1 “Welcome to Gaining the Edge” VTA State Conference – 4 May 2011 Kym Peake, Deputy Secretary, Skills Victoria

2 Introduction Victoria – leaders in education and training The productivity challenge The participation and attainment challenge Conclusion Equity – extending opportunities to more Victorians Introduction Innovation – resetting our relationships Outcomes – reimagining the tertiary education landscape

3 Australia’s labour productivity growth rate has slumped over the past decade % pa (5-year rolling averages) Labour productivity growth Note: ‘Selected sectors’ are agriculture, forestry & fishing; mining; manufacturing; electricity, gas, water & waste services; construction; wholesale trade; retail trade; accommodation & food services; transport, postal & warehousing; information, media & telecommunications; financial & insurance services; and arts & recreation services. ‘Market sector’ comprises these sectors plus rental, hiring & real estate services; professional, scientific & technical services; administrative & support services; and other services. Data are for financial years ended 30 June. Sources: ABS; Grattan Institute. ‘Market’ sector ‘Selected sectors’

4 Long-term productivity growth requires systemic solutions for ALL sectors, not just picking winners or relying on the mining sector Reducing regulation Introducing tax reform Targeting infrastructure investment Increasing take-up of technology Improving innovation Tackling labour shortages Contribution to GDP Financial services Mining Manufacturing Construction Professional services Health Public administration Transport Wholesale trade Retail trade Education and training Other Contribution to GDP in 2009 Source: ABD Cat. No Government actions

5 Increased workforce participation is part of the solution for improved economic growth and higher living standards Source: OECD Online Employment Statistics, accessed May 2011Source: ABS; Labour Force Statistics Australian workforce participation rates are middle ranking internationally… … and have increased slightly over the past decade

6 Victoria is well placed to respond to the social and economic imperatives to meet the demand for skills Victoria is a top performer in Year 12 completions, attainment of Certificate III and above, and higher education qualifications Source: ABS; Education and Work Statistics 2010Source: ABS, Education and Work Statistics 2010

7 The Victorian Training Guarantee appears to be resulting in strong enrolment growth supported by an increase in training providers An additional 350 private providers have been contracted to deliver Government subsidised training since the introduction of the VTG (with a total of more than 520 contracted public and private providers) Demand has increased with growing enrolments under the VTG Supply of training has increased 173,943 enrolments 220,295 enrolments 181,536 enrolments 2008: Pre introduction of the skills reform (‘baseline’ data) 2009: VTG implemented for ‘Skills Deepening’ enrolments (Diploma level and above) from 1 July 2010: VTG extended to eligible 15 to 24 year olds for all qualification levels (‘Youth Compact’ enrolments) and to retrenched workers aged 25 years or over Relative to 2008, there has been a 27% increase in enrolments now covered by the VTG : 24% increase in Skills Deepening enrolments; 28% increase in Youth Compact enrolments

8 What should the tertiary landscape look like in the future? There are a range of directions that tertiary education could take… Incrementalist More partnerships between VET and higher education institutions to offer better pathways Making it easier for students to simultaneously enrol in VET and higher education institutions More practical and workplace learning opportunities within higher education Diverse VET providers offering degrees - including "2 plus 2" diploma/degree programs Universities offering double enrolment in a degree and certificate qualification More "mixed institutions" specialising in particular fields - e.g. polytechnics Teaching-only institutions offering undergraduate degrees Integrated End to structural and institutional divisions between VET and higher education A single entitlement funding model The rise of the "omni- institution" Lower degree of change Higher degree of change How can government remove barriers and encourage creative approaches?

9 We all need to work together to do more for Victorians from equity groups and disadvantaged cohorts Enrolments for these groups are growing but not as strongly as for the general population. This is important because we know that 83% of Australians with a Cert. III or higher have a job at any given time compared with 57% of those without a qualification at this level

10 Skills Victoria will work with tertiary providers, businesses, schools, industry and learners to identify opportunities for innovation Skills Victoria (Government) ACEVETHEI Individuals Business Industry Schools Opportunities for innovation in curriculum Opportunities for innovative pathways Opportunities for research and innovation in workforce training and development Opportunities for innovations in curriculum and pedagogy to meet needs of the knowledge economy Government subsidised training market