Clause 22
Further Education and Training Bill [Lords]
1:15 pm
John Hayes (Shadow Minister (Vocational Education), Education; South Holland and The Deepings, Conservative)
I beg to move amendment No. 31, in clause 22, page 15, line 4, at end insert ‘and
(c) the class must include organisations representative of persons who are liable to make payments by way of levy in consequence of the levy proposals.’.
You will know, Mr. Atkinson, that the levy system affects a small number of organisations that contribute to training in two particular sectors. We have debated the matter at length. It is a relatively technical affair and, from my discussions with Ministers, I understand that this part of the Bill is also technical and not intended to act as a catalyst for a change in that process.
It is perhaps worth saying for the record that, as Ministers know—we have discussed this publicly and privately—I support the way in which the levy system currently operates. There is a slight risk that by changing the way in which the representative organisations and employers work in this field, we might weaken take-up of the levy. Some employers—very small employers, new employers and employers who are going through changes of circumstance—are exempt from paying the levy. However, I am anxious that we should maintain the commitment to the levy from within the relevant industries and am therefore somewhat concerned—I put it no more strongly than that, for this is a probing amendment, as hon. Members may have guessed from what I have said—to ensure that we do not endanger that level of commitment by any albeit small changes that we might make.
I know that we broadly agree on this matter, but I am interested to hear the Minister’s reflections on it. I shall pose two or three questions that he may want to address, and then I shall draw my remarks to a conclusion. First, I understand that there has been a decline in levy take-up over time, which we have discussed in Statutory Instrument Committees and elsewhere. I want to hear the Minister’s view on that and what we might do about it.
Secondly, what role do the sector skills councils play in all this? They seem to be a helpful tool in that respect. I do not think that they have a statutory role, but it would certainly be desirable for their involvement in the process to assist in the collection of and commitment to the levy that I have described.
Thirdly, it would perhaps be useful for the Committee to have some kind of profile of who pays the levy. In the construction industry, which is one of the industries involved, a broad range of types of business is liable to pay the levy. I would be interested to hear whether the smaller companies are depending on the very large companies, which, of course, pay the levy, and what the balance of payments is.
Those are all fairly narrow points, but I know that the Minister will appreciate that the questions have been posed in the interest of trying to get the provision right. I look forward to his response as to precisely why the changes proposed in this part of the Bill are, in his view, necessary.