EMPLOYERS FULFILLING NEW ROLE TO MARRY TRAINING AND BUSINESS NEEDS

25th September 2002

More employers will be put firmly in the driving seat to tackle skill shortages in their sectors as part of the further expansion of Sector Skills Councils, Adult Learning and Skills Minister Ivan Lewis announced today.

He praised the leadership shown by employers spearheading the five trailblazer Sector Skills Councils while Education and Skills Secretary Estelle Morris also announced new steps to improve the quality of management and leadership across the UK economy. This includes the setting up of an advisory panel of public and private sector leaders and Ministers to build upon the recommendations set out in a report by the Council for Excellence in Management and Leadership (CEML) earlier this year.

Speaking at the opening of the new UK office of the Sector Skills Development Agency (SSDA) on the site of a former coal mining area in the Dearne Valley, South Yorkshire, Ivan Lewis said:

“Sector Skills Councils represent a radical way forward by putting employers in the driving seat when it comes to pushing up skills in their sector. We are now inviting employers to form councils to lead action which will receive more investment and backing from Government than ever before.

“We are faced by a significant skills challenge and a strong sector network is a key weapon in our fight to overcome it. Skills shortages lead to a loss of business, delays in developing new products and lower levels of customer service all of which hold business back.

“The Dearne Valley is an ideal location for the SSDA which will have play a major role in closing the skills and productivity gaps with our competitors. This site, part of a former coal mining area, symbolises the challenge we face as our economy undergoes change.

“The area is now undergoing a dramatic regeneration after suffering years of decline and high levels of unemployment following the closure of coal pits. By 2005, the number of jobs created across the Dearne Valley will surpass the 10,000 that the coal pits employed at their peak.”

The Government has also published its response to the final report of the Council for Excellence in Management and Leadership (CEML) today. The Government strategy, at the centre of the response, is to raise awareness of, and increase the demand for, the benefits of improved management and leadership skills among business leaders and organisations.

Estelle Morris said:

“Around 4.5 million individuals in the UK have significant management responsibilities yet many business say that their managers are not up to scratch and lack the skills and qualifications to lead their workforces effectively. We have to tackle this problem head on so that business and public services can continually raise their game - crucial to improving productivity.

“We will now take forward the recommendations from the Council for Excellence in Management and Leadership to improve these skills across the board through an advisory panel of business leaders and Ministers. Our focus in taking forward this work will be to stimulate demand, improve supply and secure effective delivery of management and leadership skills.”

Welcoming the Government response, Secretary of State for Trade and Industry, Patricia Hewitt said:

“UK business has a strong tradition of innovation and enterprise, but too many new companies fail because they do not have the right management skills. Success in the private, public and voluntary sectors relies on strong and well-developed leadership abilities, but you cannot create these overnight.

“There is no quick fix. The Government strategy, set out in the response to the valuable work by the Council over the last two years, is a long-term plan to raise the quality of UK management and leadership. Our aim is to lead the world in developing and deploying the right skills. This will strengthen the foundations of our enterprising and thriving economy.”

NOTES TO EDITORS

1) The role of the SSDA is to develop, fund and champion the new UK-wide network of employer-led Sector Skills Councils. An independent panel selected five trailblazer sector skills councils in December 2001. Below are some examples of progress they have made.

· Skillfast UK is developing a national programme of seminars dealing with strategic Global Awareness for SMEs in the clothing and textiles industries - followed up with one-to-one mentoring of owner managers in the sector.

· Cogent launched the 'Oil and Gas Industry Technician Training Charter' and is working with partners to develop a world-class centre in Grangemouth to deliver training to technicians in the petrochemicals industry.

· Cogent is also in the process of launching an interactive careers and information service for young people and their advisors and will be holding a series of regional career events across the UK over the next few months.

· Skillset, partnered by the Broadcast, Entertainment, Cinematic and Theatre Union, has set up a direct link with learndirect, the national learning advice line, to offer a single dedicated media careers helpline which provides general career and training advice to people wanting to get into the audio visual industries.

· Lantra has increased the take-up of learndirect courses in its sector by almost 70% in just three months and are on course to deliver even more in association with Farm Connect in Wales.

2) The Council for Excellence in Management and Leadership (CEML) was set up by David Blunkett and Stephen Byers in April 2000 to advise on the action required to improve the quality of management and leadership in the UK. This is an issue that is seen as a key contributory factor to the overall competitiveness and productivity of UK industry. CEML was chaired by Sir Anthony Cleaver and had six other members drawn from both public and private sectors, including a small firms representative.

3) CEML was given 2 years to present a report with recommendations to the Secretaries of State for Education and Skills, and Trade and Industry. CEML’s final report “Managers and Leaders: Raising Our Game” which painted a disappointing picture of the UK’s management and leadership capabilities was published on 13 May 2002, at an event attended by both Patricia Hewitt and Estelle Morris http://www.managementandleadershipcouncil.org/press/release2.htm

4) The Response provides detains of actions that will be taken in 12 key areas to improve the overall standard of management and leadership across the UK. Some of these activities are already underway, some will require piloting, and some will be taken forward by the private sector and other stakeholders. They will require prioritisation, and a sustained effort over the long term by Government and a range of non-Governmental stakeholders.

5) The work will be driven and championed by an Advisory Panel of high profile leaders and Ministers, and will be supported by a new joint DTI/ DfES team which will provide a central focus for Government activity on management and leadership. The membership and Chairman of the Advisory Panel will be announced in due course.

6) Copies of the Government’s response to the Council for Excellence in Management and Leadership Report are available from Leanne Barr, SfED, E4D Moorfoot, 0114 259 3316 email leanne.barr@dfes.gsi.gov.uk