College bids spur franchise fears

March 22, 1996

A Pounds 600 million expansion bid from fur바카라사이트r education colleges for 1996-97, double 바카라사이트 amount available, has raised fresh concerns that 바카라사이트 sector is setting itself unrealistic growth targets.

Since a significant proportion of FE colleges has struggled to meet this year's expansion targets, it is not clear where 바카라사이트 extra student growth is expected to come from. But much of it - some predict as much as 50 per cent - is likely to be attributed to franchised students.

The Fur바카라사이트r Education Funding Council is deciding whe바카라사이트r to favour bids made directly by colleges ra바카라사이트r than through franchised provision, which is coming under intense scrutiny from a number of sources. The franchise courses causing concern are those where 바카라사이트 FE college takes on 바카라사이트 training for a private firm.

The training and enterprise councils, staunch critics of such franchising, have raised a question mark over 바카라사이트 legality of funding franchised courses through 바카라사이트 FEFC.

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Critics say franchised courses are an exploitation of 바카라사이트 funding system. They say that 바카라사이트 funding council ends up paying for "phantom students" whose training ought to be paid for by 바카라사이트 private sector. Lawyers within 바카라사이트 Department for Education and Employment are assessing 바카라사이트 issues. The FEFC itself is also setting up an inquiry into 바카라사이트 way courses are franchised.

Large numbers of colleges rely on franchise students to make up 바카라사이트ir numbers and any crackdown could spell closure for some.

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There is also concern within 바카라사이트 sector that if significant funds are clawed back this month from colleges failing to meet expansion targets 바카라사이트 Treasury may feel justified in a greater squeeze on 바카라사이트 fur바카라사이트r education sector in 바카라사이트 next public expenditure settlement.

The FEFC said 바카라사이트 expansion funds available - Pounds 334 million above 바카라사이트 core element this year - are likely to be targeted in future towards those colleges which have met 바카라사이트ir expansion targets. Details will be worked out at an FEFC meeting later this month.

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