Loophole 'risks' college funding

http://news.bbc.co.uk/go/rss/-/1/hi/scotland/6907413.stm

Version 0 of 1.

A teaching union has called on Holyrood to close a legal loophole that could jeopardise the charitable status of some colleges in Scotland.

The Educational Institute of Scotland (EIS) said new legislation, introduced by the Scottish Parliament in 2006, did not do enough to protect the sector.

The call comes after regulators ruled that John Wheatley College in Glasgow did not conform to new charity rules.

The EIS claimed the ruling could risk up to £25m of funding for colleges.

Following a review by the Office of the Scottish Charity Regulator (OSCR), officials said the John Wheatley College fell foul of rules which limit ministerial involvement in how funds are spent.

There appears to have been a complete U-turn by the regulator, which flatly contradicts the understanding and wishes of the Scottish Parliament. Ronnie Smith EIS

Ministers now have two years to change their involvement with further education colleges or exempt them from the new rules.

EIS general secretary Ronnie Smith said: "In agreeing to the removal of certain ministerial powers over colleges in March 2006, the Scottish Parliament's enterprise and culture committee report states, 'this ensures that the constitutions of the colleges comply with the charity test'."

'Ministerial control'

Mr Smith claimed that Jane Ryder, OSCR chief executive, gave assurances at the time that the changes would be sufficient for colleges to retain their charitable status.

"Now there appears to have been a complete U-turn by the regulator, which flatly contradicts the understanding and wishes of the Scottish Parliament," Mr Smith said.

Mr Smith also warned that further dilution of ministerial powers over FE colleges would make them less accountable.

Following the OSCR ruling, the organisation's chief executive Jane Ryder said: "The charity legislation is quite clear that a constitution that permits ministerial control is not acceptable.

"That is why in 2006 parliament removed some, but as we have now established, not all, ministerial powers of control over further education colleges.

"We have alerted ministers to the position, outlining the options and this issue is in the hands of ministers to resolve."