5.9 While the majority of TEC-funded training is of high quality, the action of some providers is cause for concern. In the worst cases, there has been evidence of fraud and misuse of resources, the use of unqualified and untrained staff, and unreliable assessment of qualifications. Such practices will be rooted out. We will be discussing with those concerned measures to improve the qualifications and competence of trainers. We have set up the Training Standards Council to supervise a Training Inspectorate which will drive up the standards of training funded through TECs. Inspection will be reinforced by mandatory self-assessment by providers.

5.10 The inter-TEC comparison tables show that TECs have become more effective. Many providers are working hard to improve standards. However, there is still wide variation between the best and the rest. To improve standards, we will work with the TEC National Council (TNC) and individual TECs to:

• introduce new licensing arrangements so that all TECs follow the internationally recognised Business Excellence Model;

• share best practice more effectively; and

• reduce the costs of administration and bureaucracy so releasing resources to improve the quality of training.

5.11 The TEC National Council has developed a framework for local accountability: adherence to its principles is a requirement of TECs' contract with the Government. This emphasises the importance of openness and transparency in:

• the selection of Board members;

• being seen to act effectively in the interests of the local community;

• being open about performance and about TECs' employment and financial policies; and

• dealing with customers, partners and suppliers.

5.12 We propose to make changes to the eligibility criteria for TEC directors. These will ensure that boards better reflect local communities and enhance accountability, while TECs remain employer-led bodies. We will also expect all TECs to appoint directors able to reflect the wider interests of the workforce and locally elected decision makers.