THE Learning and Skills Council has approved a merger between Soundwell College, whose financial crisis was first revealed by FE Focus, and its neighbour, City of Bristol College.
Subject to approval by Education Secretary Estelle Morris, the merger is due to go ahead by January 1 next year. Soundwell will be dissolved with all its property, rights and liabilities being transferred to City of Bristol.
Soundwell has been losing pound;1 million annually. Its financial turmoil was caused largely by Further Education Funding Council clawbacks from previous years. Its total debt, although not yet audited, is understood to be around pound;4m.
The LSC will offer financial support to City of Bristol college to help it meet Soundwell’s liabilities. “This has been through a rigorous and consistent process of negotiation and moderation,” Bryan Sanderson, LSC chairman, said.
“When such mergers occur, each case is viewed individually, depending on the circumstances of the locality and the options open. In the first instance, colleges are expected to sort out their own financial difficulties.
“But in exceptional circumstances, such as those affecting Soundwell, the LSC will provide support to ensure the new institution’s position is not undermined or jeopardised by any proposed merger. We have confidence in the abilities of City of Bristol to handle this situation.”
Soundwell, which serves east Bristol and south Gloucestershire, has around 7,000 full and part-time students and 500 staff. Its former principal, David Ekinsmyth went on leave in January. When inspected early last year, governance and management were graded four - generally unsatisfactory.
Prue Taylour, seconded from City of Bristol to be executive principal at Soundwell, said that the financial position was “well on the way to being stabilised”. She added: “We have enrolled more students and reduced some staffing levels.”
The college is looking for 10 voluntary redundancies at its motor vehicle maintenance training centre at Patchway, renowned as a centre of excellence, following the loss of an important contract. “But we have also made gains - it is a process of coming and going. We are making substantial investment there,” she said.
John Bryant, regional officer for the lecturers’ union NATFHE, welcomes the merger. “Anything else would have meant closure of Soundwell,” he said. “We’ve been given assurances by the City of Bristol that they’ll do their utmost to avoid compulsory redundancies.”
