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The Industrial Training Levy (Reasonable Steps) Regulations 2008

S.I. 2008/1639 · Made 21 June 2008

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Employment And Training

Made 21st June 2008

Laid before Parliament 27th June 2008

Coming into force 21st July 2008

The Secretary of State for Innovation, Universities and Skills makes the following Regulations in exercise of the powers conferred by section 11(6B) and (6C) of the Industrial Training Act 1982f1.

In accordance with section 88(2) of the Scotland Act 1998f2 the Secretary of State has consulted the Scottish Ministers.

Annotations to the whole text

Footnotes

f1

1982 c.10 Sections 11 and 12 were amended by paragraphs 10 and 11 respectively of Schedule 4 to the Employment Act 1989 (c.38). Section 11 was also amended by sections 24 and 25 of the Further Education and Training Act 2007 (c. 25).

f2

1998 c.46 These regulations relate to Scotland only so far as they are relevant to two industrial training boards which have been specified as cross-border public authorities for the purposes of section 88 of the Scotland Act 1998 by the Scotland Act 1998 (Cross-Border Public Authorities) Specification Order 1999 (S.I. 1999/1319). Those two authorities are: the Construction Industry Training Board and the Engineering Construction Industry Training Board.

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3Reasonable steps to ascertain views
  4. 4Prescribed organisations
  5. Signature
  6. Schedule: REASONABLE STEPS
  7. Part 1: ASCERTAINING VIEWS BY MEANS OF CONSULTATION
  8. 1Consultation of prescribed organisations
  9. 2Relevant persons represented by prescribed organisations treated as having the same view as the organisation
  10. 3Consultation of unrepresented persons
  11. Part 2: ASCERTAINING VIEWS BY MEANS OF A SAMPLE
  12. 4Persons whose views may be sampled
  13. 5Samples
  14. Explanatory note

1Citation and commencement

These Regulations may be cited as the Industrial Training Levy (Reasonable Steps) Regulations 2008 and come into force on 21st July 2008.

2Interpretation

In these Regulations—

  • “1982 Act” means the Industrial Training Act 1982;

  • “board” means an industrial training board;

  • “independent research company” means a body carrying out research that—

    1. (i)

      is not funded wholly or mainly out of public funds; and

    2. (ii)

      does not have a proprietor, directors or shadow directors who are also members of the board appointing it to carry out the sample;

  • “levy proposals” means levy proposals which a board intends to submit to the Secretary of State under section 11(1) of the 1982 Act;

  • “necessary” means necessary to encourage adequate training in the industry to which the levy proposals relate;

  • “prescribed organisation” means an organisation of the description specified in regulation 4;

  • “public funds” means moneys provided by Parliament;

  • “relevant person” means a person who is likely to be liable to make payments by way of levy in consequence of the levy proposals;

  • “shadow director” means a person in accordance with whose directions or instructions the directors are accustomed to act, but a person is not to be regarded as a shadow director by reason only that the directors act on advice given by that person in a professional capacity; and

  • “unrepresented person” means a relevant person who is not represented by a prescribed organisation.

3Reasonable steps to ascertain views

Any of the following combinations of steps in the Schedule constitutes “reasonable steps” for the purposes of section 11(6)(a) of the 1982 Act—

(a)

the steps in paragraphs 1 and 2;

(b)

the steps in—

(i)

paragraphs 1 and 2; and

(ii)

paragraph 3;

(c)

the steps in—

(i)

paragraphs 1 and 2; and

(ii)

paragraphs 4(b) and paragraph 5;

(d)

the steps in paragraphs 4(a) and 5.

4Prescribed organisations

An organisation is of a description prescribed for the purposes of section 11(6C)(b) of the 1982 Act if it represents relevant persons.

Signature

David Lammy

Parliamentary Under Secretary of State

Department for Innovation, Universities and Skills

21st June 2008

1Consultation of prescribed organisations

It is a reasonable step for a board to consult prescribed organisations.

2Relevant persons represented by prescribed organisations treated as having the same view as the organisation

(1)

Subject to sub-paragraph (2), where a board—

(a)

has consulted a prescribed organisation in relation to levy proposals; and

(b)

that organisation has formed a view as to whether the proposals are necessary,

the board may treat relevant persons represented by that organisation as having the same view about the proposals as the organisation.

(2)

Sub-paragraph (1) does not apply where a prescribed organisation consulted by a board has not taken reasonably practicable steps to ascertain the views of relevant persons that it represents prior to forming its view on the levy proposals.

3Consultation of unrepresented persons

Where a board—

(a)

has consulted prescribed organisations in accordance with paragraph 1;

(b)

is not relying on a sample obtained in accordance with Part 2; and

(c)

considers it necessary to ascertain the views of further relevant persons,

it is a reasonable step for the board to endeavour to obtain the views of all unrepresented persons.

4Persons whose views may be sampled

It is a reasonable step for a board to obtain by way of a sample the views of

(a)

all relevant persons; or

(b)

all unrepresented persons, where a board has consulted prescribed organisations in accordance with paragraph 1,

provided that sample complies with paragraph 5.

5Samples

A sample must be—

(a)

obtained by an independent research company;

(b)

designed to ascertain—

(i)

the number, expressed as a percentage, of relevant persons or unrepresented persons, as the case may be, who consider that the proposals are necessary; and

(ii)

the value, expressed as a percentage, of the total amount of levy likely to be payable in consequence of the levy proposals by relevant persons or unrepresented persons, as the case may be, who consider that the proposals are necessary; and

(c)

of a size sufficient to enable any conclusions reached to be stated with at least a 95% level of confidence.

Explanatory note

(This note is not part of the Regulations)

These Regulations are the first to be made under section 11(6B) and (6C) of the Industrial Training Act 1982 (the “1982 Act”).

Section 11(6)(a) of the 1982 Act requires the Secretary of State to be satisfied that an industrial training board (“board”) has taken reasonable steps to ascertain the view of persons the Secretary of State considers likely to be liable to make payments in consequence of levy proposals submitted by that board. Section 11(6B) and (6C) enable the Secretary of State to make regulations providing what constitutes reasonable steps for the purposes of section 11(6)(a) of the 1982 Act.

Regulation 3 and the Schedule to the Regulations set out what constitute “reasonable steps” for a board to take in order to ascertain the views of those who are likely to be liable to pay a levy in consequence of levy proposals.

Regulation 4 prescribes organisations for the purposes of section 11(6C)(b) of the 1982 Act.