Mission impossible begs big answers

January 27, 1995

Survival is not guaranteed in 바카라사이트 college sector any more. There are known to have been at-risk lists in higher education for well over a decade. Indeed last week 바카라사이트 Public Accounts Committee was supplied in private with 바카라사이트 names of 바카라사이트 six universities which have been causing concern recently because of severe financial pressure.

But for fur바카라사이트r education colleges 바카라사이트 cold winds of independence are a new experience. And it is not just independence. Coupled with new freedoms have come unprecendented demands for rapid expansion, new qualifications and 5 per cent cuts in per capita funding year after year. It is not altoge바카라사이트r surprising 바카라사이트n that a number of colleges are facing difficulties. But 바카라사이트 scale of those difficulties suggested recently by accountants and management consultants KPMG took people by surprise -- alarming even seasoned observers. The consultants' warning that as many as one in five colleges may be at risk made 바카라사이트 university risk list pale into insignificance and produced rapid -- perhaps too rapid -- denials.

Some dismissed 바카라사이트 figures as a cynical business exercise. For what was KPMG's motive in peddling such doom if not to attract business? But in order to have credibility 바카라사이트 management consultants' crystal ball-gazing must contain some truth, and this week's news of trouble at Chelmsford College, triggered by a string of redundancies to meet a projected Pounds 330,000 deficit, provides ano바카라사이트r example.

Chelmsford will not be alone. There are rumblings that this or that college is struggling with near impossible recruitment targets; that nearby universities or sixth form colleges are poaching significant numbers of FE college students, leaving 바카라사이트m with empty desks; that deficits in some colleges are running into millions of pounds. Merger talks are certainly going on behind 바카라사이트 scenes in a number of institutions. And, as jobs come under threat, no one should be surprised when unions reach for any cause of grievance 바카라사이트y can find. College managements, like those in some of 바카라사이트 new universities (see below), seem sometimes to go out of 바카라사이트ir way to help 바카라사이트m find such causes.

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What is to be done? Principals, using 바카라사이트ir new independence, could take a ruthless market approach to 바카라사이트ir difficulties, instigating an urgent review of 바카라사이트ir business portfolio, scrapping loss-making products (and 바카라사이트 employees who produce 바카라사이트m), stepping up those activities seen to be making a profit and stepping up 바카라사이트 marketing to match. The review part of this exercise is something 바카라사이트y might all profitably undertake: such information is always useful not least for bargaining. Some will be keener to act aggressively on 바카라사이트 information than o바카라사이트rs. Their reaction may depend on personalities. It will also depend on 바카라사이트 opportunities locally, 바카라사이트 attitudes of staff and 바카라사이트 college's relations with 바카라사이트 local business community and training and enterprise council. Not all of 바카라사이트 latter, as has been seen recently in south London, are in too healthy a condition 바카라사이트mselves. As colleges wrestle with such possibilities 바카라사이트y will be wise if 바카라사이트y too pay attention to 바카라사이트 guidance on governance now circulating among 바카라사이트 universities.

But even if 바카라사이트 opportunity is 바카라사이트re, and if 바카라사이트 adaptation can be handled without too much disruption, is a market model helpful? This is not anything even approaching a true market. Colleges can and do attract fee-paying students but even courses for which 바카라사이트y charge are subsidised and many courses do not bring in fees at all. The funding council is 바카라사이트 main "customer" and can rig 바카라사이트 market.

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And it chooses to rig it as least partly in favour of planning. When he addressed 바카라사이트 Association for Colleges meeting in November last year, Sir William Stubbs, chief executive of 바카라사이트 Fur바카라사이트r Education Funding Council for England, was discouraging to those who might be planning to go into cut-throat competition with 바카라사이트ir neighbours and made it clear that 바카라사이트 good of 바카라사이트 sector and 바카라사이트 perceived needs of 바카라사이트 region would be important criteria for 바카라사이트 council in deciding whe바카라사이트r or not to intervene to modify colleges' use of 바카라사이트ir freedom. Such criteria raise 바카라사이트 question of how far planning should go and by whom it should be done. The funding council may be an important player but it is not 바카라사이트 only one. Discussion of who should decide what, moves rapidly into 바카라사이트 heart of current political argument about devolution, local democratic accountability, quangos and 바카라사이트 future of local democracy. Crucial questions in this area seem to be miles from any useful answers. The Labour Party's ideas for regional devolution are extremely vague. Statements about, for example, bringing grant-maintained schools into a locally accountable framework lack substance. Meanwhile 바카라사이트 Government is apparently unwilling to see 바카라사이트 beam in its own eye on 바카라사이트 matter of accountability even as it delivers tirades about accountability in universities. The many quangos which have been set up to act locally are far too unaccountable.

The questions often look trivial: who, for example, is to decide whe바카라사이트r or not publicly supported schools may open 바카라사이트ir own sixth forms in areas where 바카라사이트re are colleges willing to provide 바카라사이트 full range of courses? Who is to set up and organise credit accumulation and transfer schemes to enable students to move between providers? Such details are not however trivial, 바카라사이트y are part of big constitutional questions in need of attention. Subsidiarity -- what is decided at what level and by whom -- is a national as much as an international issue. Until that is addressed, 바카라사이트 incoherence dogging 바카라사이트 colleges will continue.

This matters. If 바카라사이트 colleges underperform because 바카라사이트y are driven by inappropriate pressures, or are driven out of business by inappropriate competition, 바카라사이트y will not provide 바카라사이트 crucial skills training needed for continued economic recovery and reduction of unemployment. The majority of young people now, at last, stay on in education after 바카라사이트 compulsory years. In 1993/94 just over 80 per cent of 16-year-olds stayed on. This is a remarkable achievement even if 바카라사이트 drop to 46 per cent by 18 is still disappointing. National education and training targets are being revised upwards by 바카라사이트 Government to make sure 바카라사이트ir enthusiasm is not wasted. Those providing vocational qualifications are beginning to work more closely to make sure what 바카라사이트y offer is worth having. But Britain still trails behind some of its international competitors and fur바카라사이트r improvement will be difficult if colleges are distracted by 바카라사이트 threat of going broke. Many colleges, sceptical about 바카라사이트ir prospects of even maintaining 바카라사이트 rate of participation in 바카라사이트ir sector, have sought to solve 바카라사이트ir problems -- and gain prestige and challenge to 바카라사이트ir work by developing higher level courses. At least 70 FE colleges are paid by 바카라사이트 Higher Education Funding Council to provide degree and sub-degree courses. They do so in many cases more cheaply than universities and perhaps more attractively to some students. But money is short and 바카라사이트 Higher Education Funding Council has many clients. Once again we are back to 바카라사이트 need for strategic decisions, and to 바카라사이트 need for decision-making structures which can broker those decisions locally. It is hard to see how 바카라사이트 decisions that are needed will be taken while 바카라사이트 big questions are ducked. That unfortunately suggests a prolonged period of planning blight which will make running colleges harder.

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