HC Deb 26 May 1999 vol 332 cc189-90W
Mr. Green

To ask the Secretary of State for Education and Employment what guidance he has given the Further Education Funding Council on the future of franchising activity by colleges; and if he will make a statement. [85466]

Mr. Mudie

My right hon. Friend the Secretary of State authorised the following advice to the FEFC in December 1998—that (i) FEFC funding should not be transferred from colleges to employers other than exceptionally for the lease of equipment and premises; (ii) franchised arrangements should not operate well outside the college's area—and where a college did extend its operations in this way then it should do so after consultation with the local college or colleges concerned; and (iii) the FEFC should consult the DfEE about the implications for funding policy of its study of the costs of franchised provision.

In response, the FEFC has: required that colleges do not transfer funding to employers other than exceptionally; established a local priorities working group to advise on policy for off site delivery; and reduced the funding available for the majority of franchised activity.

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