1. 1 Funding VET for Social Inclusion Gerald Burke CEET Conference Ascot House 28 October 2011

2. 2 Skills and participation in work Low labour force participation of those  with low literacy and numeracy and  without qualifications Consequence  Inequalities  Exclusion  Compounds problems of ageing

3. Employment by qualification Males 25-64 Australia May 2010 3

4. Employment by qualification Females 25-64 Australia May 2010 4

5. Numeracy level by employment persons 25-59 Australia 2006 5

6. Wanting to work Australia September 2010 million Civilian population 15 and over18.0 Employed11.4 Underemployed 0.9 Unemployed 0.6 Marginally attached - wanted to work 0.9 Not marginally attached - wanted to work 0.4 6

7. Policies: More training, more inclusive, better focused and better used Lift quality of VET sector in teaching and assessment Skills deepening: lift in qualifications Core skills, literacy and numeracy - for less advantaged Additional cost per student for less advantaged VET and higher education system expanded – 3% p.a Better planning of specialised occupations, lessen shortages Workforce development to reduce under use of skills 7

8. What funding is needed for less advantaged? Skills Australia 2011 Skills for Prosperity Targeted programs for lower socioeconomic status students. We recommend that additional funding of $60 million commencing in 2012–13, increasing progressively to S493 million annually by 2020, be provided to support needs of vulnerable learners. These programs will assist in delivering more personalised learning as well as the better integration of language, literacy and numeracy An expansion of foundation skills programs in workplaces and for the unemployed Extending the student assistance Start-up Scholarship to VET students. 8

9. What is happening to funding and students? Funding per hour 2006 to 2010 revenues Forward estimates by Commonwealth and Victoria Sharp jump in students in 2010 9

10. Government expenditure per hour of training 10 Government real recurrent expenditure per annual hour (2009 dollars) ($ per hour) (a), (b), (c) 200515.3 200614.9 200714.0 200813.4 200913.3 Change 2005 to 2009-13% (a) Government recurrent expenditure is the recurrent funds provided by the Commonwealth, and State and Territory governments, including funding from Commonwealth administered programs. (b) There is a break in the time series and expenditure per annual hour for 2008 and 2009 are not comparable with those for 2005 to 2007. (c) Data for 2005-2008 have been adjusted to 2009 dollars using the GDP chain price index Productivity Commission REPORT ON GOVERNMENT SERVICES 2011

11. VET students, hours, providers (NCVER data) 11 20062007200820092010 2009–10 % million Number of hours of delivery TAFE and other government providers318333345368 376 2% Community education providers14.6181718 -3% Other registered providers39 4752 79 50% Total hours of delivery372390409439 472 8% annual increase % 5% 7%8% Number of students‘000 TAFE and other government providers1,3251,3131,3291,312 1,339 2% Community education providers165 156152 136 -11% Other registered providers180 204230 309 34% Students attending various providers7891012 16 30% Total students1,6761,6651,7001,707 1,799 5% annual increase % -1%2%0%5%

12. VET revenues (excluding private finance to private providers) 12 Total VET revenues 2006-2010 ($ million) 20062007200820092010% 2006-10 Fee-for-service7318249911063113255% Student fees and charges24425127629331931% Other2802552672962904% Total ‘Income’1250132615301640173439% Total Commonwealth14231635170324242401 69% Total States and Territories2970307832383343353019% Total revenue from government4393471449415767593135% Grand Total5644604064717407766536% Grand Total in 2010 prices6496663368247452766518% Annual % in 2010 PRICES2%3%9%3% Source: NCVER Fee for service includes fees from international students and revenues from some government tendered programs Student fees and charges are for domestic students in government supported places Government revenues include recurrent and capital funds

13. Australian government forward estimates VET related $ million 2010-112014-15 Increase 10-11 to 14-15 Treasury SPP and NP171317221% DEEWR (excluding student assist)18041764-2% DEEWR Student Assistance5906195% DIAC Adult Migrant English Program20523314% TOTAL VET related $ million431143381% CEET13

14. What is happening to quality? Productivity Commission 2011 Caring for older Australians Strategic Review of the Student Visa Program 2011 (Knight report) Queensland Post-secondary Education and Training Review 2011 (Noonan report) Newspaper reports Skills Australia recommendation 14

15. Skills for prosperity Recommendation 13: Implementation of mandatory external validation of assessment That Australian governments agree to: reform the Australian Quality Training Framework to include implementation of mandatory external validation of providers’ assessments, both on and off the job incorporate the requirement for registered training organisations to undertake external validation as a feature of the next intergovernmental resourcing agreement for the sector CEET15

16. References Skills Australia 2010, Australian Workforce Futures www.skillsaustralia.gov.au/publications.shtml#workforce-futures www.skillsaustralia.gov.au/publications.shtml#workforce-futures Skills Australia 2011, Skills for prosperity, a roadmap for vocational education and training www.skillsaustralia.gov.au/PDFs_RTFs/SkillsProsperityRoadmap.pdf www.skillsaustralia.gov.au/PDFs_RTFs/SkillsProsperityRoadmap.pdf Australian Treasury 2010, Australia to 2050 The Intergenerational Report www.treasury.gov.au/igr/igr2010/ ABS 2008, Adult Literacy and Life Skills Survey www.abs.gov.au/ausstats/abs@.nsf/mf/4228.0 16

17. Ageing Australian Treasury, Intergenerational report 2010 17 millions of people Age1970201020202030 0-144455 15-648151718 65+1346 Total13222629 percentage of total population 0-142919 18 15-6463676562 65+8141619 Total 100

18. Numeracy levels Level 1 Tasks in this level require the respondent to show an understanding of basic numerical ideas by completing simple tasks in concrete, familiar contexts where the mathematical content is explicit with little text. Tasks consist of simple, one-step operations such as counting, sorting dates, performing simple arithmetic operations or understanding common and simple percents such as 50%. Level 3 Tasks in this level require the respondent to demonstrate understanding of mathematical information represented in a range of different forms, such as in numbers, symbols, maps, graphs, texts, and drawings. Skills required involve number and spatial sense, knowledge of mathematical patterns and relationships and the ability to interpret proportions, data and statistics embedded in relatively simple texts where there may be distractors. Tasks commonly involve undertaking a number of processes to solve problems 18