The economic downturn is already being felt by colleges, with companies pulling out of apprenticeship schemes, David Collins, president of the Association of Colleges, said today at the organisation's annual conference in Birmingham.

He told 1,200 college principals and other delegates: "There are implications of the present economic climate, not the least of which are the financial difficulties that colleges may face as they embark on new builds, or endeavour to sell land.

"There are already signs of the steady supply of apprenticeships drying up or, at the very least, suffering a reduction in their number. Innovative solutions will be needed. As the numbers of the unemployed begin to grow, we must learn from the mistakes of previous recessions and put as much effort into supporting those who have recently lost their jobs as we have previously done for the long-term unemployed."

Dr Collins also criticised the new work-based diplomas for 14 to 19-year-olds, which he said would need a significant overhaul if they were to succeed as a qualification.

Only 12,000 teenagers began taking diplomas in September in five subjects, far fewer than expected. Eventually 17 courses will be available at four different levels in the qualifications, designed to bridge the divide between academic and workplace training.

Dr Collins said: "We support the new qualifications but there will need to be some significant adjustments if they are really to succeed on the scale that is envisaged.

"In the meantime, existing post-16 qualifications must be maintained until the new diplomas have fully proven themselves, a skills element has to be introduced if they are to prove attractive to young people.

"The requirement for partnership working needs to change to give colleges the power and responsibility, not only to take the lead in an area, but to deliver the new diplomas independently if they so wish.

"There are some excellent examples of good practice, but as the offering scales up, it is difficult to see how the operational complexities implicit in the present arrangements can be sustained. We must face up to that sooner rather than later.

"Most importantly of all, we must not allow recognised weaknesses in the 14-16 school curriculum to drive out existing successful provision post-16."

Dr Collins's remarks come after recent criticism by the Confederation of British Industry (CBI) of some of the most academic diplomas. He also hit out at the current Government approach to funding further education colleges, which receive about three per cent less per student than school sixth-forms and five per cent less in grants.

"The nonsense of having no additional funds for over-recruiting 16 to 19-year-olds [a government priority area] yet having money taken away if we fall short of our adults targets is an unnecessary threat to the viability of some institutions, and one which we must challenge," he said.

"Similarly the continuation of a funding differential between schools and colleges for the same work is completely unacceptable."

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