Making Britain competitive

June 01, 1994

EDUCATION

A coherent vocational path is to be developed for pupils from the age of 14, so that by the year 2000 the 16 year-old school leaver will be “as dead as a dodo”, according to education secretary, John Patten MP. Plans include:

one week’s work experience for all pupils in the year before GCSEs, with another for 16-18 year-olds still in education – the 128 local Education Business Partnerships will receive £23 million over three years to accomplish this;

a guarantee of independent careers advice between the ages of 11 and 18 – an extra £87 million for the Careers Service;

a new General Diploma for 16 year-olds who gain grades A-C in GCSEs in maths, English, science and two other subjects, with a vocational equivalent for the 60% of 16 year-olds who currently fail to gain five GCSE passes at grades A-C

TRAINING

The previously-announced modern apprenticeship scheme is to be extended, with an additional £107 million, provided industry provides the extra places. The original scheme was aimed at 16 year-olds who had left full-time education. The new provisions will include students leaving full-time education aged 18 or over and will increase the number of people being trained to NVQ level 3 (the vocational equivalent of two A levels) from 150,000 to 200,000.

BUSINESS LINKS

The Business Links scheme, which provides help for smaller companies, is to expand – the 22 already in place will rise to 50 by the end of 1994, with full coverage for England by the end of 1995.

INNOVATION

Innovation credits for small companies to encourage use of outside experts will be introduced and along with new initiatives to strengthen links between universities and business under the Teaching Company Scheme.

LATE PAYMENT

The paper recognises the extent of the problem of late payment, with £50 billion of outstanding debts at any one time, £17 billion of which are owed to SMEs. Public companies will now have to state their bill-paying policies in directors’ reports. However there will be no legislation for a statutory right to interest on overdue debts.

REGIONAL AID

A regional challenge, based on the City Challenge model, is to be introduced.

Comment

It seems criticisms from industry bodies like the Engineering Employers Federation about the lack of a coherent government policy towards industry are starting to hit home. Of course many of the initiatives in the white paper were already in the pipe-line, but at least there is an analysis of the problem – a long-term decline in Britain’s ability to compete in the global market place.

For community affairs managers, this white paper offers a public policy framework in which to position their community involvement policies. Creating the conditions for long term business success is often cited as one of the main motivating factors behind CCI programmes. By placing education and training at the heart of the competitiveness question, government is pointing to that as a priority. Companies should look again at how their own activities fit that objective.

Corporate Citizenship Briefing, issue no: 16 – June, 1994

COMMENTS