§ Mr. MorganTo ask the Secretary of State for Education what is the basis for action by the Further Education Funding Council for England and against the governing bodies of colleges; and if she will make a statement on the adequacy of those powers.
§ Mr. BoswellUnder section 5(7) of the Further and Higher Education Act 1992, the Further Education Funding Council for England may make any grants, loans or other payments to the governing body subject to terms and conditions which enable the council to require the repayment in whole or in part of sums paid by the council if any of the terms and conditions are not complied with and require the payment of interest in respect of any sums not so repaid. The council is required to keep this power under review. The instruments of government for further education corporations also require the statement of accounts to comply with any directions given by the council.
In the event of mismanagement, breach of duty or unreasonable actions by a governing body, responsibility rests with my "right" hon. Friend. She is satisfied that the range of powers available to her and the council are, taken together, adequate.