Following receipt of DEL's draft Position Report on the Budget 2002 process and the subsequent briefing from officials, members debated and agreed the following response at their meeting on 18 April 2002. The Committee understands that DEL's Position Report is a 'living document' and will therefore be subject to some revision during the process. This means that the Committee may wish to make further comments in the future. Also, as the draft Report was only received on Tuesday 9 April 2002, members have had only a limited opportunity to analyse and debate it. Nevertheless, members look forward to working with the Department throughout the Budget 2002 process.

The Committee commends much of the document and supports the three main strategic issues identified in the Position Report to be addressed over the period 2003 - 2006 i.e.

• Employability, taking forward the Action Plan from the Taskforce on Employability and Long-Term Unemployment and addressing adult literacy in particular;

• University Research; and

• Learner Support, including increasing participation in, and widening access to, education and training

However, with regard to these issues, the Committee has already raised in its submissions on both DEL's draft Service Delivery Agreement (SDA) and its draft Annual Business Plan for 2002/03, that there are no targets for progressing the Taskforce's work in the forthcoming year i.e. 2002/03. The Committee hopes to see positive progress in this area and calls for the urgent completion of the Taskforce's Action Plan.

The Committee is also concerned at the absence of key objectives and high level targets for both university research and learner support in the section of the Position Report following Para 3.6.1. This needs to be addressed in the final version.

The Committee notes DEL's marker bids in this area in anticipation of the outcomes of the Department for Education and Skills' review. The Department has made a commitment in its draft Annual Business Plan to streamline the administrative procedures for students applying for financial assistance by the 2003/04 academic year. Given that this was recommended by the Committee in its Student Finance Report (October 2000), members anticipate significant efficiency savings in this area.

DEL has set out indicative minima reductions for 2003/04 amounting to almost £32m but has stated elsewhere in the Report that 'some restoration of these cuts will be required if current levels of provision are to be maintained.' The Committee is concerned that, there may be existing inefficiencies implied in current programmes if only some restoration of the indicative reductions will be needed to maintain current provision. Regarding these reductions, the Committee believes that current provision needs to be maintained and enhanced in both higher and further education and would particularly support bids in these areas.

With regard to administrative and programme efficiency, paragraph 9.3 merely states that 'programme efficiency is addressed in DEL's ongoing programme of evaluations.' This area takes on added importance given that officials stated that 'DEL has not decided to cut any programmes of expenditure.' The Committee recently criticised DEL for the lack of detail on programme efficiency in its draft SDA and this was not addressed in its finalised version. Members have therefore requested further detail, to determine whether everything possible is being done to ensure value-for-money in all DEL's programmes.

Details of the programme of evaluations to be carried out in 2002/03, together with the efficiency savings aimed for, should be forwarded as soon as possible, together with information on the efficiency savings achieved from those evaluations undertaken in 2001/02.

Members note that current needs analysis indicates that, in comparison with England, an additional £85m may be required to address under funding, especially in higher and further education and student support and would urge the Executive to address this. In addition, members look forward to examining the Needs and Effectiveness Evaluation of Education and Vocational Training, which will have a key role in the Committee's scrutiny of the Budget 2002 process.

The Committee supports the proposed redefinition of administrative costs, which is being driven by the Department of Finance and Personnel as part of the Budget 2002 process. There is an obvious need for this to be taken forward consistently across all departments to aid comparison.

Members are extremely concerned at the significant backlogs in capital investment requirements for both maintenance and new build projects in higher and further education and in particular that it is 'not feasible to meet these needs in the short to the medium term.' The Committee is therefore strongly supportive of DEL's bids to address the backlog. Members have requested further detail as followed:

• How the identified backlog of £250m is made up.

• The Department's plans to address both maintenance and new build projects in higher and further education, both in the forthcoming year and in the 3-year period covered by the Budget 2002 process. These should be identified separately for the two sectors.

• How DEL plans to address this situation in the longer term and whether the position is expected to deteriorate further eg is there a 10-year investment plan?

7. New Deal

The Committee notes that the New Deal programme 'is increasingly dealing with those hardest to help as they face multiple barriers to employment,' and has agreed in the past that the programme is not meeting the needs of the long-term unemployed. Accordingly, members would appreciate detailed information on areas of bids to be allocated to help those with multiple barriers to employment in particular, DEL's plans to help these people via New Deal over the three-year period covered by Budget 2002 and how DEL will measure the effectiveness of such programmes.

8. New TSN

DFP guidelines highlight the importance of New TSN in the Budget 2002 process and DEL have stated that 'institutional initiatives to widen access and increase participation in higher and further education' are one of the main ways in which DEL is contributing to the policy. Members noted that progress against targets in the New TSN Action Plan have been omitted from Annex 3 of Paper 3 and this should be rectified before the paper is finalised.

The Committee has requested further detail on the following:

• How effective have these initiatives been so far?

• What 'further action' is needed to develop this work and what are DEL's bids in this area?

• What are DEL's precise targets with regard to widening access and increasing participation in both higher and further education?'

9. Other Issues

1. Revised Individual Learning Account (ILA) Scheme

The Committee has heard mainly anecdotal evidence of the success of the ILA scheme in returning people to education, and has previously recommended that any new scheme is more effectively targeted at those most in need. Members therefore accept this bid, provided that this stipulation is met. The Committee would appreciate further clarification as to why bids in this area are marker bids, subject to the consequences of GB rollout.

2. Walsh Visas

The Committee believes that the bid for £2.5m for the Walsh Visa programme may be excessive, given the relatively small numbers involved. Members would appreciate details of any cost-benefit analysis carried out on the programme to measure its effectiveness and the facts leading to DEL's conclusion that '300 places would be lost on the programme' if this bid were not met.

3. Government Training Centre Receipts

Members queried a bid in the December 2002 Monitoring Round for an additional £600,000 in this area. This was explained by officials as an accounting error which should have been addressed previously. Members would therefore appreciate clarification as to why DEL's draft bids include a bid for over £2m in this area and how DEL have concluded that '140 Jobskills places will be lost by 2005/06,' if this bid is not successful.

4. Roberts Review of Postgraduate Awards

The Committee notes DEL's bid in this area and requests further information on the terms of reference for this review and the target date for completion.

The Committee's priorities for DEL's draft bids for 2003/04 - 2005/06 as set out in Annex D of DEL's draft Budget 2002 Position Report are set out in Annex 1 to this response.