The Committee for Employment and Learning has agreed the following response in relation to the budgetary issues contained in the Executive's Position Report: 'Developing the Programme for Government and the Budget for 2003/04.' Members look forward to further Assembly debate on these issues in the new session, following consideration of the outcome of the Chancellor's Spending Review 2002 and the Needs and Effectiveness Evaluation of Higher and Further Education and Vocational Training.

The Committee strongly supports the main strategic issues identified in the Position Report to be addressed by the Department for Employment and Learning (DEL) 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 Development; and

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

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 current year i.e. 2002/03. The Committee hopes to see positive progress in this area in the current year and calls for the urgent completion of the Taskforce's Action Plan, which was due to be completed in March 2002.

Early implementation of the work of the Taskforce and of DEL's 'Essential Skills for Living' strategy to tackle the problems surrounding adult literacy will be major priorities in the three-year period covered by the Budget 2002 process and the Committee would urge that all bids in these areas are met.

DEL has set out indicative minima reductions for 2003/04 amounting to almost £32m, but has stated that £24.8m of the reduction in its baseline provision 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.

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. With regard to administrative and programme efficiency, paragraph 9.3 of DEL's initial draft Position Report merely stated that 'programme efficiency is addressed in DEL's ongoing programme of evaluations.' Members requested further detail of the efficiency savings aimed for in the programme of evaluations to be carried out in 2002/03, together with information on the efficiency savings achieved from those evaluations undertaken in 2001/02, to determine whether everything possible is being done to ensure value-for-money in all DEL's programmes.

The Committee noted that DEL's finalised Position Report had been amended to read that 'programme effectiveness is addressed in DEL's ongoing programme of evaluations,' and no details of efficiencies achieved were provided. The Committee is therefore still unclear as to how efficiencies in DEL's programmes are achieved.

With regard to the scope for savings on existing programmes to enable resources to be directed at the priorities in the Programme for Government, the Committee has identified the following:

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, alongside substantial statistical evidence of deadweight and has previously recommended that any new scheme is more effectively targeted at those most in need and safeguarded from abuse. Indications from DEL are that the revised scheme will be established by September 2002, at the latest.

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 and awaits the interim evaluation of the programme. In particular, we would like to know the cost per trainee.

3. ONE Service

The interim evaluation of the pilot of the ONE service found that costs were much higher than expected. The Committee believes that savings can be achieved in this programme as design improvements are made, before it is rolled out across Northern Ireland.

Members saw the Needs and Effectiveness Evaluation of Higher and Further Education and Vocational Training, as having a key role in the Committee's scrutiny of the Budget 2002 process. The Committee is therefore disappointed that it was not completed in line with the target in the Programme for Government.

5. Capital Investment in Higher and Further Education

Members noted in DEL's Position Report 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.

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 and would support bids to alleviate the current situation at Stranmillis University College in particular.

The Committee noted 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 especially support bids for the New Deal programme to be allocated to help those with multiple barriers to employment.

7. Cross-cutting Issues

The Committee has been disappointed in the past at the lack of an effective inter-departmental focus on research and development and would wish to see this addressed as part of the Budget 2002 process, so that genuine cross-cutting initiatives will emerge. In general, we would wish to see the Executive Programme Funds used to a much greater degree to promote inter-departmental work.

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