We very much welcome your news, views and ideas.

Please email Judith Cowan if you would like to contribute to the next issue.

This will be finalised by the middle of the year and will mean reaching agreement with employers and other stakeholders on the skills issues identified as well as a commitment to the proposed solutions and the resources and funding required to drive them forward.

The first stage - the Skills Needs Assessment (SNA) - will be launched at the beginning of next month and will provide an in-depth analysis of the trends which are impacting on the Cogent footprint. It is the most exhaustive study ever undertaken in the UK on the skills issues facing the Cogent industries. It will be free of charge to industry and stakeholders and downloadable from the Cogent website.

It will draw on existing research, industry initiatives and new research undertaken by Cogent in each industry including: the Nuclear Employer Skills Survey; Oil and Gas Age Profiling Survey and;  in-depth interviews with over 130 employers across the Chemicals, Nuclear and Polymer industries.  The surveys look at employer skills needs and deficiencies at different occupational levels within companies, from semi-skilled and apprenticeship grades through to scientific and post-graduate level roles.

Cogent has drawn a number of strategic conclusions and these will be published in full, as part of the SNA document.  

Emerging from the SSA process and linking with the underlying Cogent agenda of productivity and competitiveness the following key strategic themes have already been identified.

Productivity
To drive forward productivity we must up-skill the existing workforce and get companies to engage in this activity.

Attraction, supply and age profile
There is significant concern regarding the in-flow of skills to the industries to meet future demands and a potential demographic time-bomb with the capacity to significantly constrict GDP growth.

Innovation
To succeed in the long run and have competitive modern production and manufacturing we need to innovate both in terms of products and processes.

Management and leadership
The potential for success will depend heavily on leadership. Concerns have been raised throughout our industries regarding leadership capability to drive forward improvement and change.

Cogent CEO, Joanna Woolf said: “Combined the Cogent industries are of significant economic and strategic importance to the UK, contributing £46.69bn to its Gross Added Value.

"Our sectors are facing a series of changes in the demands placed on their workforce from drivers including global competition, increasing public expectations for cleaner and safer products, new technology, workforce demographics and sustainable development requirements.

 “Our vision is that together we can create a skills pool in the UK that enables the growth of our industries, with the whole economy benefiting from the opportunities offered by the application and exploitation of the science and technologies they utilise.”

Lord Leitch, publishing his interim report, said: “Skills present a formidable challenge and a brilliant opportunity. They matter fundamentally for the economic and social health of the UK. Despite recent improvement, there is consensus that we need to be much more ambitious and a clear message that the UK must raise its game. This is an urgent task. The scale of the challenge is daunting. Delivering current plans will be difficult. Even then, it will not be enough to supply the skills that employers, employees and our nation needs in order to advance. The UK must become world class on skills - for all of our sakes.”

The Report finds that, over the last decade, the skills profile of the UK has improved because of an excellent higher education system; reforms to vocational training and an increasingly effective schools system.  But the UK has much further to go:

• over a third of adults of working age in the UK do not have a basic school-leaving qualification;   
• five million adults have no qualifications at all; and
• one in six adults do not have the literacy skills expected of an 11 year old and half do not have these levels of functional numeracy.

The UK is in a strong position with a stable and growing economy and world-leading employment rates. However, UK productivity continues to trail many international comparators and poor skills continue to have a direct effect on social inequality.

Looking ahead to 2020, existing targets mean that skill levels are set to improve with significant reductions in people without qualifications and increases in adults holding a degree. However, the Report concludes that, even though these ambitious targets will be very difficult to achieve, the UK’s skills levels will continue to compare poorly in an increasingly globalised world. There is a risk that this will undermine the UK’s long-term prosperity.

Scenarios

The Review analyses some ambitious scenarios for 2020 that tackle the stock of low skilled adults without qualifications, invest more in intermediate skills or further increase the proportion of adults with a degree. All show significant economic and social benefits resulting from higher productivity or employment levels through improving skills.

The Chancellor of the Exchequer, Rt Hon Gordon Brown MP, highlighted the importance of  this report, he said: “To become world leaders in any sector we must become world leaders in education. All of us know that as global restructuring moves mass production to other areas, the UK’s future success will be founded upon high levels of skills. I thank Lord Leitch for this work. With these conclusions a national debate will lead to decisions about our vocational training goals for the future.”

Commenting on the interim report, Cogent CEO, Joanna Woolf, said: "Cogent, along with the other SSCs is well positioned to play a key role in meeting the skill needs of the economy.  We are working to identify and articulate skill needs, and then to work with stakeholders in education and funding to make sure that these needs are met.

"Activities such as Sector Skills Agreement,  Skills Academies and Sector Qualification Strategies all have a critical role to play. We look forward to seeing the final recommendations."

HID is responsible for regulating and promoting improvements in health and safety, contributing to the overall Health and Safety Commission (HSC) aim of reducing and controlling the major hazard risks present, across high hazard industries and sectors including chemical manufacture and storage, gas storage and transportation and offshore oil and gas extraction.

Rob Bevan said that employers in Cogent’s footprint made health and safety a top priority, and would like to develop relationships with the HID in a more advice and guidance capacity rather than a regulatory one. He explained that while employers fully understood this critical regulatory role, it was also important that the Directorate should position itself as a source of help, advice, solutions and guidance.

He said: “In an ideal world employers would be proactively consulting the HID team - with the ideal scenario being a win-win relationship and ultimately less emphasis on regulation and more on advice and guidance. Cogent would be delighted to support and broker this relationship.”

The exhibition is to be launched on International Women’s Day, 8 March 2006, at the British Library as part of the UKRC’s second annual conference, which will explore issues that impact on women reaching senior management and leadership positions. Rt. Hon. Tessa Jowell, Minister for Culture, Media and Sport, and Minister for Women, has been approached to open the exhibition as this amalgamates her culture and women’s ministerial role.

During the inaugural year the exhibition will feature six photographic portraits of women who currently work in scientific careers. These six women will be selected through a nomination process and all women working in science, engineering and technology or built environment occupations in the UK are eligible.

The nominee should be making a significant national or regional contribution to science, engineering or technology in one of the following three categories:

      *  Scientific discovery/SET innovation;

      * The communication of SET;

      * Breaking through the glass ceiling into leadership.

Above all, the judging panel will be looking for women who can be regarded as inspirational and can be regarded as female pioneers and role models for future generations of women in SET.

www.setwomenresource.org.uk

The ALI is the inspectorate for skills, workforce development and preparation for employment. Four years ago, the ALI reported that nearly 60 per cent of work-based training providers were failing inspection.

Now, 75 per cent are succeeding and the number achieving good or outstanding grades has doubled. However, programmes for offenders, adults with low literacy and numeracy and the long-term unemployed are still lagging behind.

David Sherlock said: “If we are going to develop the kind of world-class skills base this country needs to be internationally competitive, it is time to take adult learning seriously. Too often it is regarded as the underdog, losing out to the schools system in terms of funding and focus.

“While there are many commendable initiatives, we still lack a coherent strategy for lifelong learning. Economic activity does not take place in a vacuum - adult learning is as much about building communities as about business performance. We know how to raise standards, but that now needs to be applied across the board.

“Over the last four years we have witnessed a dramatic improvement in the quality of work-based training. That means more adults and young people gaining vital skills and qualifications, getting jobs and fulfilling their potential. It means more employers able to find staff with the skills and experience to improve business performance and compete in a world economy.”

Mr Sherlock added: “We cannot get away from the fact that the adult learning sector is distorted to deal with the shortcomings of our schools system. Until we deal with our failure to properly equip so many young people for adulthood, let alone successful careers, we cannot hope to build a world-beating adult skills strategy.”

Slow Progress

One of the report’s key findings is that despite nearly £2 billion of additional funding, there has been slow progress in tackling shortfalls in adult numeracy and literacy. Although the Skills for Life programme met its target last year of 750,000 qualifications in these subjects, half were gained by 16-18 year olds already in college courses. The programme is not yet meeting the needs of the most acutely disadvantaged adults it was designed to help.

It also says that grades for work-based learning delivered by colleges have improved in the last year, but remain lower than those achieved by private training providers. Colleges have a long way to go to ensure that they offer high quality occupational training that meets both employers’ expectations and government’s ambitious goals for workforce development. There is a strong case for successful private employers taking over weak college provision to make the best of our national resources. Competition for contracts was a key factor in raising standards

Phil Hope, Parliamentary Undersecretary for Skills said:  "These are important findings and we will be considering them in detail. ALI's report rightly highlights the enormous progress which has been made in work-based training. However we acknowledge that there is still more for us to do if we are to improve basic skills and the report will be a spur to help us identify what needs to be done to raise the quality of provision across the board.”

Publishing the 14-19 Implementation Plan in December, Schools Minister Jacqui Smith set out how the Government is tackling some of the longstanding weaknesses in the education system that lead to a significant number of young people - including those that do well - not being motivated by the learning currently on offer. She underlined this by setting out the Government’s ambition to ensure that its post-16 participation rate rises from the current 75% to 90% by 2015.

The Implementation Plan highlights progress already made and the significant transformation still needed to ensure that all young people are offered courses and ways of learning that tap into and develop their interests and provide routes to success by:

Providing more choice:

• with new specialised diplomas designed in partnership with employers that combine skills development and general education;
• the first five specialised Diplomas will be available in 2008, five more in 2009 and all 14 by 2010;
•  a national entitlement which will mean that every young person will be guaranteed a choice of all 14 specialised Diplomas - alongside the existing curriculum - no matter where they are in the country.

Improving the basics:

• £315m recently announced for the next two years to personalise learning for pupils at Key Stage 3, including targeting funding to provide extra support for those falling behind in the basics;
• changes to the schools’ performance tables to include maths and English alongside GCSE results, with trials starting in 2006;
• from 2006, trialling “functional skills” at the core of English and maths, defined in partnership with employers, higher education institutions and others as the basic literacy and numeracy skills that young people need to get on in life and the workplace. In future no young person will be able to get a GCSE grade C or above in English and maths or a General or specialised Diploma without having mastered them.

Stretching the brightest:

• trials of extended projects and revised A levels with additional stretch from 2006, prior to full introduction in 2008.

Jacqui Smith said that the reforms were ambitious and achievable, with partnership and leadership at local level the key to success. The Implementation Plan sets out how the role of local authorities will be strengthened in 14-19 education, ensuring that the entitlement to specialised Diplomas is being delivered locally, and spearheading partnerships between employers, local Learning and Skills Councils, universities, schools and colleges to ensure that 14-19 provision is developed strategically, particularly in relation to local skills needs.

Jacqui Smith said: “At the heart of our reforms is a new curriculum entitlement for all young people, to choose a qualifications pathway which suits them and which can be the basis for progression to further learning, higher education and employment."

Mark Haysom of the Leaning and Skills Council said:  “Making sure that all 14-19 year olds have access to high quality and relevant learning is the LSC’s number one priority for next year.  The publication of the 14-19 Implementation Plan marks a crucial step forward in building an education system that is not merely good, but world class, and built around the needs of all young people, employers and our society."

Diplomas were introduced earlier this year by the government. They are new qualifications for 14-19 year olds that will provide a broad programme of applied and other learning, underpinned by essential skills.

The government has responded to employers  who want young people with good skills, particularly in the basics, and the ability to apply these. They want young people who have some experience of work and are able to make well-informed career choices.

Diplomas mean that young people will be able to meet these expectations because they will have succeeded across a programme of learning covering English, Maths and ICT, employability skills such as team working and problem solving, and the work skills and knowledge needed to get on in industries such as engineering.

Through the development of the Engineering Diploma, this is the first time that employers have been able to take an active role in developing a new qualification.

The Engineering Diploma Development Partnership is seeking  views on what employers  want the diploma to consist of, so these ideas can help shape the development process.

As the diploma is being developed, employers can get involved in two ways:

• by filling in the online feedback form on the website
• by registering details for news and updates and joining the virtual advisory group

Timescales & Implementation

Initial content development is ongoing to March 2006.

Consultation on the draft content will take place between March and June 2006.

Awarding bodies will be developing specifications and curriculum from June 2006 until June 2007.

The Engineering Diploma is planned for launch in schools in September 2008.

Stop Press...as the eBulletin went to press the first employer consultation event for the Diploma had just taken place. This gathered feedback from proposals, particularly on the size and structure of the Diploma.  The general consensus  was that employers want a solid foundation in the broad, cross-cutting engineering principles and confidence in the functional skills of the individual.

Ian Young MD of MKW Engineering and Gareth Pritchard, Director TDR, Engineering Training, presented on how they are working closely to provide business relevant work experience and training opportunities for 16-19 year olds.

Employers who wish to be involved in forthcoming events should contanct [email protected].

The events are taking place on:

14 February at the Royal Academy of Engineering in London.

16 February at the Metal Forming Centre in West Bromwich.

1. Framework for Achievement
Phil Hope Parliamentary Under Secretary of State For Skills has announced that he has tasked the Qualifications and Curriculum Authority (QCA) to go ahead with the trial of Framework for Achievement (FfA) - the proposed new system to replace the current National Qualifications Framework (NQF)

This new framework will capture the qualifications that employer’s value: short, relevant, up-to-date units of learning available flexibly and on-time.

2. Sector Qualification Reform
Alongside this important development, the Minister has renewed the QCA’s remit to continue its work on Sector Qualification Reform - working closely with Cogent and other SSCs. The government has made it clear that Sector Qualifications Strategies (SQS) are the key mechanism through which SSCs can deliver increased employer influence in the design and delivery of vocational qualifications.

SQS outline current and future learning and qualifications needs by employers in sectors. They will put Sector Skills Councils in the driving seat.  SSCs will be asked to set out precisely the skills, knowledge and competences which are needed for qualifications in their sectors. The overall aim is fewer qualifications, less confusion and more value.

Cogent CEO Joanna Woolf said: "Cogent, together with the employers in our footprint, will have a central role in driving through these changes which are designed to substantially enhance the way learning is delivered to meet the needs of employers and individuals. The ultimate aim is to deliver high quality learning and skills to drive our sector’s  competitiveness." 

Vivien Ellins, STEM Co-ordinator, SETPOINT Scotland North sent in the following report to the Cogent eBulletin.

"This is the second year this event has been run by SETPOINT Scotland North to give pupils the opportunity to both enjoy and explore some practical uses of maths in the industry while developing their team working skills.

SETPOINT organises and promotes science, technology, engineering and maths (STEM) activities that stimulate interest in science and engineering among school pupils..

Pupils and teachers took a virtual visit to the Captain Platform via the interactive website (www.schoolscience.co.uk) before the event and some took the opportunity to visit Aberdeen’s Maritime Museum.

The youngsters were allocated to teams for the day and during the morning worked through a series of mathematical workshops based on the Captain Field in the Moray Firth.

The presentations from industry professionals and Aberdeen’s two universities saw the teams, assisted by the teachers, doing calculations and graph work on subsurface data to estimate the capacity of a reservoir, then undertaking a time series production analysis and finally planning the best route for a helicopter pilot to take to reach several platforms.

The afternoon’s Business Challenge between the teams was to optimise development at a field in Azerbaijan. With choices to be made, health and safety considerations and a deadline this was a demanding task for the groups. Each team was then invited to give a presentation of their solution.  The youngsters took this all in their stride and were praised for tackling the challenge so well.

The eventual winners at BP were the Mungo Team comprising of a pupil from each of Turriff Academy, Westhill Academy, Fraserburgh Academy, Meldrum Academy and Robert Gordon’s College.

The eventual winners at Chevron were the Erskine Team comprising of a pupil from each of Dyce Academy, Albyn School, Oldmachar Academy, Portlethen Academy and St Margaret’s School for Girls.

The pupils and teachers viewed the day as very enjoyable and an excellent opportunity to gain an insight into the industry and experience first hand the application of mathematics. Particularly appreciated was the guidance, knowledge and enthusiasm of the industry professionals, lecturers and the SPE."

The Terms of Reference of the Review, are broad including aspects of both energy supply and demand and will focus on policy measures to help to deliver government  objectives beyond 2010. 

Malcolm Wicks said: "The Energy Review is taking place against a background of strengthening evidence on the nature and extent of climate change and increasing concerns about the future security of UK energy supplies. This is the right moment to assess where we are in relation to achieving the goals set out in the 2003 Energy White Paper.

"The Review will explore all the options open to us taking into account the important international context. There will inevitably be some difficult decisions and trade offs to be made in arriving at the right package of policy proposals. It is crucial that we stimulate a wide-ranging and informed debate and engage the public, business and industry throughout the process as well as academic, private sector, scientific, NGO and other experts."

The Review will be taken forward by a cross-departmental team based in the DTI, with officials drawn from key relevant departments and the Prime Minister's Strategy Unit. The devolved administrations and territorial departments are already involved and will continue to be involved throughout the course of the Review.

The Review will assess progress against the four goals set by the 2003 Energy White Paper:

* to put the country on a path to cut the UK's carbon dioxide emissions by some 60% by about 2050 with real progress by 2020;

* to maintain the reliability of energy supplies;

* to promote competitive markets in the UK and beyond, helping to raise the rate of sustainable economic growth and to improve our productivity; and

* to ensure that every home is adequately and affordably heated.

The Review will consider all options including the role of current generating technologies (e.g. renewables, coal, gas and nuclear power) and new and emerging technologies (e.g. Carbon Capture and Storage). The Review will also consider transport and the role of energy efficiency.

Europe's leading forum for executives in the fine chemicals sector was held in the Northwest for the first time at the home of Manchester United.

Europe's fine chemical companies face increased competition from market entrants in Asia and other emerging regions at the same time as their key customers - the pharmaceutical companies - are being pressured to reduce their prices.  The conference aimed to address these and other issues.

The conference was sponsored by PICME the Process Industries Centre for Manufacturing Excellence. Helping the UK process industries identify best practice and achieve manufacturing improvement is the core responsibility of PICME - established as the Government's Industry Forum (IF) and responsible for the chemical and allied sectors of the UK economy.

picture, l-r, Cogent representatives Louise Jackson, Judith Cowan and Samantha McFadden on the Cogent stand.

Announcing the decision, Bill Callaghan, Chair of the HSC, said: “I met representatives of the local authorities with responsibility for environment, regulation and business. They made clear their concerns that there should be no delay in sharing with industry and communities close to major hazard sites the lessons learnt from this incident.

“I fully agree. Given the nature of the incident, both on- and off-site risks need to be examined. The HSC has made clear the need for the investigation to proceed impartially and without delay and for the conclusions to be made public.

“I know that HSE and the Environment Agency are committed to speedily publishing information on matters being scrutinised by the Investigation Board that require immediate attention by the industry and other stakeholders.”

Board
The investigation will be overseen by a Board, which will report to both HSC and the Environment Agency.  The Board chair will be independent of both bodies. It will also include independent members with relevant expertise, as well as staff from the Environment Agency and HSE.  The HSC Chair will approve the membership of the Board.

Bill Callaghan concluded: “Our aim as an independent Commission is for the investigation to engage with the public and the local community in as open and transparent a way as possible.  We will want the investigation to have the fullest engagement with those running the site, those employed on the site and the wider industry.”

The Buncefield oil storage site in Hertfordshire which was destroyed in an explosion that caused hundreds of millions of pounds, is jointly operated by the UK arm of French oil company Total, BP and the British Pipeline Agency (BPA), a joint venture between BP and Shell. Firefighters managed to put the fire out and emergency services said it was a miracle that nobody was killed.

Hertfordshire’s Chief Fire Officer Roy Wilsher said that it was the largest incident of its kind in peacetime Europe. BBC News reported that the blast was heard as far away as Holland.

UKOOA stated that this will take an extra £6.5 billion out of the industry over the next three years when Treasury will already reap £11 billion in tax revenues from North Sea producers this year, double the amount paid last year, and treble the amount forecast 2 years ago.  In contrast, the extension of the Exploration Expenditure Supplement will cost the Treasury barely £5 million.

Malcolm Webb, UKOOAs Chief Executive, said: "Seventy-four percent of our primary energy supply comes from oil and gas.  It is hugely important that we maximise UK oil and gas production and I am staggered that the Chancellor, who speaks of the need for stability and long-term investment, should take this action.

"It is almost beyond comprehension that the Government has failed to grasp the vulnerability of the Industry's future in the UK.  His move could not come at a worse time.  North Sea activity has recovered remarkably since 2002 when it was last hit by a punitive tax change.  Investment, exploration and new field development in the North Sea are now reaching levels last seen around a decade ago.

"It is extraordinary that the Government has not appeared to have learned from past experience, and its failure to do so will cost this country heavily in terms of jobs, inward investment, balance of trade, security of supply and ultimate tax revenues.

"It will deter investment in new fields and make older fields less attractive for increased recovery. Moreover, the impact will be felt significantly by smaller oil and gas producers.  Loss of investment will lead directly to the permanent loss of reserves and a swifter onset of decommissioning.

"The unexpected tax hit on the Industry in 2002 led to a major slump in investor confidence in the North Sea.  Exploration and development activity fell to record lows as investment left the North Sea for other less challenging parts of the globe with lower costs. 

"At a single stroke, the Treasury has rewritten the Industry's future.  It will severely undermine business confidence in the UKCS.  This has been done not once, but twice in the space of just three years and we fear that this time, the North Sea will not be as resilient. 

"Industry efforts are currently focussed on postponing the decommissioning of North Sea platforms and pipelines so that the infrastructure can be used to maximise recovery of existing reserves and to reach new discoveries.  This requires major investment.  Today's announcement cannot have anything other than a seriously corrosive effect on the UK's prospects for long-term investment, the jobs which that investment supports and the level of UK security of supply.

"The Chancellor's move has pre-empted the Energy Policy Review and will distort its outcome."