Seminar on Impact of Government Policy on VET
Wednesday 27 May 2015
Commonwealth Policy
1974 Kangan develops a new sector in tertiary education… TAFE
1986 NBEET: Industry led system
1990 National training Board: competency standards
1994 ANTA established User Choice, Training Packages
2007 Skills Australia act, Australian technical colleges
Commonwealth Policy
2012 National Training Entitlement
“All working age Australians are entitled to a government subsidised place at an institution whether it be public or private”
Supplementary initiatives: income contingent loans, importance of public providers, transparency for students, quality assurance
Victorian Government Policy Decisions
1982 – Established TAFE colleges
1990 – Abolished TAFE teaching service – All staff employed by Institute Councils
1994 – Adopted User Choice
1996 – Amalgamated colleges
2008 – Securing our jobs for your future
Victorian Government Policy Decisions
“Anyone eligible could access a publicity funded training place at a registered RTO or private provider”
Policy imperative vague
Number of students in training in Victoria 2002-2013
A claim is made that enrolments have grown spectacularly
100,000 enrolments increase $400 million i.e. $4,000 per student place c/f 2007 $1,600 per student place c/f 2007 University increases 220,000 additional students
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Government funding Only fee for service - domestic Only fee for service - international
Alignment between training enrolments and industry employment needs in selected occupations
There is only a vague relationship between VET offered and employment needs
Occupations 2013-14Employment
Average annual employment needs
VET enrolments 2014
Sales Assistants (General) 138,100 9,530 2,318
Retail Managers 60,700 2,110 32
General Clerks 48,400 1,805 5,826
Accountants 47,900 2,249 1,132
Receptionists 40,400 2,617 2,338
Truck Drivers 40,300 1,838 13,033
Storepersons 39,500 1,728 18,869
Commercial Cleaners 39,000 1,356 1,461
Carpenters and Joiners 36,400 1,949 7,706
Aged and Disabled Carers 35,800 2,417 22,468
Observations
Role of TAFE / VET in Victorian unclear
No support or weak support for high needs/disadvantaged teachers
Teacher qualification requirements unclear
Governments and governance roles unclear
Observations
TAFE in 2012 had 1/3 of their subsidy removed ($300 million) and given 6 months to “transition” – No industry in the world could!
$144 m Wages supplementation
$6.5 m L.S.L. provisions
$2.5 m Staff development
$6.0 m Regional TAFEs
$18.0 m Equipment
$7.0 m Maintenance
$105.0m TAFE subsidy differential
$40.0m Capital works
8.0%
TAFEs – annual change in revenue/expenses
Change in revenue Change in total expenses Change in employment expenses
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
-8.0%
-10.0%
2009-10 2010-11 2011-12
2012-13 2013-14
Staff FTE - TAFE
Teaching Non-Teaching
Teaching staff peaked at 4975 FTE in 2010; fell to 3753 in 2014
2008 2009 2010 2011 2012 2013 2014
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Source: NCVER
Reviews Processes
Consultations
Submissions
Commissioned Projects• What is a Community Service Obligation?• Cost of legislated obligations on TAFE• Provider classification model• Interim report 2nd June
Directions
Clarity, is the market capped?
Stabilise subsidies and contract administration
Reduce the number of courses72 Training Packages
1,682 Qualifications
150 Courses
17,907 Units of Competency
Improve labour market information?
Improve information for students?
Directions
Set priorities and targets to be funded and which can be evaluated e.g. young people, disadvantaged learners, older works
Develop processes that create a simplified, responsive and innovative VET sector in Victoria – 1,000 price points, 300 pages for eligibility clarify the role and responsibility of the TAFE sector
Determine how under provision will be met – if at all in rural Victoria and South East of Melbourne
Directions
Prioritise funding to high performing low-risk providers
Define community service obligations and fund high priority institutions for the performance of student strategic services
Link the strategic services to the student life cycle i.e.: attract, engage, retain, graduate, transition
Make strategic student services funding available on a three-year basis with targets
All RTO’s must provide minimum student services
Directions
Establish a pricing structure for TAFE institutions which takes into account:
the obligations that the government wants the Institute to perform (e.g. maintain community assets, provide a VET library accessible to all)
legislated obligations that are imposed upon institutes such as the requirement to produce an annual report for Parliament, submit marketing plans to a central authority for approval etc.
Directions
Register and license, for a fee, brokers and aggregators. Provide them with ethics training
Set protocols for fully online and fully on-the-job training
Clarify the use of third party arrangements
Next steps
1. Establish a funding model to determine cost of a course
2. Review the system to see of complexity can be reduced
3. Receive feedback on interim report suggestions
4. Produce final report with recommendations
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