The Committee for Employment and Learning welcomes the opportunity to respond to the Department for Employment and Learning's proposal to enhance the existing powers of governing bodies of Further Education Colleges by amending the 1997 Order.

The Committee's views are:-

1. The Committee is supportive of the policy behind the current proposal to enable colleges to respond to the challenges set out in the Department for Employment and Learning's Lifelong Learning policy, which has a focus on widening access to and increasing participation in, further education for disadvantaged and previously under-represented groups. The Committee acknowledges that central to the achievement of this aim is the need for collaborative partnerships with voluntary and community groups and a range of other bodies. The Committee wishes to see effective beneficial partnerships.
2. The Committee seeks to be reassured that both colleges and Boards of Governors have the financial resources, systems and expertise to take these decisions to avoid colleges entering into poor financial arrangements, resulting in a detrimental effect on current and future education and training.
3. The Committee previously recommended that members of Boards of Governors should receive effective training in their roles and responsibilities, this should include financial management competencies to fulfil the role that will be required to implement this proposal.

"Recommendation 13 - Members of Boards of Governors must receive effective training on their roles and responsibilities..." (Committee for Employment and Learning's Report on the Inquiry into Education and Training for Industry.)

4. It is vital that colleges in difficult financial circumstances are normally restrained from entering into further financial arrangements until current targets are achieved.
5. The current proposed legislation appears to give Further Education Colleges power in respect of these two areas "as it thinks fit". This would appear to be broader, more encompassing statement, than in England and Wales which states, "when it is necessary or expedient".

In the Republic of Ireland, in relation to entering collaborative arrangements, governing bodies must exercise such authority in the manner specified, ie "only where it considers such action 'appropriate'". Whereas in relation to the provision of guarantees and indemnity outside the college's own borrowing, it appears under the legislation that governing bodies must exercise such authority in the manner specified ie only (i) when it is "necessary or expedient" and (ii) "compliance with the Department's Ministerial policies and the programmes and budget annually approved by the vocational education committee and the Minister".

6. In summary, The Committee supports this proposal, subject to the
   reassurances sought.