Student Loans (Hansard, 28 June 1994)

§ Mr. Pike
To ask the Secretary of State for Education how many representations he has received in the last two years on the subject of student loans; and if he will make a statement.

§ Mr. Boswell
Since June 1992 my right hon. Friend has received 175 letters from hon. Members and members of 481W the public on the subject of student loans. In addition my right hon. Friend has received a number of letters on the issue of student support generally. It is not possible to say how many of these mentioned student loans.

§ Mr. Austin Mitchell
To ask the Secretary of State for Education if he will establish a permanent organisation for investigation of accusations in respect of(a) nepotism, (b) preferential contract deals, (c) conflicts of interest and (d) other forms of corruption by principals and governors of colleges of further and higher education and universities; and how many investigations of individual colleges he has ordered to date.

§ Mr. Boswell
My right hon. Friend sees no need for a permanent organisation for the investigation of complaints.
In the case of an institution in the further education sector my right hon. Friend may intervene under section 57 of the Further and Higher Education Act 1992 in the event of mismanagement, on the advice of the Further Education Funding Council, or breach of duty. He has requested the FEFC to carry out investigations into the governance and management of two institutions in the further education sector.
Under section 81 of the Further and Higher Education Act 1992, if it appears to my right hon. Friend that the financial affairs of any institution within the higher education sector have been mismanaged, he may, after consulting the Higher Education Funding Council and the institution, make directions to the council about the provision of financial support in respect of the activities carried out by the institution. No such direction to the council has been made in respect of any higher education institution.

§ Mr. Austin Mitchell
To ask the Secretary of State for Education, pursuant to his answer of 3 March,Official Report, column 805, on new contracts for staff of colleges of further education, what authority the Further Education Funding Council has to bring pressure or offer inducements to colleges to move existing staff on to new contracts; and how it proposes to secure uniformity of conditions in colleges.

§ Mr. Boswell
The FEFC has asked each college to sign a declaration that contracts for new staff satisfy the two conditions that I set out in the answer that I gave to the hon. Member for Bath (Mr. Foster) on 16 February,Official Report, column 842. It is for each college to decide what form of contract it wishes to introduce for new staff and whether it can then sign the declaration.

§ Mr. Austin Mitchell
To ask the Secretary of State for Education what instructions or advice his Department offers to firms auditing the accounts of colleges of further and higher education for reporting on staff privileges, membership of private health insurance paid for by the colleges or for the detection of fraud, nepotism or sweetheart contracts by governors and principals.

§ Mr. Boswell
Colleges of further education are required by their instruments of government to appoint auditors and to carry out audit work in accordance with the requirements of the Further Education Funding Council. The Further Education Funding Council Unit, the precursor of the Further Education Funding Council, issued in July 1992 advice on external audit, including guidance on the appointment of auditors, scope of audit482W and reporting arrangements. The Comptroller and Auditor General and the Council both have powers to inspect colleges' accounts where they consider this appropriate.
Colleges of higher education are subject to the auditing requirements of the Higher Education Funding Council for England. The Council's audit code of practice was issued in July 1993. Higher education institutions funded by the Higher Education Funding Council for England are required, from 1994–95, to disclose the actual total emoluments of the vice-chancellor, director or principal, including benefits in kind valued as cash.

§ Mr. Austin Mitchell
To ask the Secretary of State for Education (1) pursuant to his answer of 25 February,Official Report, column 503, whether his Department has asked any colleges for explanations about the forms of contract they have agreed with staff, or approved any contract offered by any college;
(2) what explanation he has sought from Manchester college of arts and technology about its new contract terms for staff.

§ Mr. Boswell
The Department has asked Manchester college of arts and technology to explain how its agreement with the National Association of Teachers in Further and Higher Education allows it to sign the declaration to the FEFC that its new contract of employment for lecturing staff is significantly different from its current contract of employment. It has not sought an explanation from any other college.