market. The system of grammar and secondary schools does not provide for balanced competition between schools and may impose unnecessary constraints on the ability of secondary schools to work towards school improvement.

2.         As noted earlier, the Council responded to the consultation document Learning for Tomorrow's World. Towards a New Strategic Plan for Education Services in Northern Ireland 2000-2006 (DENI, 1999). In addition to the points discussed in paragraph 17, the Council also raised a number of issues in this response which are worth highlighting. These are as follows:

n     Changing demographics suggest that the primary and secondary school population of Northern Ireland will continue to decline while demand for tertiary education is likely to increase. Continuous school rationalisation and projections for new university places in Northern Ireland's universities will become increasingly important.

n     The need to address the All-Ireland dimension in higher education, particularly in regard to the provision of cross-border university places and collaboration on research and educational planning.

n     Targets: the Council suggested that targets set for further education in the 1996-2000 Education Plan were not challenging enough to make an impact upon local competitiveness. Thus, new and demanding targets for assessing progress in schools and further education should be set. Furthermore, the Council commented upon the lack of progress in achieving NVQ targets for Levels 3 and 4.

n     Progress in achieving more equity in funding between schools, colleges and universities should be monitored, as should the delivery to pupils and students of common outcomes under parity of esteem between academic and vocational qualifications.

AIDAN GOUGH
Acting Director

WRITTEN SUBMISSION BY:
NORTHERN IRELAND HIGHER EDUCATION COUNCIL (NIHEC)

1.         What should the education and training system (including university-based R&D) offer, and how does it need to change, to meet the needs of the Northern Ireland economy?

1.1        The higher education sector in Northern Ireland comprises the two local universities - Queen's and Ulster, the Open University, and the two university colleges - St Mary's and Stranmillis. The further education institutions also provide higher education courses many in partnership with the universities.

1.2        In general, the higher education sector should provide a wide range of teaching, research and consultancy services to students; industry and commerce; the public and voluntary sectors; and the local community. In this regard, the universities have a wide range of purposes and missions; the economic purpose has to remain in balance with other areas such as the pursuit of learning, the development of scholarship and the support of cultural transmission.

1.3        As an absolute must, it is essential that the higher education system in Northern Ireland should have at least the same standards of provision in teaching and learning as the rest of the United Kingdom and that the quality and portable currency of its qualifications are acceptable both nationally and internationally.

1.4        Higher education, and the universities in particular, should continue to play a vital role in the economic well being of Northern Ireland. This has been recognised in the Executive Committee's draft Programme for Government presented to the Assembly on 24 October 2000 which states that "education and training have a central role to play, not only for the social and community development of our society, but as a major engine of our economy".

1.5        The 1999 document Strategy 2010 published by the then Department of Economic Development emphasises the need for the NI economy to be competitive in an increasingly knowledge-driven global economy.

1.6        Overall, the universities contribute to the local economy in several ways as follows:

n     Supply of skilled graduates - the universities supply a range of skills and knowledge to students to enable them to make a contribution to the economy as employees and entrepreneurs. They attract highly qualified new entrants mainly from Northern Ireland, have relatively low dropout rates and a high proportion of their graduates are employed in the local economy.

n     Skills updating of the workforce through lifelong learning opportunities - both postgraduate and continuing education part-time and full-time courses are provided to meet the skills needs of employers and their employees. Conversion courses are available to enable employees to change careers.

n     Research and development - the universities provide the majority of the research capability in Northern Ireland. Research expands our capabilities to solve technical problems and it underpins innovation and wealth creation. Graduates with research training are also an important factor in attracting inward investment.

n     Spin-out of knowledge and technology - expert support and advice are provided directly to industry and commerce; innovation and economic growth are promoted by the commercial exploitation of university research through the management and licensing of intellectual property rights (IPR); and new jobs and firms are created through the universities' business incubation companies.

n     Institutional Spending - the universities, as businesses in their own right, make a significant contribution to the regional economy through employment opportunities and the spending power of the institution, its staff and students.

1.7        The universities are independent autonomous bodies and therefore the views expressed below by the Council are in the context of our advice to DHFETE in regard to funding policies.

1.8        We do not believe that there is a need for significant change in the provision of universities to meet the needs of the economy. Rather, they should continue to build upon past success in order to:

n     ensure that standards of provision in teaching and learning are maintained at least at a satisfactory level by comparison with national benchmarks and that the quality of their qualifications is acceptable and recognised both nationally and internationally;

n     align course provision more closely to the labour needs of the economy and, in particular, to ensure that curriculum content is relevant to the current needs of employers by way of core and transferable skills;

n     focus their research strategies more closely both to the attainment of international excellence and to meeting regional needs; and

n     promote increased links with business and industry through the marketing of learning opportunities, and research technology and knowledge transfer.

1.9        The Council considers that the main areas for improvement, as opposed to change, in the higher education sector are:

n     in regard to teaching and learning, the supply of places in Northern Ireland should be further increased on an incremental basis in response to student demand; promoting wider participation by people previously under-represented in higher education; and meeting skills shortages in areas of potential economic growth such as the computer related industries;

n     in realising their quest for quality in research, the focus should be on specific areas of established or potential research quality capable of being assessed as centres of world class excellence. The new Support Programme for University Research (SPUR) goes some way towards helping them towards this goal;

n     to direct the provision of research and other services more closely to meeting regional needs. For example, research needs to be more closely aligned to the requirements of the NI economy which has a large proportion of small and medium size enterprises (SMEs). Research relevant to the business needs of SMEs may not necessarily be rated as excellent in terms of the Research Assessment Exercise (RAE). Therefore, the funding of research and development in the universities should provide for the twin objectives of international quality and regional relevance.

2.         What are the main strengths and shortcomings in how this system provides for the needs of Northern Ireland Industry?

2.1        The main strengths of the higher education system in providing for the needs of NI industry include:

n     quality and standards in teaching - the universities have an excellent record in teaching as evidenced by regular subject reviews by the Quality Assurance Agency (QAA). Of the nineteen subject reviews reported on by the QAA between February 1998 and April 2000, all had a score of 19 or more out of a possible 24, and the average score was 22. Teaching quality is also evident in the production of highly qualified graduates suitable for the needs of the modern economy, the large majority of whom go into employment in Northern Ireland, although not necessarily into industry;

n     lifelong learning opportunities for employees including the potential for increased flexibility in the mode of study through credit transfer and accumulation (NICATS);

n     the universities have a large number of nationally and internationally recognised research centres as measured by the RAE. In the last RAE (1996) there were 20 in QUB and 7 in UU including Mechanical, Aeronautical and Manufacturing Engineering in QUB and Biomedical Sciences in UU which obtained 5* - the highest possible score. The universities are also the major providers of R&D in Northern Ireland - reference NIEC Report (1999) on Publicly Funded R&D and Economic Development in Northern Ireland;

n     transfer of technology and expertise to assist industry with innovation and production. University enterprises such as QUBIS and UUTECH foster spin-off companies which contribute to economic growth and job creation;

n     a relatively compact system which facilitates co-ordination and collaboration among the key players including schools, further education colleges, the public and private sectors and the local community;

2.2        Areas where there is room for improvement include:

n     the need for additional higher education places - although there has been a significant uplift recently with some 4400 additional places planned in the wider tertiary sector by 2004, there are still insufficient places to cater for local demand. The under supply of places results in a 'brain drain' from the local economy and society, and a lack of flexibility to respond to the need to widen the benefits of higher education to students from disadvantaged backgrounds;

n     a more co-ordinated and coherent approach to the funding of university research - the level of Government funding from all sources and funding from other sources such as charities and industry needs to be regularly reviewed and co-ordinated in the light of the universities' research capabilities. The NIEC Report on Publicly Funded R&D supports this view;

n     more liaison with industry - industry needs to articulate its needs more effectively to the universities and to higher education in general. The universities should build upon existing networks for information gathering and exchange. There is a need more graduates opportunities in industry, especially SMEs, and for additional student work placement and training within industry which could help change attitudes and create those opportunities;

n     greater emphasis on the inculcation of an enterprise culture with more graduates being encouraged and supported in establishing businesses;

n     technician level qualifications need promotion and establishment as a worthwhile option; and

n     attraction of more students from outside Northern Ireland to enhance the local student experience through mixing with other cultures, to contribute to the workforce and to promote the positive side of Northern Ireland.

3.         How important is Information Technology (IT) to industry now and in the future in Northern Ireland? How can the education and training system (including university-based R&D) provide the IT and communication technology needs of Northern Ireland industry?

3.1        IT is very important, not only to industry but also to virtually every other aspect of the modern economy and society. IT is a major growth industry and a significant amount of future industrial development will be IT related. High technology and high added value industries are rapidly replacing traditional industries as in the Republic of Ireland. The attraction and growth of these new industries is dependent on the availability of a highly skilled workforce and R&D facilities.

3.2        The higher education sector is well equipped to support the development and application of IT within industry through R&D in the universities, education and training provision and the transfer of technology and expertise. Both universities produce IT graduates of high calibre and UU has the largest IT provision in the UK university sector.

3.3            Research in computer science in the universities has already earned some international recognition in the 1996 Research Assessment Exercise, However, research of the highest international standards needs to be maintained and developed in order to make Northern Ireland more attractive to new IT companies. QUB plans to establish a world class research institute in electronics, communications and information technologies and has submitted a successful bid for the establishment of a Virtual Engineering Centre under the SPUR initiative.

3.4        The new science parks and additional incubator units working in partnership with the universities could also make a significant contribution to the attraction of industrial investment and economic growth.

3.5            Although a recent survey by the Skills Task Force reported that sufficient graduates were being produced in IT to meet Northern Ireland's needs, the universities' view is that more graduates in specialised IT areas are required to counteract the export of graduates to other geographical areas and to support growth and development within the local IT sector and associated industries. This view would be supported by the industry's representative bodies. We believe it is essential that the supply of highly skilled graduates is commensurate with this growth (see also 4.2 below).

3.6        All of the NI higher education institutions are connected to the UK Joint-Academic Network (JANET). JANET is a world-leading telecommunications network with very high bandwidth connecting all of the UK higher education and research institutions and connecting with other international systems. The Janet infrastructure facilitates the rapid transfer of large amounts of data and other information. The availability of this leading edge technology also has tremendous potential to benefit industry in collaboration with the higher education sector.

4.            Incentives for training providers and businesses to develop training geared to a highly competitive global economy.

4.1        The universities and colleges are major providers meeting the skills needs of industry and business through initial and top-up training opportunities.

4.2            Considerable lead-in time is required for the design and development of new courses and then to allow for students to complete those courses. Therefore, early information from businesses as to their future requirements is essential to ensure the timely production of graduates with requisite skills. The availability of additional funded places aimed at meeting skills shortages and new skill requirements of businesses would be a major incentive to the higher education sector.

4.3        The development and growth in outreach to local communities by the universities and other higher education providers and distance learning are major incentives to businesses to avail of local and on-site training opportunities. The University for Industry and the e-University will add to those opportunities by making available the most up-to-date and relevant courses from the best national and international sources in partnership with local institutions.

5.         Views on skill shortages and how any perceived problems might be tackled.

5.1        The business of forecasting skill shortages is the responsibility of DHFETE, DETI and others. However, the Council, in conjunction with the universities, could advise on the amelioration of any perceived problems in relation to increasing the supply of qualified people. This might mean an approach where ringfenced incremental increases in provision for identified skill shortages are adopted and might include and retaining of existing employees.

6.         Your own role and contribution to education and training for industry in Northern Ireland.

6.1        NIHEC is responsible for advising the Department, as the higher education funding body, in ensuring that adequate funding for high quality, cost effective teaching and research is available, and that the funds provided are used only for those purposes. We also act as an intermediary between Government, the UK higher education community and the local universities. Membership of the Council is drawn from both the providers of higher education and its users.

6.2            Universities are central to the supply of skilled people for industry. Research in the university system is a significant engine in any economy. However, universities are independent and autonomous institutions responsible for managing their own affairs effectively and efficiently. A key role for universities, alongside the provision of teaching and research, is the application of the knowledge, expertise and ideas that they generate in ways that meet the needs of industry and commerce and contribute to the development of the economy. The role of the Council is to advise the Department on an adequate level of public funding for these activities.

6.3        The Council believes that there is considerable scope for increasing the volume and impact of interaction between HE and industry. NIHEC can advise on ways in which this interaction can be achieved. For example, in addition to the two main funding streams to the universities for teaching and research, a new stream - Higher Education Outreach to Business and the Community (HEROBC) Fund - has been introduced by DHFETE on the advice of the Council. the rationale underlying this funding stream is to promote and support productive interaction between HE and industry and commerce in order to encourage the transfer of knowledge and expertise and to enhance the relevance of programmes of teaching and research to the needs of employers and the economy.

WRITTEN SUBMISSION BY:
NORTHERN IRELAND SKILLS TASK FORCE

INTRODUCTION

1.         During the 1990s the Northern Ireland economy has been the fastest improving regional economy of any of the 12 UK regions. This is evidenced by GDP growth (NI GDP grew 1% per annum faster than the UK over the period 1990-97); employment growth (NI employee jobs grew by 14.5% compared to 4.3% for the UK in the period 1990-1999); change in unemployment (the numbers unemployed in NI fell by 33.8% over the period Spring 1990 to Spring 1999 compared to a fall of 11.8% for the UK); and manufacturing output (NI manufacturing output grew by 31.4% from Q1 1990 to Q1 1999 compared to 2.3% growth for the UK). The effects of a stronger NI labour market can be seen in the dramatic turnaround in migration patterns (in the 70's we lost around 120,000, in the 80's 60,000 were lost but in the 90's we are on course to gain 20-30,000) and house prices where in recent years NI has had the highest house price increases of any UK region.

2.            However there are still big challenges to be met. Unemployment and particularly long term unemployment remain a significant problem. While the educational achievements of young persons entering the labour market are now high there is a 'tail' of educational under-achievement in the workforce. At a time when the structure of the Northern Ireland economy is changing there are still many people employed in relatively low pay low skill jobs. A further factor is the growth in knowledge rich jobs and a corresponding fall in demand for those with low skills driven by technological change, management delayering, changes in products and services and globalisation leading to the transfer out of Northern Ireland of labour intensive jobs eg in clothing and textiles where around 2000 jobs have been recently lost each year. Despite the growth in the supply of higher skills due to educational improvements there is growing evidence of skills gaps and emerging labour supply problems.

THE WORK OF THE NORTHERN IRELAND SKILLS TASK FORCE

The Skills Study

3.         In 1997/98, in the context of evidence of a 'tightening' labour market and increasing reports of 'skills shortages', the Training and Employment Agency undertook a three-stage research programme examining the issue of matching labour demand and supply.

n     Stage I - analysed the available evidence on labour supply difficulties to determine the extent to which these were due to skills shortages;

n     Stage II - reviewed current methods within Northern Ireland to address current and future skill needs and examined national and international best practice (including approaches taken in England, Scotland, Wales, ROI, Netherlands, Belgium, Australia, USA and Singapore); and

n     Stage III - recommended appropriate action on the basis of the findings of stages I and II.

Key Conclusions and Recommendations

4.         The key conclusions of the Skills Study were that there were immense potential benefits in better 'matching' of skills demand and supply. But in Northern Ireland there were no 'world-class' data systems in place to give comprehensive, detailed and timely data to improve the matching process.

The Northern Ireland Skills Task Force

5.            Following on from the recommendations of the Skills Study a Northern Ireland Skills Task Force was established to provide a focus for this work and advise the T&EA and (the then) DENI on the issues relating to the supply of and demand for skills in the labour market. Recommendations were made and endorsed by the Task Force to put in place systems to (a) monitor the current and (b) forecast the future demand and supply of skills. These recommendations included:

Skills Monitoring

6.         Systems should be established to provide comprehensive, detailed and timely information on the current skills needs of Northern Ireland employers. The major component of this work is a comprehensive annual or biennial survey of private sector (non-agricultural) employers. This survey was conducted during April/May of this year and over 3,700 responses were obtained representing a valid response rate of 77%. The results of this survey will be published within the next month.

Skills Forecasting

7.         Systems should be established to forecast the future skill needs of Northern Ireland employers. A centre of excellence for skills forecasting (the Priority Skills Unit) was established at the Northern Ireland Economic Research Centre (NIERC) to:

-       provide forecasts of employment by broad industry and occupational categories;

-       to assess in broad terms the skills output form the education and training sector; and

-       as regards specific skills - to carry out a three-year programme of detailed skills forecasting for key areas where skills shortages could constrain the development of the Northern Ireland economy.

8.         On the advice of the skills task force, the first two priority areas chosen for detailed examination were the information and Communication Technologies (ICT) and Electronic Engineering sectors. NIERC have now completed their report on the ICT sector which has been accepted by the Skills Task Force and will be published by late June/early July (an advance copy will be forwarded to the Committee once the content is finalised). Work has now commenced on the electronic engineering sector with a report due in October. It is intended that the information gained will be made available as quickly as possible to as wide an audience as possible.

Other Complementary Research

9.         In addition to the work of the Skills Task Force, the Department will also continue to carry out a complementary programme of labour market research aimed at enhancing our understanding and responsiveness to labour market issues. Summaries of this research are contained in the annual Labour Market Bulletin. Research topics, which will be covered in the near future include the extension of the large-scale Labour Recruitment Patterns Study, which examines recruitment patterns by area and by skill level, to include a newly established Call Centre a large luxury Hotel, a food processing plant and will also examine cross border commuting to the new Xerox plan in Dundalk.

Influencing Provision

10.        The main objective of obtaining available, timely and quality information is to ensure that the Department has the best possible data to aid the decision making process in relation to programmes and services, and to ensure that providers are aware of the potential impact of their products. The information already available to the Department has been used to begin the process of focusing programmes on specific sector and occupational skills. As additional information becomes available programmes and initiatives will be more directly focused. The social and personal development impact of learning will not be overlooked in this approach.

11.        Initial evidence suggests that the areas with most potential for employment growth are in software and e-commerce, electronics, telecommunications, health technologies, tourism and the tradable services.

RECENT ACTIONS

Jobskills

12.        The jobskills programme is a vocational training programme aimed largely at 16-18 year olds. The programme has been refocused to take account of the needs of both industry and young people and is now organised in three streams;

(i)      Access -      aimed at young people with disabilities and young people for whom                        other streams are not immediately appropriate;

(ii)      Traineeships      -      aimed at providing young people with an opportunity to achieve                    NVQ level 2; and

(iii)      Modern Apprenticeships      -      aimed at providing an integrated experience to at least level 3 NVQ.

13.        The Access programme has been made more flexible to encourage young people to participate and determine their employability needs. The Traineeship stream has been simplified and the priority skills areas incentivised by a differential in funding. Modern Apprenticeships similarily are skewed in favour of skills areas and are providing an increasing number of employment based opportunities for young people.

Higher and Further Education

14.        The additional places agreed for Higher and Further Education over the last two years have largely focused on the areas of employment growth. In addition funding in the FE sector has been made available to improve ICT facilities, incentivise skills training and begin a process of developing centres of excellence.

Chancellor's Initiative

15.        In May 1998 the Chancellor of the Exchequer announced a special initiative and a fund of £14m was provided for the period 1999-2002 (£4.7m per year). To date that fund has been used to develop a graduate IT conversion programme (250 places per year), multi-skilling in the tourism industry, a lecturers into industry scheme, e-commerce awareness training and a bridge to employment programme. In the coming year the fund will also target post graduate provision for the communications and electronics, HND activity in software and electronics and an 'attract back' campaign to encourage specialists to work in Northern Ireland.

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