The Northern Ireland Assembly -

Ordered by The Committee for Employment and Learning to be printed 20 September2001

COMMITTEE FOR EMPLOYMENT AND LEARNING
VOLUME 4
WRITTEN SUBMISSIONS RELATING TO THE REPORT

1.1 The Association is pleased to have this opportunity to voice its values, beliefs and concerns regarding the above to the Assembly's Committee for Higher and Further Education, Training and Employment.

1.2 As recognised by Strategy 2010, further education colleges are strategically placed to meet the education and training needs of industry. This has been aided by the recent merger of Training and Employment Agency training centres with the further education colleges, which gives added strength to this focus.

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

2.1 Education and Training in Northern Ireland needs to be flexible and responsive to meet the diverse needs of the Northern Ireland economy in the 2010 context.

2.2 There is a global aspect to the training that is required and special provision should be made to support transferable skills including information communication technology and problem solving. Education and training for industry should have a coherent pathway and the Northern Ireland Credit Accumulation Transfer System may help underpin this. Vocational qualifications provided in education and training in Northern Ireland should be recognised beyond Northern Ireland, particularly in the Republic of Ireland and Europe. There needs to be an articulation between the qualifications provided in Northern Ireland and those provided elsewhere to provide the free transfer of labour.

2.3 Education and training needs to embrace an online delivery approach including video conferencing, computer mediated conferencing and virtual training. It should be provided where, when and how consumers wish it to be provided.

3. What are the main strengths and shortcomings and how does this system provide for the needs of Northern Ireland Industry?

3.1 The International Adult Literacy Survey (1998) has shown that we are not realising the potential of a significant proportion of the workforce of the Northern Ireland population. Innovative adult literacy programmes, as provided by further education colleges, need to be expanded and offered in the workplace and beyond.

3.2 The Further Education sector has often had to support a significant number of students who have failed in compulsory schooling. One of the key roles of the sector is giving support and enabling the development of confidence to climb the qualifications ladder through craft and technician training to higher education.

3.3 The slowness of the schools sector to recognise the value of vocational education qualifications is one of the shortcomings of our present educational context. Significant support needs to be given to the development of Vocational A Levels to encourage students to develop thinking about potential career paths at 17 to 18 years of age. One of the strengths of the Further Education sector is the wide range of expertise that is available, which can deliver appropriate and relevant education and training more effectively and feasibly.

3.4 There needs to be sound, unbiased careers advice and guidance available within the schools sector from an early age so that educational choices are based on current information.

3.5 Changes in the funding methodology, such as the removal of the capping of higher education courses in further education, would help to provide a more flexible approach.

4. How important is information technology (IT) to industry now and in the future in Northern Ireland. How can the education and training system (including the university based R & D) provide the IT and communications technology needs of Northern Ireland industry.

4.1 Information technology is vital to the needs of Northern Ireland industry, whether it be large external companies or small, medium enterprises (SMEs). The key gap has been identified as the lack of skilled technicians in information communications technology, software engineering, routing and networking. Further Education is working hard to provide appropriate training in this area. There are a wide range of Level 3 and Higher National Certificate and Diploma courses in these areas.

4.2 The sector can provide for the needs of companies, and especially, tailoring training to meet the needs of companies such as Nortel Networks in their demand for a well-qualified and trained workforce. In seeking to meet the needs of industry, the Association is working closely with the Northern Ireland Training Councils Association and the Software Industry Federation to ensure that appropriate education and training is provided. The Association co-ordinates, on behalf of the further education sector, a 'Lecturers Into Industry' scheme to enable staff to up-skill in relevant areas, particularly information and communications technology (ICT) and software engineering. This initiative is being heralded as a great success and will be further developed to enable a school of practitioners from industry to have teaching blocks in the further education sector.

4.3 The Association sees relevance in the development of a forum to further develop collaboration and partnership between industry and the sector with particular relevance to the information communication technology context.

5. Incentive for training providers and businesses to develop training geared to a high quality, competitive, global economy

5.1 The Association is concerned that there is a level playing field so that the further education sector can compete fairly with schools. At present schools receive significantly increased funding for the provision of Vocational A levels. Businesses should be encouraged by the Training & Employment Agency not only to look at the private sector but to the further education college for training at competitive rates with clear quality assured provision.

5.2 The Association has been working with IDB, LEDU and the T & EA and has contributed to the raising of an inter-departmental understanding of the role of the work of Further Education and its importance to inward investment as exemplified by the role of the Institutes of Technology in the Republic of Ireland.

6.1 The Association of Northern Ireland Colleges has learnt from the Council of Directors of Institutes of Technology, that clear foresight planning is required to meet skill needs of an expanding economy. Much has been done to provide graduates for the developing of electronics and information communication technology industries. Little has been done to increase technician training, where now it has been recognised there is a major gap in qualified staff. Changes need to be made in funding systems in the Department of Higher and Further Education, Training and Employment, to allow a swift increase in training in such specialist areas.

6.2 Colleges have a particular difficulty in retaining information communication technology and electronics staff. There are also problems in recruiting teaching staff in these key areas. This is having an impact on delivery. Bonuses should be provided to staff in these key areas as per the English model in schools, (science and maths teachers).

6.3 The Association has done much to build bridges between industry and the further education sector. From a Conference in October 1999, held in Ennis (the RoI 'E' town) relationships have been strengthened with industry and government agencies. The Association provided an 'Industry Day' seminar on the special approaches of colleges to meet the needs of SMEs and larger companies. We have also developed a joint forum with business and industry on the development of a business plan for Further Education in economic development. This emphasises a joint approach to the training of technicians for Northern Ireland industry. This will be presented to the Minister for Higher and Further Education, Training and Employment at our Conference on the 16th November 2000.

7. Our own role and contribution to education and training for industry in Northern Ireland

7.1 The Association of Northern Ireland Colleges is the key voice for further education in Northern Ireland. It provides the following support services for the further education sector as it seeks to meet the needs of Northern Ireland business and industry:

n Manages an Employers' Forum, which supports the negotiations and terms & conditions for approximately 5,500 staff.

n Co-ordinates a curriculum and staff development service for the further education sector.

n Provides a support network for professional staff involved in the further education service (curriculum managers, human resource managers, accountants, marketing officers, estates officers and management information managers.

n Manages committees on behalf of DHFETE on issues such as management standards, health related issues, a response to the NIAO report on further education and marketing further education.

n Provides conferences, seminars and workshops on key issues affecting further education.

7.2 The Association, on behalf of the Further Education sector as a whole, co-ordinates leading edge curriculum development projects and seeks to improve these to meet the education and training needs of the Northern Ireland economy. The Association therefore manages and supports DHFETE curriculum development projects in the following areas:

7.3 These projects involve colleges co-operating together to disseminate good practice and to continue the ongoing modernisation of our approaches.

7.4 The Association, on behalf of its members, has developed a series of networks with agencies such as the Basic Skills Unit, University for Industry, Learndirect and with the universities on curriculum staff development approaches.

7.5 The Association has been in close liaison with colleagues in the Republic of Ireland, the Council of Directors of Institutes of Technology, and has developed partnership links between colleges north and south including a formally agreed protocol.

7.6 We are working to improve relationships with the Training and Employment Agency and this has been shown by the Training and Employment Agency funding information communication technology study visits to centres of excellence in England, to benefit practice in Northern Ireland. The Association has supported the development of the Further Education National Training Organisation (FENTO) in Northern Ireland in the development of standards for lecturers, governors, non teaching staff and managers in the sector. The Association has close working relationships with its equivalent bodies, the Association of Colleges in England, the Association of Scottish Colleges and FFORWM in Wales, to allow the drawing of comparisons and bench marking against best practice throughout the United Kingdom. This has been exemplified by the development, through the Association, of the Council of the Isles for Further Education, which seeks to co-ordinate the approach, throughout the United Kingdom, on key issues such as education and training for industry.

7.7 The Association, as part of its commitment to education and training for industry, is providing a conference, "Skills for 2000 and Beyond", at the Hilton Hotel, Belfast, on Thursday & Friday 16th and 17th November 2000. The key aim is to refine a vision for the role of Further Education in the economic and social development of Northern Ireland.

7.8 The Association is committed to improving the quality of provision, thus its Curriculum and Staff Development Committee is looking at how to continuously improve the relevance and effectiveness of Further Education programmes. A number of colleges have adopted the business excellence model, others are working towards obtaining IIP. The Association is supporting the DHFETE curriculum development project on improving quality in teaching and learning (2000/2001).

8.1 As can be seen, the Association, on behalf of the Further Education sector, is working to build closer relationships with industry and to improve the quality of provision it makes. The Association would be pleased to give oral evidence to the Assembly Committee and to give wider briefings on the role of the further education sector as it works in partnership with other key agencies to deliver lifelong learning and a world-class workforce.

Belfast Institute of Further and Higher Education is the largest educational establishment in Northern Ireland. In 1998-99 it had almost 43,000 enrolments, which also makes it one of the largest providers of further and higher education in these islands.

The Institute operates from six main sites and five smaller buildings which cover more than 60,000 square metres. It also delivers community education across Belfast in almost 200 out-centres, which are mainly rented from a wide range of statutory and voluntary bodies. Its administrative headquarters are in Great Victoria Street in the heart of the city.

The Institute delivers academic and vocational learning at further and higher education levels in almost all areas with the exceptions of mining and agriculture. Courses range from basic education for adults with literacy and numeracy difficulties through to post-graduate degrees. The Institute itself is not a degree-awarding body and all of its degrees are conferred by universities with which it has franchising facility arrangements.

The Institute also offers a wide range of customer-specific education, training and consultancy services for the private and public sectors both at home and abroad. It is an organisation which faithfully reflects contemporary government policy in relation to further and higher education and it plays a full role in helping to shape that policy through public debate, academic analysis and extensive dialogue with policy-makers, politicians, industry, business, the voluntary and statutory sectors and the community.

It is important to note that the Institute is considerably larger and more diverse than any of the remaining 14 Northern Ireland FE/HE institutes. It also offers, by far, the greatest amount of HE and is geographically the most centrally located. The Belfast Institute has a unique role to play, residing between the other FE colleges and the universities. The Institute thus needs to have a clear vision of how we should develop in the longer term. For example, should we develop a solid research base and is that likely to alter our role?

The balance between academic and vocational studies in FE is a very important consideration, as is a coherent strategy to identify and address long term industrial skills shortages. Such issues can only effectively be addressed by ensuring that more meaningful and pro-active links between secondary, further and higher education are developed and indeed embedded in Northern Ireland education structures.

The Institute is thus well placed to provide advice and guidance to the Department of Higher and Further Education, Training and Employment in formulating policy for education and training for industry in Northern Ireland. We regularly consult with our partners in industry and the education sector. The following proposals are a result of that internal and external consultation process.

Northern Ireland industry is facing some of the greatest challenges in its history. The traditional heavy industry base that has been the mainstay of the Northern Ireland economy since its inception has been very seriously eroded and is quickly being replaced by high technology industries that require a very different range of skills.

The education and training sector must respond quickly to these changing circumstances if the resultant shortage in skills requirement is to be met. In fact, the issue of long term skills shortages has never effectively been addressed either in individual vocational sectors or as part of an overall training strategy for skills development. There needs to be a strong and coherent approach that includes an effective forecasting model (or models) that will address skills shortages not just as and when they arise but preferably before.

The detriment to the local economy of the present situation is currently apparent through evidence of demand exceeding supply and people with relevant skills and experience transferring regularly from one company to another. This situation generates unhealthy competition between local companies and a contentious rivalry with the Northern Ireland economy as a whole experiencing growth limiting factors.

The solutions lie in terms of both short and longer term strategies, but in any event can only be effective in conjunction with a prompt, accurate and detailed skills forecasting model. In the short term, where economic skills shortages have been identified, fast track programmes should be in place and ready to action as and when the need arises. In the longer term, a practical, skills-based, adequately funded training model needs to be developed with the joint support of local industry, the training sector and the education sector. The Modern Apprenticeship Scheme already forms the basis of this model but, as yet, does not have the widespread support and backing required from the bodies listed above and almost no recognition within the community.

The current funding methodology for the Jobskills and Modern Apprenticeship programmes needs to be thoroughly reviewed. There is a serious mis-match between standards required to meet certain NVQ qualifications and the resources made available to the FE sector to meet these standards. The present drive to improve efficiency in the education sector, which in itself is entirely valid and justifiable, does not always take account of what can be achieved in simple practical terms. Limitations are being imposed not just by overstretching finite resources, but also by ensuring that current health and safety regulations are not transgressed.

This has led, in many cases, to an almost unmanageable situation where standards are being compromised in pursuit of financial viability. Such a situation is a long-term recipe for disaster not only in terms of the maintenance of vocational and academic standards, but as a means of eroding the most effective modus of continuing economic and social sustainability through a healthy and vibrant manufacturing economy.

A three to five year strategy to achieve the above objective needs to be developed. Full participation of the employment sector in the development and implementation of the strategy will be crucial to its success. The already good working relationships between the FE sector and the training councils should be built-upon and expanded.

The Belfast Institute as the largest provider of craft/skills training in the province could play a leading role in the development of the strategy.

The Belfast Institute derives its lifelong learning remit from the 7 key aims specified in the Northern Ireland paper, " Lifelong Learning - A New Learning Culture for All." The Institute is committed to the concept of Lifelong Learning and, in addition to building on the lifelong learning programmes which have been an integral part of its provision for some time, is also actively involved in a range of relevant collaborative developments with, amongst others, EGSA and UfI. True lifelong learning should value all facets of education and training, not just that work perceived as being mainstream vocational and therefore of socio-economic importance. Any future strategy should acknowledge the work done within the FE sector in engaging large numbers of people in education and training programmes, accredited and non-accredited, as a valuable access route and should fund resource accordingly.

The question of who should be responsible for the co-ordination of this major initiative is of paramount importance. Indeed, analysis of the underlying problems which have given rise to the need for the Lifelong Learning initiative will show that these problems have arisen because of the lack of a co-ordinated, strategic approach to the issues at a national level. Thus, the inequity in funding regimes, the schism between academic education and vocational training, the uneven distribution of essential resources, eg ICT, the lack of a coherent and intelligible national framework of accreditation, and the hitherto piecemeal approach to the fundamental and perennial problem of Basic Skills - all attest to the need for a co-ordinated strategic approach to this initiative.

The Committee might therefore consider the notion of a national lifelong learning service. This will require a radical review of the qualification and delivery system. As proposed by others what we need is a national framework delivered in the context of a locally supported service.

Beyond the issue of co-ordination there are two elements essential to successful implementation - resources (principally funding and ICT support), and collaborative partnerships between formal and informal education and training providers, voluntary and statutory agencies, community based groups and organisations, business, and industry. There is a danger, however, that short-term funding will drive the process, rather than a strategically planned and properly resourced longer term response to the initiative.

Such a response will depend upon sound decisions being made on the basis of quality information - some of which is not, at present, readily available. We need to know exactly where we are in order to move forward towards the realisation of a vision of a learning culture, via the attainment of meaningful and realistic targets. To do so will require research into, and consideration of, the following key components :

n precise statistical information eg relating to skills shortages in specific geographical/employment sector areas.

n the systematic provision of the ICT infrastructure necessary to underpin the Lifelong Learning initiative.

n the identification and allocation of appropriate funding regimes to support learning and to reward effective providers.

For many years now the Further Education sector has been delivering programmes that accord with the Lifelong Learning agenda - provision often unsung and under-funded. The experience and expertise acquired in the sector must be a central pillar upon which the Lifelong Learning initiative is built.

ICT and related activities such as Telecoms, Software Engineering and Call Centre Development are widely recognised as belonging to the sector of the Northern Ireland economy with the greatest potential for growth. Not only is there rapid expansion world wide, but also the relative geographic isolation of the province is not important in relation to our competitiveness in these areas. The rapid economic development of the South, based on the development of hi-tech industries and a large pool of highly educated and well motivated young people, gives a glimpse of the possibilities for the Northern economy. Up until now the economy of Northern Ireland has tended to rely on traditional industries such as Engineering, Textiles, and Agriculture.

The economy also has a much larger than normal public sector component. Recent political developments, with an easing of the security situation, should see this change. Also the traditional industries are coming under increasing pressure for a number of unrelated reasons eg the recent difficulties in the Agricultural sector, the uncertain future of Harland & Wolff, and recent well publicised difficulties in the Textile sector. New technology will provide alternative economic activity, and if appropriately applied will make existing businesses more competitive. However local uptake of the opportunities provided by ICT and the knowledge-based economy has been slow.

The FE sector needs to provide work related learning in the workplace, particularly to develop the ICT skills of current employees. This can be provided by workplace delivery or through the use of video conferencing, ICT and On-line Learning. The latter method requires the availability or development of educational content, and the development of systems to support, encourage and monitor the progress of remote learners. The business sector needs to be more closely involved in the development ofcourses and in funding the development of on-line learning content. Part of this role is being currently being filled by the University for Industry. The relation between UFI, training providers, and the FE sector needs clarified so that they do not work in competition with each other, and wasteful duplication of effort is avoided.

There is a need to provide IT training in the community, to reach those who choose for various reasons not to follow recognised courses at established FE centres. These courses need to be offered in a flexible way, in the right surroundings, and with creche facilities where appropriate. The courses need to lead to recognised qualifications. Participants need to have a clear progression pathway so that they can gain industry relevant qualifications after the initial qualification. Lack of such clear progression could lead to frustration and disillusionment of participants who would find that a basic IT qualification was not a guarantee of employment in this area.

There is great scope to develop a "family learning programme" in ICT that will allow parents to develop ICT skills in the context of helping their children with their programmes of study in primary and secondary schools. This is particularly relevant with the launch of the "Classroom 2000" programme in primary and secondary schools, and the ongoing curriculum review of primary and secondary education. Such a programme has the potential to be developed throughout Northern Ireland and should produce significant benefits in developing ICT skills of both parents and children.

Belfast Institute has a well developed physical infrastructure with 1600 networked computers linked by a Gb fibre optic ring on 7 major sites throughout Belfast. The Institute network has a 2Mb link to SUPERJanet. The Institute provides ICT training at all levels from introductory to HND level. The Department of Learning and Teaching Resources is responsible for the maintenance and development of the ICT infrastructure for Belfast Institute.

To meet the skill needs of the NI economy there should be improved liaison between the school sector, and the further and higher education training sector. The demand for software engineers, electronic specialists and people with high level IT and technical skills is such that an increased number of school leavers should be encouraged and prepared to enter these vocational areas at all levels - post 16 and post GCSE. This could be addressed by:

n Structured career guidance in schools perhaps supported by innovative taster events and activities hosted by industry. Events should also be organised to provide careers teachers with the latest information regarding opportunities, career paths and technical qualifications. To be effective this approach needs to be ongoing and supported with appropriate back-up documentation.

n A public campaign targeted at parents to increase parental understanding and awareness of the skills needs of NI plc, to address the importance of career planning and promote vocational education and training as a real alternative to too many young people chasing GCE A levels.

n Review of funding of post 16 education (schools and Institutes of FHE) and co-ordinated measures to 'steer' young people into education and training in the new technologies.

n Funding for innovative bridging programmes (supported by industry) to assist people gain the maths and science essential for entry to skill shortage areas.

n Incentives to establish school/ FHE partnerships for 'widening' the base of post 16 education and training and avoid the tendency (common in N Ireland) for parents to encourage pupils to stay in the safety of the structured school environment at 16 - which while understandable, leads to too many young people entering non-technical post 16 education.

Today the involvement of industry with the education and training sector is piecemeal and ad-hoc. A strategy should be devised to highlight the importance of individual support for the development of training methods and techniques and indeed a commitment to long-term training provision.

Links between the industrial sector (particularly the high technology sector) and the education sector have been developed at university level but need to be improved at technician level in the FE sector. The content of HND and GNVQ qualifications needs to be relevant to the needs of local industry and in turn the awareness of local industry needs to be raised regarding these qualifications.

The FE sector needs to provide courses which will help local businesses establish "e commerce" as a significant fraction of the local economy.

Career progression routes in some sectors, particularly engineering and construction, are unclear and confusing. The links between education, employment and career enhancement need to be much more clearly articulated with the various alternatives simply explained and indeed "sold" to secondary level pupils.

The various industry sectors need to be persuaded to play a much more active promotion role than they have done to date.

The recent DHFETE initiative to provide industrial secondment for FE/HE lecturers has been a resounding success both in terms of updating lecturers' skills but also as a means of providing industry, albeit on a short term basis, with a different expertise that has yielded effective results in relation to research and development. This initiative should be continued and expanded.

There are some very good examples of "real" partnerships developing between the FE sector and the Northern Ireland colleges/institutes. The Belfast Institute has pioneered a joint programme with Bombardier Shorts to deliver mathematics to craft/technician apprentices in a manner which makes the subject more meaningful and appropriate. This pilot scheme was the subject of a conference paper delivered to the Institute of Applied Mathematicians and was extremely well received. A strategy should be developed which will assist, nurture and support the development of such innovative approaches to the delivery of vocational education and training. In developing such a "strategy for partnership" the Department also needs to look at how it liaises with other government departments and agencies, with a view to ensuring that effective communication takes place both internally and externally. Too often in the past has the view of the governmental department been explicitly at variance with another.

Northern Ireland has high educational standards in United Kingdom terms, with more than 40% of young people going on to Higher Education. However we do less well for those who are not high achievers, and 20% of the population currently have no formal qualifications. The number of HE places within the province is insufficient to meet the demand with 62,000 people from NI participating in HE last year, but only 50,000 attending colleges or universities in the province. Overall our record in technical and general education is low by international standards.

The A-level/University route to career progression is still regarded by many parents as the benchmark. However, many industrial sectors greatly favour the FE route as they feel this provides them with employees who demonstrate both practical and academic skills. It is important therefore that a strategy be devised that ensures parity of esteem for vocational qualifications. This has long been an aspiration but, as yet, very few practical steps have been taken by successive governments to ensure that parity becomes a reality.

A large proportion of the existing workforce still holds no formal qualifications. Priority sectors should be identified and funding should be provided to support initiatives (including fast tracking) to deliver qualifications to appropriate sectors. It should also be formally recognised that there is always a need to provide for "niche" sectors and any funding methodology should incorporate a means whereby specialist sectors could be catered for, taking into account the long term contribution to the local and wider economy.

We need to develop a VALUED vocational educational programme at sub degree level. This should be based on existing HND/C and GNVQ qualifications but these need to change so students acquire skills more directly useful to industry. For ICT this means introducing industry standard qualifications, such as MOUS, MCP, CNE, as a component of the vocational qualification.

As well as most valuable technical research carried out by the universities, there is a niche in research for local communities and SME's, not all of whose needs are being met by the universities. This need could be met by the FE sector. Also, there is a need to promote research within FE on purely FE matters in relation to quality and the curriculum. It should be informing itself and not relying on a top-down approach from the universities. The present limited support by DHFETE, welcome as it is, is only scratching the surface.

There is also a role for FE colleges in promoting the economy. All FE colleges are not the same and to regard FE as a single block is a simplification. Clearly institutes such as BIFHE are of a scale and complexity that makes them different. The Springvale Campus is a recognition of this fact. Large institutes such as ourselves can therefore be expected to play an enhanced role in the future. That role, or the role of our HE sector, might be to act as a type of polytechnic, delivering a broad range of foundation degrees and to carry out research for local communities and SMEs similar to the system of HE in the Republic of Ireland. Our FE sector could also act as a 6th form alternative with clear vocational provision for all of Greater Belfast and its environs. This could well provide a more efficient alternative to the fragmented school system. In so doing we would be in a position to more clearly help and support the modernization of the local economy.

In order to meet the challenges outlined in the paper the Belfast Institute notes the following recommendations.

n There should be greater scope to provide ICT training in the community with progression pathways clearly defined. Family learning programmes should be incorporated in this initiative.

n ICT support and infrastructure systems should be developed to encourage and monitor the progress of remote and work-based learners and to underpin the Lifelong Learning initiative.

n The business and industry sectors should be much more closely involved in the development of courses and in assisting with funding the development of on-line learning contact.

n Relationships between industry, UFI, training providers and the FE/HE sector needs to be clarified to avoid destructive competition and wasteful duplication.

n A comprehensive, accurate, reliable and detailed skills forecasting model (or models) should be developed in conjunction with industry and the training councils/boards).

n The current funding methodology for Jobskills programmes should be reviewed to more accurately reflect the demands of national standards and awarding bodies.

n The current relationships between Partnership Boards, the communities they serve and education providers should be reviewed to determine their current effectiveness.

n Schools careers teachers should be provided with comprehensive training to help them more fully understand and appreciate the opportunities offered in technology-based careers.

n There should be a public campaign targeted at parents to increase awareness of skills needs of N.I. PLC.

n There should be funding supported initiatives to steer young people into education and training in the new technologies.

n Various industry sectors need to be persuaded to play a much more active promotion role than they have done to date.

n The DFHETE initiative to provide industrial secondment for lecturers should be further developed.

n A VALUED vocational educational programme at sub-degree level should be developed and promoted across all industry sectors.

Bryson House is a full partner in the New Deal Consortia for South & East Belfast and Castlereagh, and North Belfast & Newtownabbey. It is currently an associate member of the West Belfast consortium, but this will be revoked at the end of September as we have been unable to access the minimum number of participants to retain associate membership.

We offer placements lasting 26 weeks to 18-24 year olds in the Voluntary Sector and Environmental Taskforce options and 13 week placements to over-25's on the Intensive Activity Period option. We have to date taken over 300 people on placement through the programme since August 1998. To a lesser degree we have also been involved in the New Deal Employment option have employed 11 people through the Subsidised Employment Option. In addition a former trainee was successful in applying for a job after his placement had finished.

Bryson House became involved in New Deal as it was aware of the demise of the ACE Programme and wanted to ensure a continuation of its training/employment opportunities to unemployed people, and also to ensure it maintained services to the wider community, that had previously been achievable through the ACE Programme. Through ACE we had a positive outcome rate between 60% and 75%. We also lead the South Belfast ACE Network since 1995.

As a member of the South & East Belfast/Castlereagh Consortium we have an additional responsibility for support and advice to five subsidiary partners in south Belfast - VSB, Southcity Community Projects, St George's YCD Ltd, Ulster Historical Foundation and HICHSA.

The short-term nature of the New Deal programme means participants cannot fully benefit from the work experience offered. Whilst it has been necessary to adjust programmes and expectation because of this, it is difficult to see how people who have been long-term unemployed (in many cases between 5 and 15 years) are going to benefit from a 13 or 26 week placement. This is demonstrated through the lower percentage of positive outcomes.

Bryson House has, from the beginning, attempted to focus on the positive aspects of the programme and the opportunities for long-term unemployed people to take a step toward working again.

Working in New Deal tends to be an uphill struggle. The idea of New Deal is good, but the implementation of the idea has fallen short of initial expectations. It is difficult to motivate and encourage individuals who will mostly admit their only reason for being there is because they will have their benefits stopped if they don't attend.

We are very often dealing with individuals who have experienced multiple barriers to employment including literacy/numeracy problems, homelessness, ex-offenders, people with alcohol/substance dependencies, mental illness, people who have previously had a bad educational or training experience which has branded them as failures. It is only very recently that these multiple barriers have been acknowledged, but most referrals are still seen as JSA Claimants alone. The other reasons for their unemployment are not taken into account and the programme does not appear to offer the flexibility to deal with these over a longer period of time.

The structures that have been put in place mean there is a high level of accountability placed on providers of placements. In addition to actual participants, we are also accountable to our consortia, to the Training & Employment Agency and also to DENI. Our accountability is not matched by support and advice from any of the above agencies.

Numbers coming through to New Deal Programme have fallen dramatically since the beginning of the year and the original T&EA forecasts have proved to be an over-estimation. At the same time as the numbers have been reducing, the Agency enforced access to consortia for former ACE sponsors to enable them to participate in New Deal. These organisations are able to access trainees, reducing the number available across consortia. At the same time, unlike voluntary sector organisations that were original members of consortia, the former ACE sponsors do not have to meet the QPMF standards set by the agency. This is unfair and means that there are two different levels of service within consortia.

Payments to providers are in arrears, which means that cashflow problems can emerge, particularly when there are delays through the various processes of payment. This has become more difficult as the numbers have reduced.

In spite of these problems Bryson House has managed to develop some innovative projects which have offered opportunities to New Deal Participants. These have included the 'No Age to Golden Age' programme which after an initial start-up in Belfast has now been replicated in Newry, Enniskillen and Coleraine. We have developed an Environmental Improvement Project, successfully completed an Innovation Fund Project, developed and completed a wall mural project and continue to look at innovative ideas for New Deal projects. This is in addition to the many placements undertaken by participants in Bryson House projects and with smaller charities in Belfast.

We take the view that first impressions are very important when dealing with New Deal participants whether they are on Core Gateway or a referral for placement. However, many participants have already formed their impressions before this, though the initial induction and interview with their assigned Personal Adviser. The mandatory nature of the programme and threat of benefit sanction are usually at the forefront of their thoughts. This would suggest little has been done to promote the positive side of New Deal.

Personal Advisers lack experience and training in offering educational and vocational advice. This short- changes the participant because they are not getting the full advice they deserve, and the Personal Adviser because their advice is based on a lack of experience, on not looking at the participants full personal circumstances and in many cases a participants attitude to New Deal will influence the way in which a Personal Adviser deals with them. If they lack objectivity this is going to have a long-term, adverse effect on participants. The Guidance Centre system required that all guidance workers have a minimum qualification of the Certificate in Educational/Vocational Guidance. This should also be the minimum requirement for Personal Advisers.

Another mandatory part of the programme is the requirement that participants on the ETF and Voluntary options complete three units of a NVQ at Level 2. This does not take into consideration the background of each individual, whether they have literacy/numeracy problems or whether they hold qualifications that exceed NVQ Level 2. There is a lack of flexibility in dealing with participants as the system must be adhered to. Many participants do not see any relevance in completing three units of a NVQ and would elect to completing other full qualifications if given the choice. The only thing that this appears to do is assist the T&EA in achieving one of their operational objectives. The extremely low outcomes in achievement of NVQ units would indicate that this part of the programme needs to be reviewed as a matter of urgency. In addition to this QCA now expect the generation of work-based and not simulated evidence in NVQ. This is becoming increasingly difficult to achieve through voluntary sector placements.

The consortia approach was supposed to encourage partnership between organisations from the training and voluntary sectors. This has not happened and in each consortia it has been a case of "each to his own" in terms of maintaining a profile in New Deal. Some have done this more successfully than others. The cultures in training organisations are quite different from those in voluntary sector organisations. The approach in Glasgow of having a voluntary sector consortium seems to have been successful. It might be an option to consider this at the next contracting phase.

It has become evident that a number of participants referred to New Deal are already engaged (albeit at differing levels) in work in the black economy and New Deal often represents a threat to their jobs. Therefore a number of people will sign off rather than risk losing their job. Whilst it may seem distasteful that people are "doing the double" and one of the underlying purposes of New Deal has been to remove these people from the claimant register, it does present a false picture if these people are not legitimately engaged in work. This will surely impact on these individuals at a future date when it becomes obvious that they have not paid taxes or national insurance contributions. An analysis of figures of those who change benefit or sign off would help to determine whether this is a problem, but it should be done sooner rather than later.

n Training for Personal Advisers to equip them with the skills they need to carry out their work. This will impact on the entire programme.

n Voluntary, ETF, IAP, FTET and ETO options should be marketed more positively and not as a last resort when participants have failed to get jobs.

n A more holistic approach to the problems of long-term unemployed people needs to be adopted.

n The qualifications structure needs to focus on the actual needs and abilities of individuals and realistic achievement targets.

n Considering the involvement the voluntary sector has to make in terms of New Deal placements, they might at some point be consulted regarding the types of programmes and methods that will through a joint approach assist participants in achieving better outcomes.

n The dramatic fall in numbers available for New Deal would suggest that some work needs to be done on analysing where these people have disappeared to, instead of assuming that they have gone to employment.

Bryson House and other voluntary sector organisations can offer New Deal participants opportunities in training and gaining work experience. Above all they can offer the opportunity of regaining self-worth, self-esteem and encouraging participants to contribute to their community. The short-term nature of the programme means that any impact will also, most likely, be short-term and there is a danger that participants will become more disenfranchised when they realise they have merely been processed through a system.

1. The Confederation of British Industry is an independent, non-party political organisation funded by its members in industry and commerce. Its mission is to help create and sustain the conditions in which businesses in the UK can compete and prosper. CBI members come from all sectors of UK business and include more than 250,000 public and private companies, as well as more than 200 trade associations.

2. CBI Northern Ireland welcomes the opportunity of submitting evidence to the HFETE Committee enquiry into Education and Training for Industry in Northern Ireland. In developing this submission we have consulted extensively with our members to ascertain current perspectives of education and training provision in Northern Ireland.

3. The success of the Northern Ireland economy is heavily dependent on the skills of the Northern Ireland workforce. Meeting the skill needs of employers helps promote high and sustainable levels of growth and employment. For individual firms, skills can help generate productivity gains, enable full use to be made of technological advances, and act as a spur to product innovation. Only with a skilled workforce will Northern Ireland be able to reap the rewards that a high value-added economy can offer.

4. It is not just in economic terms that skills play a vital role. Skills are also an important element in ensuring an equitable society, given the strong link between skills levels and likelihood of securing high earning employment. If Northern Ireland is to be a society with opportunities for all, an equitable distribution of skills must be a priority for public policy.

5. There is widespread recognition that Northern Ireland needs to move up the value-chain: from a low skilled and low productivity economy to a knowledge- based, high skilled and high productivity economy. The transition has clearly started.

6. The liberalisation and growth of world trade and capital flows and the unprecedented rate of technological innovation have made markets increasingly contestable and competitive. This is leading to dramatic shifts in the Northern Ireland labour market in terms of industrial and organisational structures and working practices. Jobs in the traditional manufacturing sector have steadily declined as a percentage of employment. As in other developed economies the proportion of jobs in manual and unskilled occupations in Northern Ireland is falling (as indicated in Exhibit 1). Upskilling and multi-skilling are a reality for many. These factors and others have combined to raise the average level of skill demanded and change the demand for different types of skill. In Northern Ireland the labour market for "good people" across a range of occupations (incl professionals, engineering and management) has become very competitive partly as a result of the strong growth in the Information Communications and Technology (ICT)sectors. The skill needs of many companies are becoming increasingly difficult to satisfy. Indeed, in certain sectors, notably the IT sector it is the employer who has become the customer as experienced individuals are now in such significant demand.

7. It is important not to oversimplify the impact of these trends on skill demand, or to draw false conclusions from them. Not all jobs are high skill. Indeed, a number of low-skill sectors such as personal and protective services are growing in size. Nor are skills the sole component of ensuring our economic and social prosperity; a stable macro-economic environment, an effective transport system and a fully realised single European market are equally important priorities for business. But without a doubt a highly skilled, adaptable and creative workforce will be a key ingredient to the future success of the Northern Ireland economy.

8. Many of our members have commented that to ensure Northern Ireland can attract and retain the best people it is essential that we can offer a peaceful environment with political stability. Northern Ireland's divided society also creates inefficiencies and difficulties and needs to be addressed.

9. But it is important to highlight that the demand for skills and nature of those skills will constantly change - even within job categories, as processes and organisational structures continue to respond to customer needs. Recent research by CBI Northern Ireland relating to small and medium-sized enterprises (SMEs) indicates how the demands and expectations of employers on graduates will increase over the next 10 years (Exhibit 2).

10. What does all this mean for the education and training system? A key underlying theme is the need to move away from a supply-led system to one driven by the needs of individuals. This submission sets out what CBI Northern Ireland believes the system needs to deliver.

11. Our vision for Northern Ireland's education and training system is set out below:

'A system that creates high expectations and provides every individual with the ability to achieve the relevant knowledge, skills and values appropriate to their needs, and which enables them to make informed choices for their life-long development and employment.'

n ensure that the education and training system is clearly integrated with the needs of, and opportunities in, the economy

12. Helping as many people as possible to become and remain employable is a key challenge. It is relevant at an individual, company, regional, national, European and international level. The European Employment Guidelines specify employability as one of the pillars of improved employment, and employability is now a key goal of UK government strategy.

13. Day-to-day employability means being able to get or keep a job - in other words, the ability of an individual to add value in work. Also important, in a broader sense, is an individual's longer-term ability to build a career and prosper in the flexible labour market. This requires a more complex definition. The CBI has defined employability as follows:

'Employability is the possession by an individual of the qualities and competences required to meet the changing needs of employers and customers and thereby help to realise his or her aspirations and potential in work'.

n the rate at which new skills and abilities are required is higher than the rate at which young people enter the labour market

n the average time a person spends in a job is declining -fewer people expect a 'job for life'

n it is required to address the needs of those who would otherwise be left behind by changes in society and the labour market eg the long term unemployed.

16. It is essential that everyone involved in education and training understands the need to focus on employability - in some cases eg with teachers and lecturers this might mean clarifying precisely the characteristics which need to be developed in students. Targets need to be set to ensure that education and training establishments provide effective experiences in encouraging and developing the qualities/competencies listed in Exhibit 3.

Ensure the education and training system is clearly integrated with the needs of, and opportunities in, the economy

17. A basic requirement is to ensure that there is widespread consensus on the future strategic direction of the Northern Ireland economy - finalising the Strategy 2010 Framework and building it into Government policy is critical. Once this is achieved it will then be feasible to more closely integrate and align the education and training system with the future direction of the economy. A knowledge based economy will be critically dependent on the provision of adequate skilled people - if we fail to achieve the necessary alignment and responsiveness there is a serious danger that our capabilities and growth will be reduced - something Northern Ireland can ill afford.

18. It is critical that the strategic direction is well communicated to all those involved in the delivery of education and training. At present there an excessive number of uncoordinated committee, groups, boards and quangos involved in FE and HE, including business representatives, but with no strategic focus. Creating a more strategic, informed, consistent and focused approach is much more likely to deliver the required outcomes.

19. A key requirement for the Executive is to establish a set of bold targets for Northern Ireland. The targets should build on the UK's National Learning Targets and reflect the main elements of employability set out in Exhibit 3, and be consistent across the entire education and training areas. Issues covered should include small firms take-up of Investors in People, targets for Modern Apprenticeships, Vocational Qualifications and Individual Learning Accounts. In addition it may be relevant to set some supply side targets, for example, relating to the availability of effective teaching, the numbers of teachers/lecturers involved in industry placements, or the number of companies involved with education.

20. It is also essential that a framework of qualifications is in place which promotes, enables and enhances learning. Qualifications are a measure of performance or competence and play a vital role in stimulating and capturing greater commitment to learn. But a system is required that is readily understood by both individuals moving up through the system and by employers.

21. There is a good deal to be gained from trying to ensure that post-16 options become a coherent system. Young people need to be able to choose the options which are best for them; whether this is further academic study, general vocational qualifications as a broad preparation for work, or specific work-based training options through modern apprenticeships or traineeships. Many may also wish to choose new combinations of these options or combine work and part-time study. Provision in all school sixth forms and in FE colleges must be sufficiently broad to meet the wide range of students' needs, both academic and vocational.

22. Post-16 education options should be integrated with government funded training for young people, and developed as a coherent set of routes to level 3 qualifications, keeping open the option of higher education. These options need to be mapped and communicated in a way that employers and students can easily understand (Exhibit 4).

23. Providing choice between providers and routes is essential in helping all individuals to develop their employability. This creates scope to increase the opportunities to choose between different institutions and to combine programmes between them. Market forces could also be allowed to provide a spur to improvement - new providers should be able to enter the system if they meet the quality criteria and succeed in attracting learners on to their programmes. These might include innovative college centres, private sector training centres, employers opening up their own training facilities (this may be limited by the relatively few large employers in Northern Ireland with appropriate facilities) or new open and distance learning programmes. Learn Direct has considerable potential to promote such innovation.

24. To complement choice there must be the right information systems. Examination and qualifications attainment have been well established as measures but these raw data are not the only information that needs to be available. As far as possible there needs to be feedback on:

n 'value added' measures which capture the extent to which young people have progressed

n information about different programmes within institutions (as the quality of departments often varies within a provider organisation)

n information on the destinations of those who have previously taken part in particular programmes

n customer feedback information about the quality of service provided to individual learners and also to firms which deal with the institution.

25. Information and advice about career opportunities and learning opportunities need to be made available to all who need them, especially adults, as well as in-depth careers education and guidance for young people.

26. The development of a strong knowledge- based economy will require the education and training system to be closely aligned with industry and commerce needs. Business itself has a key role to play in articulating its needs and in engaging with education and training providers to assist in ensuring these needs are met. CBI Northern Ireland supports the recommendation of Strategy 2010 regarding the establishment of a stronger Northern Ireland Business Education Partnership (NIBEP). There is a real need for a genuine partnership all the way through the system from primary to Further and Higher Education. But there must also be greater emphasise on encouraging greater quality of outcomes of links with all participants clear on objectives.

27. But other links need to be developed and maintained and more thought given to the establishment of effective mechanisms to engage business with both strategic education and training issues and in the operational aspects. The use of sectoral bodies/trade associations have clearly a role to play here and much useful work at the Further and Higher Education levels have come out of activities facilitated by the Northern Ireland Growth Challenge - new courses have been established to meet the needs of certain sectors. Some form of high level forum bringing together the key players from all the sectors to review strategic issues may also have merit.

28. Education and training for young people should largely be driven by their own choices and demand. The better their career management skills and the better the quality of the information and guidance available, then the more effective their choices should be in responding to the needs of employers.

29. However there is a case for supplementary mechanisms to encourage schools, colleges, training providers and universities to develop skills which are known or expected to be in demand in the labour market. A business- led group is needed to steer labour market intelligence work and to provide a focal point for employers to report skills in demand and forthcoming opportunities. A good model for this is the Northern Ireland Skills Taskforce which was set up in 1999. This body could advise the Department or could itself perhaps use delegated mechanisms like funding grants and bonuses to encourage institutions to identify and tackle particular skills issues.

30. There might be a case for more than one forum to look at different local areas which tend to have different skills needs and skills supply but this should not be done before the regional body has created a strategic framework in which this can operate. Indeed in S2010 there is a specific recommendation to establish "collaborative clusters of schools, businesses and colleges to deliver education and training outcomes tailored to the needs of the economy". Sectorally led activities should also be encouraged and developed using National Training Organisation frameworks.

31. The Assembly will wish to make sure that skills to support strategic economic development are promoted, targeting specific areas. For example, the general I.T. skills of young people are progressing well but this does not mean they have the right foundation to develop e-commerce; this is an area where there could be more intervention to make sure that appropriate training is available.

32. The same mechanism could be used to reinforce Modern Apprenticeships, and the role of workforce development initiatives like National Vocational Qualifications and Investors in People.

33. Workplace training and development plays an important role in meeting skill demand. They allow the economy to respond more rapidly to changing skill needs than it can through the education system. The workplace is an environment where many feel comfortable learning, away from the formality of the classroom and written examinations, and it offers the opportunity to apply skill or knowledge in a practical environment. The knowledge, skills and attitudes acquired by young people in the education system are still vitally important. But they are not sufficient to meet the needs of a dynamic economy.

34. It is difficult to assess the extent to which Northern Ireland employers have responded to the challenge this rising skill demand poses - this is partly because the available data tends to capture only a small slice of activity, tending to miss a great deal of less formal training. Some employers have raised the issue with us that in certain occupational areas they have to send their employees to GB to undertake the necessary training - this adds to costs and time away from work. Historically Northern Ireland has a relatively poor performance with regards to qualification levels, especially at the low end of the qualifications spectrum. Exhibit 5 outlines the current position.

35. Northern Ireland has traditionally lagged other countries. A 1995 Northern Ireland Economic Council Report on the Education system revealed that the proportion of 16 year olds in Northern Ireland gaining the equivalent of a GCSE grade (A-C) in mathematics, the national language and a science subject was 22% - this compares to England (27%), Germany (62%), France (66%) and Japan (50%). The table above indicates that in 1999 59.2% of all persons in Northern Ireland had a Level 2 or above qualification with the comparable GB figure running at 63%.

36. However the data does suggest that Northern Ireland employers have increased the amount and effectiveness of their training provision via:

Source: Labour Force Survey (refers to employees receiving job related training in previous 4 weeks)

37. But we recognise more needs to be done - especially in SMEs. Participation rates and volumes of training fall below GB levels. The 1998 Skill Needs in Britain (SNIB) Survey shows that 82% of employers in GB provided off the job training compared to 55% in Northern Ireland (for employers with 25 or more employees). It is known that smaller firms, particularly the very smallest, are much less likely to provide training. The 1998 Skill Needs in Northern Ireland Survey shows that only 26% of Northern Ireland firms with one or more employees provided off the job training. It appears that not only do fewer Northern Ireland employers provide off the job training when compared to their GB counterparts of equivalent size; but also the size distribution of Northern Ireland employers tends to further reduce the proportion of employers providing training.

38. In terms of volume of training the SNIB shows that the average number of training days per employee trained for GB was 8.4 compared to 7.0 for Northern Ireland for employers with 25 or more employees. Therefore it appears that a smaller proportion of Northern Ireland employers provide off the job training and those that do provide less days training. The reasons for these differences are not clear but are likely to relate to both size of companies and the nature of their activities ie there is an over-reliance on low-tech, low value-added industries in Northern Ireland.

39. In order to succeed in today's highly competitive arena a growing number of organisations are using external strategic management tools like the European Business Excellence Model. Within the UK one of the most widely used and important tools is the Investor in People (IiP) standard. In Northern Ireland 30.71% of the workforce are now employed by an organisation which has either gained, or is working towards achieving, IiP (Equivalent GB figure is 36.07%).

40. There are many reported benefits of IiP and according to IiP UK 94% of companies stated that the standard will continue to add value to their organisation.

41. Northern Ireland has been lagging behind the rest of the UK, partly due to a late start in promoting the standard, but emerging evidence suggests that we have been catching up rapidly. But there are a number of barriers:

Changes have recently been made to the Standard to increase take up, although CBI members still refer to the high levels of bureaucracy involved.

42. CBI Northern Ireland strongly supports the IiP standard and believes ambitious and challenging targets should be set for its uptake in Northern Ireland.

43. However it is important to put the above focus on training and development into a broader context, of which training and development are one, albeit important, element only. The ability to harness the energy and commitment of the workforce will depend crucially on four major people management issues:

- strategic focus on people development, organisation cohesion and creating a high performance culture

- job design, team working, performance appraisal and expectations and performance reward

An undue emphasis on training and development may miss the bigger picture! The CBI is keen to promote benchmarking for people management and has recently launched the Headstart programme which addresses these four issues - this programme is relevant to both the private and public sectors.

44. So far we have set out our vision and key strategic elements of what is required to deliver relevant and effective education and training to meet the needs of a modern economy. The current system of education and training in Northern Ireland is currently not delivering the vision we have set out and there are significant weaknesses in the two strategic elements:

n the qualities and competencies which make up employability are inadequately understood and are only partially being addressed

n there is insufficient integration between the needs and opportunities of the economy and the education and training system

We now turn to areas where CBI members believe there are specific shortfalls and weaknesses and, where appropriate, we outline potential solutions.

ADDRESSING WEAKNESSes IN THE NORTHERN IRELAND EDUCATION AND TRAINING SYSTEM - WHAT NEEDS TO BE DONE

45. Statistical and survey evidence indicates that there are high levels of poor adult literacy and numeracy in Northern Ireland - according to the International Adult Literacy Survey 24% of adults in Northern Ireland (about 250,000 people) have a serious deficit in literacy and numeracy skills - this compares with 23% for the UK as a whole.

46. There clearly remains a problem for many young people emerging from secondary education - the Belfast Institute of Further and Higher Education report that some 500 students entering the College each year need basic literacy and numeracy assistance. Indeed CBI members report that in recent job applications for assembly work or machine operatives typically some 5% to 15% of applicants have got basic skills problems.

47. It is less clear how significant the problem is of those employed - the recruitment process will in many instances sieve out individuals who perform poorly. However the Skills need in Britain and Northern Ireland 1998 study suggests that 6-7% of 16-24 year olds in employment are lacking in these skills. Certain low skilled occupations (especially assembly workers and plant operatives) appear to be the most likely areas for people to have basic skills problems.

48. Addressing this issue requires effective 'outreach' to those not involved in learning coupled with public funding for programmes to help adults with poor basic skills to improve them. Employers can play a useful role by highlighting the opportunities available and encouraging staff to take part, but in the vast majority of cases they will not be able to deliver or contribute to the funding of this training. We expect that the Gateway process in New Deal is likely to identify more clearly the extent of these problems in the unemployed, where Gateway advisors and the intensity of training provided are vital - we would encourage the Committee to review this area.

49. In 1989 the CBI identified the importance of six key skills in its report 'Towards a Skills Revolution'. There is now widespread acceptance within the education and training establishment of the importance of these transferable skills. We understand that in Job Skills, for example, key skills has become an integral part of the programme, although a module/qualification has not yet been incorporated into Modern Apprenticeships.

50. However current output from the education and training system suggests that there remains a great deal of improvement to be achieved.

51. As CBI Northern Ireland 's recent research has shown only 60% of SMEs consider recent graduates to have satisfactory key skills. The companies also emphasise quite strongly that the demand for key skills will increase significantly over the next 10 years - 51% state that they expect a substantial increase in the need for key skills.

52. While employers indicate that the majority of recent job applicants from school leavers have satisfactory key skills there are more applicants assessed as having poor key skills as having good key skills. A more encouraging picture emerges for applicants from the Further Education sector with a significantly higher level of individuals assessed as having good key skills. However many New Deal applicants are considered to have poor key skills. We also have some evidence that key skills overall are starting to improve although almost half the respondents to a recent CBI survey state that they have not observed any noticeable change in the last few years. Most progress appears to be being made in IT skills.

53. The Skill needs in Britain and Northern Ireland 1998 study reveals that about 15-23% of young (16-24 year old) employees are lacking in key skills.

54. The six key skills need to be integrated into all aspects of education and training. We welcome the proposals by the CCEA to ensure key skills are an integral part of the new curriculum.

55. Breadth of learning at post-16 is essential to prepare people for changeable working lives. Breadth in terms of important transferable skills and qualities for work needs to be a feature of all the different routes. All young people should have access to opportunities to develop and assess the full range of their key skills. In order to provide an understanding of work and help develop key skills and attitudes, enterprise projects and work experience opportunities should also be available in all routes.

56. Breadth in terms of learning different disciplines can also often be very valuable and is likely to become increasingly important. The need to provide opportunities to combine different types of learning - for example part-time higher education with work, or A levels with GNVQs - has already been mentioned. The reforms within the academic route allowing students to take more 'AS' levels in the first year of their study should also be very helpful. This should provide scope for young people to keep up a wider range of subjects, for example to continue to study science and technology disciplines for longer, to combine arts with science, or continue with foreign languages.

Changing Attitudes - Encourage Individual Responsibility for their own Development

57. Attitudes and behaviour can make the difference between success and failure in a job and in developing skills and deploying them effectively. Employability must be seen as an ongoing priority, even when in secure employment.

58. Currently many people take little initiative to improve or deploy their skills. Individuals in the UK are far less likely to contribute to the cost of adult education and training than in other OECD countries, compared with employers (Exhibit 7). Unfortunately we do not have equivalent Northern Ireland figures, but we are not aware of any evidence to suggest that these would be any better than the UK ones.

Exhibit 7 Adult education/training courses funded by employers or by self/family (1994-95)

59. A recent GB survey found that in 1994-97, 68% of all taught job-related learning was initiated by the employer. More encouragingly, 51% of those in work engage in professional development and keep up to date with their field. Unfortunately we are not aware of any comparative figures for Northern Ireland.

60. This is not to say that all adults can or should take immediate responsibility for their learning - some people will need 'outreach' services, such as basic literacy and numeracy provision. But individual attitudes are nevertheless a key feature in everyone's employability.

61. The obstacles to learning are numerous, as the Exhibit 8 demonstrates. While these are GB figures we have no reason to believe that they would be much different in Northern Ireland.

62. The removal of barriers may not necessarily result in increased upskilling. The National Adult Learning Survey 1997 indicated that 50% of adults stated that "nothing would encourage me" to learn. A major challenge will be to stimulate the demand. Policy makers must also be realistic in their expectations. And while there is emerging concerns about the development of a 'Digital Divide' the above suggests that this may be strongly influenced by the demand for learning as much as in having access to computers and a supportive training infrastructure.

63. The CBI is naturally supportive of lifelong learning and the introduction of Individual Learning Accounts (ILAs). It is still early days in their development and technical issues do remain. The concept is good and certainly has potential but mechanisms must be kept simple, the ILAs must be extremely well marketed, and they must add value to existing activities.

64. As highlighted above we have a long way to go to developing a culture of lifelong learning. There is still a strong view from employers that too many young people, including graduates, still anticipate a job for life and have not grasped the concept of life-long learning. However it is also true to say that many companies have not grasped the issues either!

65. The findings above strongly indicate that the school system must remain a priority to ensure that the numbers leaving the school system with low or few formal qualifications is minimised, and that their attitude to learning are more positive.

66. The importance of high quality, independent careers advice, education and guidance has not been reflected in the relatively low priority which it has been given in Northern Ireland to date.

67. Business clearly benefits from well informed job applicants - whether young or old - who make the right career decision. The nature of today's changing labour market means that access to good quality advice and guidance is critical. This indeed was identified by the Skills and Education Working Group of the Economic Development Review leading to Strategy 2010.

"Too many young people drift through education into unknown careers territory influenced in an intuitive way by peer, parents, teachers, media etc"

"...those professionals usually offering advice have little experience of careers outside education or the public sector".

Feedback from CBI members during the preparation of this submission confirmed that many young people (typically 30-40% of school leavers, and 10-20% of FE applicants) are poorly informed of career opportunities and the attitudes, skills and knowledge required for employment.

68. A careers review in 1994 identified both the importance of the issue and the need for change - but little of the report appears to have been implemented. A report by Northern Ireland Economic Council (Research Monograph 7 Improving Schools in Northern Ireland August 1998, pages 172-178) also identified substantial weaknesses and inconsistencies in careers education and guidance. Evidence from employers indicates a very mixed quality of contact with career staff/offices throughout the education system - while around 50% of CBI survey respondents rate contacts with careers staff as satisfactory or very satisfactory the other 50% rate contacts as unsatisfactory or very unsatisfactory.

"Those that make contact often do so on a superficial level to say that they have done it, and they are not interested in the detail of job requirements or attitude issues".

69. The efficiency and quality of adult careers advice and guidance also needs to be improved through

n developing a more cohesive service (ie effective linkages across careers services)

n greater use of the internet and ICT to deliver up to date and reliable information on employment opportunities and skill requirements.

n proactive approach, promoting services to students/trainees at the beginning of their courses

n ensuring staff have strong links, and experience of the labour market - including regular placement

n use of the customer-focussed quality standards and accreditation developed by the Guidance Council to improve services and eventually to serve as the main quality check for funding

n undertaking projects to explore how to increase the take up of in-depth adult guidance - for example in relation to prime targeted Individual Learning Accounts with funds that can only be spent on guidance.

A recent careers review group has been established - although principally focussed at young people.

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

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 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.

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.

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.

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.

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

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.

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

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

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.

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:

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.

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

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

3.1 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.

4.1 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.

5.1 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.

5.8.1 The Board has approved Jobskills Traineeships progressing to Modern Apprenticeships as the preferred route for the Construction Craft Apprenticeship.

5.8.2 The Jobskills Employer-led Modern Apprenticeship (ELMA), in conjunction with the respective employer bodies, is used to address the problems of recruitment into and provision for some of the specialist occupations. CITB runs ELMA programmes on behalf of the constructional steel sector and the roof slating and tiling sector.

5.8.3 There is currently no entry criteria requirement for entering Jobskills Traineeship. This means that there is no incentive for potential school leavers to make any effort in their GCSEs, resulting in low academic achievers joining the industry.

5.8.4 It will be a long-term aspiration to introduce entry requirements. In the interim, CITB recommends that minimum academic standards, particularly in maths, and practical aptitude should be recommended to school leavers.

5.8.5 By improving recruitment levels and standards of trainees coming into the industry, the image of the industry will be improved.

5.9.1 It is a requirement of Jobskills Traineeships and Modern Apprenticeships that all trainees should achieve the NVQ units and a minimum standard of key skills. CITB is concerned that the Key Skills requirements are demanding ever increasing academic skills which the apprentice intake may have difficulty in achieving. There is a fear that the person who has good practical skills but not so good academic skills will be squeezed out of the system due to the pressures of output-related funding.

5.9.2 There is also a strong feeling that Key Skills should be taught in schools since the time spent on Key Skills during the apprenticeship programme may result in less time spent on vocational training.

5.9.3 In reviewing the Modern Apprenticeship frameworks, which are due to be reaccredited in 2001 for construction crafts, CITB recommends that MAs should include relevant modules of the City and Guilds' Construction Vocational Preparation Schemes. CITB believes that the inclusion of City & Guilds Certificates within the training will enhance the apprenticeship and help to meet the requirements of Key Skills and underpinning knowledge for the NVQ.

5.10.1 Presently most FE Colleges offer a one to two day off-the-job training pattern arrangement, which commences after one or two weeks of initial induction training.

5.10.2 CITB recommends that standard patterns of training should be developed in partnership with training providers in order to achieve consistency in standards and to ensure that trainees commencing on-the-job training are sufficiently competent and productive to make an effective contribution. The introduction of a model training pattern would facilitate an appropriate level of intensity of provision and discipline, which would encourage employers to permit apprentices, particularly those in employment, to attend day release classes.

5.10.3 CITB recommends that, from a health and safety perspective, the training model should commence with a more prolonged period of full-time off-the-job practical, task-based training, with short periods of on-the-job work experience, up to a period of 26 weeks. Thereafter, up to the achievement of NVQ 2, the training pattern is recommended as one day per week day release. Further post NVQ 2 on-the-job training, on the progression route to NVQ 3, is also recommended as one day per week on a day release or evening class basis.

5.10.4 A suitable training regime would have to be agreed in this regard with the Department, training providers and industry. Such a regime would include syllabus guidelines to be followed by all trainers.

5.11.1 CITB's long-term objective is for employers to employ trainees from day one of their Traineeship. However, in order to encourage employers to reach this objective, it is proposed that a medium-term strategy be implemented through the promotion of employment of trainees from week 26 of the training programme.

5.11.2 From week 26 trainees should have received considerable off-the-job training, enabling them to contribute more productively on-site, and employers will have had the opportunity to determine the ability and commitment of trainees.

5.11.3 The training allowance cost per trainee to the T&EA during a Jobskills Traineeship is approximately £2600 (£40 per week x 65 weeks) plus travel expenses. CITB proposes that this weekly training allowance be redeployed instead as a grant to employers after 26 weeks to reimburse the cost of wages paid for the time the trainee spends 'off the job' in training.

5.11.4 The Jobskills programme requires that all trainees must be employed after having achieved NVQ level 2. This means that with regard to apprentices progressing to the Modern Apprenticeship (NVQ 3), employers are required to facilitate their off-the-job training, through day release, including the payment of wages for that day.

5.11.5 CITB recommends that where existing Government funding is available, this money could be utilized to provide grants to employers, with the aim of reimbursing them for the cost of wages paid for the time the apprentice spends 'off the job' in training.

5.12.1 CITB is concerned that output related funding may compromise the integrity of the NVQ assessment system and there is a risk that candidates who have been awarded NVQs may not be competent to fulfill the needs of the industry.

5.12.2 The Awarding Body is insisting that more job-related evidence should be included in NVQ assessments, which is costly for training providers to operate. Given that there is no additional funding to training providers for on site assessment, it is a fact that this cost reduces the funding available for actual training, as does the provision of Key Skills.

5.12.3 CITB recommends that, over the longer term, emphasis and encouragement must be given to employers to take ownership of the on-site training and assessment process. The achievement of assessor qualifications could be facilitated by the HFE sector and grant aided by CITB.

5.12.4 CITB has a key role to play in encouraging a culture change within the industry towards a more structured approach to training linked to the achievement of industry recognised standards. This is not only relevant to new entrants coming into the industry, but is equally relevant to implementing a culture of lifelong learning for the existing workforce. Achieving this will require greater employer commitment to training and a substantial increase in the number and variety of firms involved.

6.1 Skill requirements exist outside traditional manual areas, for example in site supervision and management roles. Traditionally the source for these occupations has been the tradesman. However as industry continues to fail to recruit sufficient numbers into craft occupations, so the availability of experienced tradesmen will diminish. This has implications in terms of the calibre of new recruits to the industry at supervisory and management level, who are now coming from the ranks of building and civil engineering graduates.

6.2 'Rethinking Construction' identified the need to review, rethink and re-emphasise the importance of training for supervisors and managers. CITB believes it can contribute to this process, by working closely with the Construction Skills Management Register, the Chartered Institute of Building and the Universities and Institutes to better prepare students for supervisory and management roles within construction, for example by facilitating practical site-skills training to meet industry's needs of the future.

7.1 In line with Government learning initiatives, CITB believes that over the next five years there will be a focus on employers taking responsibility for their workforce's skills development and more encouragement on individuals to take responsibility for their own development and changing skill needs throughout their working life.

7.2 To this end, CITB has developed its "Qualifying the Workforce "strategy to encourage and facilitate the industry in achieving relevant industry recognised standards and qualifications such as National Vocational Qualifications, competence certification and assessor qualifications within the workplace.

7.3 Strategically on-site training and assessment is likely to become much more important over the next five years, and this will have major implications for industry taking ownership of assessment, the Board's supporting role and the focus of grants to levy payers.

7.4 The industry also has a need for experienced operatives with transferable skills to meet the demands of the job or changing technologies or material usage. This has implications for upskilling and multiskilling of the existing workforce. The introduction of legislation has also focused employers in some sectors to improve their skills and knowledge. One example is the building engineering services sector, where gas regulations have forced employers to ensure they have a competent workforce by renewing their certification and qualifications every five years.

7.5 Through support from their representative bodies, employers must be encouraged to take the long-term view about the necessity of company involvement in training if they are to meet their needs for people trained to the required standards of competence.

7.6 Improving access to training and certification for the existing workforce could be achieved through on-the-job schemes, supported and facilitated by the HFE sector in terms of day release, evening classes and training for trainers/assessors.

7.7 It is important that employers are encouraged to take ownership of their own company training plan and review it regularly if it is to meet their current and future business needs. CITB offers leadership, knowledge and expertise to employers in order to facilitate them in developing and maintaining their training plan. Over 8000 employees to date have had their training needs identified through CITB's Skills Development Programme. A CITB sample survey of employers carried out in 1999 revealed that 70% of firms completing an SDP had participated in the training that had been identified in their plan.

7.8 There are few barriers in place to prevent companies which do not train from securing work either in the public or private sector. This culture places businesses which are committed to training at an unfair disadvantage. A firm's training record and ability to prove the competence of its workforce should be taken into account when clients award contracts. Firms with training programmes and a competent workforce need to be formally recognised and properly compensated for their efforts.

8.1 There is considerable scope for using IT throughout the industry, particularly at the professional level in terms of procurement, tendering, estimating and so forth. Greater numbers of appropriately trained people at all levels emerging from the education system and from within the industry could also contribute to the future growth and competitiveness of the industry.

8.2 University based research and development might also be able to play a greater part in developing construction specific packages to encourage greater use by an industry which traditionally has been characterised by strongly demarcated disciplines, and has displayed low levels of innovation, IT uptake and exports.

9.1 Labour and skills shortages in the construction industry have received considerable and growing attention in recent years. This is due to the fact that the industry continues to depend heavily upon the adequate supply of a manual skilled labour force.

9.2 Each year the construction industry requires around 1700 new apprentices to maintain a sufficient supply of trained and competent people across the various sectors within the industry. CITB has estimated that if the peace dividend remains, this demand is likely to increase annually to around 1900 new entrants for the next three years.

9.3 Traditionally employers have been able to focus recruitment on the 16-17 year old school leavers pool. However, a combination of changing demographics, the fact that young people are being encouraged to stay on at school and increased competition from other industries, is reducing the size of the industry's traditional source of new entrants.

9.4 The review of the statutory curriculum has the potential to alleviate recruitment problems, in that pupils are now being given an opportunity to undertake NVQs alongside GCSEs. The teaching of vocational skills by schools and training organizations in partnership would give young people a better understanding of career opportunities, better preparation for employment and would enable less academic pupils to participate in real and relevant learning and gain a recognized qualification.

9.5 A change of emphasis is required towards non-traditional new entrants, namely adults and women, to bridge the skills gaps faced by the industry. In this way industry can draw on the skills of the brightest to be effective managers and designers in the professions, and the most technically able to be excellent craft and trades operatives on site.

9.6 CITB recommends pump priming skill shortage occupational areas in partnership with Government, not only in terms of the cost of training but also financial incentives to encourage participation by non-traditional new entrants to the industry and employers.

9.7 There also needs to be greater focus placed on using fast track training approaches, such as Bridge to Employment, New Deal and bespoke programmes for the retraining of adult returners, the unemployed and those made redundant from diminishing industries, such as textiles, shipbuilding and agriculture, to meet the skill and labour shortages being experienced by the industry and which will not be met by the pool of trainees and apprentices alone.

9.8 CITB is working in partnership with the Training and Employment Agency and National Training Organisations in the implementation of fast track training and certification initiatives to address the skills shortage for competent operatives and to support the development and growth of new emerging industries to Northern Ireland, such as the gas sector.

9.9 In this sector the number of permanent employees per company is small compared with other sectors within the UK. Evidence suggests that skills within the plumbing trade, which are complimentary in structure to those in this field of gas appliance maintenance and installation, could provide an initial opportunity for skills development.

9.10 CITB in partnership with GINTO, T&EA and Felden Training Centre have recently launched a Sectoral Development Pilot Project to provide a learning framework for adult recruits to achieve NVQ Level 3 qualification in gas installation and servicing, This project will give plumbing and other employers within the building engineering services sector the opportunity to increase the scope of their business by moving into the gas installation and maintenance field by developing the skills of their existing workforce and by recruiting and training adults and apprentices.

10.1 One of CITB's key strategic objectives is to facilitate the development of standards for training and qualifications in the various crafts and skills within industry.

10.2 The industry is experiencing increasing client pressure for lower costs, shorter timescales, improved safety and less confrontation. One result of these pressures is an increasing demand to demonstrate that the workforce is competent.

10.3 CITB has been at the forefront of encouraging employers to participate in competence-based industry registration schemes. Success in these endeavours should result in industry increasing its take-up of vocational qualifications at all levels and in improving public awareness of the industry.

10.4 The expected growth in demand for proof of competency will provide the Board with an opportunity to develop its role as industry's strategic training body and facilitator of competence based standards.

10.5.1 CITB's own Direct Training Unit exists to provide training facilities and opportunities for the industry, which are not adequately available elsewhere. It has a reputation for providing high quality training, and must continue to review and develop its range of products to meet the demand for training from the industry.

10.5.2 The Unit must consider the strategic opportunities associated with new emerging markets such as facilitating craft training for adult new entrants, supporting on-site training and assessment programmes, preparing graduates for supervisory and managerial roles and the implications on training from new technology.

10.5.3 It must also consider the ways in which it will continue to monitor the quality of training provided to the industry, set standards, facilitate the training of trainers and encourage other training organisations to provide training to meet industry's needs provincewide.

10.6.1 Certification and qualifications that attest the competence of contractors or individuals prior to selection for tender will be of growing importance to the industry over the next five years.

10.6.2 CITB will continue to work in partnership with certification scheme owners to promote the benefits of a certified workforce and individual schemes to clients, employers and the workforce. Promoting these benefits through a variety of media will raise awareness and commitment.

10.7.1 A major priority for encouraging competence and competitiveness over the period of the Board's Strategic Plan will be the development of a common quality standard to which the entire workforce can aspire and which will enhance the image of the industry.

10.7.2 As an Investor in People organisation, CITB demonstrates its commitment to the training values it espouses and acts as an exemplar in training and development for the industry.

10.7.3 Working in partnership with employer bodies and National Training Organisations, the Board will promote Investors in People as the quality standard for construction firms and will encourage employers to achieve Investors in People registration.

11.1 In order to enable the industry to meet its needs for people trained to the required standards of competence, the Board has outlined its strategies to be developed and implemented over the next five years:

11.1.1 In partnership with industry and training organisations promote construction as a career of choice

11.1.2 Facilitate recruitment and retention of suitable people to achieve industry's required recognised outcomes

11.1.4 Where appropriate develop training partnerships with providers to facilitate access to training province-wide

11.1.5 Promote lifelong learning to ensure existing workforce develops its skills to meet the changing demands of the marketplace

11.1.6 Facilitate the development of a fast-track construction route for Government initiatives such as New Deal, Bridge to Employment

11.1.7 Encourage adult entry from other industries via fast-track approaches to training in partnership with industry and training organisations

11.1.9 Advise, inform and assist employers to participate in training initiatives which meet legislative/competitive requirements

11.1.10 Facilitate and promote ownership of training and assessment by employers

11.1.11 Create a grants scheme which rewards achievement & competency through training

12.1 As the Sector Representative Body for construction in Northern Ireland, CITB must support the industry in improving its competitiveness by identifying and responding to the training needs of the workforce at all levels, and by promoting best practice within the industry.

12.2 Over the next five years CITB will endeavour to continue to be the strategic focus for construction training by developing guidance for industry and training organisations. It will strengthen its relationships and partnerships with various awarding/lead bodies, Government and the higher and further education sector to ensure needs of the Northern Ireland construction industry are considered and met.

Craigavon Borough Council welcomes the opportunity to express its views to the Committee and recognises the importance of education in building an adequately skilled and progressive workforce.

Any education system which is to evolve will require to be tailored to the economic, social and environmental needs of the 21st century and will also require the following characteristics:

n Clearly targeted staff development programmes should be implemented to keep staff abreast of emerging industrial practices

n A key aim should be to widen access to all levels and abilities of its students.

Q1A What should the education and training system offer (including university-based R&D)?

It is the view of Craigavon Borough Council that there must be coherence and integration in all sectors of education from primary to higher, linked with economic development strategy eg Strategy 2010 and employment opportunities.

There needs to be a clear role for each sector. Further Education should be the main provider of education and training in economically relevant skills eg Construction, IT, Engineering, Manufacturing, Electronics, Tourism and Hospitality which are vitally important to Northern Ireland's future.

Ease of access to education and training is essential for all who are able to benefit from it with financial support where necessary. All 16-18 year old students in full-time education should receive the financial aid that at present is only available to Job Skill trainees.

Research and Development should be strategically directed at areas of potential growth in the economy. It should be driven by partnerships with government departments involved in economic policy planning, labour market intelligence, skills forecasting and research bodies including the Universities and Further Education Institutes.

Q1B What changes are required in the education and training system in order to meet the needs of the Northern Ireland economy?

There is a need for continued but more substantial links between all the partners involved in education and training. Linkages need to start at Primary Level through to Higher Education so that 'education' and 'training' policies develop in tandem. These high strategic linkages need to be within Government Departments such as DETI, DoE, DHFETE, IDB, LEDU and bodies such as CCEA, NIBEP, ANIC in order to ensure all policies are developed in tandem.

The educational and training capacity of the FE sector should be fully integrated with the inward investment activities of the IDB and ought to become a more central part of the overall package of measures used to attract investment into Northern Ireland.

In the Further Education sector, Centres of Excellence should be identified and adequately resourced. Regarding funding of training for business, there needs to be government financial support where firm partnerships are formed in order to tackle skill shortages. For example, companies of all sizes, would work together in strategic skill partnerships eg engineering, construction, information technology with their local FE Institute to develop generic skills programmes ie multi-skilling for engineering needs. At another level these skills partnerships would play a pivotal role where Councils, Government Departments and IDB are seeking to attract inward investment in their areas.

Funding should be given to establish a Business Unit in each FE Institute similar to the models in the Regional Technical Colleges in the South of Ireland. This would provide a 'one stop shop' for companies or economic development bodies and would give assistant with traditional and tailor made courses.

Q2 What are the main strengths and shortcomings in how this system provides for the needs of the Northern Ireland industry?

The Northern Ireland Education System has an excellent reputation and is held in high esteem throughout the world.

In the Further Education sector, approximately 90,000 People study part-time. This is a strong foundation on which Lifelong Learning may build.

There are many sources of expertise in training and education whether in the private or public sector as well as Personnel and Training Managers in companies.

While many people are studying part-time, they are often required to fund this from their own personal income.

Marginalized groups remain largely outside the Further Education and Higher Education system for retraining. More support in reaching these groups need to be addressed such as ear-marked funding for training small groups.

Groups of long-term, unemployed people may often be attracted to new skills such as IT skills through their children. This might take the form of 'Family IT Club' run at a local Institute. However, DHFETE do not permit Further Education Institutes to enrol children under 16. Hence, parents may not have the confidence to enrol by themselves. Teaching a family IT skills often can be a first and softer approach.

This area will be one of the key growth areas for Northern Ireland in the future. In DHFETE's publication 'A Study of the NI Labour Market for IT Skills' seventy per cent of the 65 firms questioned stated they had difficulty recruiting for all IT categories of staff. This shortage is particularly evident in positions such as graduate project leaders, and managers as well as strategic planners. This imbalance needs to be addressed.

Q3B How can the education and training system (including university-based R&D) provide the IT and communication technology needs of Northern Ireland industry?

At a local level the Upper Bann Institute strives to accommodate the ICT needs of Northern Ireland by providing a high quality core of Higher Education Computing and Electronic Engineering programmes - both full-time (HNDs) and part-time (HNCs). Existing Higher Education programmes can be improved by adding to them industry-based ICT programmes such as those from industry-based ICT programmes such as those from Microsoft Certified Professional, CISCO or Nortel.

Models of good practice should be examined such as that of Fast-track into IT run in Dublin. This is targeted at long-term unemployed people and aims to develop 3500 jobs in the IT industry in one year and works on the basis of partnership with IT companies, Government Departments and all Training Providers - public and private.

Q4 What incentives for training providers and businesses need to be developed to provide training geared to a highly competitive global economy?

Many companies require short, modular and customised training programmes which can be delivered in-house. Unfortunately courses delivered by Further and Higher Education Colleges require a minimum number of candidates to be financially viable and companies will therefore be charged for non-attendance as education establishments will apply a full cost recovery funding mechanism. This acts as a disincentive to companies as they are reluctant to pay. Hence other methods of training provision are required.

Q5 What are your views on skill shortages and how any perceived problems might be tackled?

To address skill shortages Northern Ireland Companies need to put in place incentive schemes for lifelong learning and upskilling for all levels of staff. The Career Development Scheme developed by NACCO Materials Handling Company based in Craigavon is a model of such a scheme.

Companies need assistance in preparing business and training plans. In the local area of Craigavon, recent research in 100 companies indicated a promising outlook with over 70 expecting to expand their business within the next year. However, the same study revealed that 61 per cent had no business plan. This is not a criticism of the companies but highlights the difficulty in identifying future training needs.

n Providing information and advice on specific options relevant to a young person's interests, abilities and to available opportunities. The main focus of careers guidance is the individual's progression within and between education, training and employment.

Informing - providing information about education, training and employment opportunities without discussing the relative merits of different options.

Advising - helping clients interpret information and choose the most appropriate action.

Counselling - help clients discover, clarify and understand their education, training and employment needs and the various ways of meeting them.

Assessing - defining the clients current levels of skill, knowledge and experience on the basis of verbal and written information gathered on their personal, educational and vocational background. Individual assessment tools may also be used.

Enabling - supporting clients in dealing with employers, training organisations and agencies in terms of completing application forms, interview preparation etc.

Advocating - negotiating directly with employers, institutions or agencies on behalf of clients.

Agreeing Action - Agreeing action to be taken to enable clients to achieve goals.

n Careers Officers from the Department provide careers guidance services to young people in schools, FE Colleges and Training Organisations as well as to those 16 and 17 year olds who are unemployed. They also offer a limited service to unemployed adults and job changers.

n Careers Officers are professionally qualified and hold the Postgraduate Diploma in Careers Guidance. There are 97 Careers Officers based throughout the JobCentre network providing information, advice and guidance on specific options relevant to the young person's interests, abilities and to the available opportunities.

n The provision of careers guidance in schools and colleges is facilitated through Service Level Agreements signed by the School Principal and the JobCentre Manager. These Agreements detail the Careers Education programme within each school and the relevant guidance input from the Careers Officer. Each Agreement will differ in content however the range of guidance services will normally include Interest Inventories, Aptitude Tests, Individual Interviews, Class Talks and Group Sessions.

n The Year 12 (5th Form) average cohort in schools is 26,000 pupils. Each year the Careers Service tracks the destination of each eligible school leaver. This year's survey is underway while the surveys for the past three years show the following destination trends:

n Careers Occupational Information Unit (COIU) is a branch of the Department which provides local careers information in N. Ireland. COIU provides an all age information service to all post primary schools, FE Colleges, JobCentres and Training Organisations as well as to a wide range of other agencies and individuals.

n COIU provides advice to anyone establishing or reviewing a Careers Library and supplies information using printed, video and disk/CD Rom media. The unit also acts as a lending library for careers books, videos and resource packs. In the past year the unit has published general options advice brochures in Irish and in Cantonese. The unit has just published a "home produced" N. Ireland version of a GB publication, "Its Your Choice" which is issued to every Year 12 pupil through their schools.

Strategy 2010 has recommended that the current system of careers guidance should be enhanced. In response to this recommendation DHFETE and the Department of Education have commissioned a review of Careers Education and Guidance. The Review Group is made up of representatives from education, training and employment and is chaired by Professor Sean Fulton of Queen's University Belfast. The Review Group is on schedule to produce an initial report in January 2001, based around the following issues:

Similar reviews of careers guidance in Scotland and Wales and the development of the "Connexions" service in England have each brought a new focus to concentrating priority careers provision to those young people facing social exclusion and disengagement from employment education and training. These initiatives have also placed a major emphasis on the development of stronger partnerships and networks.

1. The 1990s saw a period of massive change for further education. In the early 1990s. the three colleges in Belfast were combined into one. Following the Stewart Review, the mid 1990s were taken up with a further set of mergers, affecting many colleges in different parts of Northern Ireland. In total, 26 colleges were reduced to 17. Prior to April 1998, the management of the 17 further education colleges was the responsibility of the five Education and Library Boards (ELBs). Colleges had little autonomy over their staffing and budgets and were subject to the control of their ELB. In April 1998, following the passage of the FE (Northern Ireland) Order 1997 the colleges became free standing incorporated bodies. Incorporation gave the Governing Bodies of the colleges control over their assets, their staffing and their budgets. This was a change of very significant proportions. Colleges in the rest of the United Kingdom had achieved this status almost five years previously.

2. The colleges vary greatly in size and in the diversity of the courses they provide. The curriculum encompasses a wide range of courses developed over the years and is subject to continuous revision to meet the needs of individual students, local communities, and industry and commerce. The FE sector offers a very wide range of courses ranging from basic, pre-vocational training to degree standard.

3. In 1999-00, there were around 24,000 full-time students and 65,000 part-time students enrolled on vocational courses. In addition, there are approximately 60,000 students on non-vocational courses which includes adult basic education, and a wide range of leisure time/hobby courses. The majority of full-time students are in the 16-19 age group while most part-time students are over 19. There has been an 18% increase in the number of mature students (over age 26) in further education between 1997/98 and 2000/01.

4. The incorporation of colleges brought with it a significant increase in resources of over 52% from 1997/98 to 2000/01. The total expenditure on FE in 2001/02 will be around £138 million. This figure includes just under some £118m which goes directly to colleges through the recurrent formula funding mechanism and earmarked funds and some £20m for investment in infrastructure.

Department's aims, objectives and future strategy in respect of policy for Further Education.

5. The Department of Higher and Further Education, Training and Employment has a single aim to, "promote a culture of lifelong learning and equip people for work in a modern economy". This aim extends to the further education colleges.

6. There are a number of documents which have influenced the Department's strategy and objectives for the sector. The publication of the document, "Lifelong Learning: A New Learning Culture For All" in 1999 set the policy direction for the further education sector to:

n develop flexible education and training provision, and provide opportunities for student progression; and

7. The Lifelong Learning Strategy was followed by Strategy 2010 which calls for, among other things:

n better education and higher skills (particularly for the developing knowledge-based economy);

n more collaboration between business and the education and training systems in delivering the skills needed by business;

8. The Programme for Government supports this strategic direction and gives the further education sector a key role in:

n ensuring that all our young people have the skills and qualifications to gain employment in a modern economy;

n enabling people to update their knowledge, skills and qualifications throughout their working lives;

n assisting and supporting the socially excluded to enable them to enter or return to the workforce, or to improve their quality of life.

9. In essence, the Department's role/remit is defined by the FE (Northern Ireland) Order 1997. It sets the strategic direction for the sector, undertakes the strategic planning, provides the funding and carries out an overview of the activities of the sector. It has three main strategic objectives for the sector to:

n support regional economic development and, in particular, to provide the skills necessary for the knowledge- based economy;

n increase participation and widen access to those previously under-represented in the sector;

10. One of the most important contributions the FE sector can make to economic development relates to vocational education and training. The sector has witnessed an overall increase of almost 15% in total enrolments between 1997/98 and 2000/01. Enrolments have risen sharply by over 27% in the same period in the six skill areas identified as areas of skills needs: computing; construction; electronics; hospitality, catering and tourism; manufacturing engineering; and, software engineering. Since 1999, an additional 600 full-time sub-degree places in further education have been allocated in the six priority skill areas with a further 95 places provided for Higher National Diplomas in software engineering. There is no restriction in the number of part-time higher education students and there has been a 21% increase in these students from 1997/98 to 2000/01.

11. The Strategic Investment Initiative was set up to reinforce and extend the existing work of colleges in serving local and regional business industry needs. It provided investment in:

(i) Centres of Excellence in 2000/01 of £2.6m capital and £1.1m recurrent and £1.2m in 2001/02 in recognition of high achieving colleges in the priority skills areas;

(ii) Strategic Restructuring to assist colleges to align their staffing and provision more with the needs of the developing economy; in 2000/01 the Department made available funds of around £1.14m and in 2001/02, £1.23m to further:

n The development of greater collaboration between colleges in the interests of more efficient use of resources; and

12. A Skills Initiative has been in place for two years to enable colleges to enhance their provision at levels 2 and 3 in the priority skills areas by providing incentives for enrolment in these areas:

n £250,000 is being set aside in 2001/02 to pilot innovative approaches to support SMEs.

14. Strategy for Information and Communications Technology (ICT) -The Department has committed £10m over three years to supplement the colleges' own investment. The strategy aims to provide the sector with a modern ICT infrastructure; to increase the level of ICT competence of lecturing staff and to provide learners with the high levels of IT skills demanded by modern life and prospective employers. In particular:

n infrastructure - by September 2002 the sector is working to a target of 1 networked industry specification PC per 5 Full-Time Equivalent students;

n connection of all colleges to the universities Joint Academic Network (SuperJanet) by September 2002;

n all full-time lecturers to have achieved a level 2 qualification by September 2002 to use ICT in teaching and learning;

Since 1998, £300,000 per year has been allocated to enable lecturers spend up to 12 weeks in industry to update their skills and knowledge in their specialist vocational area. To date, the scheme has focused on engineering, hospitality and catering, and software engineering and will extend to construction from September 2001. During the placement the lecturer undertakes a project for the employer and the relationships between college and industry have improved considerably. Currently, the Department is exploring ways to mainstream the scheme and enable also the employers to work in colleges on a reciprocal basis.

n The International Adult Literacy Survey, which benchmarked Northern Ireland against a wide range of OECD countries, indicates that 24% of the adult population in N Ireland perform at the lowest levels of literacy. Improving basic skills is one of the key challenges facing the Department both to promote social inclusion and to sustain economic development.

n Although there is a particular focus on the skill areas needed to support the employment growth sectors, equally important, is the need to ensure that adults have the basic skills in literacy, numeracy and information and communications technology.

n A Basic Skills Unit has been set up within the Educational Guidance Service for Adults (EGSA) and is providing advice on the standards, curriculum, qualifications and tests, as well as qualifications for tutors; the Unit also identifies, promotes and supports good practice in teaching and learning in basic skills among community groups and encourages collaboration between providers;

n A strategy to address the weaknesses in literacy and numeracy among adults will be brought forward for consultation in Autumn 2001. It is intended that the further education sector will have a key role to play in the implementation of this strategy.

n In 2000/01 and 2001/02, over £600k, in total, has been allocated to encourage colleges to establish and strengthen local partnerships inclusive of all major interests such as employers, councils, chambers of commerce, community organisations and education and training providers. The aim of the fund is to drive up demand for learning locally and to provide the infrastructure necessary to meet that demand.

n From 1999, £1.5m has been made available to encourage the colleges to take forward innovative approaches to engage with disadvantaged individuals and groups previously marginalised from educational opportunities.

n Significant steps have been taken to improve disabled access in further education colleges, including: the requirement to publish disability statements; a support fund to assist with the costs of technical or carer support; a higher financial weighting in the funding formula; and capital allocations to improve physical access;

n In the Autumn 2001, the Department, along with the Department of Education intends to bring forward a Special Educational Needs and Disability Rights in Education Bill which will provide enforceable rights to education for disabled people on the same basis as the rest of the UK.

n Ministerial approval for Springvale was announced in February 2000 and the grant conditions for the main campus have been met recently by the University of Ulster and the Belfast Institute.

n The two institutions will develop a campus for around 4,500 students. Building work has commenced on a Community Outreach Centre and a notice will issue shortly in the Official Journal of the European Community inviting tenders for the building of the Applied Research Centre.

n The Educational Village concept breaks with the tradition of separate vocational, community and university provision. Bringing together UU and BIFHE, together with specific links with the community, provides an educational facility which is new to N Ireland. This will effect a synergy which combines further education (including vocational education for those over 16 years), community education, university degree courses and post-graduate research, all on a single site. Many students will begin their courses at Springvale, and move on to other UU/BIFHE campuses to complete their programme.

21. Promoting a more flexible education provision and ensuring opportunities for progression

n Qualifications need to be valued and understood by learners themselves, by colleges and higher education admissions' tutors and by employers. They need to be accessible to all, flexible and quality-assured to maintain high standards;

n Colleges have a key role to play in the development of a National Framework for Qualifications and the N Ireland Credit Accumulation and Transfer System (NICATS) which interfaces with the Qualifications Framework.

Colleges face the challenge of providing a curriculum for all students which meets their needs and aspirations, as well as those of employers and higher education.

n Colleges are key to the implementation of Curriculum 2000 which provides students with a balanced curriculum, breadth of choice across a wide range of vocational areas, important to the economy, key skills in application of number, communication and ICT, and the opportunity to mix academic and vocational subjects. This new curriculum, if implemented correctly, will help meet the needs of business and industry. Colleges, however, face increasing competition from schools wishing to keep their post 16 pupils and many are running with small 6th forms which deliver soft option vocational courses, and are in a position to encourage young people to stay on at school to do them.

Strategy 2010 recommended that "A valued sub-degree level vocational educational programme should be established". Eight colleges will pilot the new Foundation Degrees in conjunction with the University of Ulster and Queens' University in areas relating to information technology and telecommunications. The colleges have had significant involvement with local employers to ensure the curriculum meets their needs.

Under the terms of the Charter for Further Education, the agreed programme of study and the respective responsibilities of the student and the college should be set out in the form of a Learner Agreement. The Funding Working Group also recommended the introduction of Individualised Student Learner Agreements (ISLAs). They ISLAs are a key strand to raise quality. They are a mechanism for the mutual benefit of the student and the college which will focus on the quality and extent of the education experience which the learner can expect. The process surrounding the completion and regular updating of the ISLA will help ensure that students are enrolled on courses appropriate to their needs, aspirations and abilities; that they and their teachers regularly review progress and hence overall retention rates should improve; ISLAs have been introduced gradually to all courses.

n In 1998/99, ISLAs were piloted with full-time students on at least six courses as well as with students with learning disabilities and disabilities;

n During 2000/01 ISLAs will be introduced to all remaining full-time courses and at least half of all part-time vocational courses (over 5 hours per week), with the remainder being included during 2002/03.

To strengthen the internal and external dimensions of quality assurance colleges have developed arrangements for self evaluation. The development of internal self evaluation strategies, procedures and processes which are rigorous and critical is a feature of a college striving for continuous improvement, and is essential for effective college development planning. Self evaluation reports are key aspects of the college's quality assurance arrangements and enable staff and senior management to work together to improve provision and raise standards.

n The procedures and processes of self evaluation require college management and staff to be self-critical against standards reflecting the best practice in further education.

n Self evaluation reports should include evidence from college development plans, annual reports, course reviews, including internal and external verifiers' reports, the views of students, performance indicators and internal quality audits.

n Self evaluation reports should also inform college development plans and the quality assurance procedures across the college.

n From 1999, the effectiveness of a college's self evaluation arrangements form an important part of inspections undertaken by the Education and Training Inspectorate. At least two weeks before an inspection a college is required to provide the Inspectorate with a clear and succinct report on the quality of its provision and the standards achieved by students on each of the areas or aspects of provision being inspected.

n Evaluative comments on the quality of learning and standards and outcomes should be the central focus of the self evaluation report.

n Evaluating the rigour, accuracy and consistency of judgements made by a college in its self evaluation reports is a central purpose in inspections.

n There are comments in published report of the effectiveness of a college's self evaluation arrangements.

25. Paragraph 4 of the FE (Northern Ireland) Order sets out the powers of the Department in relation to further education. "The Department shall have the power to do all that is necessary or expedient for the purposes of the exercise of its duty under Article 3 of the 1989 Order in so far as it relates to further education" In particular, the Department may:

n to others for the purposes of, or in connection with the provision of further education.

(b) establish a new institution of further education in accordance with Article 6;

(c) amalgamate two or more institutions of further education to form a single new institution of further education in accordance with Article 7;

(d) recognise an educational establishment as an institution of further education in accordance with Article 8;

(e) provide for the discontinuance of a institution of further education in accordance with Article 9.

26. As indicated previously, the Department sets the strategic direction for the colleges in line with the Programme for Government. The Department gives the sector strong guidance through a range of methods :

n the annual budget letter from the Department which sets out the terms in which the funding is granted ;

27. All governors are appointed by the Department. In terms of the appointment process the Department follows the guidance for public appointments, including public advertisement and the use of an independent assessor. It is the responsibility of the governors to set the direction for each individual college, within the overall strategic picture, and to maintain a full oversight of its activities including the management of the college. Governing Bodies may, and do seek advice from the Department on a range of issues. The Department has issued formal advice for governors.

28. Responsibility for the management of the colleges rests with the Director and his/her senior staff, overseen by the Governing Body. Colleges own the property and other assets they use, employ their own staff, and are responsible for all the services they require. Responsibility for the nine Government Training Centres transferred to the Colleges in 2000.

DETAILS OF THE FUNDING MECHANISM AND ALLOCATION TO EACH OF THE FURTHER EDUCATION COLLEGES

The FE funding formula has been developed with the full co-operation of the sector. The Formula Funding Working Group, which comprised representatives from colleges and the Department, made its initial recommendations in March 1998 and, following consultation with the whole sector, agreed the formula for implementation in March 1999. Implementation of the new formula has been phased over a three-year period, with full implementation of the new formula from 2001-02. A Formula Funding Advisory Group has been established as a forum for discussing proposed changes with the sector. Any changes to the formula will be the subject of consultation with the sector.

In 2000/01, 50% of the funding distributed to colleges on the basis of the funding formula was allocated on the basis of the Student Powered Units of Resource (SPURS, and 50% was allocated of weighted full-time equivalent student numbers. Each student enrolled in a college on a course over 10 hours duration per annum generates funding units based on a range of factors. The unit of funding is called a SPUR.

From 2001/02, the total formula funding budget to colleges will be distributed by the SPURS formula.

The delivery and study in a further education environment involves three key interconnected phases: recruitment; learning; and, outcome. The SPURS formula is structured around these three phases, and takes into account various factors, including mode of attendance, course subject, age of student, TSN, disability etc.

Funding of colleges is based on the most up-to-date validated student data. However, this means that there is a delay between the end of the period during which the student attended and the allocation of the funding generated. For example, the current year funding is based on the historic student data for the 1999/00 academic year.

Funds are primarily earmarked by the Department because it is an effective way of ensuring that specific objectives are met. A number of funds have been allocated specifically, for example, to support economic development and widen access (see above). Funds are earmarked for staff and curriculum development as are those to take forward the ICT strategy and are distributed in proportion to the numbers of Full-Time Equivalent students enrolled in each college.

THE DEPARTMENT'S ACCOUNTABILITY MECHANISMS IN PLACE IN RESPECT OF HOW COLLEGES OPERATE

29. As independent corporate bodies, colleges are responsible for organising their own financial affairs. To ensure that colleges comply with Government Accounting requirements; seek value for money; and use, the funds made available to them for the purposes intended, the Department has put in place a comprehensive set of financial controls comprising a Financial Memorandum, Audit Code and Accounts Direction. In addition, college principals have been formally designated as Accounting Officers and are responsible and accountable to the Assembly for the proper stewardship of expenditure by the Governing Body.

30. Colleges are required to have their own internal quality assurance systems to monitor and evaluate their performance continually and systematically in order to ensure and improve the quality of provision. The Education and Training Inspectorate provides an external quality assurance for the Department and inspects regularly all colleges and evaluates the curriculum, the quality of the teaching and learning and, the standards achieved by the students, the staffing, management, accommodation and resources. The Inspectorate also provides an indication of the efficacy of the college's own evaluation of its provision.

31. As stated above colleges are required to submit annually a rolling three-year college development plan (CDP) outlining the main elements of future provision and activities in line with Government priorities and underpinned by financial planning. The CDPs are analysed by the Department and the CDPs for 2000/01 - 2002/03 reflect the Departmental priorities of widening access and participation; meeting the skill needs of the local economy; improving quality and raising standards; and ensuring an efficient and effective further education sector. Each year, after analysing the CDPs the Department issues a circular assessing the strengths and weaknesses in the CDP process; and, providing an evaluation of the statistical information provided by colleges in respect of the strategic direction of the FE sector as a whole.

32. The Department may give directions to a college under Article 101 of the 1986 Order for the purpose of remedying any matter referred to, or implementing any recommendation contained , in a report of any studies carried out.

33. In line with the growth in the number of students, there has been a nine percent increase in total staff levels in colleges between 1997/98 and 1999/2000. The Student Staff Ratio has remained constant in the same period.

34. Colleges employ their own staff and are responsible for their deployment. Until this year, Northern Ireland was the only part of the UK to require all full-time and associate lecturers to obtain professional teaching qualifications within three years of taking up post. The University of Ulster has worked with the sector, the Inspectorate and the Department to develop a Post-Graduate Certificate in Further and Higher Education tailored specifically to meet the needs of lecturers in Northern Ireland.

35. The Department does not monitor the absenteeism or turnover of staffing; this is the responsibility of the college management and governance. The sector employs around 1700 full-time staff and as with any large organisation, has from time to time, staffing difficulties. The Department believes, however, that the vast majority of staff at all levels in colleges are dedicated to their students and are professional in how they carry out their work.

THE DEPARTMENT'S VIEW OF THE OPINION THAT 17 COLLEGES ARE TOO MANY FOR THE SIZE OF THE PROVINCE AND THE NEED FOR GREATER FOCUS ON CENTRES OF EXCELLENCE

36. The Department believes that, in the better interests of strategic development and for the more efficient use of public monies, colleges, particularly those situated in adjacent locations, should work together in the planning of curricular provision and ensure that maximum advantage is taken of existing teaching expertise and equipment. In order to help the sector, the Department has made available funds under the Strategic Restructuring Fund (see paragraph 10). This fund will enable greater collaboration between colleges in the interests of more efficient use of resources and to match current staffing to the areas of highest skills needs.

37. The Department would support the view that the development of Centres of Excellence is important. In 2000/01, it received bids from colleges to become Centres of Excellence in the six priority skill areas. The criteria for the assessment of the bids were:

n a high level of participation in the vocational area especially at levels 3 and 4;

n recent published reports by ETI which suggest, unreservedly, a high quality of teaching and learning;

n 3 years of results in the appropriate public examinations which would be regarded as good or better according to ETI guidelines;

n an appropriate spread of course provision within the curricular area, including a wide range of options and additional units;

n evidence of close working relationships with local businesses in the curriculum area.

38. Centres of Excellence, should, by definition, have a very high standard and should be seen as such, not just by students and potential students but, also by industry.

39. An Assessment Panel was established made up of representatives from industry, the Inspectorate and the Department. The Panel recommended two lists of colleges for support:

(a) those bids which were of such a high standard that the colleges could be recognised immediately as Centres of Excellence; and

(b) those bids which had potential for future designation as Centres of Excellence and which should be supported financially to help them strengthen their position.

40. During 2001/02 academic year, an evaluation of the Centres of Excellence will be undertaken by the Inspectorate and may also include representations from industry. No decisions on the extension or further direction of the Centres of Excellence will be taken until after this evaluation.

41. The 1990s was a period of considerable change in the further education sector. Incorporation, in place since 1998, has begun to bed down and, despite some difficulties in some colleges, it is, in the Department's view having a positive effect overall in relation to meeting the Department's strategic objectives. The sector has a key role to play in the social and economic development of Northern Ireland and the current strategic objectives reflect this role. The sector is beginning to address the implications of this role in a coherent and progressive manner. The Department will continue to set the direction and to maintain an oversight of all its activities.

1.1 The Education and Training Inspectorate (ETI) is in direct and unbroken descent from the Inspectorate established in 1832 by the Commissioners of National Education in Ireland.

1.2 Following devolution, the Inspectorate provides inspection services for the Department of Education (DE), the Department of Higher and Further Education, Training and Employment (DHFETE) and the Department of Culture, Arts and Leisure (DCAL). The Inspectorate is the independent professional arm of the Departments.

1.3 The Inspectorate is headed by the Chief Inspector, currently a management team of four Assistant Chief Inspectors, some 56 Inspectors and six Associate Inspectors, drawn from a variety of professional and vocational backgrounds, and with wide experience in particular areas of the education and training service. In addition, in its efforts towards greater transparency, the Inspectorate also includes Lay Persons and Associate Assessors (experienced lecturers, senior teachers or principals) on many inspection teams.

2.1 The key purpose of inspection is to promote the highest possible standards of learning and teaching in Northern Ireland.

n provides the Chief Inspector with essential information to report on the quality, standards and trends across the sector in Northern Ireland;

n provides the Governing Body and the management of a college with an independent and rigorous assessment of the quality and standards of provision, and of the efficacy of the internal quality assurance procedures in promoting improvement;

n enables colleges to compare their performance with that of others offering similar provision;

n provides information to the general public about the quality and standards of provision.

2.3 The Inspectorate implements a programme of inspections across the further education and training sectors, and publishes reports on the quality of provision in individual colleges and training organisations, and on specific aspects of provision across a number of colleges and training organisations, and on specific aspects of provision.

2.4 In FE, there are two types of inspection: extended and focused. An extended inspection covers all of the significant aspects of provision and management is carried out once every eight years. A focused inspection on an aspect of provision is carried out at least once every four years.

2.5 There are inspection visits by individual inspectors to the colleges for which they have district and specialist responsibilities. The district inspector routinely monitors college activities and responses to earlier inspections.

n reports may be on individual education or training organisations or may be based on the findings of a broader study of a number of organisations or services;

n the regularity of inspection has changed over the years: although in FE and training this is a four and eight year cycle, in practice organisations are inspected more frequently than this, for example, a college is visited at least twice each year by the district inspector;

n there are also annual surveys of interest to policy makers, specialist visits, district inspections and pastoral visits.

4.1 Inspection by itself will not raise standards. There must be a will by the organisation to improve. Quality assurance procedures in FE are designed to serve two purposes:

n to ensure that each college monitors and evaluates its performance continually and systematically in order to improve the quality of its provision and the levels of achievement in all courses and programmes; and

n to provide essential information, both qualitative and quantitative, to Government, industry, students and the public to enable them to have confidence in the sector, and to inform decision making and choice at a variety of levels.

4.2 To serve these purposes, it is necessary for the quality assurance procedures to have an internal dimension and an external dimension, and to establish an appropriate balance between the use of quantitative and qualitative indicators.

4.3 The internal dimension is the responsibility of the Governing Body of each college. The Governors have responsibility for developing and implementing appropriate quality assurance procedures which meet the requirements of DHFETE.

4.5 The Inspectorate undertakes a range of inspection activities which provide reports on individual colleges and on aspects of provision across the sector. These inspection activities include an assessment of the efficacy of the college's quality assurance arrangements and an external check of the extent to which these arrangements are improving the students' learning experiences and raising their standards of achievements.

4.6.1 In 1998, the Inspectorate piloted the use of self evaluation prior to inspection in provision at level 3 in four colleges. The Inspectorate published the indicators which they use to assess quality and the sources of evidence. Colleges were required to provide a report on the quality of their provision in each programme at level 3 using the Inspectorate's guidelines prior to the inspection.

4.6.2 The purpose of self evaluation is to improve the quality of provision and raise the standards achieved by students. The procedures and processes of self evaluation require college management and staff to be self-critical against standards reflecting the best practice in the further education sector. The development of a quality culture is required throughout the college to promote a continuous process of improvement. Self evaluation reports should include evidence from college development plans, annual reports, course reviews including internal and external verifiers' reports, the views of students, performance indicators and internal quality audits. Self evaluation reports should also inform college development plans and the quality assurance procedures across the college.

4.6.3 From 1999, the effectiveness of a college's self evaluation arrangements form an important part of focused and extended inspections undertaken by the Inspectorate. At least two weeks before an inspection, a college is required to provide the Inspectorate with a clear and succinct report on the quality of its provision and the standards achieved by students on each of the programme areas or aspects of provision to be inspected. The report comprises three sections:

A. an introduction, which outlines the quality assurance arrangements in place throughout the college including the roles and responsibilities of middle and senior management, and indicates the part played by self evaluation in these arrangements;

B. an evaluation report on each of the courses in the curriculum areas and/or aspects of cross-college provision being inspected. These reports are written using the following section headings:

i. Quality of learning: evaluative comments on the range and quality of the learning experiences provided for students and including reference to the quality of planning, teaching, assessment and support.

ii. Standards and Outcomes: evaluative comments on the standards of the students' work including Key Skills, retention and success rates, and progression.

Evaluative comments on quality of learning and standards and outcomes should be the central focus of the self evaluation report on each area or aspect of provision. In addition, the self evaluation report should contain brief evaluative comments on the impact on the quality of learning and standards and outcomes of the following:

C. An outline of action proposed by the college in response to issues identified in the self evaluation report.

4.6.4 The self evaluation report grades the overall curriculum area, or aspect of cross-college provision under each of the headings above and then provide an overall grade. Grading is based on a four-point scale as follows:

4.6.5 In considering the grades, the programme/course teams consider the degree of match between the quality indicators and the performance descriptors and the actual provision in college. The key importance of the quality of learning and standards and outcomes should be reflected in the overall grade.

4.6.6 Before, during and after an extended or focused inspection, the self evaluation report is an important source of evidence for the members of the inspection team. Evaluating the rigour, accuracy and consistency of the judgements made by a college in its self evaluation reports is a central purpose in extended and focused inspections, and is commented on by the members of the inspection team in oral reports to programme/ course leaders, heads of department/school, senior management and the Governing Body. There are also comments in published reports of the effectiveness of a college's self evaluation arrangements.

4.7 After the completion of an inspection, the members of the inspection team meet to consider and agree their findings. Following this post-inspection conference, the Reporting Inspector and one other member of the team meet the Principal/Director and the Governing Body to convey the main findings of the inspection team.

4.8 As soon as possible after the oral report to the Governing Body, a written report of the inspection is prepared which includes a summary of the main findings of the inspection.

4.9 Within three months of the publication of an inspection report, the Governing Body is required to submit to DHFETE an action plan to address the issues identified in the report. The implementation of these action plans is monitored by the Inspectorate.

4.10.1 In order to help colleges in making judgements in classroom observation of teaching, and also of learning and standards, the Inspectorate piloted the use of Associate Assessors (AAs) (experienced lecturers/senior lecturers) in inspection. These AAs were trained by the Inspectorate and deployed in inspections for up to two weeks in a year. The Inspectorate benefits also from using practising lecturers because they bring additional perspectives and expertise to the inspection.

4.10.2 In January 2001, at least two Associate Assessors were trained in every college according to the Inspectorate's standards.

4.11.1 Self evaluation is being piloted in all Jobskills inspections in 2000-01 with a view to embedding the process from September 2001.

5.1 Since 1998, inspection activities have focused on providing not only an evaluation of the quality of the provision, including the quality of learning and teaching and standards achieved, but also on providing information to the Department to inform policy within the strategic aims for further education:

n widening access and increasing participation to groups previously under represented in education;

i. College Development Plans (CDPs) - from incorporation, all colleges are required to submit a CDP to the Department with detailed plans for the one year and outline plans for the following two years. The Inspectorate has assessed the planning process in each college;

ii. The introduction of the Individualised Student Learning Agreement (ILSAs) aimed at ensuring students are provided with appropriate information, advice and guidance on entry to a course and support throughout the programme;

iii. The use of Information and Communication Technology (ICT) in teaching and learning;

v. The use of the Access Initiative and Collaboration Funds to widen access to learning and reach out to community groups, as well as supporting local businesses;

x. The provision and quality of NVQ level 3 courses in hospitality and catering in FE.

5.2 The Inspectorate also supports the work of the Department through panels and working groups:

n the Assistant Chief Inspector chairs the Working Group for curriculum development across the colleges. Each curriculum project includes a specialist inspector as an assessor to oversee and guide the project as it progresses;

n two members of the Inspectorate worked with the Qualifications and Curriculum Authority to develop the standards for basic skills in literacy and numeracy;

n an inspector was in each of the four project groups to take forward the ICT strategy and the Assistant Chief Inspector is on the Project Steering Group;

n an inspector worked with representatives of the sector to draw up the guidance for CDPs;

n inspectors assess the quality and appropriateness of the applications from colleges to offer higher education courses;

n specialist inspectors for engineering, software engineering, and hospitality and catering chair the committees with employers for the Lecturer into Industry initiative;

n specialist inspectors provided detailed assessment of each of the colleges which applied to become centres of excellence in computing, engineering, electronics, construction, hospitality and catering, and software engineering. One inspector also provided professional advice to the panel in assessing the final bids;

n inspectors provided professional advice to the panel assessing the bids for the Access Initiative funds to widen access to FE;

n inspectors provide advice on all aspects of technical and vocational education, including the implementation of Curriculum 2000.

Findings are based on evidence, gathered at first hand. For example, the report on findings of the provision and quality of vocational courses at level 3 are based on inspection of some 600 teaching sessions and discussions with students, lecturers, heads of department and senior managers.

6.1 In the past three years colleges have focused considerable attention on developing partnerships with employers to help meet the needs of industry.

6.2 The Lecturers into Industry programme has benefited significantly those who have participated in engineering, hospitality and catering and software engineering but it needs to be extended further. A significant majority of staff across all vocational areas have kept themselves abreast of modern developments through internal staff development programmes, external specialist programmes funded by colleges, or through personally-funded staff development. However, their experience in industry needs to be upgraded to ensure that they understand fully current practices and processes in their vocational areas.

6.3 Colleges have introduced a wide range of programmes and initiatives to reach out to groups previously under-represented in further education.

6.4 Most colleges are making satisfactory progress in adding breadth to the programme of individual students with the introduction of key skills for all 16-19 year olds, enabling students to take a mix of units across vocational areas and/or mixing academic and vocational subjects. The introduction of Curriculum 2000 remains a challenge for most colleges. The FE sector offers a wide range of full-time and part-time vocational courses which generally caters well for the requirements of students. The curriculum areas attracting the largest number of full-time students are business and health and social care. However, all colleges have begun to give more emphasis to the vocational areas in the six priority skills areas (computing; construction; electronics; hospitality and catering; manufacturing engineering; and software engineering).

6.5 Since incorporation and the introduction of college development planning and self evaluation, all colleges have given an increasing emphasis to improving the quality of their provision. Colleges have made a good start to self evaluation of individual programmes within their overall quality assurance procedures. As part of quality assurance, most colleges, through the completion of questionnaires, survey the students regularly on their experiences. There is a need for senior management in colleges to support individual programme teams by agreeing realistic targets for student retention, and setting goals for teams to achieve.

6.6 Considerable work is needed to increase the uptake of adult literacy and numeracy and improve standards.

6.7 There has been a significant investment in ICT in all colleges in the past three years. Almost all have achieved a ratio of 1computer to 5 full-time equivalent students. Several colleges have exceeded this.

6.8 There has been an increase in the FE sector of around 50% in the number of students on level 3 programmes over the last five years; from 17,626 in 1995/96 to 26,306 in 1999/2000. The full-time enrolments increased by around 20%, from 9,716 to 11,722, and the part-time enrolments increased by around 84%, from 7,910 to 14,584. Currently, the full-time level 3 provision represents almost 50% of the full-time provision in the further education sector, and about 22% of the part-time provision. Colleges face an increasing competition from schools for students aged 16-19.

6.9 The quality of teaching is generally good and often excellent. In inspections in the past three years, around 25% of the lessons observed were excellent, 54% were good, and 20% were satisfactory. Around 1% of the lessons were unsatisfactory.

6.10 There is an increase in the use of the Internet and CD-Rom for information retrieval by students and staff, the use of ICT in the classroom is significantly underdeveloped. The vast majority of full-time staff have begun to work for the level 2 qualification focusing not only on ICT skills such as word-processing, but the use of ICT in their teaching and learning.

6.11 The majority of students on all courses are well-motivated, and respond enthusiastically in class. Over the period of their courses, they take an increasing responsibility for their own learning, demonstrate good study skills, and produce work of a consistently good quality. They develop a good understanding of the vocational context, display initiative, and many demonstrate good levels of occupational skills both in college and in the workplace.

6.12 The retention rates for the vast majority of full-time courses, for example, GNVQ and national diploma programmes, ranges from 65% to 75%. For the majority of students on part-time programmes, retention ranges between 60% and 80%, from modest to satisfactory. It is significant that in almost all cases, retention on NVQ level 3 programmes is consistently good at over 80%.

6.13 The success rates of full-time students who complete their programmes are, with very few exceptions, good or excellent; they range from 80% to 100%.

6.14 Around three-quarters of the full-time students who complete GNVQ and national diploma programmes progress to higher education, and most of the remainder to employment. Progression for part-time students is good. Students in employment who are successful at NVQ level 3, and national certificate programmes, have strengthened their positions with their employers, and many progress to higher level education and training programmes. There is also evidence that part-time students who are successful in gaining level 3 awards, and who are not in employment, have enhanced their employability considerably.

6.15 Learning support arrangements are in place in all colleges for all students. Once identified as requiring additional support, a student is allocated to a specialist tutor for individual support or attends a class with a small number of other students with similar learning needs.

6.16 Colleges have acted on the guidance set out in the Department of Education's Circular 1999/10, "Pastoral Care in Schools: Child Protection". Staff with designated responsibility for child protection have been identified, and all staff have undertaken staff development to raise awareness of the policy on child protection.

6.17 Leadership and co-ordination of individual programmes are good in most colleges, and are characterised by enthusiastic staff who are committed to the welfare and progress of their students.

6.18 With few exceptions, the lecturers are suitably qualified for the units/courses they teach, and are deployed appropriately. Almost all full-time lecturers and a significant number of part-time lecturers have achieved a recognised teaching qualification, either the Post-Graduate Certificate in Education or the Post-Graduate Certificate in Further and Higher Education. (Northern Ireland is the only area of the UK which requires all its full-time lecturers to have a recognised teaching qualification within three years of taking up post.)

[Based on the inspection of the work of over 800 New Deal participants, and on interviews conducted with tutors and employers involved in New Deal programmes]

7.1 The introduction of the New Deal employment initiatives for 18 to 24 year olds and for long-term unemployed adults, aged 25 and over, has been a success in many significant areas. Across all of the various options and programmes, most of the participants have benefited from good opportunities to engage in vocational training and/or workplace training. Participants working with local companies are reported by their employers to complete their work efficiently, effectively and to a good standard. The work of the majority of participants engaged in voluntary and environmental projects is also valued highly by the organisations and communities they work for. The majority of New Deal participants take pride in their work, and apply themselves to developing practical and personal skills likely to improve their employment prospects. For many who are long-term unemployed, New Deal represents an invaluable opportunity to re-establish a settled work routine and develop or prove their employment capabilities to themselves, and to prospective employers.

n employers are able to speculate in the employment of additional staff supported by the New Deal subsidy without making long-term commitment to providing employment beyond the period of subsidy;

n employers have a prolonged opportunity over the 26-week period of subsidy to observe the qualities and skills of their New Deal employees while training them in the operations of the company;

n in a few cases, employers are able to use New Deal employees to test the market place for new products, services and potential growth, with minimal investment in new staff;

n the 26-week period represents a good test of the attitude and aptitude of the new employee and his/her suitability for sustained employment.

7.3 The automatic referral of individuals by the Social Services Agency to New Deal programmes, and the subsequent sanctions applied for non-compliance, have reduced the extent of claimants "doing the double" by claiming benefit while working. Staff from T&EA and Consortia have first-hand knowledge of dealing with clients who are quite frank about their efforts to legitimise their previous employment under the New Deal programme. This reduction in the local black economy is clearly of benefit to the competitiveness of many small to medium sized enterprises.

7.4 Other options under the New Deal programme, Full-time Education and Training (FTET) and Education and Training Opportunities (ETO), and to a lesser extent Intensive Activity Period (IAP), offer participants the opportunity to benefit from work placements in their chosen vocational area. However, similar to Jobskills, these placements vary in quality and, for the 18-24 year olds in FTET, they do not always complement the NVQ awards that are identified in participants' action plans agreed with T&EA personal advisers. It is unsatisfactory that some employers/industries appear to demand government employment subsidies without accepting the need for commitment to providing training opportunities for participants/new employees in anything broader than the basic skills required for specific tasks in their immediate workplace.

7.5 In general, New Deal has, since its inception, helped identify a ready support of labour for many local industries and employers. As we move closer towards "effective full-employment", the pool of potential employees available from the unemployment register is diminishing. It is appropriate, therefore, that New Deal programmes, in addition to the initial matching of new employees to employers, also provide opportunities for unemployed people to retrain, develop new skills, and increase their employability in order to compete in the employment market for positions that are suitably matched to the skills and aspirations of each individual.

For example, many of the long-term unemployed value the opportunity to make a contribution to a voluntary or environmental project, in turn re-establishing a more normal and active lifestyle through completion of productive tasks of benefit to the local community. It is unreasonable, however, to expect the present New Deal programmes to address the needs of all the long-term unemployed and to 'turn-round' the 'hard-to-help' clients for whom employment remains an unrealistic objective. As numbers on the unemployment register fall, employers need to realise that a hard-core of New Deal participants and long-term unemployed are not job-ready for work without substantial further training. In effect, the personal and social development elements of the New Deal programmes become a more important dimension than it might have been for the more able and more job-ready client.

7.6 Despite substantial efforts to highlight new "in-work" benefits, many of the long-term unemployed remain convinced that they have a more secure financial future on the various unemployment and family benefits. If training providers attached to New Deal Consortia are to address this issue then they either need training in the calculation of these different benefits or they require regular access to advisers who can help clients recognise the financial support and benefits available to less well paid employees. Many clients have a very high and unrealistic perception of the minimum wage they would require to be enticed back into the world of work. While the minimum wage has addressed the lowest wage levels actually paid for a full week's work, for many these pay levels remain well below the level of financial income presently secured by benefit claimants.

Over the period September 1999 - June 2000, the Inspectorate carried out 18 inspections of Training Organisations (TOs) providing training under the Jobskills Programme.

8.1 Since the introduction of the Jobskills programme, the retention rates and the rates of success achieved by trainees in gaining full awards has improved. Retention is poor in about one-third of the organisations, success rates are excellent or good in about two-thirds of the TOs, and satisfactory in the remaining one-third.

8.2 Progression to further education or to employment is good or excellent in about half of the organisations inspected.

8.3 In just under half of the organisations, the trainees recruited had no formal qualifications on entry to the training programmes.

8.4 Induction programmes are well-planned in about two-thirds of the organisations.

8.5 In about one-third of the organisations, there are no effective procedures for initial assessment of basic skills, and the provision for developing basic and key skills is poor.

8.6 The quality of training and the standards achieved by the trainees in their vocational programme are good in around 80% of the organisations. However, additional units or bridging studies should be developed. These units should be offered where trainees, and the companies employing them, wish to plan for progression beyond NVQs at level 3.

8.7 Procedures for monitoring the quality of work-based training are poor in about one-third of the organisations. In about 70% of the TOs, the staff are appropriately qualified, and good leaderships is provided by the management. There is a high rate of staff turnover in about 16% of the organisations.

8.8 The most significant weakness in the management of TOs is the area of reviewing and evaluating the quality of the training in each of the vocational areas. The review and evaluation procedures do not place sufficient emphasis on retention rates, success rates, and the progress of individual trainees.

8.9 Accommodation and resources are satisfactory in approximately 75% of the training organisations. Where deficiencies were noted, these are mainly in the availability and use of information and communication technology.

East Down Institute of Further & Higher Education - Level 3 (Not yet published).

Provision and Standards in NVQ Levels 2 and 3 Programmes in Five Training Organisations

Inspection of Standards and Assessment Procedures in Early Years Care and Education

Scrutiny of Standards and Assessment Procedures in Hospitality and Catering Programmes at NVQ Levels 1, 2 and 3 in Eleven Training Organisations

Survey on Provision, Planning and Quality of Monitoring of Workplace Training by Organisations in the Jobskills Programme

Survey of College Development Planning Processes and Piloting of Individual Student Learner Agreements in Colleges of Further and Higher Education in NI

Survey Report on National Vocational Qualifications at Level 3 in Catering and Hospitality in Colleges of Further Education

Report on Students with Learning Difficulties and Disabilities (Not yet published).

Full-time Education & Training, Environmental & Voluntary Options in the South & East Belfast Consortium

Provision and Standards in a range of individual Training Organisations
(not yet published)

Survey to assess readiness of Training Organisations to undertake self evaluation
(not yet published)

EGSA welcomes the opportunity to respond to the Committee's enquiry. In our response we attempt to draw your attention to the needs of our users and we suggest particular areas where improvement could be made to make best use of existing provision and to improve access to education and training - particularly by those whose participation needs to be encouraged.

"In the past, educational guidance for adults has been seen as a minor and marginal activity .. We believe that this has led to a great waste of resources and human potential and that some of the resources committed to providing courses would have been better devoted to developing a closer match between learners and educational provision. The key to the development of the 'learning society' which we will need if we are to manage the economic and social changes of the next decades, must lie in helping adults to recognise their learning needs and find effective opportunities to meet them, while helping the providers of education and training to recognise and respond to those needs".

Helping Adults to Learn
Unit for the Development of Adult Continuing Education 1985

EGSA is an independent, voluntary organisation which provides independent information, advice and guidance (IAG) to adults interested in returning to learning. While our services are open to all adults, we are particularly interested in those who benefited least from formal education and whose low levels of literacy and numeracy prevent them from making a full contribution to societal and economic development. IAG is the oldest of EGSA's services - dating back to the establishment of the organisation in 1967.

Since 1975 we have provided the Adult Basic Education (ABE) helpline for adults who are seeking assistance with Basic Skills. Two years ago, with funding from the National Lottery Charities Board (NLCB) we expanded the helpline service to become the Adult Basic Education Support Service (ABESS) which provides a support service for learners and tutors and offers a voice to learners through the ABESS Newsletter which also aims to keep tutors and other practitioners informed of developments and good practice in Adult Basic Education (ABE); it encourages networking within the sector and across sectors and it provides support for relevant initiatives such as National Year of Reading and the Brookside and BBC Library and Numeracy campaigns.

n to establish the Basic Skills Unit (BSU) which advises government on a strategy to tack poor basic skills.

n to extend the Information, Advice & Guidance service throughout N Ireland, through the creation of an Information, Advice & Guidance Network led by EGSA. In EGSA's Information, Advice & Guidance Network we will be working to increase the supply of information, advice and guidance for potential adult learners by both increasing our own capacity to deliver services to clients and by linking with partners in colleges, training organisation, community sector agencies and the workplace. EGSA's Guidance Network Area Advisers (GNAA) are based in host organisations but work with all providers of impartial learners in their areas helping them to identify their most appropriate learning options and routes. But they are also building networks of guidance workers who are based in Colleges, Job Centres, training & community organisations and potential partners in community health, rural and work-based settings with whom to share guidance expertise, national standards of quality in guidance and access to EGSA's comprehensive information base.

By providing Information, Advice & Guidance for adults, we contribute to the human capital dimension of the economy, and have a role in enabling adults to make best use of learning opportunities, thus improving their individual capability to:-

Evidence suggests that those who benefited least from early learning are least likely to volunteer to return as adult learners. The benefits of Information, Advice & Guidance when delivered in a user centred manner are to strengthen and enable individuals whatever their role in the economy to become confidence learners with understanding and ownership of their reason for learning. Information, Advice & Guidance are central components of lifelong learning.

Since June 1999, in partnership with Broadcasting Support Services (BSS), we have been operating the Learndirect helpline for Northern Ireland.

The other way in which EGSA is making significant contribution to the Lifelong Learning agenda is as a funding body in EUSSPPR. Since its establishment in 1996, EGSA's Project Funding Support Unit (PFSU) has allocated approximately £5m to projects throughout N Ireland. Projects funded through EGSA under the Employment Sub Programme fell into three categories:-

The aim of the organisation is summarised in the phrase used as EGSA's "strapline" - Connecting Adults With Learning. By connecting adults with learning, EGSA makes a strong contribution to the promotion of social inclusion and the development of the N Ireland economic base.

EGSA's services are widely available and it is difficult, therefore, to neatly categories our users. While many are unemployed, their qualification base ranges from none to postgraduate or professional qualifications. A large number might be classed as under-employed; others are employed in short-term, insecure posts. Many of our users are interested in learning for reasons not related to employment - eg to help them understand and assist with, their children's school experience and curriculum or as a means of reintegrating in society following a mental health problem. While learners with these particular motivating factors may not initially be interested in employment, they may at some future point - and it sufficiently encouraged - be prepared to join the workforce so it is important that the Committee pays attention to their needs as their potential contribution cannot be underestimated.

Just as there is a wide range of users and motivating factors for learning, there is also a need for a wide range of learning provision and a corresponding difficulty in categorizing it.

However, there are common needs which, if satisfied, could make a major contribution to widening participating in learning and to the role of learning in N Ireland's societal and economic development.

Research has shown that the major barriers to learning can be summarised as follows:- Time, Cost, Lack of Appropriate Information and Advice, Lack of Confidence and Inconvenience.

Initiatives in the Lifelong Learning agenda currently underway will make a significant impact to remove - or at least lower - those barriers. However, these need to be supported and sustained. We ask the Committee to pay particular attention to the following:-

1) There are many barriers, including attitudinal, to adults who need help to improve their literacy skills, but cost should not be one of them. We suggest the desirability of support for Basic Skills provision, to make it free at the point of use.

2) There is an issue of sustainability for the work of small voluntary and community based organisations which support adults at local level, and which provide accessible first stage learning opportunities. The combination of EGSA's IAG Network as indicated on page 2 and the learndirect helpline should clarify learning choices and demystify the "learning maze" of courses, qualifications and providers. IAG Network membership will include statutory learning providers, community based organisations - which include learning among their services, eg Taughmonagh Community Forum, Magherafelt Women's Group - and individuals and organisations whose primary function is not the provision of learning, eg rural community associations, local enterprise agencies. Many of these are providing access points for potential learners but, due to lack of secure funding, much of the good work they have been funded to carry out under, for example, EUSSPPR, will not be sustained. We urge the Committee to recognise the valuable role played by such organisation in the provision of education and training.

3) Unemployed learners should not be disadvantaged. ILAs will make a significant contribution to alleviating "cost" problem and the student finance review will, we hope, include measures to assist adults to overcome the problem. We draw Committee's attention to those adults who are engaging in formal learning while claiming Jobseekers Allowance or Income Support: closer co-operation is required between the relevant government departments to protect learners' eligibility for benefits while improving their employment prospects through study and the acquisition of qualifications. Others experiencing problems are those who are unable to afford to complete the National Vocational Qualifications they began under New Deal once they become unemployed.

4) The developing links between providers of learning and those concerned with employment and economic development are crucial. Accurate information about skills shortages should be widely available and should be circulated to learning providers and to those whose role is to support and promote learning. We believe there is value in greater co-ordination between the expectations of employers and the provision of training opportunities through Government programmes.

Closer co-operation between providers and employers would be mutually beneficial and we believe that employers should be given every encouragement to develop the potential of all their workforce.

Sharing of information and expectations will assist providers to tailor courses to meet demand: eg at present demand is high for courses which offer HTML & Java programming. There is now good potential to work closely in vocational areas on curriculum development drawing on the strengths of government, FE Curriculum development, the world of employment, learning providers and services which guide and advise potential adult learners.

We hope that our comments will be helpful to the Committee's enquiry. We welcome the opportunity to meet the Committee and to provide any assistance to members in their consideration of this and other issues.

WRITTEN SUBMISSION BY:
EDUCATIONAL GUIDANCE SERVICE
FOR ADULTS (EGSA) - BASIC SKILLS UNIT

The Basis Skills Unit welcomes the opportunity to respond to the Northern Ireland Assembly's Committee for Higher and Further Education, Training and employment consultation on Education and Training for Industry.

Established in 1999 within the Educational Guidance Service for Adults (EGSA), the Basic Skills Unit acts as an advocacy and advisory body to promote and develop quality basic skills learning opportunities for adults. One of the key developments in the Lifelong Learning Agenda, the Unit works closely with other initiatives including New Deal, Ufi / learndirect and EGSA's Information, Advice and Guidance Network.

The Unit promotes and raises awareness of the needs of adults with literacy and numeracy difficulties. It provides support to practitioners and providers and acts as a funding body for developing basic skills learning opportunities in the voluntary/community sector.

Guided by the Basic Skills Committee - a sub-committee of EGSA's Management Committee - under the Chairmanship of Richard Sterling, Chief Executive of Coolkeeragh Power Limited, the Unit has provided Government with a strategic framework for immediate action. The Basic Skills Unit has also recently published the 'Raising our Sights' document, which clearly sets out a long-term strategy for tackling the poor levels of literacy and numeracy amongst our adult population. (Copies of the document are enclosed with this response.)

Vision: To make adult basic skills a key priority for everyone in Northern Ireland

In the Basic Skills Unit's response we will attempt to draw evidence from a range of sources including the 'International Adult Literacy Survey' date, 'Strategy 2010', the 'Final Report of the National Skills Taskforce' and the 'Report on In-Company Training, Responding to Ireland's growing skills needs' amongst others.

Some 24% of the adult population aged 16 - 65 were found to be performing at the lowest level of prose literacy ability as defined by the internationally agreed measurement instrument of the International Adult Literacy Survey (IALS). Whilst not significantly different to levels in the United Kingdom, the Republic of Ireland or the United States, Northern Ireland fared badly in comparison with other countries including Sweden and Germany.

By no means a homogenous group, adults with basic skills difficulties are engaged in a range of everyday life activities. Whether in work, seeking employment, economically inactive or within our student population, the Adult Literacy Survey in Northern Ireland found statistical evidence of poor levels of literacy and numeracy attainment. Some 19% of adults within our workforce and a further 36% of the unemployed performed at level 1 - the lowest level -in the document literacy scale. In real terms, some 48,000 adults within our workforce have difficulty in understanding and extracting information from a batch order, a memo or indeed a simple graph.

"Illiteracy carries economic costs as well as personal problems. The report 'Literacy and Training and their Impact on the UK economy' by Ernst and Young, suggests that illiteracy costs business and Government £10 billion a year."

Poor levels of literacy and numeracy disadvantage individuals in accessing and contributing to the socio-economic benefits that can be obtained within a community. Those with poor levels of basic skills are most likely to be in the lowest income brackets, in receipt of social security benefits, unemployed and with lower levels of educational achievement. Adults with basic skills needs are not only participants within our workforce but they are also consumers within our economy. In a new era of peace and prosperity in Northern Ireland it is all the more important that everyone has the opportunity to have a stake in our community and to share in its future growth. The stabilising economic climate and continuing inward investment provide opportunities for greater participation in our workforce. The impact of globalisation and the emergence of the knowledge-based economy underpin these aspirations.

'A well-qualified workforce is a key determinant in attracting inward investment, promoting innovation and fostering indigenous economic growth. This is increasingly the case as modern economies move towards "knowledgebased" industries' (Strategy 2010, 1999).

The e commerce revolution and the growth of tourism, financial and personnel services inevitably demand further skills of our workforce. Greater emphasis on communication and numeracy is inevitable and people are required more and more to utilise and apply these skills. The IALS survey alluded to this in its main findings when it stated:

'Even in those occupations with poor average proficiency levels on the three literacy dimensions, substantial proportions (a third to a half) of workers were regularly required to undertake activities that required reading skills'.

What is even more striking is that the increased usage of these skills helps to improve and enhance an individual's proficiency. The adult literacy survey went further to suggest that:

'Generally, those that reported engaging in literacy activities at least once a week as part of their job demonstrated higher literacy skills on each dimension than those who reported engaging in these activities less frequently', (IALS, 1998).

Literacy and numeracy skills are the essential building blocks that enable people to engage and progress with learning, they are the essential skills that help people access jobs and improve their prospects when in employment. Getting a job and the prospect of better employment are the main reasons that adults cite when seeking information about basic skills learning. The Basis Skills Agency for England and Wales qualified this fact in their recent survey into what motivates adults to seek basic skills. The MORI poll highlighted that 17% of adults would take up a learning opportunity if they could get a job and a further 13% to perform better at work.

The unemployed adults of today will increasingly become the employed workforce of tomorrow. Greater co-operation between agencies that cater for the training of the unemployed and employers is imperative in ensuring that adults receive consistent learning opportunities. Access to basic skills learning when an individual is unemployed is limited and insufficient and quite often ceases if an individual secures employment. Only 6% of those participating in adult basic skills provision in 1999/2000 were in New Deal programmes. The voluntary/community sector successful in engaging those most disadvantaged experienced major upset as funding cycles came to an end and provision was markedly lower than in previous years.

Throughout the past year the Basic Skills Unit, in association with a number of organisations and agencies, carried out widespread surveys on the landscape of provision within Northern Ireland. The baseline figure of participation within adult basic skills programmes within the last year was 5500, a far remove from the 250000 adults that require help. The surveys also revealed that basic skills provision is patchy; it lacks coherence and co-ordination and is constrained by the unstable funding culture that prevails in Northern Ireland.

'Good standards of literacy and numeracy are increasingly becoming important for jobs where they were not previously required. Significant numbers of those in the workforce, and of new school leavers, have low levels of literacy and numeracy. This will restrict the capability of many companies to improve their performance.Lower unemployment levels mean that they become an issue for a considerable number of newly employed people', (Report on In-Company Training, Responding to Ireland's growing skills needs, Expert Group on Future Skills Needs, 2000).

A small-scale research of some 1700 workplaces undertaken for the Basic Skills Unit by Envision consultants, through the assistance of Business in the Community, found that 71% of employers did not offer basic skills training of any kind. Closer inspection of this statistic did not reveal a 29% picture of provision but rather a lack of understanding and confusion as to the nature of basic skills learning. Alarmingly a high percentage of employers screened out any potential basic skills difficulties and a further 47% did not think it necessary to offer basic skills training of any kind. Of the 20% return figure from the Envision survey some 91% of returns came from the SME sector. The owner/manager business will increasingly become marginalised if flexible provision is not catered for.

A community's endowment of skills and its level of investment in education and training are important factors in determining its employment growth over time. Clearly the issue of awareness raising and building the capacity to deliver should be immediate concerns for the Committee. Opportunities for undertaking basic skills learning within the workplace are scarce and often inhibited by a lack of funds and commitment by some employers to deal with the issue. The capacity of the trade unions in their role as advocates for learning needs to be enhanced. The success of Unison's Return to Learn programme and NI ICTU 'Bargaining for Skills' project have re-engaged hundreds of learners and advocates for learning back into basic skills learning.

Champions of basic skills need to be sought and providers of training need to adopt a more flexible approach to working with industry. Partnerships such as Moy Park Limited and Upper Bann Institute of Further and Higher Education provide us with models that can be developed and shared with other industry leaders and colleges. Of course further research into the effects and impact of basic skills learning needs to be addressed. Exemplars of workplace basic skills learning initiatives need to be evaluated effectively to ensure that they are making a difference.

If adults are to sustain and further enhance their literacy and numeracy skills they need to have better access and consistency of opportunity throughout their working life. It is clear that improving the basic skills levels of our adult population is not a quick-fix solution. It will require a number of agencies working together to achieve the same aim. We must take cognisance of the fact that it is not only access to provision that inhibits basic skills learning but also access to free entitlement and appropriate information and advice. Quite often a lack of information or clarity about the plethora of learning initiatives acts as a barrier to the motivated adult and/or employer. The National Skills Task Force clearly drew attention to these issues by enshrining basic skills and information, advice and guidance within its six goals. These included:

'To identify and anticipate better the evolving skills requirements of employment, and ensure that effective information, advice and guidance enables individuals and firms to make informed choices about learning which better match those needs over time;

To ensure that everyone has the opportunity to acquire a sound foundation of the basic skills of literacy and numeracy, key skills and technical knowledge and skills, which equips them properly for working life and widens opportunities for further learning and economic mobility'.

Local initiatives such as EGSA's Information, Advice and Guidance Network play a crucial role in providing appropriate, localised advice. National initiatives such as Ufi / learndirect offer great potential through free entitlement to information, communication technology mediated basic skills learning as well as accessible information about learning opportunities. As information and communication technologies become ever more pervasive within our workplace, the number of jobs that can be undertaken without effective literacy and numeracy skills is likely to fall. The Committee needs to ensure that these initiatives are built on and maintained within the information age.

By way of conclusion the Basic Skills Unit would like to stress some of the issues that have been raised in this response. In Northern Ireland we have invested a lot of finance, time and energy into creating a culture of lifelong learning. There are already a number of successful models and innovative approaches that have been developed over time in support of adult basic skills. The infrastructure exists but already requires development of its capacity to respond to this serious problem.

n What is clear is that the landscape is totally insufficient in addressing the 24% of the working age adult population who are performing at the lowest level of literacy and numeracy ability.

n Clear targets need to be set in association with industry to address the 19% of those at level one within the workplace.

n Greater consistency, coherence and co-ordination could secure a continuum of learning opportunity from unemployment through to employment.

n There is a need for further research into and development of effective models of workplace basic skills learning.

n We must maximise the potential of information, communication technologies especially in engaging the micro business.

n Access to free entitlement to learn and access to independent information and advice on learning are prerequisites in ensuring that the barriers or adults are removed.

n Promote the culture of a literacy and numeracy rich environment for all our adults.

The 'Raising our Sights' strategic document published by the Basic Skills Unit sets out a clear framework for work in this area to develop. In addition the Workplace Basic Skills Sub- Group of the Basic Skills Committee will be submitting a strategy to Government in the near future detailing a clear framework for tackling this issue in the workplace. These two documents support the areas that have been raised in this response and the Basic Skills Unit would welcome the opportunity to meet with the Committee to discuss the issue further.

A business leader quoted recently said that some 80% of our working population today would still be in employment in 2010. If 19% of those in employment today have not even attained the basic fundamental skills of reading, writing or number we are in serious danger of undermining our economic growth and global competitiveness. the contribution that improved literacy and numeracy skills have in creating greater social cohesion and inclusion is clear. The challenge to Government is to ensure that immediate action is taken in our workplaces and with our learning providers to raise the importance of this issue and to raise our sights to a more just society where basic skills is at the forefront of Government policy.

Speaking at the Basic Skills Unit's 'Raising our Sights' launch, Dr Sean Farren MLA encapsulated this very issue when he said:

"Raising our sights is about taking us forward, about making a difference. But it will not happen on its own. We all need to work together to make it happen. That includes ensuring that basic skills is a cross-cutting issue that is firmly at the heart of the work of this Government".

ROLE AND CONTRIBUTION TO EDUCATION AND TRAINING FOR INDUSTRY IN NORTHERN IRELAND

1. Enterprise Ulster has been involved in working with the long-term unemployed since 1973 and more recently in the New Deal initiative since its inception in April 1998. There are a total of 8 main area offices and 4 sub offices in the region - 2 of these being Lead Partners in New Deal and the rest being involved as option providers.

2. Throughout the province, Enterprise Ulster's training programme provides training opportunities for an average of 1000 unemployed people per year. It is largely geared towards the provision of work experience in conjunction with a relevant qualification but also provides information and guidance about interview skills and job applications.

3. Until recently, Enterprise Ulster had been restricted to providing training in the public sector but this has now been widened to include the private sector industries - this enables Enterprise Ulster to provide training across the board and to attract a wider range of individuals (and organisations).

4. The training opportunities vary according to each area office and the range includes childcare, administration, retail, horticulture, sports and recreation and greenkeeping. Most of the offices have either Mobile Squads of construction workers or Community Project teams who provide training in painting and decoration skills attached to them. As well as offering training these teams also provide a service which benefits the community, for example, completing painting and decorating work for disadvantaged groups or charities. In addition to these teams there are Workshops that provide training in joinery, motor vehicle maintenance and engineering production. These are based in Belfast and Londonderry.

5. Amongst the participants on Enterprise Ulster's training programme, there is a high percentage of women returners who want to either refresh their existing skills or to gain new ones. This group of people is not specifically targeted by any other training programme but because they are a highly motivated group of individuals, Enterprise Ulster enjoys a high success rate of people passing qualifications and of numbers into employment.

6. At present, Enterprise Ulster, Coleraine is becoming an accredited centre to offer basic skills assistance. With 1 in 3 of the adult population having difficulties with literacy and numeracy, and especially with the introduction of New Deal, it has been found to be a necessary and natural progression for the organisation. We hope that this assistance will further provide individuals with the skills that will make them more employable and therefore raise self-esteem and confidence.

These comments address the areas of enquiry where you have asked for a response.

a. Agri-food is a majority industry in NI and critical to supporting rural development. The food and drink processing sector, put in the context of the whole manufacturing sector of NI, is 23% of total sales, 17% of external sales, 9% of exports, 18% of total employees. (DARD)

b. Severe skill shortages are emerging in GB, particularly at graduate level. This problem is less acute here, but it is starting to become a problem. This should be considered when prioritising retraining and reskilling to meet the demands of industry.

c. There is an opportunity to become a centre of excellence for food education, but there is a need to promote this at school level. Higher level education institutions have well developed facilities for their research and teaching resources but need to attract more students to maximise the potential. An emphasis at school level is recommended.

d. We need to reinforce the message that the food industry is "not a sunset industry". It has been said, correctly, that, "there are no low technology industries, only low technology companies". The growing, competitive companies in the sector merit recognition for their success and as the basis for satisfying careers.

e. France is an excellent model. Their agriculture university sector produces multi-skilled, competent young people, who have gained experience on 'sandwich' courses.

2. At non-graduate level, there is a need for improvement in the following areas.

a. Literacy and numeracy. Various surveys and reports illustrate the unsatisfactory performance of a significant number of young adults who have recently completed their full time education. We enclose a separate briefing paper with our experience in this area.

3. We should encourage partnerships with further education colleges. Their record of working with industry is commendable and should be extended. There are funding issues here and this sector deserves more priority in the allocation of resources.

5. An international model should be used, where the best is taken from each model:

b. German for vocational skills, especially engineering, building on our further education college base and industry links

c. France agriculture university sector model, with multi-skilled, competent young people, who have gained experience on 'sandwich' courses.

6. Incentives to training providers, business and industry. The number of students in formal training is declining while vocational training in the workplace is on the rise. NVQs are a widely accepted part of industry culture. Industry has adapted to the concepts of life-long learning and continuous professional development. Industry bears a significant cost burden in providing education and training for employees. It is important that government supports these initiatives to ensure their continuation.

7. Literacy, numeracy and communications are very important aspects of our industry which in the past have either been taken for granted or neglected. Moy Park has identified various employees, even those who recently completed full-time education, who have considerable literacy and numeracy problems which have effected their ability to perform various tasks. Each operative's literacy and numeracy is now tested when they join the company. Where it is necessary they are offered help to improve. When considering the high 'average' level of education in Northern Ireland, frequently the 'equity' of this distribution is overlooked where a section of the population does not have the core skills of literacy and numeracy.

8. During the initial introduction of NVQs one person came to the attention of training staff when he could not, as part of a group, answer the written questions in a Health and Safety unit. Although provision is made within the NVQ system for people with literacy and numeracy disabilities the embarrassment and stigma remained with this eighteen year old. The plight of this person drew attention to the many others within this age bracket whose literacy problems, although not chronic, were noticeable and for them, embarrassing.

9. Some of the tasks which operatives have had difficulty with in the workplace include: counting the number of pieces put into a bag; identifying letters of the alphabet; identifying days of the week.

10. Literacy includes the ability to use 'printed and written information to function in society'. Operatives are required to perform basic yet critical tasks which include reading labels, counting the correct number of items, weighing ingredients, understanding dates for 'best before' labels, etc. Whenever operatives are unable to perform these tasks due to numeracy and literacy disabilities they can produce results which have an adverse effect on production, or product safety. Moy Park needs to ensure that operatives are suitably skilled for their job and are employed in the areas appropriate to their skills.

11. To counteract the problem of literacy and numeracy disabilities Moy Park sought through the Adult Learning Centre based in Tullygally Primary School the means to alleviate this problem and try to help those who had indicated their willingness to learn. Currently Upper Bann Institute is providing the tutors. To date, five Moy Park staff have completed their CGL 9281/02 basic certificate which enables them to identify where the problems are and how they can be eradicated.

12. The introduction of the ALBSU tests at the preliminary induction has helped identify any problems and allow the operative to be placed in a job suitable to their academic ability. At present a qualified teacher is used to help our volunteer pupils. The small classes of one or two people last for one hour per week. All sessions are strictly confidential and are based on the individual's requirements.

13. Currently two tutors are provided full time for 4-6 hours per week for day shift operatives. The initial literacy and numeracy training has now been enhanced with the addition of IT training. Night shift does not yet have this resource but it is hoped to extend the programme to include night shift in the future. The programme is developing and two dedicated, private rooms have been made available for tuition.

14. The goal of surveying operatives is to ensure that they are suitably skilled for their job and employed in the areas appropriate to their skills. As they training programme demonstrates this is not used in the recruitment process to remove candidates of a particular skills level. The method is used to assess operatives after they commence employment.

15. The ultimate goal is to provide a facility for everyone with a need in any communication field, ranging from literacy to IT knowledge, and further if necessary, to encompass oral expression and improve disposition and confidence.

16. Since its establishment, numbers of interested people have increased from three to 30 plus, with more interested in IT training. The programme has now been extended to the Moira factory.

17. One of the people who has benefited from the training has progressed from having literacy difficulties to completing an NVQ. This demonstrates their determination and potential for success.

18. Moy Park conducted a survey of all operatives under the age of twenty who have commenced employment between 1 June and the end of November 1998 to include a sample of operatives who had recently completed their secondary education. This survey measured skills in literacy and numeracy. Their basic skills competency levels were interpreted using the ALBSU testing method. This sample included 75 employees.

19. Test scores are banded into 4 categories ranging from A (high achievers/at or above Level 1), B (above average), C (average) to D (below average/literacy disability/below Foundation Level). Grading the results A to D simplifies the scores to make them easier for managers to interpret when they consider where to use each operative.

20. Scores were listed separately for reading and numeracy. In the Reading Test 9 operatives (12%) scored in category D. In the Numeracy Test 9 operatives scored in category D.

21. In total, 5 operatives (6%) were in category D for both the Reading and Numeracy Tests.

22. Ten operatives (13%) have been identified as having the greatest need for help with their literacy disability as they scored D in Reading, Numeracy or both. These operatives scored in both category C and D in the Reading and Numeracy Tests. Outside this group of 10, only 2 others scored in category D (for Numeracy), but their scores for Reading were in category B.

23. The standard of recent school leavers is such that 10 of 75 tested are typically not able to perform tasks such as reading labels, counting the correct number of items, weighing ingredients, understanding dates for 'best before' labels, etc.

24. For operative to be in the bottom category for both Reading and Numeracy, having recently left school, shows that the system has failed these people.

25. While the 'average' within Northern Ireland compares favourably with other regions using various measurements, in terms of the 'equity' of distribution, there remains a significant section of the population without the core skills of literacy and numeracy.

26. As highlighted in a Training and Employment Agency publication, 'What the International Adult Literacy Survey Means for Northern Ireland', the main problem is that a high proportion of adults in Northern Ireland are found in the lowest scoring group. The view of Terry Morahan, T&EA, is strongly endorsed, that 'whilst, improving average literacy scores should be an objective, even more important is a reduction in the proportion in the lower categories'. Furthermore, this report supports his opinion on the strong link between social exclusion and low scores.

27. Barriers to Take-up - There is a psychological barrier to overcome for people to attend classes after they have been in the company for a while. They are less likely to become involved in training if it is not initiated until some months after they commence employment. Trainers have found it is better to start any tutoring as soon as possible after assessment.

28. Information Technology - Arrangements must also be finalised for the introduction of basic IT as this is now essential to efficient and effective production within any working environment, and, given that a high percentage of our employees are within an age group where this technology was not part of a school curriculum, this should prove advantageous both to the person and the employer.

29. We would encourage education policy makers, and others with influence to act on the body of research which demonstrates the higher return on investment in education in students from disadvantaged backgrounds than advantaged ones, as mentioned in the T&EA report.

This brief paper summarises aspects of the NI education system as viewed from a Business perspective.

The paper recommends significant changes to educational thinking as a whole and in particular with reference to so called vocational education and Further Education.

There are no clear empirical data to link national economic wellbeing directly with education levels, once a basic threshold has been exceeded. For example, the USA does not top the international education league table, but it is an economic superpower. Experience, however, would suggest that, increasingly, a combination of a supportive entrepreneurial culture and relevant knowledge and skills must be major factors for economic growth, in this century. "Learning is the key to prosperity - for each of us as individuals, as well as for the nation as a whole" (Ref 1 ).

The F.E. sector, of all the constituent parts of the total education system, possibly has the greatest need to change and possibly has the greatest potential for short and medium term impact on economic performance.

Further Education is part of an education system which has neither breadth nor balance and which is very narrow in its definition of relevance, success or achievement. Why this state of affairs has evolved (surely not designed) is for others to explain but certainly society and history have played their part, together with the "dash for a degree" culture of the past decade.

Led by successive governments, more degrees (any degree, any university) seem to have become the goal of education for all. Anything different is less and this value judgement infects the entire system. Nationally, university funding is set to rise by £1bn per annum towards the Prime Minister's target of half of all 30 year olds in higher education by 2004 (currently 43%).

The paradox has, thus, been created whereby "higher" level qualifications of questionable relevance and dubious value in personal and societal wealth creation terms, have been given more esteem throughout the education system than the relevant skills, competencies and qualifications which industry, commerce, the economy and indeed most workplaces really need, at all levels.

There is an argument to say that this value system and its associated structures and qualifications have contributed to N. Ireland's relatively poor record on economic performance, productivity and unemployment. Matched Plant studies between N Ireland and Germany ( Ref 2 ) conclude that the significant productivity disparity is largely due to Germany's technician level training.

Our educational value system has caused great tensions in society between the academic "haves" and the vocational "have-nots". It has led to significant personal underachievement and disillusionment for many young men (in particular). 58% of the employed population in N Ireland do not have a level 3 qualification - the minimum to which the Kennedy report believes people should aspire (Ref 3). As many as 200,000 people in N Ireland have no or few formal qualifications and are powerfully represented amongst the unemployed and socially excluded ( Ref 4).

However, one most surprising aspect of this skewed system is that, far from seeking to create balance and breadth and to differentiate itself from academia, the vocational sector (secondary schools, FE colleges, etc) has attempted, and has been encouraged, through funding, to occupy much of the same academic ground as the grammar/ university sector.

The entire system has, therefore, become largely undifferentiated, vocational education being the poor achievers' version of an academic education. Grammar schools, Secondary Schools and F.E. colleges actually actively compete for the same students, rather than offer real choice of very different experiences and outcomes to very different students. I suggest that, in a skills limited economy like N Ireland, there are more relevant outcomes than the Prime Minister's target, which might just be better for individuals, for society and for the economy.

In summary, N Ireland needs to develop a differentiated, clearly focused, clearly structured, high quality system of vocational education from the age of around 14 and including a strong FE sector. This is and will increasingly be valued by employers, by participants, their parents and their peers, because it will be relevant and it will be grounded in outcomes as defined by personal and economic needs. Parity of esteem will follow.

The education system is designed by the people who work in it. Its success measures are largely internal and self-referential. "Domination by subjects and statements of input make it a tool for the producers, not the consumers, of education"( Ref 5 ).

The strategic change of balance to a well-differentiated vocational education stream will not succeed unless it is accompanied by a major attitudinal and value system change by educationalists themselves. The focus must shift to outcomes valued by the customers and stakeholders in education, not the producers, but the students, employers and wider societal stakeholders.

For example, we teach French probably because we have French teachers. Spanish, German or even Chinese would be more useful. We teach Business Studies although Business places limited value on these qualifications. Largely, we impart knowledge rather than develop personal skills and competencies because knowledge is easier for educators to deliver and assess. We favour academic depth and rigor rather than the breadth and relevance, which work demands, because educators own the value system.

For example, of the 42,483 part time NVQ enrolments in FE in 1997/98, 12,342 were in Business & Administration and 9802 were in Combined & General Studies. Only 6250 were in Maths & Computing and 1550 in all Languages (Ref 6).

There is a skills shortage in N Ireland, caused by our education system. The education budget is huge, yet, there seems little, if any, relationship between what is delivered and what is needed. For example, there is a dearth of good sub degree technician level staff in many fields of work including engineering, IT, production, operations, design and technology. Throughout Europe, employers are experiencing massive ICT skills shortages at all levels. These types of skills should be the core of F.E. and their absence is damaging many businesses and young people, yet, year on year education as a whole achieves "better" (i.e. more academic) examination results than ever. Largely, the education system ignores the question of relevance.

In the recent past, employment in the NI public sector has been a great source of stability, protecting NI from the lows of the economic cycle but also restricting it from the highs. The public sector, with its vast resources, has had the capacity to train people to meet its needs. Now, in the knowledge economy age, if our education system produces people fit more for public sector bureaucracy than for wealth creation, we will create a further drag on economic growth.

The argument for shaping education for economic success is typically countered in N. Ireland by personal freedom of choice counter-arguments. But, in truth, many students drift into or shy away from courses or careers on the flimsiest of information, what is open to them being largely determined by producer push, funding and peer or parental pressure. The status quo is, thus, assured unless the key levers of change can be grasped. Good quality vocational opportunities and radically improved careers advice lie at the heart of a change programme.

There are a number of strategic and operational constraints on change within the NI FE sector itself, which have been more than adequately discussed elsewhere, including the 2010 Strategy, Skills and Education project team ( Ref 7) and the 1992 Review Group on Further Education ( Ref 8 ). They can be addressed here only in summary.

FE colleges reflect the overall confusion in the vocational education sector by their own internal college strategies; I have previously described them as scattergun (Ref 9). They attempt to deliver A levels, GCSEs, recreational activities, adult literacy, HND, HNC and at the same time aspire to the delivery of training to businesses. Nobody can do all this and do it well and it is the economic development activity, the more difficult sell, which loses out. Some colleges have made a good living out of A level and GCSE resits. FE in N Ireland does not have a simple, clear deliverable set of economic objectives. Contrast this with the Republic of Ireland where Regional Colleges support the economic development imperative.

Within N Ireland's FE sector, as with the NVQ enrolments described earlier, Higher and Further Education within Colleges are dominated by courses in Business & Administration (51% of HE and 33% of FE in 1997/98). Much lower enrolments are recorded in Biological Sciences, Languages, Engineering & Technology, Maths & Computing. (Ref 6) Is this good, informed personal decision-making on the part of many individual students or is it producer push? Is this picture shaped by economic development imperatives or simply generating income for colleges to balance the budget?

Information Technology is changing at a fantastic rate. Where, a century ago, the volume of information was doubling every 100 years, some have calculated that by 2020, it will double every 73 days (Ref 5). Of course this has implications for what is taught, but much more importantly how, and by whom, it is taught. If state systems of education do not keep pace with these and other changes, they may simply find themselves becoming irrelevant, as the private sector, chasing lucrative education spend, simply bypasses the sleeping giants of state education. FE will not be immune from this trend.

FE has no significant track record or expertise in delivery of business related services. Those companies who have had dealings with colleges report poor capabilities in staff and a very non business-like approach. Most employers, in my experience, turn to private sector trainers or consultants for these services, rather than FE, but the overall level of provision is poor and opportunities naturally exist for competent FE provision.

In a country of 1.5 million people, N Ireland has too many colleges and no centres of excellence have been created. There needs to be more collaboration between fewer, more specialised colleges. An undifferentiated FE sector is not desirable in a small economy.

Vocational qualifications are a jungle to be successfully negotiated only by the best informed. Some qualifications are poorly developed in range and scope. Some of those, which do exist, are not highly valued or relevant; e.g. Business Studies, yet there appear to be shortages of others, e.g. technical subjects. The quality of vocational qualifications is probably more variable than academic ones. For example, it is possible to be awarded a GNVQ without ever leaving a classroom. Employers report that NVQs can be a paper chase and can fail to deliver underpinning knowledge.

There is competition and confrontation between schools and FE colleges driven by status, funding, internal targets and a lack of strategic Government leadership. In business, competition for knowledgeable customers drives up quality and cost effectiveness. In education, where the student is in a poor decision making position, competition seems to produce the opposite effect.

There are few, if any, well developed local clusters of schools, colleges and businesses working together as a cohesive group - anything which exists is on a grace and favour basis and depends on the goodwill and energy of one or two key people. This is not sustainable. The proper construction of and financial support for local, practical business/education project teams working on specific deliverables would be a key lever for change.

A simple illustration: in North Down it is almost impossible to find mould tool setters. This is a structural problem well outside the resources of any individual employer, yet, how does the situation get changed and by whom? Who even knows about this? These problems could be reduced if colleges saw it as part of their strategy to take a lead role in local business / education clusters and to collaborate between each other in developing centres of excellence.

Careers guidance should be a high level strategic planning activity as well as a much better one to one advisory service. It should be staffed by people who are knowledgeable and competent and who have the ears of employers and government. This is crucial in the context of change and creating informed choices.

Careers guidance in NI is carried out by teachers and T&EA staff who, in all honesty, probably have less actual experience of non-education careers than most members of society. The results are there to see: confusion and poor decision making, skills shortages; most young people being more influenced by peers, parents and TV, reinforced by the societal status quo and work stereotypes.

A radical overhaul of Careers Guidance, possibly including privatisation is a prerequisite for other changes. The negative impression of some areas of employment is directly reinforced by the career guidance system's inability to offer informed choice. This analysis is not new and has been both repeated and ignored many times over the past 20 years.

N Ireland's employers and economic development agencies have to shoulder their share of criticism for their role in our producer driven education system. There are a number of factors, which FE must keep in mind if it is to deliver necessary change.

90%, or so, of NI companies consist of fewer than 10 people. N Ireland has few blue chip companies and management as a whole is poorly educated. It takes two sides for a meaningful discussion, even if Education is willing. Everybody must remember that this is a SME economy.

What this means is that, like pre-Sony Walkman consumers, there is little chance of these companies clearly defining and articulating their education and training needs - they may know it when they see it in action, but don't ask them to design it beforehand.

This has implications for predicting skills shortages. It is not the government's role to micro manage the number of (say) plumbers in N. Ireland. However, I suggest that, in an SME economy, it is Government's economic development role to ensure that high level strategic planning processes broadly predict trends for more (say) ICT skills.

But that is not enough. We have known for at least 20 years that ICT skills demands would grow and will continue to grow still more. What is missing is the economic input into education planning and an education system sufficiently flexible and sufficiently interested in demand led outcomes to respond. Further Education, itself, seems to recognise the need for economic leadership (Ref 10).

By the time that individual companies are recognising a skills shortage, it is probably already too late. What we are witnessing, today, is lack of strategic thinking and planning at government (economic development) level, short term thinking by small companies and producer led disinterest by education. The change leadership must come from Government's economic development and educational strategies. Small companies may respond, but do not expect them to drive change. In the absence of change, growing companies may simply move elsewhere.

NI industry has a poor (but no worse than the rest of the UK) track record on training and development of managers and staff. The reasons are complex and some are even valid, e.g. it is well understood by researchers that training probably only addresses 20% of performance issues. This is very significant for FE in the context of the DETIs very mixed messages on in-company training support. The Company Development Programme and Management Development in NI have gone full cycle in the past 7 years and are again, in some disarray

The CDP responsibility now sits centrally in the DETI. Management Development sits in the T&EA but has been downgraded. The CDP and MD programmes have been reduced as the T&EA has focused on the Government's "New Deal". Few companies in NI get decent people development support, without which little or no training will take place. Even when there was a focus on CDP, the budget was heavily skewed towards two or three large local companies and inward investors. Most CDP funding has been poorly used by benefiting companies. It is in this context which FE has to deliver training and development for employers. It will have to choose its ground carefully and, hopefully, as part of a government joined up strategy of targeted support.

There are a number of changes within education at a national and local level, which are encouraging in the context of change.

The UK government through Dearing has encouraged a move towards curriculum breadth and recognises the value of vocational education. In addition, the great value of developing "Key Skills" as well as delivering knowledge has been recognised (Ref 11, 5).

The UK government appears to have recognised the need for change in FE but also recognises the contribution FE has made in giving many people a "second chance" in education (Ref 3 )

There has been some attempt at a national level to improve clarity in the vocational qualifications jungle. In N Ireland we have the NICATS project at the Ulster University to improve clarity and encourage pathways between academic and vocational education( Ref 12 )

The "11 plus selection" debate has started. This is important because changes in FE should, properly, be as part of a total 14-19 year old curriculum review. It is to be hoped that decisions on "selection" are educational ones and that they follow, and do not precede the design of post 14 education structures, values and objectives, including FE.

There is recognition at Dept of Education level and within CCEA that a one size fits all national school curriculum does not deliver the needs of low academic achievers. This is a positive step for disillusioned children, provided that the out of class time released is spent on high quality, relevant work related learning.

CCEA is willing to engage in the development of general vocational (GNVQ) and limited vocational qualifications (GNVQ) which would be firmly grounded in need and relevance of N Ireland's employers.

Some commentators have suggested that, with the introduction of AS examination levels in schools, more academic schools may migrate away from GCSEs towards AS and A levels, whilst more vocational schools may migrate towards GNVQs and GCSEs. If so, this could be a positive and differentiating step allowing the development of a distinctive vocational stream, throughout 14+ education.

FE will have to figure out how it will fit in with these changes. Change is never easy, but it is necessary. As we change we have to make sure that the new benchmarks are valid and the best. We certainly have to look beyond the UK for models. The whole of the UK suffers many of the same problems as N Ireland.

There will be many reasons not to change; possibly including self-interest and dogma. However, positive change can be achieved on the basis of clear end goals, a consistency of purpose and a large degree of skilful change management.

At a strategic level, change will need political consensus, but it must also have the ownership of educational stakeholders as well as the educators.

1. The Learning Age, A Renaissance for a New Britain, Cm 3790, The Stationary Office, 1998, ISBN 0101379021

2. Training, Skills and Company Competitiveness: A Comparison of Matched Plants in Northern Ireland and Germany, (June 1993) ISBN 1871753163, Roper S.

3. Learning Works - Widening Participation in Further Education, Helena Kennedy QC, published by the Further Education Funding Council, 1997.

5. Opening Minds, Education for the 21st Century, Royal Society for the Encouragement of Arts, Manufacturers & Commerce, 1999 ISBN 0901469386.

6. Department of Education Statistics e.g. Statistical Press Release, Dept. of Education Services.

7. Strategy 2010, Report by the N Ireland Economic Development Strategy Review Steering Group, Dept of Economic Development, 1999.

8. Review Group on Further Education: Report to the Minister of Education on the Planning and Funding of Further Education in Northern Ireland, DENI, 1992.

10. The Role of Further Education in Economic Development, A Discussion Paper, Association of NI Colleges.

11. Review of Qualifications for 16-19 Year Olds; Full Report: Ron Dearing; March 1996, SCAA, 1996, ISBN 1858381037.

12. Report of the N. Ireland Credit Accumulation and Transfer System, (NICATS) Project, NICATS, 1999.

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

Education and training on offer must be flexible, inclusive and relevant to meet the needs of potential employers and to satisfy the needs of those already in work in order to enhance their skills to meet the diverse current and future needs of the Northern Ireland economy.

The Further Education system should be enabled to increase its already very significant contribution to areas of identified current and future skill needs. The vocational education and training system should provide for transferable skills including ICT and problem-solving and should provide clear pathways from basic to higher education. There should be reciprocal recognition of the qualifications between Northern Ireland, the Republic of Ireland and the rest of Europe to facilitate free flow of labour in an increasingly global economy. The linkages between the various Government Departments and between the FE sector and industry must be enhanced. The Further Education should be fully involved with the Government Departments and Agencies, including IDB and LEDU in the formulation of policies for the economic developments and the manpower needs of the economy.

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

n Numerous examples of good links between individual Colleges/Institutes and local employers, including specific training for employers and employees both in College and at the workplace.

n Some innovative adult literacy/numeracy programmes in place to help address the problems in this area as highlighted by the Basic Skills Unit, and others.

n Allowing for local variations, most College/Institutes have excellent ICT facilities and are well placed to meet the national policy initiatives in a flexible and timely manner.

n Many Institutes/Colleges have established close links with local communities, enabling access to lifelong learning for the most marginalised sectors.

n Since the Incorporation of Colleges in 1998, Colleges/Institutes have been able to devise more imaginative and innovative means of meeting the needs of industry and the local communities.

n Institutes/Colleges have growing links with schools at Key Stage 4 as a result of the disapplication of the curriculum and some provide imaginative and realistic sampling experiences to enable school leavers to make more informed choices about future careers.

n Institutes/Colleges have provided education and training for all sections of the community and have, since their inception been integrated.

n With the transfer of Training Centres to Institutes/Colleges, the Further Education sector is the main provider of skills training and given the transferred specialist accommodation is better placed to address the identified skills shortages and to develop other services for industry, including research and development.

n Total of 17 Institutes/Colleges and consideration should be given to the Stewart Report which advocated more rationalisation and a need for a degree of specialisation.

n Insufficient linkages between DHFETE and DETI and between FE and the various agencies including IDB, LEDU and as a result difficult to clearly identify current and future needs of industry.

n Insufficient linkages between schools and FE leading to missed opportunities for extensive job sampling in years 11/12 in schools via the FE Colleges which could help broaden the curriculum in schools and enable school leavers to make better career choices.

n Opportunities seldom given to top and middle ability range of pupils to experience job sampling links with the FE sector, and not just the lower ability range.

n Key Stage 4 curriculum does not allow sufficient opportunities for pupils to develop an interest in trades.

n Funding methodology can lead to schools retaining school leavers to follow a restricted range of GNVQ course/s at school which may not be in the best career interests of the pupil.

n Funding for 16-18 year olds in FE less favourable than for similar age groups in schools.

n Capital funding for FE in comparison to other sectors has resulted in poorer quality accommodation in most Institutes which is not attractive to students or to employers who wish to contract quality education and training provision.

n Linkages with industry inhibited due to lack of specialist College staff being appointed specifically to build quality partnerships with firms.

n Funding methodology can inhibit delivery of imaginative delivery of training on employers' premises.

n Whilst in most cases, Institutes/Colleges effectively market in their own localities, there is a problem with getting the message about what FE can and does do, to a wider audience and particularly to industry on a Northern Ireland basis.

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?

IT application is essential for the effective and efficient operation of all businesses whether they are SME's or large multi-national organisations and regardless of the type of business transacted. The specialist IT sector is developing within Northern Ireland and this is likely to expand rapidly because of the growing shortages of skilled IT labour in many other countries including the ROI. Lead inward investors to seek to locate where there are available supplies of labour which can be trained to meet their requirements.

It is not only essential that the numbers of Computer/Electronic/Software Engineering courses are increased but also that ICT is taught in all courses offered in Further Education Colleges/Institutes and that students are required to use ICT as an integral part of their work at College. The existing numbers taking full-time Higher National awards in Computing, Electronics and Software Engineering should be increased to meet the needs not only of indigenous firms but also the needs of inward investors who are seeking to set up in areas where there is currently or the possibility of skilled technician level employees such as HND holders. However it is essential that the contents of such qualifications meet the needs of the industry and more needs to be done in this regard including a more focused and determined marketing effort aimed at employers in Northern Ireland to convince them of the great potential of HND and similar courses emanating from the FE sector. It is essential that HND qualifications are recognised by industry for what they are, and not just as a stepping-stone to a degree. The growing combinations of GNVQ (Vocational A Levels) where for example, a full award GNVQ Business can be combined with a single award GNVQ IT can lead to very marketable qualifications and such additionality should be encouraged by the funding methodology.

More innovative fast-track training ventures such as those pioneered by Nortel are required to meet the current shortages in IT and the growing shortfall predicted by many experts in the IT field. However the FE sector needs to have sufficient resources made available to it to meet the development of IT training and this includes appropriate accommodation and equipment as well as well qualified lecturers and technician staff who have relevant industrial experience. Consideration should be given to expanding the lecturers into industry scheme (including technician into industry) and indeed coming to an agreement with industry for the reciprocation of release of their engineers into teaching to help alleviate the current difficulties of attracting relevantly qualified and experienced staff into Colleges. Enhanced payments to specific groups of lecturers such as IT lecturers could lead to division and could worsen industrial relations but other inducements such as well equipped IT laboratories and adequate support staff, with the possibility of research work could provide incentives for staff recruitment in the field of IT.

4. Incentives for Training Providers and Businesses to develop training geared to a high quality competitive global economy.

It is essential that the Training Providers have world-class facilities and accommodation to enable them to deliver the training required in sufficient numbers, at different levels, to industry in general as well as to specialist IT firms. Training providers must ensure that the training provided must enable workers to be able to cope with an ever-changing industrial environment which will require employees to be up-skilled and retrained many times throughout their working lives. The training providers must therefore be funded appropriately to enable them to have the physical and human resources available and regularly developed to meet the training needs of a high quality competitive global economy.

Business must have the confidence that the training providers have the resources and expertise to deliver programmes which meet their needs. Businesses should, and would, contribute to the training provision if they can be guaranteed a quality outcome delivered to meet their needs in a timely and flexible manner. Whilst all Colleges/Institutes can deliver basic and intermediate IT training there needs to be a strategic approach to developing centres of excellence in IT provision at HND/Foundation Degree/Degree and post-graduate levels as well as increased support for all centres to deliver IT training as an integral part of their course portfolio.

Colleges must be included in strategic planning to meet the needs of industry and the resources already available in Colleges should be more fully marketed to the various Agencies of the Department, including LEDU, IDB and the T&EA. Consideration should be given to developing partnerships links with Institutes in the Republic of Ireland with a view to joint-delivery on and all-Ireland basis together with joint staff development exercises.

Whilst different interpretations can be put on the published evidence of skills shortages it is evident that with the growth of the economy and increasing movement of skilled labour to other areas including the Republic of Ireland, the labour market is continuing to tighten.

Very many young people are not sufficiently informed of the very many excellent careers available in skills shortages areas, including growth areas identified in the 2010 Report of construction, hospitality, engineering, IT, Tourism. Careers staff in schools need to update their knowledge of the excellent career opportunities available as a result of taking NVQ and GNVQ programmes, and pupils at Key Stage 4 in schools should be given opportunities to sample different skills during years 11 and 12 at schools including participation in NVQ/GNVQ units as part of their Key Stage 4 curriculum. It is important that students of all abilities should be given such opportunities, and not just those in the lower ability streams.

The HND/C courses lead to skilled and productive graduates who can perform vital roles for industry as a result of the training they receive, together with the work placement experience which is an integral part of such courses. As these courses are offered locally by many Institutes, this reduces the leakages of talented young people from the areas in which they live as a result of not having to seek such courses in England or elsewhere. There is a need for an increase in this type of provision in Northern Ireland whether this is offered through the HND route or through the new Foundation degree route. A study may well need to be carried out of the 'under-employment' of many currently at work, who with additional training either in the work-place or fast-track training at College could contribute effectively to the skilled labour pool and help to attract more and higher value-added jobs to a local economy.

There appears to be a lack of knowledge on the part of many opinion formers in Northern Ireland as to what is now provided by the Further Education sector in comparison to what was on offer 10-20 years previously, resulting in many opportunities being lost to market the FE sector to potential investors in Northern Ireland. Increased and more effective marketing needs to be undertaken by the sector itself, aided by "champions" from industry, commerce and government agencies.

The proposed centres of excellence would allow a system whereby a limited number of Colleges/Institutes could deliver vocational education and training to HND/degrees/professional levels and all Colleges could deliver a wide range of provision, albeit at a lower level, some of which would eventually feed into such centres of excellence. Such a proposal was contained in the Review Group's Report to the Minister on the Planning and Funding of Further Education in 1993. Unfortunately many of the excellent proposals have not been acted upon.

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

Newry & Kilkeel Institute has developed a wide range of vocational education and training programmes designed to equip young people and adults for employment and to enhance the knowledge and skills of those already in work. The increased enrolment total for 1999/2000 of 2858 FTE's (12,188 enrolments) against 2531 FTE's (10,817 enrolments) for the previous year includes increases of 45% in Construction; 32% in Engineering; 25% in Hospitality and Catering; 25% in Computing. Such increased enrolments are against the trend and have taken place in the face of increased competition from schools and the capping of full-time Higher Education in Further Education.

A summary of the contribution of the Institute to education and training for industry in Northern Ireland includes:

n Increased enrolments in curricular areas which have been designated by 2010 as essential for the future economic well-being of the economy.

n Increasing links with industry and increased delivery of training on employers' premises, including Compas (Northern Ireland), BE Aerospace, NI Civil Service.

n Upgrading of facilities and equipment to enhance students' learning resources and environment including cabling of all campuses, provision of internet access to students/trainees in each campus and establishing network linkages between each campus.

n Robust quality assurance procedures applied throughout Institute to ensure appropriate standards of delivery and achievement, resulting in retention and achievement rates above the norm, including one student being chosen to represent Great Britain (Carpentry and Joinery) in the World Skills Olympics in Montreal in 1999 - with considerable success.

n Increasing involvement of representatives from industry on Faculty Academic Boards to ensure provision is consistent with needs of industry.

n Successful completion of negotiations leading to merger of Training Centre with the Institute resulting in an increase in the numbers of trainees in areas of key skills shortages including Bricklaying; Carpentry & Joinery, Motor Vehicle, Plumbing, Electrical Installation, Plastering, Engineering and Painting & Decorating.

n Substantial increase in the numbers of students following HND/C in Computing, Software Engineering and Electronics.

n Involvement of Institute staff in conferences and meetings with LEDU, IDB and potential inward investors through their membership of bodies such as Enterprise Newry whose remit is economic regeneration.

n Targeting of marginalised groups including for example women returners for education, training and personal development programmes in order to enable such untapped resources to boost the available pool of trained labour.

n Delivering IT courses to individual communities by means of mobile IT units, and bidding for additional funding from the Access Initiative funds from DHFETE to enhance existing resources in order to develop this work.

n Taking lead partner role in New Deal consortium, comprising 23 partners, including the local Council.

n Ufi lead partner, which will enable the Institute to deliver training on line to customers and committing over £200,000 for the building of a state of the art Information Technology Training Centre at the former Caretaker's bungalow on the West Campus site for Learndirect and other industry focused courses.

n Planned development of additional Electronics, Multi-media, Software Engineering Laboratories/workshops within the next 12 months to cater for the increasing demand for GNVQ Advanced and HND/C courses in these curricular areas.

n Discussion under way with T&EA and Nortel to deliver fast track training at HND level in Software Engineering as well as focused short courses in Fabrication & Welding, Engineering.

n Introduction of innovative link courses with the local secondary schools at Key Stage 4, enabling pupils to sample a wide range of skills - thus assisting them to make more informed choices as to their future careers. The numbers in 1999/2000 were approx 240 and increased in September 2000 to over 400.

n Over 700 young people in Jobskills training from NVQ 1 to NVQ 3 levels, most of whom are in areas of identified skills shortages and all of which involves placement with employers during their three-year training period.

1.1 Role of higher-level education in the development of local industry in Newry.

1.2 Newry & Mourne has a youthful well-educated population. It is home to four of the top grammar schools and the most progressive College of Further & Higher Education in Northern Ireland.

1.3 The College of Further Education has 13,000 Full-time and Part-time students and 1400 staff with Campuses throughout Newry & Mourne. It offers a range of vocation and non-vocation training.

1.4 Following changes in legislation, the College also manages training centres, which provide skills training such as building, plastering, etc.

1.5 The College offers a range of training relevant to industry at GNVQ, HND, and Degree Level.

1.6 The most recent initiative is the establishment of Foundation Degree Courses. The 1^st Pilot Course will be offered in Computing and Network Technology and involves a 2-year programme of study.

The modules of this course are developed by the College but in direct consultation with relevant local industries. This is then accredited by the University of Ulster (Jordanstown).

The College believes this structure of course will help meet the needs of industry given their involvement in course design.

The aspiration is to expand this provision to cover creativity and innovation based subjects, such as Electronics, ICT, Technology, Multi-Media, etc.

These courses will also focus on Industry based projects to encourage research and development, innovation, etc which is in keeping with the themes of Strategy 2010.

1.7 Already there is evidence of good links between Colleges and Industry by way of placements and specific training for industry.

1.8 All the training organisations in the Newry & Mourne areas have excellent ICT facilities enabling flexibility to meet the needs of Industry. Indeed, the College of Further Education has commissioned a Technology Bus to enable IT based training to be brought to rural areas and marginalized communities.

1.9 The College of Further Education has forged links with Intertrade Ireland, have appointed an E-Business Manager and will appoint a Business Development Manager to interact with the local industrialists.

2.1 Newry & Mourne Business Education Partnership has been established, with funding from Newry & Mourne District Council and Newry & Mourne Peace & Reconciliation District Partnership and its administered by Newry & Mourne Enterprise Agency.

2.2 The concept attempts to forge links between schools and industry. The potential to offer industrial placements to teachers has been popular, however, finance has curtailed the scope of the initiative.

2.3 Industrial placements for students have also been another feature of the initiative, however, it has highlighted the need for one central co-ordinating body in each region to organise and administer the placing of students.

2.4 The most striking feature of the Newry & Mourne Economy is the Micro Enterprise Pre-Dominance. The nature of these businesses is that the owner is also the manager, thus it is difficult to forge links with schools due to time constraints and lack of manpower. A co-ordinating body could overcome this problem.

2.5 Newry & Mourne has an Entrepreneurial Culture; this is underlined by 360 new jobs created via self-employment since 1997. This is not adequately showcased in the region to demonstrate self-employment as a career option.

2.6 Greater co-ordination is required between schools for careers advice. This is a vital part of the curriculum but it is not resourced. A network of career advisors need to be established which is supported by Government Agencies, ie IDB, LEDU, T&EA, Local Authorities, etc, to ensure advisors are aware of industry needs and future strategies.

There must be a mechanism developed to allow careers advisors/teachers to communicate with the labour market and its demands.

2.7 One must question how aware schools are of Strategy 2010 and its implications for the future.

2.8 How do key Government strategy documents, ie Strategy 2010 and industry influence the key stage 3 and 4 curriculum?

2.10 Cross Border Career Fair in Newry & Mourne - efficient use of company time, economies of scale - illustrates to young people that industry is a viable career path.

3.2 There is a major gap between the upper and lower levels of attainment, which affects motivation levels among our young people.

3.3 A career in industry is in general not seen as a worthwhile career opportunity. Society needs to be re-educated if the mindset is to change that if one is to succeed or have a worthwhile career they must be a "white-collar worker".

The North West Institute of Further and Higher Education welcomes the opportunity to respond to the Committee's enquiry into Education and Training for Industry in Northern Ireland.

For ease of review the Institute will respond to the individual questions raised in the invitation and will then elaborate on those points by addressing the issues raised in Annex 1 of the communication.

The Institute would argue that the role of the Further Education sector is to offer a wide range of vocational and employability skills to the Northern Ireland workforce. The vocational skills should address the current and future needs of the economy and the employability skills should ensure that all of the population has access to employment opportunities. It could be suggested that the current education and training provision has been pressurised, both through policies and funding, to provide narrow non-transferable low level vocational training which is not in the long-term interests of the economy nor of those seeking employment. The Institute would argue that the suggestion that research and development should be a monopoly of the university sector is a false premise. If the future growth of the economy is dependent on SME development then the research facilities must service the needs of the sector and this may not be best provided by research-funded university research. A number of further education institutions are ideally situated to develop applied research to support SME development in line with similar developments in the Institutes of Technology in the Republic and the Community Colleges in the USA.

An analysis of the current strengths and weaknesses of the provision and its support for the needs of the Northern Ireland industry is best carried out at a local level since each further education provider has developed different arrangements within the local economy. The main strength of the current system is the local nature of the provision. Each institution has the opportunity to develop a close working relationship with local employers. In the best examples this local provision has led to site-specific training provision being provided.

However the weaknesses of the existing system tend to outweigh the strengths and the weaknesses can be found both in the provision and the employer demand pattern.

On the employer side there is a long-term pattern of under-investment in training. An examination of the historical levy system would indicate that, despite its weaknesses, it encouraged firms to seek a return on their levy investment through the acquisition of training. In the current situation many firms, particularly SMEs, are reluctant to invest in training either because of cost or because they fear poaching of trained staff by competitors. This has resulted in a lack of strategic planning in the human resource area, a concentration on cheap, or subsidised, low level training and a reactive attitude to knowledge-based developments.

In the further education sector the plethora of providers has mitigated against high quality training since many institutions feel forced to attempt to compete in a public 'free for all' rather than concentrating on areas of specialism. The unwillingness of government to implement the recommendations of the Stewart Report is a major factor in this area. The current further education funding mechanism is also a weakness since it concentrates on, and funds, classroom delivery. Liaison with local industry, development of short course provision must be funded by the institution and there is no incentive, except internal commitment, to seek a meaningful long-term involvement with local employers outside of directed training.

Another weakness of the current system is the belief fostered by government and industry, and acquiesced in by colleges, that there is a short-term solution to the development of knowledge-based high level training programmes. The current resource level of further education institutions, in terms of buildings and capital equipment, is also a weakness. The funding of Foundation Degrees on an FE, and not a university funding level might be seen as an indication of the Government view in the area of resources.

The importance of Information Technology to the future of industry in Northern Ireland cannot be overstated but it is important to outline the parameters of such a role. The importance can be defined in two separate areas. Firstly there is a role of specialised IT training in developing the technological skills required by industry. Secondly there is the development of training provision in the applied use of IT skills. In terms of future employment all of the population willl require knowledge of, and training in, the applied IT skills. The hard IT skills, at a range of levels, will be central to competitive production in the next generation and will be extremely important as an attraction to inward investors.

The role of the education and training system in providing the IT and ICT needs of the economy should be developed at a strategic level both regionally and locally but the Institute will only comment on the situation in the North West. The Institute, the Magee campus of the University of Ulster, Derry City Council and Strabane District Council, have worked closely to ensure that the pro-active and speculative training provided by the Institute and the University campus matches the regeneration policy of the Councils and that policy is strongly IT centred. The Institute would argue that within the strategic parameters of Northern Ireland (PLC) the education providers must operate as part of a local consortium to provide IT training within a strategic development framework. Whilst recognising that university research and development may aspire to the cutting edge of artificial intelligence, and its roles in the next generation of IT development, the Institute would argue that many areas of applied development, such as web-page design and 'E' applications, which most benefit SMEs, should be funded through a number of further education institutions.

The question of incentives for training providers and businesses to develop training geared to a highly competitive global economy must take account of the historical context. The lack of a tradition of investment in staff training combined with a government sponsored grant/subsidy-dependent culture, does not provide a scenario which would lead one to assume that industry will take a lead in this area. Indeed history would suggest that many SMEs are hostile to training which facilitates mobility of labour. The Institute would recommend that government should agree to fund, through approved and properly resourced FE institutions, a comprehensive programme of training to allow firms to maximise their return from the global economy but would also indicate the timescale for such a programme and outline the withdrawal strategy to a zero subsidised base. Such a strategy could pump prime training but also encourage firms to plan strategically for the future developments.

The current speed of changes within the global economy combined with the changing attitudes of the wider population can create a skills shortage in two areas. Firstly there is the growth of a skills shortage in traditional industries such as engineering and construction and secondly there is the shortage in the developing areas of new technologies. One issue is common to both and this centres around the current curriculum delivered to the 14-19 age cohort. The developments of the 14-16 GCSE curriculum in science and mathematics have produced a cohort of young people who are poorly skilled to progress to a vocational curriculum in areas such as engineering. The move from vocationally-based National Diplomas to Advanced GNVQs, aimed at a school-based population, has created major problems in terms of progression to Higher Education. This is a problem not only for HE in general, but especially for the entry requirement to Higher Technician qualifications. The Institute would not presume to offer suggestions about the delivery of the wider schools curriculum but would suggest that the Department view positively the development of bridging courses to enable young people to enter training for skills shortages in traditional industries. We would have very definite proposals to make in this regard. The Assembly may also wish to consider whether allegiance to national programmes, such as GNVQs, necessarily benefit the region in a highly competitive global economy.

In terms of skills shortage in the areas of new technologies, the Institute does not believe that short-fix solutions are of a long-term benefit. In the area of broad based IT skills the Institute would suggest that there should be a regional and local strategy to develop the skills requirements to meet local demands. The strategy for such training should be delivered through accredited further education institutions in conjunction with community organisations. The Institute is strongly supportive of the concept that such developments should include industry specific qualifications but would also recommend that such qualifications should enhance, rather than restrict, mobility of labour. Speculative training should also be encouraged where this can be clearly seen to be linked to opportunities for attracting inward investment.

The Institute makes a significant contribution to the provision of education and training in the North West area. It is the only further education institution in the Derry City Council and Strabane District Council areas and works closely with the University of Ulster and the Queen's University of Belfast in higher education provision for the area. The Institute is currently working with the University of Ulster and local industrialists in the design of Foundation Degrees.

The developing role of the Institute in terms of provision can be best demonstrated by the growth in full-time equivalent students during the 1990s. During that decade the Institute expanded by 70% as shown below.

The Institute differs from many further education institutions in that the majority of its current students are over 25 years of age. This derives from the Institute's approach to the concept of life-long learning. Over 20% of the taught student hours are on higher education courses. Current education provision provides a service to local industry by courses in construction and allied trades, electrical, mechanical and motor vehicle engineering, business and management, office skills, caring, hospitality, leisure and tourism, sciences, computing, art and design, media and performing arts. The provision is available from entry level courses through to higher national level and hopefully in the near future to Foundation Degree level. In that respect we would enter a plea for the use of the title Associate degrees rather than Foundation degrees. This would be more in harmony with the United States which is currently and likely to remain the main source of inward investment.

The Institute is also a major provider of training through Jobskills and New Deal and leads the largest New Deal consortium in Northern Ireland. In September 2000 the Maydown and Springtown Training Centres merged with the Institute and the merger has increased the Institute's capacity for industry specific training provision.

To enhance its provision to industry the Institute has an involvement with an associated company, Customized Training Services (CTS). It has also played a lead role in the establishment and development of the Northern Ireland Business and Innovation Centre (NORIBIC).

Customized Training Services offers customised training packages for industry, business training, a range of special initiatives for the unemployed through an Open Learning Centre and participates in European-funded initiatives. It also houses the North West STAR Business Communications Centre which is equipped with the latest computing and telecommunications facilities and has specialist knowledge in assisting business and implementing business solutions using advanced telecommunications and information technology.

The Northern Ireland Business and Innovation Centre offers comprehensive support for all aspects of business from start up to export potential. Current contracts include Self Start, New Deal, Self entrepreneur, LEDU Export start and a range of EU funded projects. In addition it provides ongoing support for some 400 companies, mainly in the SME sector.

Through its liaison with Derry City Council the Institute has also been contracted to manage and staff a one-stop business advice shop which offers advice on training to local employers and prospective employers.

The Institute would suggest that further education institutions are ideally located to co-ordinate, to best effect, lifelong learning to serve Northern Ireland industry. FE institutions, through their community networks, can deliver vocational and employability skills to those seeking employment and, through their liaison with firms, deliver on-site specialised training packages to those in employment. Through such an approach institutions can help retrain and reskill individuals who may become the casualties of industrial restructuring.

In the wider context of industrial change colleges can partner other organisations in speculative training, particularly for the knowledge-based industries, so that a trained pool of labour is available to attract inward investment, provide alternative employment opportunities and minimise the effect of the declining sector. Developments in this area can benefit from the recent work on a skills audit but it is essential that the skills audit recognise that skills shortages can be filled by knowledge transfer and redeployment as well as by direct skilling or reskilling.

The Institute is of the view that the further education sector in Northern Ireland can benefit from the work undertaken, and links established, by the Institutes of Technology in the Republic of Ireland. The inclusion of the Institutes of Further Education in the research area must be of benefit to SMEs and this, together with the development of Foundation Degrees in the FE sector, could provide an important basis for growth and development of the industrial sector in Northern Ireland.

It has been noted earlier in the response that industry in the province has been slow to invest in human resource development and this is most obvious at technician level. The Institute is of the view that the further education sector could play a central role in such training and would argue that the cap on higher technician numbers should be removed not only in selected areas but right across the HND spectrum. This would not only help to solve the area of skills shortage but also provide a pool of skilled labour with transferable skills which would support inward investment drives. The Institute welcomes the acceptance that there is a need for substantial capital investment in Further Education. The North West Institute of Further and Higher Education has the worst space ratio of any 3^rd level college in the United Kingdom.

The Institute recognises that the region can learn from international examples and would suggest that the proposal for Foundation Degrees within the FE sector, and their progression links to university, points towards the USA community college network as a model for further examination. Developments on this model, combined with the best practice of the Institutes of Technology, would create a more highly qualified workforce, provide opportunities for upskilling of the current workforce and create a range of provision to allow individuals to maximise their potential.

The Northern Ireland Business Education Partnership (NIBEP) was established as a result of the recommendations of the Northern Ireland Review of Business Education Partnerships, and was officially launched in May 1995 by the Department of Education and the Training and Employment Agency. NIBEP's key aim was to bring a coherent and focused approach to linking education and business together in partnership, realising the importance of such links in strengthening the educational and economic infrastructure of Northern Ireland. In doing so, NIBEP advised government on the implementation of business education activities and policy.

Partnership between business and education is essential for both economic and social success in Northern Ireland. We live in the globalized and fast changing world where economic survival and success depend upon a skilled and flexible workforce. It is vital that our young people are fully aware of the implications of such change on their future careers and life choices. Partnerships between business and education provide a mutually rewarding opportunity for educationalists and employers within a community to work together to ensure young people develop their full potential and can take full advantage of opportunities available to them.

NIBEP recognises that one of the goals of the education process is to ensure that those who progress from the system do so with the skills and knowledge necessary to make well-informed, strategic life decisions. These skills and the knowledge obtained are necessary for decisions made in respect of the selection of career education and future high-quality employment choices. By adding value to the classroom experience of young people through, for example, greatly improved and relevant workplace experience, NIBEP believe young people can develop the skills required by employers and demanded in the workplace in the 21^st Century.

Following the publication of Strategy 2010, the then Department of Education for Northern Ireland wrote to NIBEP on behalf of the Department and the Training and Employment Agency in November 1999 to set out their thinking on the expanded remit of the new NIBEP to enable it to take forward the priorities and objectives in the area of business/education links. This letter states that NIBEP should be the 'key umbrella' body I taking forward the coherent and strategic approach set out in Strategy 2010 in relation to business/education links. In addition, NIBEP should act as the principal conduit for Government funding in respect of business/education links.

NIBEP fully recognises the importance of creating and sustaining relationships and collaborative partnerships with Government Departments and the various NDPBs. In particular, the importance of working in collaborative partnerships with the Education and Library Boards (ELBs) is recognised. The ELBs have the statutory responsibility for the schools and teachers in their charge. NIBEP fully recognises the valuable work in respect of the work-related learning activities which are already going on in schools and which have been supported by the ELBs as part of their statutory responsibilities. Schools and ELBs have already undertaken valuable work, particularly since the last review of careers education, commissioned by DENI and the T&EA in 1995. The guidance materials which were published for schools as a result thereof, 'Evaluating a Careers Programme' (DENI-ETI 1996) and 'Careers-Planning for the Future' (NICCEA 1996) are well known and used by practising career teachers in Northern Ireland. NIBEP will work to support the ELBs and their associated schools in the achievement of their statutory responsibilities.

Since the election in 1997, the new Labour administration in the UK has attached considerable importance to education and in particular to lifelong learning. The Government's 'Lifelong learning' proposals are set out for consultation in the document entitle, 'The Learning Age - a Renaissance for a New England'. The key rational underlying the proposals are relevant to Northern Ireland and are clearly articulated in the foreword to the document by the Secretary of State for Education, David Blunkett, MP.

"We stand on the brink of a new age. Familiar certainties and old ways of doing thing are disappearing. Jobs are changing and with them the skills needed for the world of tomorrow.Continued learning is the key to prosperity-for each of us as individuals, and as for the nation as a whole."

Lifelong learning has been firmly set at the centre of the Government's new thinking about the relationships between education, training and business. The Government's various proposals include working with business, employees and trade unions to support and develop skills in the workplace and also to raise standards across the teaching profession.

In broad terms, the Government recognises that reform of the education system is needed to enable schools to equip their students to flourish in the 21^st Century and to bridge the gap between the knowledge and competencies which schools have traditionally taught and the increasing need for excellence and competitiveness in the context of the world of work. It is with this recognition of the need for reform that NIBEP can make a difference.

In general terms, there is UK wide awareness of the many changes of the world of work and future career patterns. It is recognised that the world of learning is also changing. There is rapid change with developments in HE, the reforms to post-16 qualifications and the introduction of more vocational pathways in the 14-19 curriculum. These changes mean that all students will needs access to well inform and impartial guidance. Students will also need access to a high quality programme of careers education in the curriculum, which will equip them with the knowledge, understanding and skills needed to make effective use of the guidance. In this regard NIBEP welcomes the Current Review of Careers Education.

Strategy 2010 is an important strategic document, which was issued in March 1999, and specifically recommended that the Northern Ireland education system place major emphasis on the world of work and the cultivation of skills o promote continued employability in a fast changing modern economy. In particular, Strategy 2010 states,

"collaborative clusters of schools, businesses and colleges should be established to deliver education and training outcomes tailored to the needs of the economy. These should be facilitated by a single enabling organisation, centrally directed but operated locally and based o the Northern Ireland Business Education Partnership (NIBEP) model."

"greater integration of economic and educational policy and more collaboration between business and education and training in delivering the skills and capabilities needed by business."

In particular a Skills Task Force, led by the Chairman of the Training and Employment Agency, has been charged with the responsibility of identifying those skills required to ensure future economic competitiveness. The Skills Task Force will in turn, advise government on measures to develop the skills needed to sustain future employment.

In the area of skills and education, Strategy 2010 recommended the following, which are particularly relevant to NIBEP and the DHFETE Committee's work in the area:

n collaborative clusters of schools, businesses and colleges should be established;

In the context of the Review of the Northern Ireland Curriculum it has been identified that there is a need to clarify the aim and values of the curriculum and to improve curriculum relevance and enjoyment for all learners. If has also been recommended that greater emphasis should be given to work-related education and employability in order to prepare young people more effectively for the transition to adult and working life.

The current curriculum review coincides with a period of some uncertainty in relation to the political, economic and social governance of Northern Ireland. Despite this it is widely recognised that Education for Employability should be progressed to empower young people to make positive contributions to organisations and working environments.

The approach to developing Education for Employability in the Northern Ireland Curriculum comprises three dimensions as follows:

Opportunities have been identified at various key stages for NIBEP to provide support particularly with respect to the work of the global economy and with specific reference to the encouragement of young people to develop their skills and qualities in respect of the needs for work.

" Modern business now have to cope with a broader range of expectations than in the past. Customers and employers care about companies impact on the society and the companies have increasingly tried to integrate corporate, social responsibility in to their mainstream business strategy."

This statement clearly underlines the growing recognition of social responsibility, which is expected from modern business both large and small. In relation to social responsibility, education represents a meaningful flagship with which business in Northern Ireland, both large and small, can become involved.

In a number of respects, the Northern Ireland economy is very different to the economy in the rest of the United Kingdom. Small firms predominate in the Northern Ireland economy. Building and developing an enterprise economy through increasing the level of entrepreneurial activity is one of the principal prerequisites for the future economic growth of the Northern Ireland economy. In the period 1995-2000, Northern Ireland emerges as one of the top performing regions in the UK in terms of employment growth within the small manufacturing firms sector. This places organisations such as LEDU and the associated enterprise agency networks in a pivotal role in relation to fostering enterprise, entrepreneurship and employability. NIBEP clearly recognises the importance of small business development to Northern Ireland and the requirements, which small businesses have for young people progressing through the education system in relation to their knowledge and skills.

Corporate social responsibility applies across the entire business sector in Northern Ireland and embraces both large and small enterprises. Many companies have already signed up to the EFQM Excellence Model and IIP, which demonstrate the tangible commitment to investing in the community, their staff and society at large. NIBEP also recognises the role of Business in the Community in promoting and supporting companies to develop corporate community investment policies. It is the business sector, which can influence the education agenda and the career choices of young people.

Lastly, NIBEP intends to build on the progress achieved to date in relation to the first NIBEP strategy entitled, 'Raising Achievement Through Partnership 1997-2000'. This strategy set out five areas, which were identified for particular priority action. The priority action areas are as follows:

These priority action areas, together with the other key areas set out in the 1997-2000 strategy, will continue and have been developed in the new strategy and business plan, copies of which are included.

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

NIBEP believes that greater use of information communications technology and e-commerce teaching together with greater use of the web for tutorial teaching should be encouraged within Northern Ireland. The education system locally needs to increase student access within Northern Ireland More outreach work is needed to encourage higher levels of participation in education, particularly amongst women. This requires increased facilities in rural areas to allow access to conversion courses. Pedagogy needs to be more flexibly, with innovative forms of assessment introduced to develop key skills that mirror team working. This will require the FE/HE sector to move away from formal exams to more skill set building to reflect the new and emerging economy. The type of skills required by employers can be characterised by the following: -

n Business aware, able to react to new business opportunities and spot potential ones, good at working with teams, with sharing information;

NIBEP firmly believes that partnership between business and education are therefore essential to the economic and social well being of Northern Ireland. NIBEP recognises that shared experience and joint working can produce recognisable superior outcomes for young people and business in the future workplace. In order to share experience partnerships are fundamental and their formation provides, not only a deeper appreciation of the interests of various organisations, it also provides opportunities for access to resources and increased achievement. NIBEP will therefore seek to build on existing partnerships and increase their effectiveness to help develop the type of people modern business needs in Northern Ireland. This should be a key aspect of university-based training.

NIBEP believes that the university system needs to improve links with international centres of excellence throughout the world to share research and to access developments in teaching and learning. The establishment of the cross-border bodies on education and economic development are to be welcomed and NIBEP fully supports moves towards greater cohesion between universities in all parts of Ireland.

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

Significant changes are taking place in the 14 - 19 curriculum and beyond. Northern Ireland industry needs to be informed and kept aware of the changes that are taking place to allow them to respond to the various options available to young people by way of either employer based programmes such as modern apprenticeships, link programmes between schools and work, i.e.GNVQ's, NVQ's together with those who choose to take the much more academic route through A' levels or vocational A' levels. Equally further education colleges must be fully resourced to provide the full range of provision from both an academic and vocational point of view.

Greater awareness of economic development and forecasting locally should be an essential element of universities planning for the next five years. This type of research in association with the Training and Employment Agency and the Department of Enterprise, Trade and Investment will allow the university system to be more proactive in improving and developing new courses.

This type of development did take place during the early 1990's with the introduction of the High Technology National Training scheme (HTNT). This scheme funded by the then Department of Employment in England and the Training and Employment Agency in Northern Ireland sponsored students, largely on postgraduate courses, in pioneering or emerging technologies prior to these courses gaining funding approval via the Higher Education Funding Council. Industry, Higher Education and Government should work collaboratively together to develop an innovation fund, which will support developments in the application of technology, within universities, industry, pharmaceuticals sector, medicine or emerging technologies.

NIBEP believes that we should promote greater employer participation in the design and delivery of university programmes and therefore improves employer's understanding of the benefits of business education partnerships with universities and further education colleges. NIBEP believe that boards of governors of schools, further education colleges together with the senates of our universities should have increased industry representatives serving on major committees to strengthen and improve the understanding of Northern Ireland industry and education.

The Department of Enterprise Trade and Industry's Company Development Programme provides financial and other assistance to companies who are seeking to develop new working practices and methods aimed at improving business performance. A key condition for participation on the Company Development Programme is the willingness of companies to apply for the Investors in People Standard and to encourage employees to undertake NVQ's as part of their training. NIBEP believes that the provision of Selective Financial Assistance from Government to companies should include a condition that recipients should develop links with their local school, Further Education College or University. In doing so a greater understanding of the education system and the various progression routes on offer will be more fully understood by Northern Ireland Industry. This type of engagement with the education sector will contribute to the growing awareness of corporate social responsibility and the European Quality Excellence Model. Furthermore, Northern Ireland industry can contribute to societies understanding of industry's needs through work experience, teacher/lecturer placements or indeed placements from business people into schools, colleges and universities. This type of activity will foster greater understanding of each other's needs through mutually beneficial partnerships. This can be further complimented by ensuring that high quality and independent careers education advice and guidance is given to our young people so that they can make informed choices about their future career plans. NIBEP in this regard welcomes the work of the review of careers guidance currently being undertaken by Professor Sean Fulton and looks forward to working with the various agencies concerned to implement the recommendations that flow from the review.

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 in Northern Ireland industry?

If Northern Ireland wishes to be at the leading edge of IT Development then we have to attract high-class companies, involved in high added value research and development. These companies should be attracted to Northern Ireland not because of Government grants but because of our knowledge based economic infrastructure. We need to ensure that companies want to come to Northern Ireland because what we have here is better than what is available elsewhere be that in Italy, Germany, Scotland or for that matter Silicone Valley. Furthermore we also realise that Northern Ireland's remoteness from the marketplace means that if we are to be successful we need to be ahead of the game. There are considerable new opportunities to be had in information technology and if we in Northern Ireland are at the leading edge then we can maximise the export potential of IT products and services throughout the world. Whilst there is certain research development capacity available locally the types of activities that companies are engaged in are not entirely leading edge. Recent job loses at Nortel and a number of suppliers are a symptom of this because the work is at the commodity based level. If we move from high added value to low added value, then these jobs will be under threat and companies will move to third world countries where labour is cheap and abundant. Information technology also relies heavily upon hardware. Northern Ireland needs to be in a situation where they we are engaged in developing the next generation of hardware and be in a position where we can manufacture the computers here for export elsewhere within the world. NIBEP's main message in regard to the whole issue of information technology is that there are no low tech sectors any more. All aspects of industry and commerce have come to rely upon information technology, be that in terms of providing services or in manufacturing. What Northern Ireland needs is to ensure that its information technology industries are driven by the highest standards, that we attract the best people, that we engage in research and development and that we are doing things smarter and better than people elsewhere in the world. This used to be the case in the textiles and clothing including industry within Northern Ireland. However, past history has taught us that if we don't continue to invest, change and adopt our working methods and practices then we might well see the collapse of the IT industry as has been the case with textiles.

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

NIBEP fully supports the need to provide timely and informative information on the future skills, which are required in order to assist the Northern Ireland economy to grow. Good work has already taken place on forecasting and identifying current skills shortages by the Northern Ireland Skills Taskforce and The Training and Employment Agency's Skill Task Force. NIBEP would like to see greater employer participation in forecasting skills and in course design with training providers to ensure where possible that best practice is being followed. It is also important that state of the art facilities are provided across a broad range of communities both rural and urban. Schools provide a good example of were IT training could take place. BT working in partnership with schools in the Ballycastle area is a good example of were industry can link with parents and others to provide local IT training making use of educational facilities in the evenings that would otherwise not be used as part of LLL. Particular incentives should be given to training providers to reach the required outcomes ahead of projections in regard to training. Participants on programmes who achieve success ahead of projected timescale should also be considered for incentives. Output related funding is a useful tool to ensure quality of provision and to increase the level of qualifications offered and gained. Bridge to Employment is an excellent scheme, which can link unemployed people with companies seeking to expand or recruit. NIBEP would like to see greater use of this and other incentive methods aimed at driving up standards.

NIBEP wishes to support the view that the success of Northern Ireland's economy is heavily dependent on the skills of the Northern Ireland workforce. NIBEP will play its part in promoting high levels of employment, growth and sustainability within the Northern Ireland economy. In association with our partners in business NIBEP will seek to close the gap between the needs of young people and the needs of industry. In doing so NIBEP hopes to assist with the development of a skilled workforce within Northern Ireland, which will contribute to sustainable economic development.

The identification of opportunities, the transformation of ideas into products and services and the ability to be first into the marketplace will underpin the creation and wealth of employment opportunities for students, those in work and others who are currently economically inactive with the capacity of potential to participate in employment and enterprise. NIBEP sees the issue of skills gaps as not only an economic issue but also a social issue. For example, they may be poorly skilled, unemployed, living on low income or coping with difficult home circumstances. For people of working age, joblessness is one of the most profound cases of poverty. Being out for work impacts directly on income and the government's view is that, for many people, the best protection against poverty is a job with a decent wage. It is in this context that as part of the earlier Targeting Social Need Initiative, the then Department of Economic Development set targets for increasing employment opportunities and training activities in, or adjacent to, disadvantaged areas. In addition, through the Lifelong Learning Policy, DENI and the Training and Employment Agency have delivered a strategy, which will increase employability through the development of basic skills and by linking education and training provision more closely to regional, and local skill needs. New Deal and Worktrack are examples of interventions designed to help people to move back into the world of work and off benefits. DENI's School Improvement Programme, and the targeting of new places in pre-school education provision towards children from less well off families are also mechanisms for improving the standards amongst the next generation.

NIBEP would welcome the greater use of educational bursaries similar to those currently available to those following the Training and Employment Agency's Industrial Scholarship Scheme used to encourage bright students to stay at local universities whilst being linked to local companies. Local companies need to play a greater role in providing sponsorships not only for the brightest of our young people but also for those who are on the cusp who could benefit from financial help and assistance in progressing their education. Companies can view this as their contribution to corporate social responsibility and by being good corporate citizens for Northern Ireland. NIBEP particularly welcomes the findings of 'The Northern Ireland Skills Monitoring Survey 2000' and the contribution it has made to the complex issue of skill shortages and skills gaps locally. An important aspect of this Survey work highlighted the growing awareness amongst employers locally of the benefits of building links with schools and colleges. Overall 12% of companies surveyed identified improved school/college links as a measure taken by them to overcome recruitment difficulties. Whilst this is to be welcomed the survey also identified that 30% of employers were doing nothing to overcome recruitment difficulties. NIBEP firmly believes that there is and remains a high degree of compliancy amongst employers of the importance and benefits of business education links. This needs to be tackled to ensure economic prosperity and the full funding of NIBEP's Business Plan will go a significant way to achieving this.

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

NIBEP will contribute to the social development, educational attainment and economic prosperity of Northern Ireland, with the mission:

"to promote the development of innovative, value-creating and effective partnerships between business and education to enhance the educational experience, employability and entrepreneurial attitudes and skills of young people, thereby preparing them for the world of work."

We are operating in "a fast growing, competitive, innovative, knowledge-based economy where there are plentiful opportunities and a population equipped to grasp them," certain key principles support our mission, namely:

In promoting social inclusion and equality, a number of key actions are necessary:

n The need for NIBEP to ensure dispersal of activities across Northern Ireland both in terms of geography, community representation, and by educational establishment.

n The need to ensure that programmes and activities identified in the Business Plan take place throughout localities including those which are designated as most disadvantaged.

n The skewing of energies towards the development of activities designed to achieve greater business education relationships targeted at disadvantaged locations and potentially disadvantaged groups. This will necessitate the consideration of the allocation of resources in terms of not only money, but also time and effort, and the associated distinction between urban and rural circumstances.

We will endeavour to engage with all our partners in the primary, post-primary, special needs and Further Education (FE) sectors in developing business education policies and activities in pursuit of NIBEP's extended role.

Whilst there has been broad agreement reached by all parties that links between business and education are an essential element to the process of economic prosperity the practicalities of implementing the policy have proven difficult. Unfortunately, given the competing priorities within the Programme for Government it has not been possible for NIBEP's Business Plan to be fully funded during this financial year. The position for the financial years 2002 - 2003 and 2003 - 2004 remains unclear. This is due to the Executive's decision to agree financial planning on an annual basis.

Regrettably the funding situation has had a major impact on NIBEP's ability to take forward this important work. This will have a knock on effect on our partners in industry, schools, colleges and the Provider Bodies. NIBEP has had to reduce its planned levels of activity and concentrate on developing a modest range of programmes, at a time when major expansion was planned. NIBEP would welcome the support of the DHFETE Committee to lobby the Minister, Dr Sean Farren, to fully fund our Business Plan and allow NIBEP to fulfil its remit letter in regard to business education activity.

WRITTEN SUBMISSION BY:
NORTHERN IRELAND COUNCIL FOR THE CURRICULUM,
EXAMINATIONS AND ASSESSMENT

Section A sets out the approach being taken by CCEA to review the curriculum and qualifications for 14 - 19 year olds in order to take account not only of the needs of the individual students but also of the demands from employers. In particular, 'employability' is at the core of what is being proposed in a more flexible arrangement for 14 - 19 year olds who can choose a range of different types of courses both academic and vocational. In addition, CCEA believes that the proposals have the potential to promote the development of enterprise and entrepreneurial attitudes in an economy where 94% of the 84,535 businesses in Northern Ireland employ less than 10 people.

- This submission confirms CCEA, in its review of the curriculum and qualifications up to the age of 19, is attempting to respond to the perceived needs of industry. This recognizes that there are both shortcomings and strengths within the existing education system.

- The importance of comprehensive and impartial careers guidance will be emphasized. The process of personal career planning should begin at Year 8 - the first year of post-primary school.

Section B makes some observations on and suggestions for the further and higher education sector. In particular further education needs to clarify better its focus and concentrate on key segments of the learning 'market', particularly adults returning to education and others already in employment who require upskilling in a lifelong learning environment.

CCEA believes that the Review of Post Primary Education currently underway, will inevitably consider the interrelationships between Primary, Secondary and Tertiary education. It is entirely possible that this review could have significant implications for Further Education.

The Council welcomes the Minister's decision to undertake the examination of the contribution of further and higher education and training to Northern Ireland industry. The economic landscape, both locally and globally, is changing rapidly. The time is most opportune, therefore, for this review.

The Council further welcomes the fact that the Committee acknowledges that definitive views on the role of further and higher education and training can only be formulated when account is taken of the wider educational context. The broad questions set out in the invitation letter, dated 15^th August 2000 offer scope for a consideration of what happens in the education sector up to age 19 for which CCEA has a remit.

As an initial reaction to the terms of reference for the review of policy the Council draws attention to the claim in a Department of Education for Northern Ireland (DENI) research report [2] which states that the principal policy implication to be drawn from the evidence reviewed in this paper is that efforts to produce a better educated and more highly skilled workforce ought to be a central element in the overall economic development strategy in Northern Ireland. The evidence reviewed related to education in its broadest sense including lower and upper secondary level schooling, vocational training and university level education.

Throughout the remainder of this paper the term 'industry' will be interpreted widely to include reference to all sectors of the economy. Nevertheless, particular attention, is paid to specific occupational areas which have been identified as future development and growth priorities.

CCEA believes that the current curriculum provision needs to be radically overhauled not only to take account of the individual needs of pupils but also to respond to the views of teachers and employers. The review of the curriculum is now under way.

There were many pressures for change to the statutory curriculum, which had been put in place, for the first time, in 1990. Among the advocates for change were post- primary school principals who argued strongly that a very 'academic curriculum' did not allow for diversity and choice among their pupils. In particular, they felt that there was insufficient emphasis on the vocational dimension in the curriculum. A significant minority of pupils themselves were not motivated by what they were being offered.

The Council acknowledges the dramatic shift towards a knowledge-based economy and the erosion of the 'career path'. Knowledge and innovation are key to economic success which will depend upon ideas, skills and enterprise. The Strategy 2010 Report [3] states that we need a fast growing, competitive, knowledge based economy where there are plentiful opportunities and a population equipped to grasp them. In a report by the Institute of Directors entitled Skills Survey 2000, issued in November 2000, it was stated that employers need an increasingly skilled and well-educated workforce. 46% of respondents said that between 51 - 100% of all their employees needed two A levels or an NVQ level 3 to do their jobs. 23% of respondents said that between 91 and 100% of their employees needed to be qualified to at least this level.

CCEA agrees with the Confederation of British Industr [4] who state that by the time young people reach the age of 16 - whether they choose to leave the education system or to continue with it - it is important that they have the knowledge, skills and attitudes which will equip them for the world of work, and lifelong learning.

In recognition of these comments, and from its own view of education, CCEA is currently drawing up detailed plans for a new curriculum for introduction in 2003. In summary, the curriculum is being framed around the firm belief, which has been endorsed widely across the education and employment sectors, that the curriculum for all young people up to the age of 16 should develop each individual as:

At the core of the curriculum is provision for 'employability' which incorporates knowledge of the global economy, personal career management and the skills and qualities required for modern world class workforce. CCEA believes that the suggested curriculum reforms will make a significant contribution to the promotion of enterprise and entrepreneurial attitudes which are so important in a small economy where 94% the 84,535 businesses in Northern Ireland employ less than ten people [5] In putting the framework into practice CCEA believes that the curriculum should be common and prescribed up to the end of Key Stage 3 at age 14. At that point, CCEA is proposing that a more flexible approach should be adopted for the 14 - 19 continuum. The Council's detailed proposals are included in the enclosed paper entitled Proposals for the Curriculum at Key Stage 4.

CCEA supports the move towards a broader curriculum for 16 - 19 year olds. Guidance and support have been offered to schools and colleges to help them to ensure that individual students follow a broader range of courses, together with key skills. However, higher education and employers have an obligation to respond positively to the current post-16 innovations.

Following a review of the post-16 curriculum Sir Ron Dearing (now Lord Dearing) proposed significant changes to the curriculum for 16 - 19 year olds. One of the principles which guided his work was the need to encourage students to follow a broader curriculum. The CBI [6] states that breadth of learning post-16 is essential to prepare young people for changeable working lives. Breadth in terms of transferable skills and qualities for work needs to be a feature of all different routes. All young people should have access to develop and assess the full range of their key skills. In order to provide an understanding of work and help develop key skills and attitudes, enterprise projects and work experience opportunities should also be available in all routes. In this context, CCEA, in collaboration with its Regulatory Authority colleagues in England (QCA) [7] and Wales (ACCAC) [8] , has introduced the new AS courses, revised Advanced GNVQs (now referred to as vocational A levels) and specifications for six key skills (Communication, Application of Number, Information Technology (IT), Working with Others, Improving Own Learning and Performance, and Problem Solving).

These new courses have been available since September 2000. In a limited number of cases in schools, and more frequently in further education colleges, students are mixing courses from the General and Vocationally-related categories (see framework diagram below). Nevertheless, CCEA recognises that the achievement of the intention behind these innovations will only be realised when both higher education and employers take account of the changes in their selection criteria.

Many employers felt that the range of vocational qualifications was confusing and needed rationalisation. Dearing wrote that among those involved in education and training, whether as providers or learners, there is a strong wish for greater coherence in the framework of qualifications. Those outside want a framework which they can understand. [9] Building on the work of Lord Dearing, the Regulatory Authorities developed a new qualifications framework (see diagram above). In addition, however, the framework also represents an attempt to raise the status of vocational qualifications by showing the different qualifications in terms of Levels - thus reinforcing the idea, for example, that a Vocational A Level, while being different in nature and purpose, is similar in demand to an Advanced GCE or an NVQ Level 3.

It can be seen from the framework that young people, right from the age of fourteen may choose to study a mixture of qualifications. CCEA recognises that the ambitions for the implementation of the framework will be difficult to realise and will involve a significant shift in attitudes towards vocational qualifications by schools and among parents. Employers, especially, can make a difference if they show a greater willingness to accept different qualifications as part of their selection criteria.

CCEA does not have direct responsibility for NVQs in Northern Ireland - QCA fulfills that remit. However, the Regulatory Authorities are working together to strengthen aspects of training particularly in relation to underpinning knowledge within training programmes. This is especially relevant to Modern Apprenticeships (NVQ Level 3). These were introduced following demands by employers themselves as well as representative bodies such as the Sector Training Councils (STCs). There are 55 Modern Apprenticeship frameworks available in Northern Ireland and currently these are under review by DHEFETE.

Plans are also being put in place to introduce Technical Certificates which are taught qualifications focussing on underpinning knowledge and understanding to be taken alongside NVQs in Modern Apprenticeships. Any qualification meeting the Technical Certificate design principles, being drawn up by the Regulatory Authorities, must also include an element of 'citizenship' in an employment context.

CCEA believes that this development has the potential to strengthen the Modern Apprenticeships. However, the delivery of such programmes must be attractive to trainees who are clearly keen to follow a very practical type of training.

With regard to apprenticeship training generally, CCEA has not undertaken any detailed international research. However, some investigation into the often heralded German Dual System confirms that this model, up to now, has been very successful. However, CCEA believes that rapid changes in the composition of labour markets and industries also require the ability of a training system to adjust quickly. Presently the dual system is perceived as too slow in adjusting to changes. [10] CCEA believes that Northern Ireland should learn from what is happening in areas such as Germany and make sure that our training systems are responsive to volatile labour market demands.

CCEA, along with others involved in education, training and employment, believes that the current careers provision in schools and colleges needs to be strengthened if the desired goals for both the qualifications framework and Strategy 2010 are to be realised. For example, informed guidance should ensure that young people are acutely aware of the labour market trends. It is clear from publications such as Lifelong Learning: A New Learning Culture for All [11] that significant recruitment is likely in computing, construction, electronics, manufacturing, engineering, software engineering, and tourism and hospitality. However, careers guidance practitioners need to make sure that young people make informed decisions on the basis of up-to-date information. CCEA is not convinced that this is indeed the case and looks forward to implementation of the recommendations of the Careers Guidance Review Group.

CCEA's role in colleges of further and higher education (hereafter referred to as 'college(s)' relates to those qualifications General and Vocationally-related qualifications for which it has regulatory responsibilities. In addition, as an Awarding Body, it provides a service for students and staff in relation to those qualifications within its current portfolio. The comments within this submission on colleges are covered by the following headings:

- the need for FE to establish for itself a clear role within the education and training sectors;

CCEA fully appreciates that colleges have been at the forefront of vocational training in a variety of forms - full-time, part-time, evening classes, day release and in the workplace. Helena Kennedy emphasised that further education has been an alternative route to success for many young people who have foundered in the school system, frequently providing another avenue to university education. It is further education which has invariable given second chances to those who were forced, by necessity, to make unfulfilling choices. It said 'try again' to those who were labelled as failures and who had decided that education was not for the likes of them [12] The possibility of giving individuals that 'second chance' is most important and one that colleges have the potential to offer. Perhaps colleges have not always been as successful as they might have been in attracting 'returners' to further education as might have been anticipated.

Following on from the previous point there is the issue of the customer base for colleges. It used to be said that FE is everything that does not happen in schools and universities. However, in recent years there is evidence that some colleges, but not all, have been offering, for example, repeat GCSEs, Advanced GCEs and now a range of vocational A levels. However, it is interesting to quote from the report of The Review Group on Further Education (1992) which states on page 13 that at the same time, however, for some purposes there needs to be a differentiation between vocational education which includes training of a work-related type and that of a general or academic nature which is not in itself directly related to employment. The Review Group considers that the core role of a further education college should be the provision of vocational education of the work-related type. The core role provides the central rationale for a college's existence and, in particular, contributes to improving the level of skills of the workforce - which in turn, leads to the improvement of the economy of Northern Ireland. CCEA continues to believe that the focus of the work of colleges should be as the 1992 Report advocated.

Through funding and market forces, particularly through competition from schools, colleges are concentrating more on courses of the work-related type. With regard to the school/college competition, CCEA believes that co-ordination is required at government level to ensure that there is sensible and efficient allocation of resources. Taking account of economic priorities it is most unlikely that schools will be in a position to offer vocational A levels in, say, Engineering. Thought ought to be given to rationalising, from the centre, the provision of different courses in schools and colleges - or at least greater imperatives toward collaboration in the interests of both students and the economy.

There is a large group of people in Northern Ireland, as many as 200,000 with no or few formal qualifications and this group is powerfully represented among the unemployed and socially excluded. Recent evidence from the International Adult Literacy Survey shows that 24% of adults in Northern Ireland are at the very lowest level of document, prose and quantitative literacy and that the unemployed are twice as likely as those in employment to perform at this lowest level. Information provided by the Labour Force Survey, Spring 1998 shows that only 42% of the employed workforce are qualified to NVQ level 3 or equivalent - the minimum required by most firms according to the Institute or Directors and other organisations.

CCEA suggests that rather than duplicating some of what is provided in schools, colleges ought to focus on the target groups mentioned above. This would bring about a shift in the age profile of those attending college. That profile shows that a major proportion of their cohort of students is within the 16 - 19 age range rather than over that age.

The government's intention to introduce Foundation Degrees is, in the opinion of CCEA, a welcome development. While complete information is not available at this stage it would appear to the Council that this 'fast tracking' to employment is more in line with what employers are demanding. CCEA believes that much of this work could be undertaken by colleges which are local and accessible to our young people.

Learning is the key to prosperity - for each of us as individuals, as well as for the nation as a whole [13] To survive and compete in today's world, Northern Ireland businesses and individuals need to learn more and to develop and update their skills. The modern knowledge economy will force people in work to renew their skills and even change jobs every few years. In knowledge economies, training will continue throughout our working lives, and will be a blend of vocational and liberal education that supplies tranferable intellectual and social skills, especially the capacity to locate and evaluate knowledge in an information saturated world. It seems to CCEA that colleges can play a crucial part in promoting and providing lifelong learning opportunities, particularly for women, the unqualified and, of course, people currently in work.

The Northern Ireland Credit Accumulation and Transfer System (NICATS) has been promoted by Government to enable the creation of a single credit framework across Further Education (FE), Higher Education (HE) and other providers of post-16 education and training in Northern Ireland.

The aim of the single credit framework is to enable learners to accumulate credit through a variety of modes of learning and to progress through a series of levels of learning, transferring where necessary, without encountering the barriers caused by the current lack of coherence and interconnection between existing systems of accreditation and parts of our education system.

The NICATS Project which ran from April 1996 to March 1999, and was funded by the then Department of Education for Northern Ireland (DENI), agreed the structural components of a credit framework including a single continuous set of level descriptors from basic entry level to postgraduate level. These specifications outline how learning achievement can be measured, described and compared through learning outcomes, credit values and levels.

NICATS moved into its implementation phase in late 1999 after an Implementation Committee, under the Chairmanship of Professor Peter Roebuck, was appointed by the then Minister of State. In August 1999 a Ministerial Letter set out the remit and priorities of the NICATS Implementation Committee and Central Unit over a three year implementation phase. It should be noted that NICATS is the first UK network established by government to develop a single credit framework embracing both the further and higher education sectors.

The following recommendations were made in the final NICATS Project Report, published in September 1999:

n that a NICATS Central Unit be established to take forward the preparation and planning for a single framework for credit and qualifications in Northern Ireland.

n that major stakeholders work collaboratively with the NICATS Central Unit to agree and endorse:

- quality assurance procedures for the award of credit at each level which meet NICATS specifications; and

n that NICATS work collaboratively with the Northern Ireland regulatory and award bodies to produce:

n that the NICATS Central Unit continue to work in collaboration with national credit and qualifications framework developments in the UK, adapting the NICATS specifications in the light of national developments and pro-actively contributing to credit framework developments at a national and international level;

n that the NICATS Central Unit actively promote the relevance of CAT developments to delivering the Government's lifelong learning agenda;

n that primary responsibility for quality assurance remain with the recognised validating and awarding bodies. The NICATS central unit should work with the recognised validating and awarding bodies to ensure the successful operation of the agreed framework;

n that inter-institutional curriculum groups be established to proceed with pilot curriculum development activities which facilitate testing of the NICATS specifications and guidelines;

n that stakeholders work closely with the NICATS central unit to raise the profile of the Northern Ireland Credit Framework through appropriate staff development activities;

- raise awareness for learners of the opportunities provided by a credit framework; and

n that the NICATS central unit work closely with relevant guidance agencies to ensure that learners can make effective use of credit accumulation and transfer opportunities.

During its project phase NICATS was based within the Educational Development Unit in the University of Ulster and was managed as a discrete project within that Unit. In July 1999 a NICATS Director took up post and staff were appointed to designated posts between August 1999 and June 2000. Over the period from August 1999 to April 2000 adaptations were made to vacant accommodation at the UU Belfast Campus to provide a set of offices for the NICATS Unit which could be independently accessed from York Street. NICATS was thus established as an independent unit, within the University for operational purposes, but responsible, through the NICATS Implementation Committee, to the Minister for Higher and Further Education, Training and Employment (DHFETE).

Under the terms of the Ministerial Letter the NICATS Director reports to Professor Peter Roebuck within the University of Ulster, who also holds the position of Chair of the NICATS Implementation Committee.

The Ministerial Letter sets out a number of key objectives for the NICATS initiative, which must be achieved by September 2002.

n develop the credit framework for Northern Ireland in collaboration with the Northern Ireland further and higher education institutions and local regulatory and awarding bodies, maintaining close contacts with national credit and qualification framework developments;

n provide advice, guidance and associated staff development to stakeholders on the development and operation of the Northern Ireland credit framework;

n develop and maintain links with employer organisations, the University for Industry, national and international credit consortia, with a view to promoting the recognition and use of credit; and

n develop a unit database and establish an electronic credit transcript to underpin the Northern Ireland credit framework.

n established the NICATS office including appointing a full staffing complement and produced a draft business plan containing development and operational sub-plans;

n established sub-committees of its Implementation Committee, concerned respectively with collaboration with: CCEA; the major awarding bodies based in Northern Ireland; and further and higher education representatives;

n met with all heads of FHE colleges, on an individual basis, to explain the NICATS framework;

n met, on a regular basis, with staff in HE to discuss NICATS role in relation to that sector and to agree areas for co-operation and development;

n established links with key awarding bodies at local and national level in order to establish a collaborative working relationship;

n worked closely with the FE Curriculum Development Officer for Northern Ireland (funded by DHFETE) to provide a NICATS input to project and staff development activities; developed links with the University for Industry and established key links in credit framework development at national and international level;

n established links with various bodies in the Republic of Ireland concerned with the issue of credit framework development, namely the CHIU Committee of Registrars and groups associated with adult and youth community education and access to higher education;

n made detailed responses to relevant consultation documents and provided inputs at a wide range of conferences, seminars and workshops, both as a professional development activity and as a means of promoting NICATS; and

n initiated two major pilot projects: The UK Credit Equivalence Project and the FE Sector/ NICATS Access to Higher Education Project.

n Working with other UK bodies to ascribe credit to qualifications within the National Qualifications Framework (the first priority area identified by DHFETE).

n Involvement in FHE funding and MIS development to ensure compatibility with the emergent credit framework.

n Promotional and staff development work with employers, educational providers and learners re role, function and advantages of the NI Credit Framework.

n The use of NICATS as a reference point for comparing and contrasting different types of award.

n A clearer picture of learner achievement and the progression routes available to students in FE, HE and the workplace - this will apply to education providers, students, parents, employers and guidance personnel.

n A credit system which underpins the unit-based nature of Curriculum 2000 and, in due course, the National Qualifications Framework.

n The recognition and acceptance of credit as a way of describing and measuring learning.

n Increased motivation for students as learning is available in smaller chunks for which credit is immediately available.

n A curriculum design model which can help to deliver the Government's lifelong learning agenda.

n The use of the NICATS specifications and model as a valuable tool to assist in curriculum assessment and design.

n The establishment of a NICATS database of units, grouped by nature and demand of content, which will allow comparisons to be made and progression rates (both to employment and further study) to be claimed by a wider range of learners.

1. This short response presents the views of the Northern Ireland Economic Council (hereafter referred to as the Council) to the inquiry by the Higher and Further Education, Training and Employment Committee, into "Education and Training for Industry". A brief summary of the role and remit of the Council is contained in Annex A.

2. Many important issues come under the scope of this inquiry. The Council will however confine its comments to directly relevant issues which have arisen from our recent body of work. Other issues from our research, while perhaps not directly relevant, but which we feel are pertinent to the inquiry are contained in Annex B.

3. The attainment of a virtuous circle in which a growing economy helps to generate the resources and opportunities to tackle social exclusion should be an important strategic objective of the Government. Education and Training policy has a fundamental role to play in achieving this objective. Forthcoming research from the Council on economic strategy reinforces this view (Best, 2000, Forthcoming). It focuses attention on three key issues: the Business Model; Production Capabilities; and Skill Formation.

4. Transformational growth of the type required to increase GDP per head of the population in Northern Ireland to UK levels, requires integrated action across all three domains. The report is particularly insightful with regards to the third domain - skill formation. It makes the important point that a region that can institute skill formation processes in anticipation of technology transitions has a competitive advantage over regions that lack such a capability.

5. The report commissioned from Professor Michael Best, Director of the Centre for Industrial Competitiveness, University of Massachusetts, Lowell and Visiting Professor at the Judge Management Institute, Cambridge University, England, entitled "The Capabilities and Innovation Perspective: The Way Ahead in Northern Ireland" will underline the fact that Northern Ireland universities have world-class research facilities in several areas but active industry/university partnerships are too few. Furthermore, his research shows that Northern Ireland Further Education Colleges currently enjoy little guidance particularly in the crucial area of manpower planning.

6. Investment in skill formation is costly. To get a high return on the investment, it is important to match the demand for skills from technology advancing firms with the supply from education institutions. This is best achieved through co-ordination of activities involving employers, teachers at all levels, and education authorities.

7. The report points out that in the Massachusetts area, the tripling in electrical engineering graduates during the 1976 to 1986 period was the result of co-ordinated action by three institutions: technology-driven firms, education and government. Although it is the government that has both the funds and legitimacy to make educational restructuring and investments on the necessary scale, nevertheless, the state government was not the leader but a third partner in the implementation of an informal manpower development plan. The rapidly growing, technology-driven firms were the active partners. Developing this active partnership approach should be a key priority of the Committee's investigation. Best's work highlights the challenges for all three institutions should this active partnership be undertaken in Northern Ireland as follows:

n The challenge for educational institutions is not simply to increase the number of graduates but to increase graduates educated in a curriculum that includes emerging technological methodologies.

n To collaborate with industry and government in skill formation appropriate to the region. The supply of graduates must be "in sync" both in skill and quantity with the demand from technology-driven firms.

n To assess the teacher pool in terms of size and orientation in terms of mathematics and science.

n To actively encourage an interest in science amongst young people in the early years of education.

n To collaborate with educational institutions and government in skill formation appropriate to the region. Northern Ireland's problem is not so much the supply of skilled labour, particularly graduates, but the capability of industry to absorb them.

n To make better use of the 25 research and development centers that currently exist in Northern Ireland.

n To develop governance capabilities for fostering applied technological development to reinforce and foster the continuity of unique, regionally based technological capabilities.

n Industrial policy must take account of all sources of knowledge and skill formation. Best offers new insights into the importance of what he calls the "invisible colleges". By this Best means skill formation also applies to tacit, or non-codifiable, knowledge that is built up by enterprises conducting experiments, formal and informal over long periods of time. Tacit knowledge is often a critical ingredient in unique capability development and a source of unique competitive advantage. Mission-driven organizations can affect growth by fostering a region's invisible colleges. Industrial transitions, in particular, can be fostered by mission-driven intermediary institutions (neither business enterprises nor government agencies), which form integral parts of regional and national business systems. Ignored by much of the industrial organizational literature, these intermediary organizations can be established by industrial policy-makers, by groups of enterprises, or by professional associations. Best cites an example from Japan - the Japanese Union of Scientists and Engineers (JUSE).

n To address bottlenecks in the overall process in terms of declining enrolments in science and engineering courses at the tertiary levels which can be traced back to preparing mathematics and science teachers to stimulate interest in these subjects at an early age.

n To drive the institutional changes required to synchronize industrial development and skill formation for knowledge-intensive industries.

8. In a statement preceding Best's report the Council highlights the importance of a systematic approach to regional innovation. The Committee may be interested to know that the Council has commissioned a report, which seeks to characterize the nature of the regional innovation system in Northern Ireland and to make recommendations regarding the development and effectiveness of a regional innovation strategy. The purpose of the report is not to design or initiate a new innovation strategy for Northern Ireland, but to offer recommendations, given the nature of the existing regional innovation system in Northern Ireland, as to how it might be improved, and to recommend the direction of future policy in this area. The report will establish where Northern Ireland currently stands in terms of regional innovation and its regional innovation system relative to other regions. It will suggest ways forward for regional innovation strategy and policy, based on best practice elsewhere and on the nature of the local economy. This research is being supported by the IRTU.

9. Since its inception the Council has been a consistent advocate of the vital importance of R&D in the economic development of a region [14] In September 1998 the then Minister for the Economy, Adam Ingram, asked the Council, in the context of economic development, to review publicly funded R&D relative to private R&D, make national and international comparisons and advise on whether better co-ordination would be desirable.

10. The Council report was published in January 1999 (NIEC,1999). It found that despite some excellent public and private capabilities, R&D in Northern Ireland was too low, both in absolute terms and relative to major economic competitors. A significant finding for the purpose of this enquiry was the lack of co-ordinated and complementary attention by government to both public and private R&D in government departments, industry and the universities.

11. The report concluded that R&D must be effectively co-coordinated and "joined up" by government in order to have a significant impact upon economic development in Northern Ireland. To carry out their own R&D and to be innovative, companies need access to publicly funded R&D through networking, co-operative research skills, training and knowledge transfers from public institutions, particularly universities. The report contains comprehensive analysis of how publicly funded R&D can be taken forward in the context of an economic development strategy. Findings from the report led the Council to make a number of detailed recommendations, which are summarised as follows:

n R&D should be reported inclusive of all public and private activity, including that in the universities.

n The establishment of policy mechanisms that are found in other UK and European regions for co-ordinating publicly funded R&D and embedding it into innovation and economic development strategy.

12. The Council has given a number of presentations on this report to various committees and Ministers. These presentations were made to: the Northern Ireland Higher Education Council and its Regional Initiatives Sub-committee; the Higher and Further Education, Training and Employment Committee; the Minister for Higher and Further Education, Training and Employment, Dr Sean Farren; the Minister for Enterprise, Trade and Investment, Sir Reg Empey; the Board of the IRTU and the Government Task Force.

13. The Council also responded to a consultation paper by the Northern Ireland Higher Education Council on Research Funding Allocation Method to be Applied to the Northern Ireland Universities (NIHEC, 1999). The Council used this response as an opportunity to highlight the importance of universities and Further Education Colleges (FECs) as engines and drivers of the local economy.

14. University research is at the core of the knowledge-based economic and social development agenda, and both the quantum of core funding and its method of allocation are vitally important. The Council recognised in its response that, in any knowledge-driven economy, university research is a critical foundation for new wealth-creating activity throughout the economic, social and cultural spheres.

15. Furthermore, the Council argued that a simple and transparent method of allocating core research funding, based on rewarding excellence, is the appropriate way forward for Northern Ireland. The Council recommended that 90 per cent of core research funding in Northern Ireland should be allocated on the basis of quality assessment. Overall, the Council argued in its response that increased funding for research and innovation from all public and private sources is required as a long-term policy objective in Northern Ireland.

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 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.

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.

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.

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.

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.

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;

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.

3.1 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.

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.

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.

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.

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:

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.

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.

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.

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.

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.

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.

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.

NITC²welcomes the opportunity to respond to the request from the Northern Ireland Assembly's Committee for Higher and Further Education, Training and Employment for its views on further and higher education and training.

"To identify and ensure education, training and development that will deliver the necessary skills for the profitable growth of the Northern Ireland clothing and textiles industry."

The Northern Ireland clothing and textiles industry's contribution to the NI economy is substantial. It is exclusively responsible for 20% of all employment in Northern Ireland's manufacturing output. Textiles accounts for over 20% of NI overseas export. The industry provides employment for many skilled people, including shop floor operatives, managers, technologists, designers, engineers, pattern cutters and marketers.

However, the industry is currently facing the greatest challenges in its history. In the past five years 1,300 clothing firms and 400 textile firms have gone out of business in the UK. Low labour - cost suppliers are securing an increasingly large share of world markets, state aid in a number of overseas countries are distorting competition, sourcing patterns on the Higher Street are changing as are consumer spending patterns and the general weakness of the euro and related European currencies is having a significant, negative impact upon exports.

The industry must respond quickly to these changing circumstances and increase its chances of maintaining the critical mass necessary for its survival.

1. Encourage and enable manufacture/retailer co-operation to establish stronger and more efficient supply chains.

4. Maximise the potential to the industry of technical expertise and resources available in our Universities and Institutes of Further and Higher Education.

This will require innovation, improved training and development, marketing skills and a revised recruitment strategy which will ensure high quality candidates.

Tremendous opportunities exist which must be exploited, particularly in areas such as technical, designer wear, dyeing and finishing, CAD, branded clothing, capital intensive manufacturing and high value niche markets.

To exploit these opportunities consideration should be given to the setting up of a number of Centres of Excellence within the current educational provision supported by both public and private funding. These Centres would offer industry-specific training running in parallel with generic skills training common to all industry sectors and would reflect the "clusters" identified by NI Growth Challenge including the textiles and clothing industry.

Last year the top 10 companies in Northern Ireland out-performed their Republic of Ireland and Great Britain counterparts, each of which is growing rapidly. This was achieved by employing modern design themes, new technologies, brand development and balanced cost sourcing strategies. There is still a need to:

n exploit the fact that our closeness to our current markets affords us a quicker response time than competitors from overseas;

n establish joint ventures, combined marketing initiatives and networking strategies;

This industry can only benefit from a productive partnership with Further and Higher Education providers of education and training. NITC²welcomes the opportunity to assist in the formation and nurturing of these partnerships.

n Design is the Key. We must improve our design and quality so that domestic production is a necessity rather than simply an option.

n Investigate ways of improving speed of response to customer demand eg, how the successful Spanish Retailer Zara, with over 700 stores, still uses local factories, yet meets the varied customer demands from various European countries.

n Sponsorship to attract and retain high quality personnel in all aspects of the industry.

n For Higher Education institutes to be effective in meeting the needs of industry a number of centres of excellence need to be established. These may reflect a "clusters" model identified by NI Growth Challenge and should be supported by public and private funding.

n Be more pro active at sourcing in the UK eg, NHS has a spend of £130 million, MOD a spend of £100 million, much of which is spent abroad.

n Create a strategy that would support Life Long Learning in the Industry ensuring the continuous development of skill, knowledge and understanding essential for employability and personal fulfilment.

n Maximise the effectiveness and efficiency of the industry through the use of ICT.

n Create a strategy for the development of basic and key skills in the industry.

n Prepare people to meet the challenge of changing jobs more often by ensuring they have transferable skills - team player, flexible positive attitude, numeracy, IT and communication skills.

n Offer a programme of pre entry industry career guidance and counselling with an emphasis on a positive work ethic and the social benefits that follow from the rationale for work.

n Partnerships should be encouraged at all levels between education and the private industry sector to promote greater awareness of their needs and to develop projects to meet those needs.

1.1 The Open University in Ireland is pleased to respond to the N.I. Assembly's Committee for Higher and Further Education, Training and Employment's Enquiry into Education and Training for Industry in Northern Ireland.

1.2 The focus of this response is the capability of the Open University in order to assist with the delivery of learning and training programmes of international quality, to enhance the skills of the local workforce. Such programmes can help bring about the creation of a dynamic, knowledge-based, competitive economy for Northern Ireland as visualised in the N.I. Executive's Draft Programme for Government and the N.I. Economic Development Strategy 2010.

2. Question 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 N.I. economy?"

2.1 The education and training system needs to support innovation in existing industries and an infrastructure for the introduction of new industries to replace those in decline. To do this requires investment in the local learning, training and support infrastructure to the levels found in other European regions where this has been recognised as the foundation for economic growth and success, such as is the case in Scotland and the Republic of Ireland. The system needs to develop and support a learning environment which produces the best-equipped people to help Northern Ireland compete successfully with those in other regions.

2.2 The ability of the N.I. region to compete with other regions will depend on the capability of the education and training system to address the skill shortages of new entrants to the workforce as well as updating the skills of those already in employment. To enable this to happen requires an integrated approach from all providers underpinned by a comprehensive system and culture of lifelong learning and training for all, the main features of which need to include the following:

- practical Credit Accumulation and Transfer system (CATs) to which all providers are committed.

- learning opportunities that combine underpinning knowledge with the development of relevant skills and competencies.

- clearly understood learning transcripts for students that provide evidence of their knowledge and competencies.

- clearer definition of qualifications in terms of the level and range of attributes of holders.

- learning opportunities that meet the needs of individuals and the economy through flexibility.

2.3 The Open University can help achieve this by providing alternative methods of delivering high quality learning and training programmes. As a European-wide distance education and on-line learning institution, the OU offers employers and employees:

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

3.1 A strength of the system is the production of skilled graduates, a feature which is given high priority and recognised consistently by inward investors.

3.2 The Open University can help these people reach their potential through the delivery of integrated learning programmes which involve individual study and practical skills development. These programmes include work-based activities and have been presented in association with partner training providers such as the Northern Ireland Training and Employment Agency.

3.3 The Open University commends the contribution of local colleges and institutes of further and higher education in this important area. If the N.I. Assembly is serious about the creation of a competitive workforce it needs to give further support to these institutions. They have a region-wide infrastructure which produces high quality learning and training programmes, mostly vocational. "Parity of esteem" needs to be granted to their qualifications and further investment given to supporting closer and more effective collaboration between further and higher educational institutions.

3.4 The Open University wishes to highlight the critical importance of vocational qualifications, work-based learning and the introduction of Foundation Degrees in the progression towards a competitive economy and the creation of a skilled and responsive workforce for industry. It points to the success of the Institutes of Technology in the Republic of Ireland in the rapid delivery of training to meet skill shortages and the fact that this was made possible because government and industry resources were deployed to this sector.

3.5 The Open University wishes to play a part in the development of Foundation Degrees and bridging collaboration with colleges of further and higher education. The O.U. has already well established partnerships with most of these institutions and with other providers in the system, such as the Workers' Educational Association and Trade Unions such as UNISON, which provide validated awards, within the QAA qualifications framework, to enhance the learning and skills of people in the region. The O.U. is well placed to share and apply this expertise further in relation to the educational and training needs of the workforce.

3.6 The Open University commends the strength of the existing education and training system in facilitating an extensive network for the exchange of information, partnerships and dissemination of good practice. However, it wishes to draw attention to the lack of articulation between the needs of industry and training providers and the need for better advice and guidance services. This shortcoming limits the willingness and capability of employers to engage effectively in education and training.

4. Question 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?"

4.1 The Open University has noted that in its Draft Programme for Government, the N.I. Executive has undertaken during 2001/02 to promote Northern Ireland as a world class centre for e-commerce. It also notes the significance of ICT as acknowledged in the RoI White Paper on Adult Education, which states that there are compelling reasons for integrating ICT into the education and training system, the biggest influence being the Internet, which is the fastest growing network in the history of communications. Increasingly, the Internet will be used as the means of conducting consumer and business transactions (e-commerce). It follows that knowledge and familiarity with IT based technologies will have a critical bearing on levels of employability in Northern Ireland.

4.2 To acquire this knowledge and familiarity will require an increasing number of adults to access education and training opportunities through ICT. As an opportunity for adult learning, ICT provides a whole new mechanism for overcoming distance in the pursuance of accredited learning and training programmes. On-line accessibility from anywhere in the world means that Northern Ireland is no longer disadvantaged by its peripheral location. Increasingly, institutions will be required to adapt their programmes for electronic delivery and for interaction with other learners in a virtual classroom environment. The Open University is a world leader in this field.

4.3 The Open University accepts that while it is better to look to the virtual environment to supplement, rather than replace, the actual one, it considers that the application of ICT in adult education and training presents a huge opportunity for the education and training system in Northern Ireland. The Open University is already in the position to deliver ICT and related programmes of international quality to Northern Ireland and wishes to be part of an integrated and complementary ICT provision for the region.

4.4 An important aspect of Open University programmes is that they require learners to engage in the use and application of ICT as an intrinsic part of their studies. By doing this in their place of work or at home, learners and trainees are improving their IT, communications and interpersonal skills. These are the key individual skills required in a competitive workforce.

4.5 The Open University offers an introductory IT programme which is delivered entirely on-line. This course is recognised as a world leader and involves electronic support and interaction at all levels, via e-contact with tutors, virtual tutorials, computer conferencing, group project work and networking with students Europe-wide.

4.6 It also has a complementary range of associated IT/computing courses which use and develop computing and IT skills, all of which incorporate conferencing, e-mail contact with tutors and assignments on-line. These are available at access level, as short courses, and through to postgraduate masters' level.

4.7 These courses can contribute significantly to employment opportunities in Northern Ireland particularly in relation to the demand for high level and specialist IT skills, applications and network design.

4.8 They can be delivered to students anywhere in Northern Ireland. This is especially important in relation to remote areas of need such as West of the Bann. Utilising the Open University's expertise as a world leader in 'on-line' supported learning, the rhetoric of wishing to be a global centre of e-commerce could become a reality.

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

5.1 Clearly there needs to be a set of incentives for training providers and businesses if the requisite quantity and quality of learning and training is to take place to bring about a competitive economy for the region. The Open University has noted that the N.I. Executive has committed itself to increasing further education and training provision in priority skills areas by providing, by March 2002, an additional 500 places in skills shortage areas. The Open University commends this investment and wishes to help the Executive meet its targets in this area.

5.2 It is important that barriers in adult learning and training such as inability to pay part-time fees, as well as the need to extend tax benefits for businesses, providers and individuals are addressed effectively.

5.3 The Open University feels that special attention needs to be paid to the provision of high quality training for small businesses. It suggests that a new advisory body be established, dedicated to the provision of advice on priority skills training for small businesses. The right kind of incentives must be made available to SME's if they are going to be persuaded to release their employees for training - a very practical difficulty for a small company.

5.4 The Open University can help address this problem by the provision of on-line supported learning programmes, short business management courses and the provision of specially designed, "off the shelf" training and resource packs.

6. Question 5. "Views on skill shortages and how any perceived problems be tackled."

6.1 Northern Ireland has a persistent level of high unemployment - the N.I. Executive has recognised reducing long-term unemployment as fundamental to tackling a whole range of social and economic problems in the region. The Executive has committed itself to ensuring that programmes such as New Deal and Welfare Reform Programme give people the skills and incentives which they need to get jobs and escape the cycle of deprivation. In this respect, it has acknowledged the importance of equipping people with those skills, including ICT skills, which are increasingly necessary in the labour market and enable people to stay in employment.

6.2 The Open University welcomes these initiatives by the Executive but wishes to point out that they must be underpinned by unhindered access to the education and training system, including up-to-date learning resources, so that people can maintain and enhance their employability in a fast-changing world. If a knowledge-based society is to come about in Northern Ireland, there needs to be practical solutions and incentives put in place to overcome obstacles such as inability to pay fees, inadequate childcare provision and educational leave, together with measures to support the reconciliation of learning and family life. If these are addressed, the region will have the infrastructure from which it can address skill shortages.

6.3 The Open University wishes to continue to contribute to the efforts to enhance work skills. Together with the two other universities in Northern Ireland and in collaboration with the colleges and institutes of further and higher education, EGSA, DENI, T&EA, Employers' and Students Unions, it has already helped to shape the way forward in the form of the NIHEC Regional Initiative on Personal Development and Graduate Skills for Employment. This report was published in 1999 and highlighted the importance of the need to integrate generic skills development into the HE curriculum.

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

7.1 Of the three universities in Northern Ireland the Open University has the highest research and teaching quality ratings and assessments. It is a world leader in the provision of distance education, supported open learning and on-line delivery of learning and training opportunities. It very much wishes to contribute further to the vision of a knowledge-based society and competitive economy for Northern Ireland - it can do this through the complementary provision of high quality learning and training programmes ranging from Access to Masters' degree levels.

7.2 The Open University has a set of management programmes which are particularly suited to the needs of middle and senior managers in small businesses.

7.3 The Open University has extensive experience of collaboration with colleges of further and higher education and other social partners.

7.4 The OU is in a position to play a key role in the introduction of Foundation Degrees. These will enhance the status of vocational and technical qualifications, and could prove pivotal in the parity of esteem debate about qualifications. Properly designed and resourced, and with the full support of employers, Foundation Degrees could provide a 'fast-track' for meeting skill shortages.

7.5 Because of the flexibility and quality of its learning and training programmes the Open University is in a unique position to bring the right skills to the workforce in its challenge to establish new economy industries in Northern Ireland.

8.1 The composite response from the Open University in Ireland includes reference and comment on most of the economy sub-points listed on document "Annex 1". There are some of these points such as comparisons between "international models" with respect to technical and vocational education, which we are not in a position to consider at this time.

1.0 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 arguments for the need for a knowledge-based economy are now widely accepted. In such an economy, the education and training system plays a key role, as it supports the economy through the training and development of its workforce.

1.2 Queen's makes an immense contribution to the skills resource and economic capability of Northern Ireland through the training of undergraduates and postgraduates in both vocational and non-vocational subjects. Many of the skills fostered and developed in its students not only underpin and encourage self-development and personal fulfilment but are transferable and relevant to serving the needs of an adaptable, sustainable, knowledge-based economy at local, regional and national levels.

1.3 The education and training system also plays a vital role in supporting the economy through the provision of leading edge research. The universities constitute a major part of the research activity in Northern Ireland. Indeed, the achievement of sustainable economic development will depend, to a large extent, on their ability to pursue research and innovation of national and international standards. Research undertaken by the universities also has a critical role to play in inward investment. If Northern Ireland is to be successful in attracting inward investors, then it is essential that a high priority is given to protecting the existing skills base and ensuring that Northern Ireland has the internationally recognised research infrastructure it needs if it is to attract hi-tech, high-value investment. Investment follows excellence and companies at the cutting edge want to be located close to centres of excellence. In today's global economy, industry will locate where there is a highly skilled labour-force.

1.4 With regard to how the system needs to change to meet the needs of the Northern Ireland economy, the University wishes to comment on the changes it considers necessary to further develop its role in supporting industry. It has been acknowledged by many commentators that the research undertaken by the universities is particularly significant given the nature of the Northern Ireland economy, which is characterised by a high number of small and medium sized enterprises which simply do not have the capabilities or resources to invest in world-class research. This fact was also highlighted by the National Committee of Inquiry into Higher Education (1997) which emphasised the importance of university research in Northern Ireland because the "structure of the economy, with its small firms, the prevalence of external ownership and bias towards low technology operations, reduces the short-term opportunities for research conducted by business".

1.5 The importance of the research undertaken by the Northern Ireland universities has also been highlighted by the Northern Ireland Economic Council report "Publicly Funded R&D and Economic Development in Northern Ireland", which was published in December 1999. The Council argued that the two universities have a key role to play in R&D and economic development. There is clearly a need for additional funding for the research infrastructure of higher education. The University welcomes the introduction of the Support Programme for University Research, however, it believes additional funding is still necessary to develop and improve the research infrastructure base.

1.6 A major issue which will need to be addressed if the education and training system is to continue to meet the needs of the Northern Ireland economy, is the question of the recruitment and retention of academic staff. At present the University is losing staff in key areas such as computer science and electrical and electronic engineering, as it simply cannot compete with the salary levels now on offer by industry. If the University is unable to attract and retain high calibre staff, the standard of its teaching and research will fall and the quality of its graduates will inevitably be affected. It is therefore important that the University can introduce measures to address the current difficulties regarding the retention and recruitment of staff. The University believes that there is a role for industry in assisting universities with these difficulties and there would be merit in higher education working closely with industry to develop innovative solutions to deal with the current staffing problems.

1.7 The University believes that a plentiful supply of research students is an essential element of successful research. However, the recruitment of postgraduate students, particularly in engineering and science disciplines, is becoming increasingly difficult, due to the low levels of financial support available by comparison with the salaries in the buoyant labour market: a postgraduate award of £6,800 compares very unfavourably with starting salaries of £18,000-£25,000 for graduates within these subject areas. While the University has developed a number of initiatives to respond to these difficulties, there is clearly a lot more that needs to be done.

1.8 Research students are a source of recruitment for academic staff and industry, and are a key element in the transfer of technology to business and industry. Indeed, a reduction in the number of postgraduate research students could cause difficulties for industry in the long-term, as it will inevitably lead to a shortage in the supply of suitably experienced research personnel. In order to address a potential future skills shortage, it is necessary that steps are taken to deal with the current difficulties in attracting research students in certain disciplines. An immediate issue which needs to be addressed is to ensure that the PhD awards in Northern Ireland will be increased in line with the agreed increases in the rest of the UK.

1.9 The contribution of education and training, and particularly higher education to wealth creation needs to be understood and built into the planning for a knowledge-based economy for Northern Ireland. The University believes there is a need for the providers of education to work closely with industry and relevant government departments in developing a long-term strategic approach to enable the education and training system to work more closely with industry. The nature of planning in education and training is long term, while the needs and demands of industry can change regularly as a consequence of technological advances. There is clearly a need to address the relationship between industry and the providers of education and training in order to foster mutual understanding of the needs of both sectors. It is important to acknowledge that while education and training have a key role to play in supporting the economy, the role of education goes beyond an economic agenda and caters for all the knowledge needs of society.

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

2.1 The University believes that the education and training system in Northern Ireland has many strengths. Queen's provides highly qualified graduates which form a core element of the skills base which supports Northern Ireland industry. In 1998/99 86% of first degree computer science graduates and 90% of first degree graduates in electrical and electronic engineering grained permanent employment in Northern Ireland.

2.2 Students at Queen's are educated in an environment where excellence in teaching is underpinned by excellence in research. Indeed the University's record in teaching, based on the quality ratings awarded by the UK Quality Assurance Agency (QAA), places it clearly in the 'first division' of UK universities. Subjects which have achieved 24/24 in teaching quality assessments include Psychology, Pharmacy, Dentistry and Electrical and Electronic Engineering.

2.3 In an economy such as Northern Ireland, where industry relies on the research undertaken by the universities, a key strength is clearly the standard of research undertaken at Queen's. At the last Research Assessment Exercise the School of Mechanical, Manufacturing and Aeronautical Engineering obtained at 5*, the highest possible score, while Electrical and Electronic Engineering, Physics, Music, Archaeology, Agriculture and Irish Studies achieved a score of 5.

2.4 The University has in place an ambitious long-term research strategy. Its vision for research is:

n to achieve national and international excellence in all subjects (RAE grade 4 or better);

n to have all its academic staff active in research of high quality, with many recognised as leaders in their field;

n to provide a first-class infrastructure to support world-class research and to attract internationally- recognised researchers and high quality research students to Queen's.

2.5 Queen's has a long established strategy of fostering an entrepreneurial culture and of promoting the successful transformation of good research into good business through innovation and commercial development. The University's technology transfer and business incubation company, QUBIS Ltd, was established in 1984. To date it has assisted the establishment of 25 spin-out companies. The QUBIS companies employ over 500 people, mostly graduates, and have a combined turnover in excess of £20 million per annum. Over 95% of the output of the QUBIS companies is exported.

2.6 The University has identified what it considers to be a number of shortcomings in the current education and training system. Firstly, if the standards of research referred to above are to be maintained, there is a need for additional investment in research infrastructure in the universities. It is notable that there has been significant investment in the universities in the Republic of Ireland, with £560 million available over the next 5-6 years to build up infrastructure in IT and biotechnology. This funding is in addition to £240 million currently being invested in university research aimed at making Irish Higher Education Institutions "world class research centres". If the Northern Ireland universities are to continue to compete with their counterparts in the Republic of Ireland, there will be a need for additional sustained investment in the research infrastructure.

2.7 Collaboration between the local universities and further education colleges is the most effective use of resources. Whilst such partnerships should be encouraged it is also important that a mission for the further education sector is clearly established, to discourage "mission drift" towards the higher education sector. Collaboration and not competition should be encouraged between further and higher education.

2.8 As previously mentioned there is a need for improved communication between industry and the education and training providers. While the providers of education and training must recognise that there is a need to be responsive to the demands of industry, industry too must accept that the nature of education and training does not allow it to be immediately or completely responsive and reactive to the demands of industry.

2.9 A further shortcoming of the education and training system is the MaSN cap on the number of student places. The University has made a detailed bid for additional student places and has set out how these places would be strategically allocated to subject areas which would directly support the knowledge-based economy in Northern Ireland. Indeed, the University has already redistributed student places to courses where it has identified student demand and a skills shortage in the economy. In 1999, 10,351 students from Northern Ireland entered higher education, 3,862 of these students left the province to study in England, Scotland and Wales, as there were only 7,349 higher education places in Northern Ireland in 1999. The University believes that if more places were available, then a large number of these students would choose to stay in Northern Ireland, thereby providing a larger pool of graduates for industry.

2.10 As mentioned in 1.7, the University is of the view that postgraduate students are an essential element of successful research. The recommended increase in the PhD allowance by the research councils will mean that unless the overall budget for postgraduate training is increased, the number of fully funded PhD places will ultimately decrease. The potential reduction in ESF funding may also have a negative impact on the level of postgraduate funding. In today's economy the higher levels of skills of postgraduate students are increasingly in demand and it is essential that the level of funding available is addressed.

2.11 The rigid interpretation of regulations currently in place regarding the funding of postgraduate students also restricts the University's ability to recruit postgraduate students. For example, the Schools of Electrical and Electronic Engineering and Computer Science at Queen's and the School of Computing at the University of Ulster have had their postgraduate funding from DHFETE embargoed, due to problems with low completion rates of PhD students. However, the reason for the apparently low completion rates is the PhD students are headhunted by industry and offered large salaries to attract them away. Students leaving seldom complete their PhD studies. The difficulty is that the universities simply cannot compete with the salaries on offer in the market-place and are now being further penalised by having postgraduate funding withdrawn in some areas. There is clearly a need for an urgent review of the application of regulations governing postgraduate funding to ensure that they are sufficiently flexible.

3.0 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 The University recognises the importance of Information Technology to industry both now and in the future. The University can assist in providing the IT and communication technology needs of Northern Ireland Industry in two ways: firstly, through the provision of leading edge research and development in IT and secondly, by providing the graduates with the appropriate knowledge skills to support this industry. The University believes that the term IT encompasses not only Information Technology, but also Communications and Electronics (ITCE).

3.2 The University can support the IT and communication technology needs of Northern Ireland Industry through the provision of leading edge research in the area of IT and communications. It has plans to establish a world class research institute in Electronics, Communications and Information Technologies. This Institute will build on very strong existing research links with industry locally, nationally and internationally and, through both research and the expansion of the high technology skills base created, contribute significantly to economic growth in this key industrial sector. The key to the success of this Institute will be the attraction and retention of high-quality staff.

3.3 Queen's has submitted a proposal under the Support Programme for University Research to establish a Virtual Engineering Centre. The central thrust of this centre will be to use fundamental understanding of engineering phenomena in the development of advanced information technologies, to promote competitive and sustainable growth, by enhancing engineering design and product development. The Northern Ireland research base will benefit directly from the access to this centre and its research results, as well as from the pool of highly trained staff emerging from the research programmes. This will provide additional help to agencies working to attract inward investment.

3.4 In September 2000, the University admitted in the region of 300 students to computer science related degrees and over 100 students to its postgraduate conversion courses in computing. Indeed, the emergence and growth of the Northern Ireland ITCE industry owes much to the reputation for excellent skills of Queen's University computer science graduates. Although the number of graduates being produced by the two Northern Ireland universities is attractive to inward investors, more important is the quality of these graduates which has given Northern Ireland its international reputation in software.

3.5 The University believes that Northern Ireland must take steps to secure and enhance the supply of high quality ITCE professionals. It has plans for the establishment of a high profile Centre for Software Excellence at Queen's University, within the School of Computer Science. This Centre will deliver a stream of innovative, high quality graduates who will be the powerhouse for the next generation of the software sector. These graduates will be expert in the underpinning software technologies necessary for advancements in telecommunications and e-commerce. In a rapidly-moving sector, it is all too easy to concentrate on today's applications. To stay at the top requires the ability to create new technologies, not just apply existing technology. This proposed development will add a vital ingredient to the existing software skills provision in Northern Ireland, and will provide a strategic resource for sustaining and developing the internationally leading position of the Northern Ireland software industry. Establishing such a Centre will also act as a powerful incentive to potential inward investors, and the message it sends to the rest of the world about the commitment at the highest levels to the future of the software industry in Northern Ireland will have significant marketing potential.

3.6 The proposed Centre will achieve its aim by introducing an extended four-year degree in Computer Science. The aim of this degree is to provide a supply of particularly well qualified graduates who will become industry leaders. The Centre will focus on the delivery of this degree, which will have an appropriate blend of knowledge and skills in computer science with business practice and management. It is proposed to involve industry in delivering parts of courses and in giving exposure to the latest equipment and practice.

3.7 The University is also aware that it has a responsibility to equip all graduates and not just those in the engineering and science disciplines with basic computer skills. Those students undertaking courses of study in the humanities and social sciences are provided with basic computer training and it is expected that all graduates will have a sound understanding and practical experience of computing.

3.8 While the importance of ITCE is recognised, it is important that education and training system does not adopt a narrow focus which will be directed towards ITCE only. The University believes that it is important for a watching brief to be kept on emerging technologies that have economic potential, and for appropriate R&D skill bases to be developed in their use and application. In particular, opportunities for development of the pharmaceutical industry and the creative industries including multi-media should be examined. Indeed, the University has identified the potential in a number of these areas and its recently submitted bid under the Support Programme for University Research included proposals for a Sonic Arts Research Centre, which brings together research in both Music and Engineering and a proposal for a Medical Polymers Research Institute.

4.0 Incentives for training providers and businesses to develop training geared to a highly competitive local economy.

4.1 In order for universities to be able to offer training and education geared to a highly competitive local economy, they need high quality staff to deliver their teaching. As mentioned previously, the recruitment and retention of staff in areas such as computer science and electrical and electronic engineering has become increasingly difficult. There is clearly a need for incentives to be provided to address these difficulties. Equally, the incentives for postgraduate study also need to be reviewed, if the University is to continue to attract high calibre graduates to its postgraduate programmes.

4.2 The University is of the view that there is a need for a partnership approach between industry and higher education to develop training that is geared to a highly competitive local economy. The University is currently exploring opportunities with a number of key companies to develop training courses in specific areas.

4.3 Queen's is currently in discussions with the Department of Higher and Further Education, Training and Employment to develop innovative means of addressing skills shortages in Information Technology, Communications and Electronics. It is anticipated that these discussions will address the issue of incentives for training providers and businesses to develop training geared to a highly competitive local economy.

5.0 Views on skills shortages and how any perceived problems might be tackled.

5.1 It is clear that the actual definition and method of identifying skills shortages is an initial issue that needs to be addressed. In order to prevent skills shortages, it is necessary that a long-term approach is adopted to identify the future skills required in the economy. As stated previously, there is clearly a need for industry and the providers of training and education to work together closely in identifying the key skills required to support the future expansion and growth of the knowledge based economy in Northern Ireland. It is the responsibility of both industry and the education and training system to address any skills shortages.

5.2 The recently published study of the Northern Ireland labour market for IT skills concludes that there should be no skills shortages in IT if the present enrolment trends were to continue. However, this conclusion is based on the erroneous assumption that all graduates in IT-related areas will remain in Northern Ireland. This is clearly not the case as many will inevitably gain employment outside the province.

5.3 While there is no shortage of students wanting to study computer science, there are difficulties accommodating these students. Indeed, the accommodation for the School of Computer Science in Queen's is currently at breaking point, reflecting the University's record of significantly expanding the supply of graduates in this area to service the expansion and growth in the software, electronics and telecommunications sectors over recent years. The number of students undertaking degrees in the School of Computer Science increased by 116% between 1995 and 1999 and the School exceeded its target for student recruitment by 30% in 1998 and 11% in 1999. In responding to the demand for additional IT graduates, a new degree in Business Information Technology was introduced in 1999 by the Schools of Computer Science and Management.

5.4 The University clearly recognises the need to increase the number of computer science graduates and for this reason, proposes to establish a Centre for Software Excellence to deliver a stream of innovative, high quality graduates. This Centre will focus on the delivery of a new four-year degree course in Computer Science. This will require significant expansion in the number of fully funded places in order to accommodate this course. The purpose of this degree, which will have an appropriate blend of knowledge and skills in computer science, business practice and management, is to provide a supply of particularly well qualified graduates who will become industry leaders.

5.5 As previously mentioned, the universities themselves are now in a position where they are encountering difficulties with the recruitment of staff. In areas such as computer science, pharmacy, electrical engineering and law, the University is finding that it cannot compete with the salaries currently being offered in the market. If the University cannot recruit high quality academic staff, the quality and quantity of its graduates will suffer. Indeed if the standard of teaching in key areas is not maintained due to a lack of staff, more students may choose to study these subjects outside the province, thereby adding to the brain drain.

5.6 The University is aware that skills shortages can occur at all levels and not just with newly qualified graduates. Indeed, it is often commented that skills shortages are most serious with regard to experienced and more senior personnel. Queen's is in the unique position of being able to contribute to training at all levels. Within the UK, the University has one of the largest Institutes of Lifelong Learning and is 7^th largest in terms of part-time undergraduate students. A key role of the Institute is to provide Continuing Professional Development programmes, and, to further this aim, will appoint a Continuing Professional Development Officer to identify the requirements of business and bring those needs to the most appropriate part of the University for delivery.

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

6.1 Queen's educates the majority of those trained for the professions in Northern Ireland. It makes an immense contribution to the skills resource and economic capability of Northern Ireland through the training of undergraduates and postgraduates in both vocational and non-vocational subjects. Many of the skills fostered and developed in its students not only underpin and encourage self-development and personal fulfilment but are transferable and relevant to serving the needs of an adaptable, sustainable, knowledge-based economy at local, regional and national levels. The developmental aspect of research and development plays a pivotal role in the University's contribution to the community, and underpins its involvement in technology transfer and the development of a knowledge-based economy.

6.2 The University is also focused on providing graduates with the skills necessary to make them effective in employment in all areas. The Careers Advisory Service has been running a popular and successful course 'Skills to Succeed', to prepare students for work and provide them with employability skills. The Centre for Enterprise, Learning and Teaching (CELT) is actively pursuing a key skills development programme throughout the University. A Skills Co-ordinating Group has been established and a policy on student skills has been approved. This policy covers key skills, subject specific skills and employability skills. The University is establishing a Work Placement Centre which will co-ordinate and monitor the planned expansion of placements of students and staff in work outside the University. This will provide students and staff with the opportunity to gain experience in industry.

6.3 The Northern Ireland Centre for Entrepreneurship (NICENT) is an initiative by both universities to promote and develop an entrepreneurial culture not only in the research community but also amongst the student body. In responding to the DTI Science Enterprise Challenge, and with help from IRTU, the two Northern Ireland universities are now at an advanced stage in establishing a regional centre for entrepreneurship. This centre should be operational by April 2001. The key objectives for NICENT are to:

(i) embed and entrepreneurial culture in undergraduate and postgraduate students and the wider community;

(ii) mentor best practice entrepreneurship and innovation in the creation of new businesses;

(iii) maximise opportunities for interaction between entrepreneurs, students and business angels;

(iv) manage all stages of the knowledge transfer process to support organic growth within the high technology sectors for spin-out and spin-in enterprises; and

6.4 The Centre will complement the existing regional innovation infrastructure that includes the University Challenge Fund, QUBIS Limited, UUTech, Campus Business Incubators, the Northern Ireland Science Park, linked research centres and venture capital funds.

6.5 To augment the work of the Northern Ireland Centre for Entrepreneurship, Queen's plans to establish a Chair of Innovation to focus on the international benchmarking of innovation of products and processes in business, and will be responsible for the dissemination of best practice to the business and industrial community in Northern Ireland.

6.6 The two universities are using funding from the Higher Education Reach-Out to Business and the Community initiative, to establish a Joint Northern Ireland Industrial Advisory Committee. This Committee will facilitate improved communication between the two universities and industry.

6.7 The University also makes a significant contribution towards lifelong learning. The University has over 7,000 part-time students in its Institute of Lifelong Learning and provides 40 vocational courses. This Institute has developed a number of successful relationships with key industries. A particularly successful example is that of its relationship with Ford where a number of courses have been developed for Ford employees.

6.8 The Northern Ireland Technology Centre within Queen's runs a comprehensive programme of professional short courses. During the past 31 years, over 11,600 delegates from local industry and commence have attended the 800 courses organised by the centre. All courses are delivered by experienced presenters and practitioners in their field in a way that is practical, relevant and promotes the implementation of knowledge and skills in the workplace. More specialist technical courses are also on offer. For example, Physics provides successful training in vacuum techniques and plasma processing for local companies, including Andor Technologies, Seagate and Bombardier Shorts.

6.9 The University plays a key role in promoting the successful transformation of good research into good business through innovation and commercial development. The University's technology transfer and business incubation company, QUBIS Ltd, was established in 1984. To date it has assisted the establishment of 25 spin-out companies.

6.10 Queen's and the University of Ulster operate the largest and most successful Teaching Company Scheme programme in the UK. This scheme allows young graduates to be employed by the business, but to be supervised by the academics from the relevant university department. One of the benefits of the scheme is university research and expertise transferring to the small company. The Teaching Company Scheme is a very useful bridge between academic departments and businesses at the level of one business, one academic department. There are 33 TCS projects ongoing between Queen's and local industry at this time. Projects with Wilsanco Plastics and Jordan Plastics were judged respectively as Best Overall TCS Project in the UK in 1999 and Best SME Project in the UK in 1998. This scheme offers a number of benefits to the companies involved as it assists them with the provision of ongoing training and development for graduates.

6.11 The University has a number of 'centres of excellence' which were established with support from the EU and IRTU to provide an effective interface with small and medium-sized enterprises (SMEs) and easy access to communal resources and services - QUESTOR and the Polymer Processing Research Centre are good exemplars. The Northern Ireland Technology Centre provides a valuable resource to the SME community for technical information, materials testing, instrument calibration and rapid prototyping of new products.

6.12 At Queen's collaborative pre-competitive research, sponsored by IRTU's START programme, is ongoing between Bombardier Shorts and Aeronautical Engineering, Franklin Textiles and Mechanical Engineering, DuPont and Electrical and Electronic Engineering, Clarehill Plastics and the Ploymer Centre, McKehnie and the Polymer Centre, Courtaulds Lingerie and Mechanical Engineering, and Moy Park and Chemical Engineering. There have been 30 collaborative START projects with a total value in excess of £15 million between local firms and Queen's during the past 6 years.

6.13 Queen's and the University of Ulster have successfully operated R&D research training consortia with companies such as Seagate Technology and Nortel Networks Ltd. The Science Shop project, also jointly developed and run with the University of Ulster, links students to the needs of voluntary and community groups. The Manufacturing Technology Partnership Ltd is another joint venture which seeks to encourage and facilitate small firms in using technology to develop and grow their business in an effective manner.

6.14 Strategy 2010 identifies the Creative Industries Sector as a rapidly expanding area that will play a key role in the future development of the Northern Ireland economy. This sector is also identified in the recently launched Programme for Government, with research on the potential development of the creative industries identified as a specific action. Queen's has taken the lead in research and management within the Creative Industries Sector and has recently established a Creative Industry Research Network, which brings together academics, practitioners and policy makers working in the Creative Industries from across the UK and Ireland, its main purpose being to research and inform the organisation and management of the Creative Industries in these islands. Queen's clearly already has unique and relevant expertise in these industries and provides an excellent environment to educate students wishing to pursue careers in the Creative Industries.

6.15 The University's contribution to education and training is not confined exclusively to Belfast. Substantial numbers of students in nursing and midwifery are based at the Queen's Altnagelvin campus. Furthermore, in 1995 the University opened outreach centres in Armagh and Omagh, the former a separate campus, the latter within Omagh Institute of Further and Higher Education and the Ulster Folk Park. The purpose of these centres is to promote university-level programmes of study in border county areas that in the past lacked higher education provision. Both outreach centres offer a range of courses provided through the Institute of Lifelong Learning and other professional areas of the University.

6.16 The Armagh campus is structured around four educational themes: promoting social inclusion; cross-border activity; culture and tradition; and enhancing the local skills base, especially in the area of ICTE, to enhance local economic development. The University is represented on Armagh City and District Economic Development Committee, and the ICT sub-committee, and has indicated a specific commitment to assist proposals brought forward by the local economic community in relation to technology transfer and business incubation. The University is also in discussions with Omagh Institute of Further and Higher Education about a pilot of the proposed new Foundation Degree.

6.17 The University has recently established a Research and Regional Services Directorate which brings together the functions of the Research and Regional Offices. The Directorate will continue to promote and develop further the University's role in the business, commercial, industrial and social life of the Province and will establish a readily identifiable contact point within the University for business, community and voluntary groups and the wider community. It will ensure that the University is complementing its programmes of national and international research with appropriate and relevant developmental, training and support services to meet local needs.

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?

A modern University must perform at a level of quality in teaching and research which is highly respected nationally and internationally. In doing so, it will contribute to the development of a sophisticated, knowledge-based economy. Government has clearly stated that universities will be expected to emphasise as strategic priorities activities related to creating and exploiting knowledge, entrepreneurship and innovation, collaboration between universities and businesses and strong regional partnerships. These priorities were emphasised in the recent Government White Paper, which argues for the central role of science and innovation in technological and economic progress and in improving quality of life.

In the global research environment huge advances are being made in key areas of science and technology. Mapping of the human genome will unlock new cures for diseases. Advances in areas such as biotechnology, information and communication technologies, functional materials and environmental technology will be the basis for entirely new industries that will impact upon the quality of life, in clinical medicine, pharmaceuticals, agriculture and sustainable energies. Such research must therefore be coupled with industrial development that will provide important synergies and help to ensure that research is translated effectively into products and services of value to the community. The history of high technology development has shown that vibrant commercial development is clustered around centres of research excellence in major universities, which act as a nucleation point for commercial innovation.

The education and training system in Northern Ireland must be broadly based, covering the arts, humanities, social sciences, science and engineering. However there must be an emphasis on, and selective support for, the key wealth-creating sectors, through investment in training at all levels and support for innovative research. These include the life and health sciences, information and communication technologies, and business and management studies. There must also be breadth in terms of the levels of the programmes provided in order to provide a balanced workforce. The education and training system must be viewed as a continuum ensuring accessibility for the entire community and flexibility in order to respond to dynamics of industry.

Credit transfer and accumulation provides excellent opportunities to develop and grow a talented workforce. Additionally employers must engage more actively with education providers.

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

A recently published report by the Northern Ireland Economic Council supports the view that investment in education, R&D and innovation in Northern Ireland is a critical determinant of enduring competitiveness. It is clear from the report that while the universities are major providers of R&D in Northern Ireland, overall, in comparison with other UK regions and other nations, expenditure on R&D in Northern Ireland is low. Among the recommendations in the report is that: "increased public expenditure should be committed to the encouragement in an appropriately balanced way of both private and public R&D and innovation in Northern Ireland, based on a long-term capabilities-building and public-private partnership approach".

Studies show that over half of Northern Ireland's graduates feel that their skills and talents are underused in Northern Ireland business and industry, and that local employers do not provide mechanisms to develop and enhance graduates' skills. Graduates are typically satisfied or highly satisfied with the skills they have acquired in higher education. A substantial majority of graduates, however, record a low level of utilisation of these skills and a failure of most of their employers to provide mechanisms for the development or enhancement of those skills. Few employers have a training policy and the identification of training needs and their implementation is largely left up to individual employers. Three-quarters of these graduates were employed in SMEs. These employers are less likely to utilise graduate skills and to have training policies.

How important is Information Technology (IT) to industry 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?

Information technology now pervades almost every aspect of commerce and industry and IT skills are fundamental in the employment market. The rapidly expanding IT sector and the related employment opportunities in Northern Ireland have been recognised both by government and the private sector. The recent Strategy Review of the Department of Economic Development (1999) highlighted that . the IT sector and associated industries Northern Ireland have grown by over 300% in the last two years, with the potential of employing 18,000 by 2003. The University of Ulster has the largest IT provision in the UK university sector and our existing portfolio of programmes meet the market needs in terms of skills demand. However we are exporting around 30% of our IT graduates, the majority going to the Republic of Ireland. Therefore we must ensure that sufficient graduates are available to meet the projected expansion of the sector. As the world-wide shortage of IT specialists becomes ever more acute, Northern Ireland will become increasingly attractive to inward investors. The high level of technology transfer activities and industrially-driven research in the ICT area help to keep the University and the companies involved at the leading edge of rapidly developing technologies. The establishment of sector specific incubators has addressed an immediate need in providing a stimulating and supportive environment for potential entrepreneurs and start-up companies. However medium term sustainability will require renewed support from government.

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

The University of Ulster has a strong reputation for innovation in course design and curriculum development. Working closely with the professions, it was the first UK university to offer honours degrees in Occupational Therapy, Physiotherapy and Radiography and has extended continuing professional development opportunities at undergraduate and postgraduate levels in a range of areas such as Youth Work, Social Work and the Professions Allied to Medicine. It has pioneered innovative and vocationally relevant courses in areas such as Biomedical Sciences, Clinical Sciences, European Law and Policy, Interactive Multimedia Design, International Business, Equine Studies, Primary Health Care, Technology and Design, Cultural Management, Tourism, Applied Languages, Media Studies, Theatre Studies, Leisure, Sport, Communication, Advertising and Public Affairs. More recently, courses in Food Biotechnology, E-Business and Information Innovation are being developed in association with industry and commerce. The University places particular emphasis on inter-disciplinary courses such as the Combined Studies degree which is available in a number of locations, Computing and Enterprise, Bioinformatics and Geotelematics.

Taught programmes with particular relevance to wealth creation, addressing skills and competencies for the global economy should be given priority for expansion. Accordingly support for post-graduate research in these key areas must be flexible to allow for completion on a part-time basis without disadvantaging the award holder or the host institution.

Tax credit systems for training support and professional development should be reviewed to enable employers, particularly SMEs to benefit from investment in the workforce.

Strategy 2010 indicated that skills shortages are most acute in areas such as electronic and telecommunications engineering. The shortages are across all levels, from technicians through to experienced professionals. A problem faced by the University is that there has been a marked decline in the numbers of students studying at A level those subjects, such as Mathematics and Physics that are essential pre-requisites for many engineering programmes.

The province has recently seen the introduction of a Credit Accumulation and Transfer System (NICATS). The idea behind NICATS is that people should be able to build up a qualification piece by piece. They should be able to claim credit for learning achieved and cash in this credit at a later stage towards a recognised award. We are now at the stage where learning is for life and where people will drop in and out of learning throughout their lives. NICATS will enable them to build on credits already achieved so that the don't have to repeat or duplicate learning. The impact of new technologies on learning, such as, for example, global, web-based online learning opportunities and the UfI/learndirect initiative are now offering alternative opportunities both to learn and demonstrate achievement. It is in this context that developing a system that can allow for both the accumulation and transfer of credit will truly come into its own.

Innovative Work-Based Learning programmes leading to post-graduate awards have been very successful at the University of Ulster. This concept of engaging employers in supervision and validation of specific learning contracts' has considerable scope for expansion in partnership with business and industry.

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

Since 1984, the University's student population has increased by 87% and in 1999/2000 it has some 20,900 full-time and part-time students. In addition over 3,500 students are enrolled on more than 100 of its approved courses in other institutions, mainly in the further education (FE) sector in Northern Ireland. The scale of its provision is the largest of the universities on the island of Ireland. Its programmes range from non-degree to doctoral level and span the Arts and Humanities, Social Sciences, Business and Management, Information Technology, Science, Health Studies and Engineering.

The University of Ulster is one of the UK's most successful universities in attracting students from disadvantaged backgrounds with 40 per cent of the University's students coming from working class and other disadvantaged sectors of the community. More than 22 per cent of those who study at the University are mature students. The University's innovative 'Step Up' scheme specifically targets pupils who live in areas of social and economic deprivation from both sides of the community.

Over the past three years the University has seen major growth in student numbers in key areas related to the "emerging industries" (see tables). This growth has been at both the undergraduate and postgraduate levels and it is clear that the University is making major contributions to continuous professional development in these areas.

The School of Built Environment in the Faculty of Engineering at the University of Ulster offers full-time and part-time undergraduate and postgraduate taught, research and continuing professional development programmes in architectural technology, civil engineering, construction engineering and management, fire safety engineering, environmental engineering, environmental health, property investment, quantity surveying, building surveying, planning and development, renewable energy and transportation. The School is the largest tertiary education provider in Ireland in its field and is widely recognised as being on the leading edge of education, research and training in Europe and overseas. The ongoing commitment to technology and knowledge transfer which underpins all activities ensures not only that built environment professionals receive the highest quality education but also provides a safe and sustainable environment for all the people of Northern Ireland and further afield.

Northern Ireland currently has the lowest level of internet connectivity of any region in the United Kingdom. The emergence of the internet as a vehicle for international business, offers unprecedented opportunities for innovation and entrepreneurial activity. To help address this, the University of Ulster, which has been at the cutting edge of research and teaching in Informatics and Business and Management in Europe, has a number of important training and research initiatives to support the business community. The most recent was the opening in July of the Northern Ireland Centre for e-Business, an on-line business centre at the University's Coleraine campus. The Centre provides a portfolio of innovative teaching and training courses at its four campuses and elsewhere in Northern Ireland. These are delivered both online, so that participants can work at their own pace and in their own study space, and face to face, allowing for group discussion and networking among participants.

Through NICEeB, participants will have access to the Virtual University for Small and Medium-size Enterprises (VUSME). This is a comprehensive range of 22 self access course which provide the knowledge and hands on skills required by managers and entrepreneurs in e-business.

The University of Ulster faces the new millennium with confidence. The University appreciates the tremendous benefits of devolved government and will continue to contribute to, and play a leading role in, the economic, social, cultural and political development of the region.

In this context the University is mindful of the recommendations of the National Committee of Inquiry into Higher Education Higher Education in the Learning Society (the Dearing Report, 1997) which outlined higher education's regional role, and particularly so in relation to Northern Ireland: "we recommend that higher education institutions in Northern Ireland, in close collaboration with the relevant external players, steadily enhance their regional role, taking full advantage of the special potential for the development of strong regional networks".

The University is committed to enhancing its proven track record in supporting regional development initiatives by adopting an innovative approach to the provision of relevant, high quality teaching and research programmes. Outreach, in its regional, national and international dimensions, will be a key feature of the University's Strategy. External interactions and partnerships will be strengthened by streamlining and making transparent its structures, access routes to core business activities, support structures and delivery mechanisms.

[1] Education and Economic Development: Empirical Evidence and Regional Perspectives, DENI Research Report Series Number 2 by David Armstrong

[2] Strategy 2010 : Summary of the Report by the Economic Development Strategy Review Group, March 1999

[3] The CBI Response to 'Learning for Tomorrow's World': A Strategy for Education and Training in Northern Ireland, paragraph 10

[4] See Proposals for Changes to the Northern Ireland Curriculum Framework, April - June 2000, CCEA, 2000 (Full document enclosed with this submission)

[5] Statistics provided by the Local Enterprise Development Units (LEDU)

[6] CBI Response to 'Learning for Tomorrow's World' (see previous reference)

[7] QCA: Qualifications and Curriculum Authority (QCA)

[8] Curriculum and Assessment Council (Wales)

[9] Review of Qualifications for 16 - 19 Year Olds: Summary Report, March 1999, DfEE, page 6,

para 3.3

[10] Vocational Education and Training in Germany: Trends and Issues in the Journal of Vocational Education and Training, Vol 49, No. 3, 1997

[11] Lifelong Learning : A new Learning Culture for All, DENI, page 17

[12] Learning Works - Widening Participation in Further Education by Helena Kennedy QC, Further Education Funding Council

[13] The Learning Age (Cm 3790), The Stationery Office, 1998

[14] S^{ee for example NIEC (1981) and NIEC (1993)}