Colleges may have to cut courses to balance the books

The college body Fforwm claim changes by the education body Elwa has left them facing a funding shortfall.

Two centres in south Wales have already announced cuts.

Finance managers at 13 of the 25 institutions in Wales say they are in debt to the tune of nearly �3.5m.

Pencoed College, near Bridgend, has announced it is discontinuing undersubscribed agricultural courses from the end of this academic year.

The news comes at the same time as Coleg Gwent, in Pontypool, has told staff it is cutting more than 30 jobs.

The college says it cannot continue to offer less popular courses at the expense of those that attract more students.

Despite trying to cut costs, Coleg Gwent will end the financial year with a deficit in its budget.

We suspect that there may be a further round of cutbacks by colleges in order to balance the books for next year Dr John Greystone

There are warnings that other colleges will follow Gwent's example - Swansea College has already closed down a number of part-time courses.

According to Fforwm, forecasts predict that the FE sector in Wales would accumulate a debt of �3.3m for this financial year.

Fforwm Chief Executive Dr John Greystone has said the job cuts at Coleg Gwent probably will not be the last.

"We suspect that there may be a further round of cutbacks by colleges in order to balance the books for next year," he told BBC Wales.

'Duty'

Elwa has said it is already spending more money on the sector and says it is making changes to the funding system to put the needs of learners first.

Approximately 75% of colleges' incomes are derived from Elwa across the sector.

Assembly education committee chair Peter Black AM has called on Education Minister Jane Davidson to intervene.

He said: "Although Elwa is the funding body in this instance, they are politically accountable to the Welsh assembly.

"The minister therefore has a moral duty to ensure that colleges are able to deliver the agenda that she and Elwa have set for them."

Shadow education minister Janet Ryder said the situation in the FE sector had reached a "critical level" and asked for an urgent meeting with Elwa.