National Assembly Committee agrees general principles of the Further and Higher Education (Governance and Information) (Wales) Bill
25 July 2013
A National Assembly for Wales Committee has agreed the general principles of the Further and Higher Education (Governance and Information) (Wales) Bill.
The Bill’s main objective is to relax legislative controls over Further Education Institutions (FEIs) in Wales by removing borrowing and governance restrictions. The Welsh Government believes that the greater autonomy this will give FE Colleges will allow the Office of National Statistics to reclassify them for accounting purposes and avoid the negative financial consequences of their current accounting status.
The Bill also seeks to streamline the process of approving student loans while reducing fraudulent claims by sharing data between Her Majesty’s Revenue and Customs (HMRC) and Welsh Ministers.
The Children and Young People Committee was content with the intention of improving the student loans process.
On the issue of the status of FEIs under the Office for National Statistics, the Committee has questioned why the Welsh Government did not consider alternative approaches, including one currently being explored by the Scottish Government, which would require Her Majesty’s Treasury to relax some government budgeting rules.
In noting that the Treasury had yet to agree to such an arrangement the Committee raised concerns that the Welsh Government appeared to be proceeding with its legislation plans while presupposing the Treasury’s response.
“The Committee has agreed the general principles of this Bill as we accept that, if passed, it will achieve its objective of reclassifying the status of Further Education Institutions in Wales, giving them greater autonomy and avoiding any potential financial consequences as a result of their status under the Office of National Statistics,” said Ann Jones AM, Chair of the Children and Young People Committee.
“We recommend that, before the next stage of the legislative process, the Welsh Government should explore fully with HM Treasury the scope for modifying Government accounting rules to help mitigate the effects of the ONS classification.
“We would also like to see how the Welsh Government and Student Loans Company intend to retain appropriate support at a local level in Wales for people applying for student loans.”
The Committee makes 11 recommendations in its report including:
A revised Explanatory Memorandum is produced setting out in more detail and with greater clarity the risks involved in the approach the Bill takes to mitigating the effects of the ONS classification;
Before the debate on general principles is held, the Welsh Government should explore fully with HM Treasury the scope for modifying Government accounting rules to help mitigate the effects of the ONS classification;
A number of specific suggestions for improving the governance arrangements of FE colleges; and
The Welsh Government considers with the Student Loan Company how best to retain, at a local level, appropriate support in person for those applying for student loans.