Colleges (Economic Recovery)
The next item of business is a debate on motion S3M-4956, in the name of Fiona Hyslop, on the role of colleges in the economic recovery.
We all know the challenges of the turbulent economic position that we face. Sadly, redundancies have created significant difficulties in many people's lives. We see the effects on families, communities and businesses throughout Scotland. Therefore, I welcome the opportunity to lead this debate on how colleges are supporting our efforts to promote economic recovery. The debate allows us to highlight how, in locations the length and breadth of the country, colleges are making a difference to individual lives, helping people to develop new skills and building for the upturn.
Individuals and businesses look to colleges to meet skills needs and help communities to adapt to change. Through their provision, colleges are inevitably working with clients and organisations that have been affected in different ways by the economic downturn. It was apparent from the earliest days of the recession that there were some core characteristics that the Government and its partners would need to exhibit as we tackled this unprecedented challenge. Among those were resilience, flexibility and responsiveness. Scotland's colleges have risen to that challenge.
To that end, the development of the key sectors that are identified in "The Government Economic Strategy" is fundamental to economic success. Earlier this year, I updated Parliament on the progress that we have made in fulfilling the vision of a smarter nation that is set out in "Skills for Scotland: A Lifelong Skills Strategy". Our colleges play a part in that, too. In June, we launched innovate with an apprentice, a two-for-one scheme to provide life sciences technicians for private sector companies, which is now being delivered by Adam Smith College, Forth Valley College and Dundee College. Building on the findings of the tourism task force, we have also funded the Alliance of Sector Skills Councils to work with colleges to develop an employers resource pack on how to find out about and access training opportunities. I acknowledge that the Lib Dems want to debate the updated lifelong skills strategy.
Earlier today, I visited West Lothian College and saw for myself the difference that the staff are making to the local community. I met a group of school leavers who are undertaking a basic construction course, which the college is confident will enhance their employability prospects. I was also delighted to see—as all members will have seen—the new publication from Scotland's Colleges entitled "Skills for a Successful Scotland". All members should have had a copy posted to them directly by Scotland's Colleges. There are some terrific stories in it, highlighting what local colleges are delivering to drive the economy forward.
There are further examples. Stevenson College Edinburgh, Edinburgh's Telford College and Jewel and Esk College are working closely with the City of Edinburgh Council on a package of measures to react to the recession. As part of the capital city partnership, the colleges, along with local employers, are developing a flexible vocational programme for young people. On completion, successful youngsters will be guaranteed a place at an Edinburgh college commencing in August 2010.
The cabinet secretary mentioned Telford College in my constituency, and she will know that there have been several job losses among staff there, including compulsory redundancies in the business, information technology and finance departments. Given the importance of those areas to the Edinburgh economy, does she think that the decision of the management of the college was wise?
As the member knows, colleges are autonomous institutions, so it would not be appropriate for me to interfere with the management of any individual college.
We all know that there are limited resources to deploy. That has never been truer than it is today. It is therefore incumbent on us all to ensure that those resources are used to best effect, and are particularly focused on front-line delivery—we have to ensure that the resources benefit the students. We have a strong story to tell about how we and partners in government have done just that. For example, in January, the Scottish Further and Higher Education Funding Council allocated £7 million to support colleges participating in our partnership for continuing employment—PACE—initiative to support those facing redundancy. That has produced results. For example, South Lanarkshire College was able to help to support over half of the employees who were made redundant at Freescale Semiconductor, and Barony College was able to deliver a rural retraining course, which was exclusively targeted at the employees of rural micro, small and medium-sized enterprises.
We also need to be mindful of the position of young people. The college story is not limited to supporting those who have lost their jobs as the result of recession. It is now more important than ever to manage the transition from school to college, and Scotland's colleges have continued to support those individuals who need extra help. Indeed, in the face of that growing adversity, my passion about providing more choices and chances for young people in need grows ever stronger. The Government is determined to avoid having a lost generation of young Scots, so I very much welcome the commitment of our colleges to supporting this agenda.
Young people who need more choices and more chances often disengage because the right provision is not available or they do not have the qualifications to progress. Our challenge, therefore, is to help them to progress and achieve the skills that they need for life and work.
As a former further and higher education college lecturer, I point out that many mature people ought to be given those opportunities, particularly in this time of recession.
Indeed. Some of the applications that we are seeing are coming from older women. Only this morning, I met a woman who, 18 years after leaving school, is now engaged in an electrical engineering course, precisely because, having been made redundant, she decided to do something that she has always wanted to do, which is important.
In "Curriculum for Excellence: Building the Curriculum 3: A Framework for Learning and Teaching", through an explicit and unequivocal set of entitlements, we have established an opportunity that will provide positive outcomes for young people.
The 16+ learning choices policy demands a partnership approach involving colleges, local authorities and schools, Skills Development Scotland and other partners. It will ensure that learning, support and tracking operate seamlessly so that every young person is offered a suitable place in learning well before they reach their school leaving date at any transition point during the senior phase. In that regard, I acknowledge the point that Claire Baker makes in her amendment about the importance of Christmas leavers, and point out that the 16-plus learning choices policy will give us an opportunity to address some of the issues that might arise this year. That approach is fundamental to our objective of improving outcomes for young people, and our schools, private training providers, the third sector and colleges must all help to raise aspirations to that end.
Of course, all of that activity requires financial support to make it happen. Since coming to office, the Government has built a genuine partnership with Scotland's colleges. It is a partnership that is important to us and it is one that we have backed with investment. Over the period from 2007-08 to 2010-11, the Government plans to invest more than £2.6 billion in the college sector, which is a 17 per cent increase on what was made available under the previous Administration. I assure the Conservatives that that 17 per cent increase will benefit rural colleges, in recognition of their particular needs.
By continuing to engage closely with colleges before we take policy and spending decisions, we have been able to accelerate £8.5 million in capital spending for colleges from 2010-11 into last year and this year to ensure that capital projects remain on track. Without that help, the redevelopment of Coatbridge College would have been delayed by up to a year and Reid Kerr College might not have had an opportunity to create an academy of creative arts. Further, only this morning, I saw the capital being used to provide young people, such as those whom Claire Baker's amendment is designed to address, with the opportunity to learn employability skills.
During recent months, I have visited a number of colleges to see for myself the difference that that substantial Government investment has made. The brand new, purpose-built facilities at Anniesland, Dumfries and Galloway and Langside colleges create an atmosphere that is conducive to work and to learning.
We have also allocated £28.1 million of United Kingdom budget consequentials to Scotland's colleges to support the young people's agenda that I have just described. Nearly £20 million of that funding has been made available this year and the balance will come on stream next year.
That is not all. The Cabinet Secretary for Finance and Sustainable Growth set out in his statement on the draft budget our plans for further investment in the college sector, which continues to play a crucial role in upskilling adults and young people as we prepare for the upturn. Our draft budget provides for a £45 million increase on 2009-10, which will help to ensure that those individuals who are worst hit by the changing economy will be able to develop new skills.
I assure the Liberal Democrats and Labour that we will review higher and further education child care support, following on from the £4.7 million increase for higher education child care and the £8.6 million for further education child care in this academic year.
Does the Government have a strategy with regard to its priorities for learning in the colleges? We have heard about the concentration on skilling young people for the jobs that are available. Have you identified the priorities with the colleges, or is each college free to determine them itself?
That is an important point. Although we respect the autonomous nature of individual colleges, it is critical that we work strategically, for example by planning for workforce issues across Edinburgh and the Lothians, or—as we have identified with the colleges—by working as a sector to examine some of the key economic sectors that we need to support and develop. We want to be strategic enough nationally and locally, while also being responsive.
Colleges know their own communities, so we have to give them some flexibility, but that must be in the context of our Government's economic recovery strategy. The colleges have shown that they can work collectively as a unit to influence the Government and other players in economic development.
The immediate measures that we are taking through our economic recovery plan are providing help through the downturn for people and for businesses to grow. All colleges in Scotland are continuing to pull in the same direction to support that. However, we cannot be complacent and must continue to expect our colleges to deliver for our key sectors, for businesses in Scotland and for individuals who are affected by redundancy. It is important that our colleges respond to the changing needs of businesses. That need will become more acute as businesses reassess their future plans in order to compete in the global economic climate.
Colleges will need to continue to be quick to respond and to adjust their offerings, which will require more innovation in how they develop and deliver future courses. That will ensure that our communities have the skills that they need to participate fully in Scotland's economy. I look forward to hearing members' speeches and to Parliament recognising the role that Scotland's colleges are playing in building for economic recovery.
I move,
That the Parliament recognises that Scotland's colleges are central to the Scottish Government's plans for tackling the recession and preparing for economic recovery; agrees that through the provision of flexible, locally relevant skills and training they are helping individuals and employers build for recovery; welcomes the fact that, as a result and working in partnership with other agencies, colleges are helping the communities that they serve to adapt to changed economic circumstances; notes the particular support that colleges provide to young people, and notes the continued financial support that the sector receives from the Scottish Government.
I am pleased to open the debate for Labour this afternoon. I offer Rhona Brankin's apologies, as she is unable to join us for the debate.
I welcome the Government's decision to bring to the chamber a debate on the significant contribution that Scotland's colleges are making to the economic recovery. It gives us all an opportunity to recognise the support that Scottish colleges are giving people in the current economic climate and to acknowledge the central role that colleges play in delivering high-quality skills that help to grow Scotland's key industries and shape new industries.
As the Government motion recognises, colleges offer truly responsive flexible learning, in which the needs of the learner are at the heart of the education that is delivered. We recognise the huge social contribution that colleges make in encouraging people back into education by accepting learners at all levels and helping them to develop their full potential.
During this period of economic uncertainty, colleges have been the first to step up to the challenge by providing opportunities for people who want to reskill and delivering opportunities for young people. Those opportunities ensure that people are active and improving their employability, and they also play a key role in fostering enterprise and ambition in learners.
I recognise that the Government has built on the previous Administration's legacy in supporting and recognising the value of Scottish colleges. In response to the increasing demand for college places, Labour called on the Government to use the consequentials from the UK budget to increase college places. We welcome the Government's decision to invest the £28 million of consequentials in an expansion of college places. We also welcome the decision to focus those resources on the provision of additional places for young people. We are all too aware of the devastating impact that the lack of opportunity and high levels of unemployment in the 1980s had on young people. Many communities are still trying to recover from that legacy.
However, the cabinet secretary will be aware that there are some concerns about the distribution of that funding. Indeed, I have written to her about that. Labour will support the Conservative amendment this afternoon. I appreciate that difficult funding decisions have to be made and that the Government and the Scottish funding council have aimed to direct the additional resources to the areas of greatest need, but a pattern is emerging in the distribution of the additional funding and rural colleges believe that they are losing out. We would welcome an assurance from the cabinet secretary that the Government is alert to the issue and will engage with the Scottish funding council on the matter. I do not think that anyone would deny that colleges in more rural communities are also facing greater challenges at present.
Labour's amendment recognises the central role that colleges play in delivering apprenticeships by further developing links with business, including the additional 7,800 apprenticeships that were secured in last year's budget. That is part of the contribution that colleges are making to the economic recovery. Labour's commitment to the issue has sharpened the Parliament's mind on the value of apprenticeships. Colleges are key to providing the knowledge behind the hands-on experience that is gained through an apprenticeship. In challenging economic times, apprenticeships and workplace learning are often the first areas to suffer in businesses. Colleges play an important role in supporting and encouraging businesses to remain committed to improving and training their employees.
We know that, when an apprenticeship place is at risk of being dropped by a business, the college is often instrumental in ensuring that the apprenticeship stays on track. We welcome the Government's adopt an apprentice scheme, but it is concerning that only 406 of the 1,179 apprentices who have been made redundant since February have been able to secure another job.
Does the member recognise that the uptake of the offer that we have made far surpasses that of the Northern Ireland scheme, which Labour promoted to us during the debates on this year's budget? Our scheme has been successful. What we cannot do is guarantee jobs. One of the successes of modern apprenticeships in Scotland is that they have a quality control requirement for employment. We can support the funding of that. I think that £2,000 for taking on an apprentice is a very good offer and I urge all members to help to promote the scheme, because it will benefit employees and individuals.
We recognise that the Government has invested in the area and we know how difficult it is to persuade sectors that are struggling with the recession to adopt apprentices. I welcome the initiatives that the cabinet secretary outlined in her speech, but she will agree that it is vital that young people do not miss out on the opportunity. The Government and Skills Development Scotland must redouble efforts in the area. However, I welcome her assurance that the matter is a focus for the Government.
While the Government and colleges are delivering an expansion in college places in response to the unprecedented increase in applications, we are seeing greater pressure on the bursary pot. A sharp increase in self-supporting students is one factor that is leading to a greater demand on bursary funds. There are reports that demand is running in excess of the available funds. The Scottish funding council must do all that it can to address the issue.
We must also ensure that the hardship and child care funds keep pace with the increased number of students. Last year, hardship and child care funds came under immense pressure, so we support the call in the Liberal Democrat amendment for a review of the system for the distribution of child care funds. In a response to a parliamentary question that I received this week, the Government appeared to be open to the suggestion of a change to the scheme. I appreciate the cabinet secretary's comments on the matter this afternoon, but more work needs to be done to consider whether a changed scheme would continue to match the needs of Scottish students.
I recognise that the Government and the Scottish funding council responded to pressure on discretionary funds last year, but there was a period of uncertainty, particularly around child care. The colleges and universities requested just over £12 million to meet demand, but just under £6 million was made available. In meeting college principals, I have been struck by their huge personal commitment to their students and their personal interest in their students' welfare. We know that colleges regularly use money from their reserves to invest in hardship and child care funds, but there are concerns about their ability to do that this year and the Scottish funding council's ability to respond to the pressures.
Scottish college students are facing difficulties in finding part-time work and, in many cases, their families are finding it more difficult to support them, particularly as some school leavers are no longer entitled to education maintenance allowances. There are reports that colleges are running out or have already run out of hardship funds, which could make it difficult for some students to continue their studies. Surely that is the exact opposite of what the Government is trying to achieve through the expansion of places. We ask the Government to be alert to such concerns, because we fear that the pressure on the funds this year will be greater than that experienced last year.
Finally, concerns remain over how the increased demand for places for the September intake will impact on the January intake, particularly for Christmas school leavers. Colleges are facing challenges with regard to their capacity to accommodate Christmas leavers and to meet the needs of students who are seeking a second or third chance at college courses. I know that colleges prepare plans for the January intake but, with the increase in demand on applications, we can expect the same demands in January, when it can be expected that more young people will look to the college sector for opportunities. At the Scotland's Colleges briefing last week, there were concerns that colleges might have to turn people away or be forced to be more stringent in the number of second chances that they allow. I know that the cabinet secretary does not want that situation to develop and I urge the Government to report back to Parliament on the action that it is taking to address those concerns.
I move amendment S3M-4956.2, to insert at end:
"notes the contribution that colleges are making in further developing links with industry that can help deliver the 7,800 apprenticeships promised in the 2009-10 budget; recognises the concerns that exist regarding the ability of colleges to fully accommodate the increase in applicants, including the 2009 Christmas school leavers, and to cope with pressures on childcare and hardship funds, and calls on the Cabinet Secretary for Education and Lifelong Learning to report to the Parliament on how she intends to address these concerns."
It makes a refreshing change for an education debate on a Thursday to be conducted in a spirit of consensus. I am sure that all members, not least the cabinet secretary, feel that keenly.
We very much welcome the opportunity that has been afforded this afternoon to discuss colleges' important role in economic recovery. I know that all members are aware of the excellent work that the sector carries out in their own areas in providing skills and training to the local workforce. As we face the effects of Labour's recession, the role that is played by colleges has never been more important.
Colleges across the country are reporting a rise in applications, in some cases of up to 300 per cent. With unemployment on the increase, that is not surprising. It makes sense that people who find themselves out of work should seek to access training opportunities to ensure that they are better placed to take advantage of the opportunities on offer when the economy recovers.
Colleges tell us that they are facing a rising number of applications from school returners, mainly youngsters who left school at 16 with few qualifications either to go straight into work or to take up an apprenticeship but who, when faced with unemployment, decided to go back to college to take higher or advanced higher courses. As Claire Baker has pointed out, that has put greater pressure on the number of places available and many in the college sector are concerned that less talented youngsters are being squeezed out as a result. Given the pressures on the college sector, it is clearly a priority area for additional investment to redress the recession's effects.
Has any work been done on establishing whether it is reality or simply a folk tale that people who might well have the qualifications to go to university are choosing instead to go to colleges, which offer more vocational courses that increase the likelihood of their finding a job? After all, quite a number of university graduates are going without jobs.
I cannot give a definitive answer to Margo MacDonald's question, but I agree with the sentiment expressed in it. I am certainly aware of anecdotal evidence of people who, instead of going to university, have felt that more vocationally focused training might make it easier for them to find employment. Of course, many people also go to college and then make the transition to university.
I am pleased that the Scottish funding council has this year allocated additional funds to support colleges, reflecting the increase in demand. As we have already heard, £12 million of Barnett consequentials was announced for the college sector in September and targeted at 16 colleges that were deemed to be serving communities most in need.
I accept that the additional cash is welcome in the areas that have benefited from it; Adam Smith College in Fife, for example, benefited to the tune of £1.4 million. However, other colleges understandably feel aggrieved at having been left out. Many colleges that lost out, including those serving my constituents in Angus and Perth, Banff and Buchan College, Borders College and Dumfries and Galloway College, serve rural areas, where the pressures are no different from those that are felt in the urban areas where the colleges that have benefited from the additional funding are located.
The member says that the pressures are no different. I acknowledge that, which is why the 17 per cent increase in funding is available to all colleges. However, does the member recognise that, as Claire Baker said, we must be acutely aware of the scale of the pressures in, for example, Lanarkshire?
I understand that there is always a difficult balancing act for the cabinet secretary and the Scottish funding council. However, the cabinet secretary should understand that the principals of colleges in rural areas are concerned that their colleges have been ignored.
Our amendment seeks to deal with that specific problem. We accept that the funds have been distributed and that that is now an historical matter. However, I hope that, when the Scottish funding council distributes funding in future, it will not forget about rural colleges and will ensure that they get a fair slice of the cake. I appreciate that the Scottish funding council has operational independence, but nevertheless it acts following Government guidance. Our amendment therefore urges the Government to encourage the Scottish funding council to ensure the fair treatment of rural colleges. I was pleased to hear the cabinet secretary's comments on that in her opening remarks.
The Labour amendment raises another serious and important issue, which is the number of new applicants who approach colleges in January. There has always been a cohort of school leavers at Christmas and, traditionally, they have sought to access college courses at the beginning of the year. This year, they faced much increased competition from those who lost out on a college place in August or September. It would be good to hear from the cabinet secretary about the steps that have been taken to try to address that.
Claire Baker also mentioned the pressures on hardship and child care funds, an issue that is dealt with in the Liberal Democrat amendment. Many people who attend college, particularly those who have lost jobs, are in their 20s, 30s or 40s and have young children. The lack of provision for child care is a barrier to their accessing further education. I say to Mary Scanlon, who intervened earlier, that I am well aware that there are mature applicants to colleges. The average age of people attending colleges is now relatively high and much higher than the average age of those attending university. There is a real pressure in relation to child care and the cabinet secretary should address it.
The college sector in Scotland is generally in good heart and is ready to take on the challenge of additional demand for further education. Much is already being done, through partnership with other agencies, to ensure a better-trained workforce for the future. I hope that all members will agree to support our colleges. In the spirit of consensus, I am pleased to support the motion in the name of Fiona Hyslop and all the amendments.
I move amendment S3M-4956.1, to insert at end:
"and urges the Scottish Government to encourage the Scottish Further and Higher Education Funding Council, in allocating funds to the sector, to recognise the particular needs of colleges in rural areas."
None of us wants the current recession to lead to another lost generation of young people like those who were left on the scrap heap of the 1980s. Last month, it was reported that youth unemployment was at its highest since records began, with one in six under-25s out of work, so the threat of another lost generation is real. At the same time, we know that growing numbers of redundancies mean that more and more Scots will need to retrain and upskill to secure new jobs. There has never been a more important time to invest in skills for the future to ensure that Scotland's population is trained at all levels, ready for the upturn. My colleague Jeremy Purvis will focus on skills in his speech.
Scotland's 43 colleges are uniquely placed to address those issues. They provide responsive and flexible learning that is delivered and rooted in local communities. Colleges deliver all levels of teaching and learning, from basic literacy to degree courses. If we are serious about the widening access agenda, we must be serious about supporting colleges, because they are already at the forefront of tackling social exclusion—26 per cent of teaching is for students from Scotland's most deprived areas; 13 per cent of students are disabled; and more than half of students are women. Through flexible, remote and part-time study, colleges open up learning to those who otherwise might never get the chance.
That is part of the reason why our amendment picks up on articulation, which relates to those students who move from further to higher education and the issues that they face. The issue has been raised with us by the National Union of Students Scotland. Many of the difficulties lie in the differences in the type, level and source of the financial support that is available. I do not have to tell anybody in the chamber that Scotland's student funding system is complicated and can raise difficulties for students who are trying to access the money that they need and are entitled to. College further education students have particular problems, because of the interface with benefits. Many of them are unaware of the changes in their financial support if they progress to higher education.
We have called consistently for systems to be simplified to allow students ready access to the various support measures through a single funding gateway. The changes that have been made to the benefit system for lone parents are having an impact, and the situation will get worse. There is surely scope for more joined-up thinking with the Department for Work and Pensions to ensure that benefit problems do not prevent potential students from studying. I am keen to hear from the cabinet secretary what discussions there have been about that with the UK Government and what the Scottish Government has done to ease transitions between further and higher education.
I am due to meet the UK Secretary of State for Work and Pensions in the next month or two. I invite the member to write to me with her concerns and I will be more than happy to raise them then.
I thank the minister for that positive response.
Given the economic situation, the community base and flexibility of the learning environment, it is not surprising that more and more people are applying to college to try to gain the skills that they need. We must ensure that colleges are not forced to turn people away due to a lack of capacity or resources. Colleges are concerned that unprecedented levels of demand—up by 28 per cent on average and by more than 50 per cent in some cases—mean that they will soon reach a point at which they do not have the resources or capacity to cope and that, as well as people being turned away, the quality of teaching might suffer.
Malcolm Chisholm, who I am sorry to say has left the chamber, mentioned the worrying situation at Telford, our local college, where funding issues have led to numerous job losses as well as the loss of business courses, which he and I consider to be important at this time. Such situations can have a devastating impact not only on staff but on students who are part of the way through courses and on potential students.
Also worrying are decisions that result in courses no longer being available in a region. I urge colleges to work strategically in such circumstances. The grass-roots nature of colleges means that they can be flexible to meet local needs. The principal of Stevenson College in Edinburgh, for example, has pointed to the huge rise in applications to the college, partly as a result of the freeze on hiring in the financial sector, which would normally have taken 2,000 school leavers a year. Increasing demand is being met in the face of what Universities Scotland described to the Finance Committee as the tightest funding settlement for further and higher education since devolution.
In June, however, the Government announced an additional £28 million over two years as a result of UK budget consequentials. We have heard of concerns among college principals in rural Scotland that funds have not been allocated by the funding council to rural colleges and instead have centred very much on the central belt. That ignores the fact that several rural areas have proportionately high levels of youth unemployment. We are all looking to the cabinet secretary to bear in mind those concerns in future. She can take comfort from the fact that we are all concerned about the situation, which should assist her in some way. Many college principals feel that this is not the first time that rural colleges have lost out on extra funding. They also worry that the extra capital funding has been distributed by the same mechanism, rather than based on the condition of the estates.
Widening access to further and higher education is about breaking down barriers, many of which are financial. The current child care funding situation is acting as a barrier to parents who are potential students. Child care funding is not an entitlement in Scotland as it is in England, which means that student parents cannot be sure in advance whether they will get the funding that they need to enrol on a course. Existing students in similar financial circumstances will receive different levels of support depending on where they study. The discretionary nature of child care funding and the increase in demand have meant that, in the past, some colleges' funds have run out in September with no in-year reallocation of funds until the following January, with inevitable and serious consequences.
Will the member give way?
I would like to make progress.
Allocations of initial funding are based on previous years' requirements, which means that it can be difficult to be flexible. We know that student parents are more likely to incur debt and we have suggested increases in discretionary funds as a result. However, we also want a review of the child care funding system in Scotland's colleges and universities and I welcome the cabinet secretary's comments and approach on that issue.
We welcome many of the initiatives that have been mentioned today in relation to Scotland's colleges, we welcome closer working between schools and colleges and the work on 16-plus learning choices that is being developed. The Scottish Government must work with the sector to plug skills gaps to ensure that individuals who have lost jobs are not lost for ever to the Scottish economy.
The Government's updated skills strategy was published in February. There was a statement on the strategy in Parliament then, but it is such an important issue that it would be useful for us to debate it at greater length. It is a critical strategy for Scotland and our colleges.
Scotland's colleges are central to tackling the recession and preparing for the upturn, but they cannot do it alone. Our colleges need adequate funding, proper Government support no matter where they are and the reassurance of a robust skills strategy that places them at its heart.
I am happy to support the Government motion, as well as the amendments from the other two Opposition parties. I might even support our own.
I move amendment S3M-4856.3, to insert at end:
"and calls on the Scottish Government to review the current system of discretionary childcare funding, to work closely with the Scottish Further and Higher Education Funding Council to develop articulation routes between further and higher education, helping to address problems that students face during transition and enhancing and developing links between the sectors, and, in recognising the valuable role of Scotland's colleges in skills development, to bring the revised skills strategy before the Parliament to allow detailed debate of its recommendations."
This is an appropriate debate at an appropriate time, given the events in my constituency, particularly in the past few months. The loss of the 700 jobs at Johnnie Walker's in Kilmarnock brings into sharp focus all the issues and possible solutions to aid economic recovery. Our local Kilmarnock College is currently playing a key part in that and it will hopefully play a greater part in the coming months and years. Not to put too fine a point on it, the college can be pivotal, not only through the courses that it offers and its well-established business links, but in its location, too; it can play a major part in helping to revive the town and helping the local economy to recover. I acknowledge the support that this Government has already given the long-awaited renewal and relocation plans for the college, which will play a crucial part in rebuilding confidence in the town and its business community.
A useful figure from the previous Administration's review of Scottish colleges suggested that, for every pound invested, we get £3.20 back in benefit to the economy. The Scottish Government's support for the colleges in the new draft budget stands at £693 million for current funding and capital grants. We can easily see the major impact that that will have in assisting our economic recovery, given that it will amount to more than £2 billion of benefit overall. There are a host of other measures, which I am sure that my colleagues throughout the chamber will highlight in their contributions, but the magnitude of the investment is clear.
I want to highlight some research that was carried out by the Hunter centre for entrepreneurship at the University of Strathclyde, funded by Sir Tom Hunter, which focuses on the importance of training. Scotland's rate of business growth has historically been quite low. From the perspective of Ayrshire, which has 10 per cent of Scotland's population but only 6 per cent of business start-ups, the problem is particularly acute. If our economy is to grow in a more sustainable way, we need to increase the rate at which we convert knowledge and expertise into real business activity. The Hunter centre provides evidence that there can be real benefits from colleges adding training in entrepreneurship to their programmes.
Although delivering such training at school level helps to develop a positive attitude to business development, the evidence suggests that that is too early to influence the later rate of business start-ups. Our objective is to stimulate business start-ups. The research suggests that it makes sense to deliver that training at the same time as the skills on which the business will be built. That points to potential benefits to encouraging a renewed focus on such training in colleges and universities. In that way, we might perhaps uncover the next Tom Hunter.
The Hunter Foundation highlights the positive impact of close relationships between colleges and local businesses, not least in allowing the students to benefit from experience of the world of work. In the past year, Kilmarnock College has been working with more than 50 employers and is currently working with 36 organisations to support economic recovery. Earlier today, at question time, I highlighted the work that the college is doing to connect students and the wider community with science and the employment prospects that can flow from scientific training. The college produces biomedical students, not just from among the high-performing students but from among those who performed less well at school and who need more support. That demanding course has enjoyed a 100 per cent retention and achievement rate at higher national diploma level, which is testament to the good work being carried out at the college. The fact that many students go on to university and find employment even before they graduate demonstrates what a good investment that is, not just for the individuals but for the whole community.
Let us not forget that our colleges have a wider contribution to make to the economic and social wellbeing of Scotland by supporting young people on the margins of our society, particularly disabled youngsters. Much has been done to make our college campuses more accessible, and every year more young people with a range of disabilities and support needs successfully complete college placements in mainstream settings, but we can always do more. Donaldson's college supports young deaf learners to make the transition from school into further education, but its own monitoring shows us that fewer than 10 per cent of those learners complete their original choice of college course.
In the 2008 survey of provision for learners with profound and complex needs, colleges acknowledged that they lacked space to provide adequate support. Staff sometimes lack the skills and knowledge that are required to teach and support such youngsters. The cabinet secretary and a few other members mentioned transition planning, which is vital to bridging the gaps. I know that ministers are aware of the issue and are supporting the for Scotland's disabled children coalition, which is exploring ways of making transitions more effective. We cannot afford to lose some of our most academically gifted but disabled youngsters due to a lack of support to enable them to participate fully.
The challenges facing our colleges are very demanding. Our expectations of them may be even higher, if we are asking them to deliver for our young people, those with special learning support needs and members of our adult population who find themselves cast aside by corporate downsizing. However, I know that Scotland's colleges are up to the challenge. They have the full backing of the Scottish Government, and I am confident that they will deliver and play a decisive part in Scotland's economic recovery.
I welcome the opportunity to contribute to today's debate. I will argue that the big picture in global terms is that, in times of recession and downturn, we must invest in skills, training and the education of our workforce.
John Maynard Keynes, the most famous of the counter-cyclical economists, argued that countries are not like individual householders, who tend to cut back during times of crisis and economic downturn. Instead, Keynes said, the bottom of the economic curve is the very time at which to provide deficit funding and pump priming.
Earlier I mentioned the accelerated capital spending that we have been able to invest in colleges to help the construction industry, in particular. Does the member agree that it would be very helpful if capital spending could be accelerated into 2010-11 from the following year, to help us continue that investment? I am sure that investment in colleges would benefit from that.
The cabinet secretary is trying to tempt me down a rather dangerous road. She will find that later in my speech I will refer to some of the issues that she has raised.
President Roosevelt's new deal and public projects such as the Tennessee Valley Authority are perhaps the best examples of the philosophy outlined by Keynes.
There is perhaps no greater area on which to target investment than education. It is almost a truism to say that Scottish colleges are a key economic driver in the recession. In my view, we must aim to develop an economy that competes internationally on the basis of the quality of the skills and strengths of character of our workforce, not on the lowest common denominator of sweat shop wages and conditions. I will touch on the role of colleges at Scottish level and conclude by focusing on an area of particular interest to me—the role of the UHI Millennium Institute and its partner colleges in the Highlands and Islands.
As Margaret Smith and others pointed out, Scotland has 43 colleges delivering learning in more than 4,000 locations. According to the previous Labour Government document "Unlocking Opportunity: The Difference Scotland's Colleges Make to Learners, the Economy and Wider Society", 90 per cent of the Scottish population lives within 30 minutes of a college location. There are some negative issues but, overall, provision in Scotland at FE and higher education level is excellent. I particularly welcome moves over recent years to create more progression routes—in other words, the lifelong learning agenda—so that people can enter and exit at the times and levels that are appropriate to their individual circumstances and in line with labour market requirements.
The issue is particularly relevant at a time of recession. It is crucial that we avoid having a lost generation of young people, as happened in the 1980s—a generation of school leavers who go straight on to the dole, are unable to gain any experience of work, do no training and, after a few years, become unemployable. Nowhere can that be seen more than in my area of the Highlands and Islands. In rural areas, these facilities of jobs, expertise and learning are vital to economic development and recovery. Now is the time for us to invest in them. Jobs sustained by Highlands and Islands colleges are crucial to the sustainability of fragile communities. The partnerships that are offered in expertise to businesses are the key to future economic growth.
With all due respect to Keynes, I am not sure that we are dealing with the same level of inherited debt. Is the member suggesting that more should be spent on college education? If so, and thinking of our fixed budget, where will it come from?
I suspect that we could have a debate solely on the subject of whether the great depression was more difficult than the current economic climate is. Investment in education has a phenomenal return. I think that every £1 of education spend returns £3.20 in terms of overall economic benefit. It is great to invest in education; we get money back at the end of the day.
Of course, UHI cannot satisfy all the demand for HE in the Highlands and Islands and beyond. That said, it can offer customised niche provision that reflects the demands of and comparative advantage in the Highlands and Islands. I will explain that in a bit more detail by taking members on a quick tour around the colleges in the Highlands and Islands. In one or two words, I will give a snapshot of what they provide.
In Moray we have fantastic fine art facilities and in Inverness we have a focus on life sciences, business and forestry. In Dornoch, in an establishment that I know well, Professor Jim Hunter, who is known to many members, has done groundbreaking academic work on the Highland clearances and the role of Scots in Canada, America and Australia—the so-called diaspora. North Highland College has tremendous experience in renewables and life sciences; its environmental research institute is training specialist engineers whom, it is hoped, will work in the Pentland Firth, which will provide the jobs when Dounreay is fully decommissioned. A few weeks ago, I visited Lews Castle College with Iain Gray. I was impressed with the innovative research there, particularly into hydrogen. Argyll and Bute has a specialist marine research focus, with the Scottish Association for Marine Science. The focus in Orkney is on Nordic studies and, in Shetland, it is fisheries research. Other innovations contribute to economic development. I am thinking of business clusters and collaborations between education and business such as the development of the diabetes institute at Raigmore hospital in Inverness and that between the national health service in Scotland, UHI and Lifescan Scotland.
Does the minister share my view that we need a high-profile, visible tertiary element in Inverness and that the proposed campus at Beechwood meets that requirement as a state-of-the-art, integrated facility with high economic added value?
Does the member acknowledge that it is not for Highlands and Islands Enterprise, Highland Council and UHI to tell Inverness College what to do? Is it not time that all organisations respect the board of management decision at Inverness College?
I would never disagree with an ex-member of Inverness College, and a well-respected one at that. Mary Scanlon has a point. At the end of the day, the decision is for the board of Inverness College. Of course, wider issues are involved. My view is that the wider economic gain is at Beechwood.
Another key element about which I am very keen—the cabinet secretary knows my views on the matter—is that of having full university title for UHI, which would move it towards the next stage in the development of its academic journey. Such an award would stimulate growth, encourage potential students and retain people, particularly young people, in the Highlands. As members across the chamber will know, the loss of young people from Highland communities, particularly on the islands, has blighted economic development for generations. I am aware that the matter of achieving full title for UHI is one for the Privy Council. However, the Scottish Government has an important role to play in all this, particularly given the role of the Quality Assurance Agency for Higher Education, HIE and the funding council. In winding up the debate, will the cabinet secretary indicate the timescale that may be involved?
I have a couple of quick points to make before I conclude. UHI continues to deliver higher education in local areas that were previously underserved. It needs to recruit more students if it is to grow to a viable size. At the moment, UHI has 3 per cent of all HE students in Scotland, but 8 per cent of unfunded, fees-only students. UHI is therefore carrying a burden that is disproportionate to that of other colleges in Scotland. I ask the cabinet secretary to refer to the matter in winding up. Further education colleges receive a premium that is based on island and rural remoteness. Can that premium be extended to HE?
Colleges play a vital role in regional development. A knowledge-based economy requires a university at its core. Living in a rural or island community should not be a barrier to university education. We need to keep young people in the countryside. Our aim should be to provide lifelong learning across Scotland so that adults of all ages can maximise their potential. Education is the greatest agent of economic development. Long-term, sustainable decisions are needed if we are to revitalise our rural areas.
I completed my higher education degree first and enrolled in West Lothian College some years later, and I must say that my college course made a far more direct contribution to my future studies and career as a social worker than did my university course. If I am blunt, I can say that what I learned during my undergraduate years can be summed up as a few unhealthy lifestyle habits and a passion for political activism.
It is right to acknowledge that Scotland's colleges are crucial and central to economic recovery. That is reflected in the £45 million that is allocated to the further education sector in the draft budget, which represents a welcome 6.9 per cent increase in these turbulent economic times.
West Lothian College, in my constituency, is committed to working with the Government on its sustainable economic growth agenda. The scale of enrolments in Scotland's colleges is staggering—the best part of 500,000 students were enrolled in 2007-08—and colleges such as West Lothian College have the capacity and willingness to deliver even more for their communities. Unemployment is at its highest since 1996 and West Lothian has one of the highest levels of unemployment among school leavers and the more choices, more chances group. I have written to the cabinet secretary on the matter. I welcome the additional 270 places under the get ready for work programme.
The cabinet secretary said that she met apprentices at West Lothian College this morning, so I have no doubt that she has a good understanding of the desire in West Lothian to do more. The recent announcement by Bausch & Lomb that it will shed 500 jobs in Livingston is a salutary reminder that global factors can have a devastating impact on a local economy. The announcement also underlines the importance of colleges in rebuilding local economies.
Scottish colleges have successfully used additional funds to maximise training places, many of which are targeted at young people who need more choices and chances. At West Lothian College, 60 per cent of students are under 19 years old, and throughout the college sector in Scotland 24 per cent of students come from the most deprived areas.
A success of the sector is its strong links with employers. Some 76 per cent of employers who have taken a college graduate have said that their new recruit was well prepared for work. In my area, the development of school-college partnerships has brought many benefits for secondary 3 to S6 pupils, who have the option to study for national qualifications in a college environment.
It is clear that student support funds are under strain, despite the Government's action to increase hardship funds by £1 million a year and despite investment of £9.5 million this year. West Lothian College reported to me that its bursary funds ran out early this year. The college's principal also told me that some regulations of the Department for Work and Pensions disadvantage students, who lose direct and related benefits when they come to college. Like Margaret Smith, I might well write to the cabinet secretary on the issue, which needs to be addressed.
Like other members, I have received correspondence from people who are calling for a statutory right to child care for parents who attend college. I will pay close attention to the proposed Government review of child care support for students. Child care is crucial and I am glad that I attended college many years before my son arrived.
There is much success to celebrate in the college sector. Good or very good results were recorded in 99 per cent of Her Majesty's Inspectorate of Education college reviews from 2004 to 2008, so we can be reassured that our colleges deliver good value for money and a high quality of education. We can be left in no doubt that Scottish colleges represent real value for the public pound.
I am sure that members agree that, over the past 10 years, our colleges have been transformed. Members will have experienced that in their own areas, whether the transformation has been in the fabric of college buildings or in the courses and the extent to which they reach out to our communities, the voluntary sector, the business sector and the schools, as Angela Constance mentioned.
I will not talk about all the colleges in Scotland but will focus on Cumbernauld College in particular, not because I am miffed that it does not get a mention in the Scotland's Colleges document "Skills for a Successful Scotland" but because it has such a good story to tell.
In the midst of the recession, Cumbernauld College has been leading the way with short-term responses that focus on specific, emerging issues and long-term incentives that have been created to support the local economy. Its goal must be ours: to respond effectively to the recession and help as many people as possible to gain the necessary skills to help them with future employment.
It is vital that a partnership approach is taken. That is what Cumbernauld College is doing and has been doing for a number of years in coalition with North Lanarkshire Council and East Dunbartonshire Council. Those partnerships, which provide a greater coherence in service delivery and improved access to resources, have been commended in the college's most recent HMIE report.
The success of Cumbernauld College's employability programmes has already been tested and shows the role that the college plays in defending the local economy. When it was announced in February 2003 that the BCM plant in Airdrie, in the constituency of my colleague Karen Whitefield, was closing, the college was tasked with designing and developing a training programme to provide the necessary opportunities for former employees. It succeeded so well that the programme won the college a national training award.
The college also plays a major national role with its support employment programme, which focuses on employability. It is a 10-week course carried out in partnership with Careers Scotland, Jobcentre Plus, Glasgow employers coalition, Rangers Football Club and Celtic Football Club. The course is delivered at the respective football clubs and has proved to be a great success, with 500 of the 800 participants moving into employment or finding other positive outcomes. The college has been steadfast in trying to expand it, and I was thrilled when informed that a further two courses would take place at Clyde Football Club's home ground, Broadwood stadium, in my constituency.
With regard to national programmes, the college is committed to the more choices, more chances agenda for 16 to 19-year-olds who have particular social barriers with regards to employment and education. That is right. Since April 2008, the college has trained 32 young people who have moved into permanent employment in a variety of sectors. Another 34 are now in full-time further education. Without centres like Cumbernauld College leading the way on such initiatives and on innovative programmes, many disadvantaged young people would be stuck on the dole queue and at home doing nothing.
In November 2008, Cumbernauld College took the decision to employ an employer intermediary to ensure that the maximum engagement took place between the college and all business sectors and that the development of skills not only continued but expanded during the economic uncertainty. Staff competence, confidence and motivation have been enhanced, and productivity is improved by programmes that develop a person's skills. That investment in improving skills has also been demonstrated in the college's important partnership with unions. Cumbernauld College supports more than 120 employees at Co-operative Retail Logistics, Carstairs hospital, HM Revenue and Customs, Premier Foods, Tesco and the Royal Mail, so members can see that Cumbernauld College is able to spread itself widely.
Through its work with trade unions, employees and companies, the college has been able to remedy problems with language and IT skills. More and more workers are becoming adept at new technologies that are useful to them for their present employment, in life and for the labour market in future. The policy has proved so successful that the college has been forced to create a waiting list, so that more people can become involved.
Cumbernauld College works in partnership with a wide range of local businesses, with courses that are designed to meet the needs of the business and that are structured to meet the needs of the student. In conjunction with North Lanarkshire community planning partnership, the college has been working hard to re-engage the long-term unemployed and assist them on the road to work. The college provides a number of courses, each with specific targets for delivering employability. They include placement programmes, hospitality courses and personal development programmes, to name but a few.
The economic downturn has had global consequences, and many people in Scotland have been faced with unemployment. In order to stem the tide, we must encourage partnership. We cannot stand back and do nothing, as happened during previous recessions. It happened under the Tories, as Murdo Fraser failed to acknowledge in his speech. We must be proactive in ensuring that people get the support and opportunities that they need. That is what is happening at Cumbernauld College.
Will the member give way?
I am happy to.
Does the member acknowledge that Cumbernauld College would not have the independence that it has if it were not for the Conservatives incorporating all colleges in the early 1990s, allowing them the independence to pursue enterprising initiatives?
I can talk about the condition of colleges in the early 1990s: they were crumbling, and they were not providing courses that met the needs of their students, never mind those of the wider community. As I began by saying, the improvements that have been made since Labour came to power in 1997 have transformed the sector so that colleges are practically unrecognisable.
Cumbernauld College is leading the way. It is working in partnership with the various organisations that I have already mentioned—in particular the local authority and the business community—and also with other colleges across Scotland. It is providing not just skilled recruits, but training and life skills; it is offering assistance to the unemployed; and it is training young people in order to keep them off the dole.
Further education centres such as Cumbernauld College should be commended for the work that they have done. The college has fought gallantly for its students and prospective students. To continue that necessary and important work, the college needs to be supported and resourced.
The college sector is key to helping us through the downturn in employment. Government at every level—the Scottish Government, the Westminster Government and local government—must recognise the valuable contribution of colleges and listen to the collective voice of their experience. As Dave Stewart mentioned, we are told that for every pound that is invested in colleges our economy benefits by £3.20. To my mind, that is good value. It is good practice that we continue to fund the college sector as is required.
I have been more than generous with time for speeches, but we are using up our spare time, so I ask members more or less to stick to their time limits from now on.
I had been looking forward to another 10-minute speech.
I am delighted to speak in the debate, having started teaching evening classes at Dundee College of Commerce in 1973. After gaining a degree at the University of Dundee, I spent 20 years lecturing on economics and business studies in further and higher education. From my first-hand experience I can commend the work of our colleges, which have constantly adapted over three decades to meet the needs of industry and individuals during times of economic change.
Scotland's colleges are highly innovative and can set up new courses with a flexibility that is not always seen in our university sector. As a lecturer, I was always concerned at the start of each term to find out whether there were sufficient enrolments for the courses that I had taught and what new courses and subjects I would be faced with.
I welcome Murdo Fraser's amendment with regard to rural colleges. The millions of pounds that were targeted at communities most in need were fully allocated to colleges in the central belt, yet North Highland College is probably one of the most enterprising and innovative colleges in Scotland. It is working with the decommissioning authorities for Dounreay and towards the future of marine energy in the Pentland Firth. It is poised and ready, with a first-class principal at the helm, to meet the challenges for training, education and research that are required for energy production in the Pentland Firth.
North Highland College also faces retraining the 1,800 employees at Dounreay—all of whom face redundancy in the short or longer term—yet it got nothing in the recent payout. I hope that in raising the issues relating to the college, I have put down a marker for future resource allocation.
Given the member's experience, does she think that there are enough lecturers in place to do the tasks that the colleges have taken on?
When I was a lecturer, there were constant restructurings, redundancies and so on. It is always a challenge not only to have full-time lecturers, but to get people from industry to teach at evening class.
The member made an important point about people facing redundancy. The £7 million that is available for partnership action for continuing employment is available to all colleges, urban or rural.
I appreciate that, but 1,800 redundancies in Caithness represent a huge blow and a great challenge to the local economy.
Colleges have always welcomed mature students, whether they are returning to education after years of low-paid work, because of family breakdown, following redundancy or simply because it is time for a change. Students can leave with a higher national certificate after one year of study; they can leave with a higher national diploma after two years of study; and after three years they can leave with a degree. In fact, they can now leave after the first year with an HNC and continue to degree level part time or by distance learning.
Colleges also help to train and educate prisoners prior to release and from our open prisons. I know, because I have taught them, that some prisoners are excellent students in enterprising activity—although not always of the legal kind.
This morning I spoke to the head of construction at Inverness College to get an update on what it is doing to assist the economic recovery. Inverness College piloted the one-day-a-week skills for work course for pupils over the age of 14, which is now available across Scotland. School pupils are given taster sessions across the skills sector, in sectors ranging from hairdressing to construction and engineering. The feedback from schools is that the pupils are not only gaining insight and skills, but working better during the four days that they are at school. Inverness College also does taster days across the various craft areas for primary and secondary school pupils around Inverness.
Against a background of a 50 per cent reduction in construction apprentices in Highland this year, Inverness College has taken on 150 pre-apprentices to the access to construction course, which gives them a range of construction skills, helps them to learn the trade that they prefer and helps them to find out what they are good at. It is hoped that by next year many of those students will be employed as apprentices with local firms. However, the outlook does not look good as not one bricklaying apprentice has been taken on in the city of Inverness this year. However, even if the students do not get apprenticeships next year, they will have gained construction skills that will last a lifetime.
Such courses are resource heavy and current funding needs to be looked at if they are to continue in the future. As members have said, we should also look at the number of bursaries.
It is one thing to talk about what the colleges are doing to cope with the economic recession, but we should be placing more emphasis on what the colleges could be doing to ensure that Scotland has the skills, training and education to meet our needs following the recession.
Like Margaret Smith, Claire Baker and Murdo Fraser, I wish to highlight the issue of child care. It is a fact that students can pay up to £180 a week for child care. In fact, many colleges—I will not name them—allow students only one free week a year. They have to pay for 51 weeks of child care at £180 a week, even though they attend for only 33 weeks of the year.
I must hurry you.
In answer to David Stewart's point, mature students choose further education not just for the skills, education and training that colleges provide; they often choose it so that they can spend time with their children as they are growing up.
You must close.
I do not wish to see them penalised by being asked to pay for child care during summer holidays.
I am sorry that I had to hurry you. We do not have a lot of spare time left.
I think it is fair to say that everyone in the chamber recognises the role that our colleges must play on Scotland's road to economic recovery. The training and teaching that they provide, and the opportunities that they give to young people—school leavers—to further the skills that they need to successfully enter employment for the first time are important tools at any time, but in a time of economic downturn, when unemployment, particularly youth unemployment, rises, they become even more vital.
I am, of course, especially familiar with how the colleges in my region—Banff and Buchan College, Aberdeen College, Dundee College and Angus College—serve their communities. I am fortunate to have had the opportunity to see for myself the work that they do, and I can tell members that I have never been less than hugely impressed.
Over the past few years, each of those colleges has been publicly recognised for the innovative and excellent practices and programmes that it has introduced. An example of the excellent work that is going on that is of particular interest to me is the partnership that has been set up between Banff and Buchan College, a local business and a local school, which has the aim of increasing the number of young women who take up engineering. The programme, which was set up in response to concern about the number of suitably qualified women being recruited to engineering jobs, provides female role models from business to mentor an all-girls group and sponsors visits to various industrial sites. As well as encouraging more girls to consider pursuing a career in engineering, the scheme certainly provides the girls who participate with a highly desirable and transferable skill set, regardless of the path that they take.
The fact that Banff and Buchan College has a number of permanent outreach centres makes it truly local. It has demonstrated repeatedly that it is flexible, responsive to changing demand and innovative, despite not always getting its fair share of resources.
Aberdeen College has linked up with the Robert Gordon University to create the degree link programme, which is improving the progression from HND courses at the college to degree courses and making the transition a smoother process for students.
Dundee College has teamed up with a local hotel on its classroom to industry programme, which supports disaffected learners with limited employment prospects and develops their employability through vocational training in hospitality and professional cookery.
At Angus College, socially and educationally excluded young people are engaged through the skillzone, which is a programme through which educational access is provided at times to meet the individual's needs. By working with partners, the programme seeks to create personalised learning approaches, in an effort to overcome the effects of poor previous learning experiences. Performance indicators show that the scheme has a remarkable success rate, in both student retention and outcome. The skillzone is just one more example of how colleges—by providing tailored, individual teaching, targeted and vocational learning, and highly specialised support—are able to play a key role in helping young people to develop and, ultimately, be successful in finding employment.
I would be happy to talk about success stories from the north-east for the rest of the afternoon, but I must turn to an issue that the cabinet secretary is no doubt familiar with and which others have mentioned—the recent allocation of additional funding for colleges and the fact that rural colleges' needs have been overlooked in that funding round. As Fiona Hyslop may have anticipated, in particular I want to discuss the fact that Angus College has been overlooked both for additional revenue funding and capital funding.
I still await with great interest substantive answers to a number of questions that I lodged recently, in which I asked about the criteria that were used to determine which colleges should receive a share of the funds. I note with concern that all my initial parliamentary questions were met with the same reply, which was:
"Decisions on the funding of individual colleges are a matter for the Scottish Funding Council. I will ask the Chief Executive of the Scottish Funding Council to reply to the member."—[Official Report, Written Answers, 17 September 2009.]
I appreciate that the specific criteria may have been for the funding council to put in place, but I am concerned that the cabinet secretary apparently cannot recall what guidance she may or may not have given on the matter to the funding council.
The member is being a bit disingenuous. I have written to her to explain the guidance that I gave to the funding council, which was for young people in areas of greatest need. That is quite explicit and is a matter of record. The member must acknowledge that. That is the guidance that I gave the funding council.
I am grateful for that clarification, but I do not have the detail that I would like to have. An answer to my parliamentary question about guidance was given, but a letter to me from the principal and board of governors of Angus College about the decision said that the college has
"taken these matters up with the Chief Executive of the SFC … to be informed that they were responding to Scottish Government Guidance."
There needs to be more clarity about that.
I acknowledge that not every college in Scotland could have shared the funds and that difficult decisions were taken. However, Angus College serves an area with an average youth unemployment level of 7.3 per cent, which is well above the Scottish average, and it will receive nothing while colleges in areas with lower unemployment rates will benefit from the extra funds. If we add the fact that, without additional funding, Angus College will not be able to meet the ever-increasing demand for enrolment, it is plain to see why the college has been left asking serious questions about the allocation process.
I have no doubt that colleges have a key role to play in tackling the impact of the recession and preparing our young people for the economic recovery to come. It is therefore essential that young people in the north-east are not further disadvantaged by any future unfair funding allocations.
In an uncertain and unstable world with a resulting competition for jobs, the value of a college education should not be underestimated. College is an investment. It provides students with a tremendous range of opportunities, knowledge that is vital to succeed, and the validation that future employers require. However, the significance of a college education does not begin and end with the prospect of future employment. Colleges provide students with the opportunity to mature intellectually while they learn valuable life skills. They are also a focus for cultural learning and cultural identity. Scottish colleges currently accept 5,500 international students from 117 countries. More than half of those students come from outside the European Union. Colleges open up the world to Scotland and open up Scotland to the world.
A key point in the 2007 report entitled "Skills for Scotland: A Lifelong Skills Strategy" is that we need to focus on
"Achieving parity of esteem between academic and vocational learning, recognising that vocational learning is a valuable alternative to the academic pathway and important to all."
That stresses the vitality of Scotland's college sector.
In 2007-08, almost 490,000 students enrolled in Scotland's 43 colleges. Almost 43,000 of them were full-time students. We have heard a wee bit about whether there are enough teaching staff. There are around 12,700 teaching staff and around 9,000 non-teaching staff in our colleges. In December last year, around 150,000 students enrolled in health and IT courses, which are crucial to growing Scotland's economy.
The Scottish Government has, of course, decided on six key skills for a successful Scotland, and the colleges play a vital role in delivering in the economic sectors that the Government has identified as crucial in securing our economic future. Those sectors are the creative industries; energy; financial and business services; food and drink; life sciences; and tourism. "Skills for Scotland" called on colleges to deliver
"core, employability and vocational skills and training to meet national, regional and local needs".
They do so by offering everything from basic literacy and numeracy courses to 25 per cent of Scotland's higher education through a broad range of HNC and HND programmes.
Colleges are constantly developing, updating and refining courses to suit an ever-changing world in which we need clear and sustainable competitive advantages not just at home but in international markets. That cannot be done without the hard work of college principals, staff and students. In the college that is closest to my constituency, James Watt College, radical improvements have been made over recent years in financial management and the delivery of modern and innovative courses. Indeed, through the funding allocation that we have heard so much about, more than £509,000 has been allocated to James Watt College—the third-highest allocation in Scotland. I am very pleased about that.
In making that investment, we are able to deliver some of the most important courses that young people will ever undertake. James Watt College is turning out high-quality graduates who are finding jobs in some of Scotland's most prestigious resorts and hotels, including Gleneagles and Turnberry. Stephen Lyndsay and David MacDonald, who studied for Scottish vocational qualifications in food preparation and cookery, were offered full-time posts at Gleneagles. Craig MacDonald, from James Watt College, works as a commis chef at Turnberry. We also have a graduate in Hotel du Vin at One Devonshire Gardens—a place that, I am sure, many members frequent. Campbell Johnston, the curriculum manager in hospitality and tourism at James Watt College says:
"We maintain good working relationships with a number of top hotels and restaurants and it is important that we are able to offer the best possible work experience opportunities for students."
That shows the relevance of what is being taught at our colleges.
We can be proud of the fact that almost 30 per cent of teaching in Scottish colleges in 2007-08 was given to students from deprived areas and almost a quarter to students with a declared disability. The way forward in any economy is to capitalise on the areas in which there is talent.
I accept and agree with many of the points that the member has made. Does he accept my point that some students are turned away from colleges throughout Scotland because of the cap on HE numbers? Does he share my view that now is the time to review the cap and allow students who want to go to college to do so and be fully funded to do that?
The Government has allocated a sum that we have already talked about, which has enabled an extra 3,000 students to enter colleges this year. The cabinet secretary is keeping the situation under constant review.
As the figures show, Scotland is concentrating on those areas to produce more and more bright young graduates from all walks of life who might previously have been forgotten. In the past, prospective students have been discouraged by the price tag; therefore, I welcome the £500 grant that has replaced the loans for part-time students. I am sure that that will make a significant difference. Indeed, in the draft 2010-11 budget, the Scottish Government is increasing funding for further education by almost £45 million, an increase of some 6.9 per cent. James Watt College has welcomed that, especially at this difficult time.
I have a lot more to say but, unfortunately, I do not have much more time. I wanted to address the issues that members have raised about the fact that 15 major funding streams are open to students; some of those funding streams are administered at college level, some come through the Student Awards Agency for Scotland and some are determined by the benefits system at Westminster. A joined-up system, although it would be difficult to design, is something that everyone needs to focus on if we are to do the best that we can for the people who go to our colleges.
I apologise for joining the debate late. I was meeting Nelson McCausland, Northern Ireland's Minister for Culture, Arts and Leisure, who is paying visits to various Government ministers this afternoon. I hope that members are not offended that I have come along to the debate a little late in the day.
I welcome the opportunity to contribute to the debate on the vital role that colleges play in aiding economic recovery in Scotland. I am pleased that both the previous Scottish Government and the present Government have accepted the need for colleges to be supported and developed. We need only look at the recent dramatic rise in the number of applications to Scottish colleges to see that the people of Scotland fully understand the importance of good training and education. Scotland's colleges now engage with around 360,000 students every year, which is a sizeable proportion of Scotland's adult population.
The majority of those students earn less than £18,000 a year and come from the most deprived 20 per cent of Scotland's communities. In that respect, Scottish colleges are not only providing the skills and training that are most needed to combat the current recession; they are also effectively targeting resources at those who are most in need. They are pulling off the tricky task of merging the needs of students with the needs of industry, in which sense they are truly a catalyst within the Scottish economy. That is an important point.
Scotland's colleges have developed very strong working relationships with schools. In my constituency, Caldervale high school has forged strong links with Coatbridge College and Motherwell College. Coatbridge College offers higher psychology within the school and also provides training in child care, motor mechanics, hairdressing and beauty and make-up. In fact, this year the college has offered to help with the make-up artistry that is required for the school show.
Motherwell provides construction training to third, fourth and fifth-year pupils. It is worth noting that the construction centre, which is probably the best in North Lanarkshire, was built by MITIE—yet another partnership between schools, colleges and businesses.
In the past, Scotland's further education colleges may have been perceived as the poor relation of our universities, but that is certainly no longer true, if it ever was. Scotland's colleges play a vital part in sustaining and developing the Scottish economy. The 2006 Scottish Executive report, "Unlocking Opportunity: The Difference Scotland's Colleges Make to Learners, the Economy and Wider Society" highlighted that the net economic benefit of colleges through improved qualifications was at least £1.3 billion.
Recently I had the privilege of visiting Motherwell College, which is housed in a brand new, purpose-built campus. The campus, which cost £70 million, is arguably the most modern and vibrant educational facility in Scotland. The design is bold, open and spacious and it provides a learning environment that is attractive and inspirational. However, as impressive as the building is, a college is really only as good as the staff who work within it. Motherwell College has an incredible asset in the form of college principal and chief executive, Hugh Logan. Hugh is passionate about the vital role that colleges can play in ensuring that Scotland has a highly trained and highly skilled workforce that can compete globally and contribute to the economy.
The recent investment by the Scottish Government has been welcomed at Motherwell College. It will provide an additional 2,004 full-time places and 137 part-time places. However, I must say to the minister that there is still an issue about funding levels in colleges and, in particular, funding levels for colleges in Lanarkshire. The recent investment has been welcome—I do not want the minister to think that we do not want it—but it is still true to say that Lanarkshire does not get its fair share of funding for further education in comparison with areas with similar population levels elsewhere in Scotland. In fact, for every £5 that is spent in Glasgow on further education, only £2 is spent in Lanarkshire, which is of a similar size and faces similar social problems. That means that Lanarkshire's colleges still have to turn away prospective students because they have insufficient funding. In the case of Motherwell College, several hundred potential students have to be turned away each year.
In addition to the request for increased per capita spending in Lanarkshire on further education, I ask the minister to consider giving colleges greater flexibility in how they spend their budgets. That is particularly important in relation to child care provision. It is difficult for a college to predict levels of child care need from year to year. They require not only additional funding to address that problem but additional flexibility, so that they can respond to the needs of individual students.
I have been impressed by Motherwell College's child care provision, but that might accentuate the difficulty and emphasise why we need to have a review. There are pros and cons to having a centralised entitlement scheme compared with a flexible, localised scheme, which is what Karen Whitefield is arguing for.
A review would be helpful, because the issue is important. The facilities for child care at Motherwell College are impressive, but all 300 child care places are currently filled, and the college is turning away potential students not because it cannot meet their educational needs, but because it cannot meet their additional support needs and the child care needs. We need to address that.
I welcome the consensus on the importance of colleges to the Scottish economy. I also welcome the spending that has been committed by the Scottish Government, for all the reasons that we have heard this afternoon. Scotland's colleges truly provide excellent value to the public purse.
Will the minister look at the particular plight of the colleges in Lanarkshire? They offer a high level of training and education but, with a little extra help, they could do much more.
I am glad to speak in this debate on the contribution of Scotland's colleges to the economic recovery that we so badly need. My Mid Scotland and Fife region contains two universities and several colleges. Adam Smith College, in Kirkcaldy, is Scotland's third largest college; it supplies teaching in technical subjects that are simply not available at St Andrews or Stirling universities and, as such, I believe that it ranks higher than an ordinary local facility.
Scotland has nearly half a million enrolments in 43 colleges, which are subject to record funding by the Scottish Government even at a time of recession. I started my career in the further education system, teaching liberal studies to Post Office messenger boys; some members may remember the little red demons on motorcycles running around the place with telegrams. That was the Everest of teaching: if one could get them to remain silent and unfidgety for an hour, one was doing very well indeed.
In fact, those boys were marvellous: they were positive and responded very well. Of course, one soon realised why—they were the youngsters who carried the telegrams. At that time, the arrival of a telegram at a Scottish house usually meant only one of two things—a death or serious illness—so those kids had naturally to be sympathetic.
It is, therefore, important to consider the sort of people who go into the colleges and to remember that they cannot be easily categorised. Many of them bear considerable gifts of social and technical adaptation before they even go through the doors.
One person who recognised that—as is evident from her memoirs—was Jennie Lee. I think of her at this particular moment, because 40 years ago I was proceeding by bus from teaching the Post Office messenger boys to Walton Hall in Buckinghamshire to set up the Open University. The OU had a very strong Scottish element behind it, which came from Jennie Lee herself and from Walter Perry, our first vice-chancellor.
I make a plea today for using some of the facilities that the Open University developed, because they have come a long way from 1969, when we appeared on black-and-white television wearing kipper ties. Technology such as high-definition television allows virtual laboratory work to be carried out in one country while students from another country participate in it.
I strongly agree with the points that the member has raised. With regard to new technology, is he familiar with the new state-of-the-art telepresence system of videoconferencing, which the Open University is considering? It is a fantastic way of interacting with educational facilities throughout the world.
I am—in fact, I have used a similar system to communicate between Tübingen University and Aberystwyth University in teaching political science. The technology can also be applied to participating in, controlling and learning through experiments, because the degree of precision is so great.
It is an area that should be orientated towards the colleges rather than the humanistic universities. In an ordinary university, thanks to OU principles, the students can to a great extent be left to get on with much of their own learning—they can learn how to participate in groups and so on—but in a college system students are very dependent on the nature of the industry around the college.
On the continent, in France and Germany, a student in a major area of industrial development will spend as much as 75 per cent of their time in workshops or in learning facilities that are associated with private industry. We have a problem after a period of deindustrialisation—we have to make up for that. That is why those new and probably fairly reasonably priced forms of instruction will be important in the near future.
A further point is the importance of language teaching. That is not usually associated with the colleges, but they do a lot of work in it, including a lot of unrecognised work. We have to realise that it is no longer a question of saying, "We all speak English. Shout loud enough and they'll understand." In various central areas, we need to adapt to the fact that the language of command might well be German or Chinese because the developments have been carried out in Germany or China.
We need to do two things. First, we need to bring colleges up to date with the interchangeability of languages and the fact that it is important for our people to learn languages. Secondly, we need to realise that we have a large and often extremely talented migration into Scotland of people, largely from eastern Europe, who are very well qualified but who run into language and adaptivity barriers when they get here. We will need those people, particularly when we consider the future of areas such as renewable energy, because we will have to make up rapidly for the deficit of trained people in those areas. The colleges are in the front line of that work. I commend them on what they have done, and I look forward to even greater progress in the future.
We come to closing speeches. I have no extra time available so members should stick to the times that they have been given.
When a member prepares to sum up a debate, they might think that they have captured all the various points, but then Professor Harvie speaks and they realise that there are many more issues than simply those in the motion and amendments.
The rural aspects of further education college provision has been a consistent theme in the debate, as has the need for a concerted effort, as we tackle the recession and aim for sustainable economic growth, to ensure that colleges are at the heart of that agenda.
Mary Scanlon, Alison McInnes and others discussed rural colleges, and the issue is also mentioned in the Conservative amendment, which we are happy to support. We heard concerns about how greatest need is defined. It can be defined according to the head count or roll of colleges, according to their size and scale, or according to their role and impact on their area. The latter is much more consistent with the existing methods of distributing funding to our college estate in Scotland. The other approaches have excluded a number of colleges in rural areas where job losses have been such that their need can be considered equal to if not greater than that of urban areas.
In my area, the Borders, there have been more than 1,000 job losses in recent months. On a per capita basis, that is equivalent to 20,000 job losses in greater Glasgow. Such losses have a significant impact on rural areas, and the local college has a critical consequential role in supporting the area. Recently, the Princess Royal opened a £31.5 million campus at Borders College—a project that was started under the previous Administration. It is inconsistent that the Borders has seen that scale of investment but that the college is turning away students and is told that its critical role in supporting the Borders economy is now considered not to be needed. I hope that that inconsistency will be reflected on not only by the Scottish funding council—it is good that the chief executive of the SFC was at the college's award ceremony last week, at which I was happy to raise the issue with the principal of the college—but by the Government.
The Government states that, within its fixed budget, it is increasing funding for the college sector by 17 per cent during the spending review period. Of course, any growth is welcome, but we should consider that in the context that the previous two Administrations provided growth of not 17 per cent but 73 per cent. It is the trend in Government spend within the budget that is the critical aspect. Some members talked about enrolments; in the first decade of devolution, there have been an additional 78,000 enrolments in the college sector.
What Parliament wanted from the Government's skills strategy was some direction on how we might build on that unprecedented level of support for our college estate to deliver even more ambitious change. Parliament has yet to endorse any Government skills strategy because it considered the original strategy to be neither strong nor ambitious enough. Moreover, it did not have proper baseline data, identify any needs audits across areas or contain any indicators on which we could judge the success of Government policies. It is necessary for the Government to return to Parliament with that agenda.
Although the debate is concerned with the role of colleges in the economy's recovery, we cannot dissociate that debate from the wider changes that have been made to the enterprise networks. The relationship between colleges and Scottish Enterprise has been diluted, and in a debate on colleges, skills and the role of further education in the Scottish economy there has been barely a mention of either the Government's new centralised quango Skills Development Scotland—which, as we recall, was the hallmark of the Government's skills strategy—or its future approach.
Not only am I curious about that; I find it worrying, particularly given recent discussions that I have had about the Scottish textiles sector, which is a key employer in some of the country's rural areas. In the spring, we will lose Skillfast-UK, the sector skills council for fashion and textiles, and nothing will take its place. Skills Development Scotland has no approach to the industry sector, and Scottish Enterprise no longer has a key role in ensuring that business need, local economic development need and college supply are properly matched. As I said, I am worried about that, and I hope that the Government acknowledges that the textiles sector might well face a gap in skills provision. If so, I hope that the cabinet secretary will agree to meet me and the industry to discuss the way forward.
We know that, from hairdressing to land-based studies and science, colleges provide employable students and work-ready individuals. The economy will need them—after all, this generation of 18-year-olds is the biggest that Scotland has had since devolution. Colleges require continued support and the Government needs to focus on ensuring that the economic development environment in which they work is equally supportive. So far, we are going in the wrong direction.
As exemplified by the main motion and the three amendments, this debate has been very constructive. Members right across the chamber have shown a widespread recognition of the increasingly vital role that our colleges play not only in the economy but in the education and lifelong learning sector. As David Stewart said in his remarks about UHI, colleges have a great diversity and flexibility that other educational institutions lack. That reflects the fact that the labour market is increasingly demanding such features and, in many cases, much stronger links have been built between colleges and the workplace and between schools and colleges. That can be only a good thing.
As Claire Baker said, the fact that colleges make no distinction between adult and young learners and their ability to provide more educational opportunities to those from deprived backgrounds are important in upskilling and motivating both groups. However, we must also pay heed to the comment made by employers, including many members of the Confederation of British Industry, that too often in the past our workforce has not had the right skills, particularly in literacy and numeracy. As a result, it is good to hear that the Scottish Government is concerned about the matter.
Like many people, we feel that the valuable role that Scottish colleges can play in the development of apprenticeships must be a priority. In recent years, there has been excellent progress on that front. Indeed, on Monday, Murdo Fraser and I had the pleasure of meeting three outstanding college apprentices at Vector Aerospace in Almondbank and hearing about their future aspirations. Their technical skills and motivation were plain for all to see, and there is no doubt in my mind that this must be the way forward. At long last, we seem to be getting over the unfortunate myth peddled by some that college apprentices are somehow lower class citizens because they are not interested in attending university or do not have the ability to do so. Anyone who has been persuaded of that view should take the time to visit companies such as Vector Aerospace or some of the state-of-the-art technology companies that are forging ahead as a result of existing top-class college apprenticeship schemes.
As Professor Harvie said, we should take note of the highly successful dual system in Germany, where a combination of formal curriculum learning and work-based experience is the basis for teaching vocational courses. Indeed, that is often a recommended, and sometimes a mandatory, part of a university degree. As a result, competition for apprenticeships is strong, which is far removed from the idea that they might be a last resort.
We must be absolutely clear that the reform of the Scottish Qualifications Authority exam system provides the opportunity to realign the qualifications structure, which forms the basis for the choices of our young people. We should not repeat the mistake of 1992, when Professor Howie's excellent paper on reforming the secondary school system was ignored because of political dogma and a failure to recognise that comprehensive education did not best serve the needs of pupils in secondary 4 to 6. I think that, 17 years on, we all regret that. Professor Howie's recommendations for a two-route system beyond S4 were eminently sensible, and colleges have a huge role to play in delivering just that.
If apprenticeships are the way forward, so too are business bursaries that are similar to those in the US. The system allows an employer to set up a contract with a college and receive a weekly allowance for releasing an apprentice. At a time when colleges are rightly pointing to the additional demand that is being made on their resources, extra money from the private sector can provide an important boost for the employment chances of many people.
On resources, I reiterate the important plea that my colleague Murdo Fraser made in his opening remarks when he identified discrepancies in the support for colleges that serve rural communities. That is surely not acceptable. I am pleased that the cabinet secretary has accepted the specific request from the Scottish Conservatives. Let us be clear that those colleges do a first-class job and that they should not in any way be the victim of financial discrimination.
Successful colleges are all about matching up the incentives among the student population with those around the economy. It is good to hear that the Scottish Government recognises the need for better local interpretation of national and regional data, the lack of which has been a major issue for teacher recruitment in schools. I hope that the Scottish Government means business in that respect: students will have a far greater chance of success if they are provided with clear routes into employment opportunities and a good knowledge of what is on offer in their local community.
A major part of that is whether the student feels that he or she has adequate support in tackling hardship and, as the Liberal Democrats have highlighted, in accessing child care. The Scottish Government has finally come to terms with just how urgent that matter is and with the need to produce policies that provide better support for those who are most in need so that our students are offered much greater flexibility whatever their personal circumstances. How sad it would be if Scotland had to sacrifice any part of its economic potential just because a large number of students could not find the means to support themselves throughout their studies.
As with everything in education, there are no easy answers. Success in the future will depend largely on careful analysis of how the economy tomorrow can work and on harnessing the rich potential of all whose motivation and enthusiasm directs them towards a college career so that they are better prepared to enter the workforce. Our part in the Parliament is to help to implement policies that will make that process much easier than it is for many people in 2009.
I thank the cabinet secretary for bringing forward today's debate although, if we keep having education debates with the current frequency, many members who are present will qualify for a friends and family discount.
The Labour Party is having another one next week.
Exactly.
I say "friends and family" because the debate has been relatively friendly and amicable, notwithstanding Mr Purvis's contribution, although I welcomed his speech, which struck a robust but corrective note. He reminded us of some of the weaknesses in the skills strategies and that some rather glib statistics have been bandied about. However, the debate has been constructive and nearly every speaker has recognised the contribution that Scotland's colleges make to our economic development and the fact that they are uniquely well placed to respond to the particular demands of the downturn.
As we have heard, one of the biggest challenges that has arisen in the past year has been the tremendous surge in the number of applications for college places—it is in the region of 24 to 28 per cent, according to figures supplied by Scotland's Colleges. That has been a huge increase in demand, and it is remarkable that, so far, our colleges have coped so well. I am pleased that, as my colleague Claire Baker highlighted, our colleagues at Westminster recognise the seriousness of the economic situation and have announced more than £0.5 billion in extra education funding. I am pleased, too, that the Scottish ministers have passed on the consequentials and have announced £28 million over two years for Scotland's colleges.
I say that the colleges have coped well "so far" simply because the underlying problems are still with us. The colleges are now full but unemployment continues to rise, so we could see an upsurge in demand for college places from the higher number of January school leavers. Anecdotally, I hear that between 700 and 800 youngsters in Edinburgh alone returned to school unexpectedly after the summer because of difficulties in the jobs market. Many of those pupils will not stay on after Christmas, but they might find that the college place that they expected has already been allocated. Therefore, I urge the cabinet secretary to address those concerns now by acting in advance, rather than wait for the possible upset—and, obviously, the cost—of high youth unemployment.
The wider issue of displacement needs to be considered by the Scottish Government and its partners in the colleges. Because of the economic circumstances, young people who require more choices and more chances will now—I think that Murdo Fraser made this argument—be competing against a more qualified peer group. As Willie Coffey, Angela Constance and others mentioned, colleges play a particular role in addressing the needs of young people and adults with additional support needs. Would we want such vulnerable groups to miss out because of the current economic circumstances? For example, we know that the bursary for an applicant with additional support needs could fund up to six other students. Colleges wrestle with such issues all the time, but we do not want the situation to be exacerbated by the current economic conditions. Therefore, I ask the cabinet secretary what assurances she can give us that vulnerable students will not miss out.
Similar questions of equity and fairness arise in child care provision, which was mentioned by many members, including Claire Baker, Mary Scanlon, Alison McInnes, Karen Whitefield and others. Both this year and last, all members will have dealt with cases of institutions simply running out of such funds. That is bad enough in any institution, but colleges specialise in attracting part-time students, mature students and lone parents, who are the very people who most rely on child care. We were all relieved when the Government announced funds to address last year's crisis, but we all agree not only that the situation must not arise again but that the distribution of child care funds should be monitored. Therefore, I was pleased to hear the cabinet secretary's announcement on that in her opening remarks.
Alongside child care, the broader issue of hardship dominates students' lives, although the Scottish Government so far appears to have had difficulty in recognising that. I urge the cabinet secretary to consider the fact that all the Opposition parties and Scotland's students have at least agreed the principles on which student hardship should be prioritised.
Does the member recognise that resources are already being put into student support, including £38 million for part-time students? Does he recognise that the additional availability of ILA 200 and ILA 500 means that far more training places can be available for students who need financial support?
I welcome extra funds for the education sector wherever they come from, but the difficulty with the Government's approach has been that it has focused on debt to the benefit of graduates rather than addressed student hardship more widely. We should prioritise the poorest students and consider addressing the issue of commercial debt. We should prioritise hardship so that we support students in their day-to-day experience.
I am conscious of the time, so let me turn to apprenticeships. Our colleges are central to the delivery of Mr Swinney's promise in last year's budget that the Government would provide an extra 7,800 apprenticeships. Again, I welcome the cabinet secretary's announcement on that in her opening remarks, but I ask the minister to confirm how many of those places have been identified and how many individuals have started their training so far. Given the concerns that members have raised about the number of new applicants generally, is she aware of any issues surrounding the capacity of colleges to cope with that expanded demand?
On a related issue, I am also aware that the colleges are already helping to support many second or later year apprentices who have been laid off because of the downturn. However, my impression is that such people find their way to colleges under their own devices and that hundreds more redundant apprentices are dropping out altogether. Is the cabinet secretary monitoring what is happening to the 1,100 or so apprentices who have been made redundant, and will she direct Skills Development Scotland to play a more active role in supporting those apprentices, rather than leave them to their own devices?
Several members, including Murdo Fraser, Mary Scanlon and Alison McInnes, mentioned the particular importance of rural colleges, and Karen Whitefield, in her glowing description of the bold, open and vibrant Motherwell College talked about the needs of Lanarkshire. My party and the Liberal Democrats have indicated our support for the Conservative amendment. In his winding up, will the minister address the specific funding concerns raised by my colleague David Stewart about the disproportionate number of unfunded places at UHI and the fact that, although further education attracts additional funding for rurality, that does not apply to HE?
I want to raise a topic that is close to my own heart: the proposed new East Renfrewshire college. Not only are plans for that much-needed resource well advanced; funding has been put in place by the funding council and the local authority. However—I hate to disturb the consensus here—the project is under political threat from that auld enemy, the Tories. I am afraid that some leopards never change their spots. So far, the local Scottish National Party councillors have been very supportive, so I hope that we can count on the support of the cabinet secretary to ensure that the many school leavers, returners, the unemployed and those who wish to retrain and reskill in East Renfrewshire have the opportunity to do so.
Scotland needs as skilled a workforce as possible, but there is an added imperative to respond quickly to changing circumstances, to be flexible in provision, to address local needs and to provide opportunities to retrain. Coping with that demand is one of the strengths of the college sector. It is our duty in Government and Parliament to support it.
The Cabinet Secretary for Education and Lifelong Learning has clearly laid out the role that Scotland's colleges have in contributing to economic recovery. The Government has always been a strong supporter of our colleges. The contribution that they make to providing better opportunities for the people of Scotland becomes even more important during a recession. They help to provide—and will continue to do so—the skilled workforce that we need if we are to achieve the sustained economic growth that we all want in Scotland.
Our colleges continue to reposition themselves to address the new circumstances and challenges that have been brought by the recession, and to engage with students, employers and communities to develop the confidence and employability of our young people. As a result, we will see more confident individuals, stronger communities and competitive businesses that are able to tap into the full potential of their employees.
Some of the points that have been made are worth repeating. In January, the funding council allocated £7 million in 2008-09 and 2009-10 to support colleges' participation in our partnership action for continuing employment. With more choices, more chances, every young person has a choice of provision at every level for every style of learning everywhere in the country. Our 16-plus learning choices scheme offers a suitable place in learning well before the individual's school leaving date, at any transition point during the senior phase.
Over the period 2007-08 to 2010-11, this Government plans to invest £2.685 billion in the college sector—a 17 per cent increase on the previous Administration's investment. I say in response to Jeremy Purvis's point that it is important to try to focus on the crucial figure, which is how much—what proportion of the budget—was spent on colleges under the respective Administrations. Under the previous Administration, it was around 2.3 per cent and under this Administration it is around 2.37 per cent. We have also accelerated capital spend—£8.5 million for colleges from 2010-11 into 2008-09 and 2009-10.
As a number of members said, we have brand new, purpose-built, world-class facilities, such as Anniesland College, South Lanarkshire College and Stevenson College—the cabinet secretary mentioned other colleges in her opening speech.
We have also heard a great deal of mention of the UK budget consequentials of £28.1 million that have been allocated to colleges to support young people and capital investment. That money was for the areas of greatest need—that was the guidance that was given by the cabinet secretary to the funding council, which was in charge of the final distribution.
The draft budget for 2010-11 includes a £45 million increase on 2009-10, which is more than 5 per cent above inflation.
I want to address some of the points that were made during the debate. As the cabinet secretary made clear, we acknowledge the point that was made by the Conservatives in particular that rural colleges have concerns. I met the college principal, whom Mary Scanlon described as "a first-class principal"—I certainly agree—of North Highland College in Thurso. Those concerns have not been ignored, but have been listened to. The guidance that was given to the funding council instructed it to focus on young people in the areas of greatest need. When speaking to the principal of Northern College and other principals in rural areas, I had the impression that their concerns are not limited to the funding allocation from this set of budget consequentials. They also feel that they sometimes suffer as result of their remoteness and size, which affect the extent to which the funding council hears their voices. The cabinet secretary and I have listened to those concerns and will take on board the points that are made in the Conservative amendment.
It is worth pointing out how well our young people did in the recent Worldskills International tournament in Calgary. We had our biggest-ever representation in the UK delegation, which achieved its highest-ever place in the tournament. The Scottish representatives accounted for two of the three gold medals that were won; had Scotland been accounted for separately, we would have had the top results in the world. That is a fantastic achievement by the young people who were over in Calgary.
I have spoken to many principals, both publicly and privately, who recognise the pressures that the recession creates, some of which have been mentioned by members. However, they also see in the recession an opportunity to place colleges up front and at the centre of public life in Scotland. As Kenny Gibson in particular pointed out, colleges believe that vocational education deserves parity of esteem with academic education. It does.
Margaret Smith referred to differences in child care funding between Scotland and England, where such funding is an entitlement. It is, but the system that we have was supported by the previous Administration. I am grateful to Margaret Smith for acknowledging the additional moneys that the cabinet secretary has managed to invest in the area.
David Stewart mentioned Dornoch, which I have visited, and the work that has been done there on the Scots diaspora. Also worthy of mention is the work that has been done on hospitality, for which a new facility is about to be created. The North Highland College has concentrated on front-of-house training for our hospitality industry, which is an area in which we were not so strong in the past.
I strongly support the points that the minister has made. Will he respond briefly to my question about the timescale within which he expects university title to be granted to UHI?
I am coming to that. It is for UHI to decide on the precise timing of its application for university title. The institution wants to be sure that it can meet the Scottish criteria for university title. I assure David Stewart that Scottish Government officials are supporting that work and will continue to do so.
Jeremy Purvis made an important point about the loss of Skillfast-UK. In the response that I sent to Lord Mandelson in the UK Government, I made clear the importance and uniqueness of Scotland's textile sector. We have made the point that is critical that there is in the textile sector a strong employer voice in respect of skills. If Skillfast-UK is not performing effectively, strong alternative arrangements must be put in place to deliver that. SDS is involved and will engage with the sector over the coming weeks and months. I am scheduled to meet the member's colleague shortly to discuss the issues.
As the cabinet secretary commented, no one can fail to acknowledge the commitment that Scotland's colleges have shown in their response to the economic recession. At our request, and in response to the demands of the recession, they have reprioritised their learning provision to ensure that what they offer gives students the best possible chance of employment.
Order. There is too much noise.
The document to which the cabinet secretary referred, "Skills for a Successful Scotland", is testament to the work that colleges have done, and to their commitment to assisting both individuals and businesses in maximising their potential.
However, as a number of members have said, we cannot become complacent. We must continue to expect our colleges to deliver for our key sectors, for businesses across Scotland and for individuals who are affected by redundancy. The sector will need to continue to speak to employers locally and nationally to ensure that it is providing the skills that are required. Colleges will need to take account of the needs of individuals to ensure that they have the right skills to enhance their employability prospects. As a Government, we will continue to show our support for our colleges, as they play a central role in supporting our future economic success.