A group of principals is demanding clarification of the guidelines on competition between colleges amid allegations of “predatory trading” by a neighbour.
The activities of North Derbyshire Tertiary College highlight the issue of how far colleges can go in the quest to win students.
The principals of Chesterfield, North Nottinghamshire, West Nottinghamshire, Rother Valley and Sheffield colleges wrote last month to Sir William Stubbs, chief executive of the Further Education Funding Council.
They claimed the opening of new sites for franchise operations by North Derbyshire close to their own premises - in one case directly opposite an existing site - represented a “wasteful duplication of resources”.
They wrote: “While we accept the relevance of competition, we cannot accept the validity of that competition when it results in another college setting up directly alongside our existing ‘adequate and sufficient’ provision.”
The principals also raised questions over how the college was able to fund its new projects.
North Derbyshire College had to increase its offer for the purchase of the former Manor School in Chesterfield after nearby Chesterfield College threatened Derbyshire County Council, which is selling the building, with an injunction unless it put the property on the open market.
North Derbyshire strongly defends its expansion, denying other colleges’ rolls have been hit. Principal David Bunch, describing his neighbours’ concerns over competition as “baloney”, said cash was available for new buildings and subsidies for programmes because the college kept its staffing costs far lower than average at around 53 per cent of its budget.
Concerns over the effect of the college’s franchising of school sixth forms in Sheffield has been raised by Sheffield College principal Ken Ruddiman in a separate letter to Education and Employment Secretary Gillian Shephard.
The FEFC has told the group of five principals that North Derbyshire’s moves to open satellite centres are consistent with the college’s strategic plan, and that it considers planned student numbers relatively small.
The funding council is charged with ensuring adequate provision, but will not intervene in cases of over-provision.
A spokeswoman said: “It is a matter for colleges to decide what they offer and where. It is not for the council to dictate what they should and should not be offering.”
North Derbyshire College, based in Clowne, Chesterfield, has ten satellite sites. The ones that worry five neighbouring principals include: * Kiveton: early last month, a former Co-op shop opposite a Rother Valley College site was opened by North Derbyshire as a community training centre * Mansfield, Nottinghamshire: North Derbyshire College earlier this year began franchising a local private engineering training agency, to provide training in Mansfield. The town is home to West Nottinghamshire College.
* Chesterfield, Derbyshire: the former Manor School, Chesterfield, was bought earlier this year by North Derbyshire and will open next term as Manor College FE Centre. The building is about half a mile from Chesterfield College. n Worksop, Nottinghamshire: the Abbey Centre was opened in November 1994 by North Derbyshire on a site about half a mile from North Nottinghamshire College.
* Sheffield, South Yorkshire: North Derbyshire has franchised two school sixth forms this year and is in “discussion” with a school in Sheffield and two more in Derby. The Sheffield College believes its recruitment could be affected.
