£2.5m penalty of rebuilding fiasco
Reporter: Karen Doherty
Date published: 11 August 2009
OLDHAM College is nearly £2.5 million out of pocket following the collapse of a multi-billion pound Government rebuilding programme.
It stumped up £3,570,920 in professional fees and infrastructure costs after its £80 million redevelopment was given the go-ahead in April.
But it has only recovered £1,097,500 since the Learning and Skills Council (LSC), which funds further education, pulled the plug on it and scores of other college projects in June when it ran out of money.
The massive overhaul of the Rochdale Road college, rated as outstanding by the education watchdog Ofsted, was due to start two months ago. It would have swept away several buildings, including the 1960s central tower block,to be replaced with new facilities, including sports hall, gym, construction training centre, corporate training centre, hair and beauty salon and high-tech classrooms.
In the end only 13 projects — including four in the North-West —received a share of £300 million after the Government provided the extra cash.
Oldham West and Royton MP Michael Meacher said: “It really is indescribable that the LSC could have made such a mess of this. I think the Government was absolutely right to step in.
“£1 million [for Oldham College] is very welcome but nowhere near enough. I will certainly be taking up with the department the need to provide the other £2.5 million.”
A college in Grimsby is now seeking a judicial review of the decision to fund the 13 projects rather than compensate colleges. Oldham College is not taking legal action, but is instead making “strong representations” to receive the outstanding money. It also said that student, staff and course numbers would not be affected.
The reimbursed money, together with other resources, is being spent on improvements.
Principal Kath Thomas said “Over the summer we are investing in developing the college campus with a new refectory for students, a greater, comfortable external social space and significant IT resources.”