1 The Role of the Public Provider in a Competitive TVET Market IVETA World TVET Conference August 2016 Andrew Williamson Executive Director

2 Victorian TAFE Association Inc TAFE in Victoria – the numbers 12 TAFEs $896m total revenue 27.2% full time students 217,200 students 2 million units delivered 76.1m student contact hours 9,963 staff 107 campuses 6,805 onshore international students 5 TAFEs offering degrees 33,000 apprentices $427m government revenue 996,000 enrolments China, India, Vietnam, Malaysia, Pakistan 12.2% growth in international edn $5.6bn international education The Role of the Public Provider in a Competitive TVET Market

3 Victorian TAFE Association Inc AQFVocational Education & TrainingHigher Education 1Certificate I 2Certificate II 3Certificate III 4Certificate IV 5Diploma 6Advanced DiplomaAssociate Degree 7Bachelor Degree 8Graduate Certificate & Diploma 9Masters Degree 10Doctorate / PhD Australian Qualifications Framework The Role of the Public Provider in a Competitive TVET Market

4 Victorian TAFE Association Inc History of Australian & Victorian VET Apprenticeship laws passed in NSW in 1828, based on a British model First Mechanic’s Institute in Melbourne in 1840 Rapid expansion in regional Victoria to support skills and culture – GOLD! National skills effort during and after World Wars Kangan Report (1974) shifted focus from the needs of the economy to “the needs of the individual person who wishes, within the limits of his capacity, to develop himself to the best advantage of himself and the community, including industry and commerce” Governance of TAFE colleges cycled through central to local control Links with industry and community vital Government recognises TAFE role in social and economic reform Ongoing Federal and State Government tension The Role of the Public Provider in a Competitive TVET Market

5 Victorian TAFE Association Inc Australian VET: now 1974 – Development of the TAFE system 1987 – Emerging national system 1992 – Australian National Training Authority (ANTA) Agreement 1997 – Renewals of the ANTA Agreement 2005 – Skilling Australia’s Workforce Act 2008 – National Agreements and National Partnership Agreements From ??? The Role of the Public Provider in a Competitive TVET Market

6 Victorian TAFE Association Inc Market-based funding model The Australian Government provides VET funding to states and territories under the National Partnership Agreement on Skills Reform (2012). The NPA sought to increase: collaboration (information exchange) between parties access to a national entitlement to a subsidised training place responsiveness of the VET system through competition between providers for government funds States have designed and managed their contestable funding models differently. skills-reform The Role of the Public Provider in a Competitive TVET Market

7 Victorian TAFE Association Inc Public education funding as % of GDP (Aust) Source: The Role of the Public Provider in a Competitive TVET Market

8 Victorian TAFE Association Inc Government education expenditure The Role of the Public Provider in a Competitive TVET Market Government education expenditure per student

9 Victorian TAFE Association Inc Public and private expenditure on tertiary education funding as % of GDP The Role of the Public Provider in a Competitive TVET Market

10 Victorian TAFE Association Inc Contemporary VET landscape - Australia (2015) Over 3.9 million VET students per annum 59 TAFEs (Technical and Further Education) Almost 5,000 Registered Training Organisations TAFE delivers to 81% of all students ASQA, Australian Skills Quality Authority, registers and quality assures all RTOs The Role of the Public Provider in a Competitive TVET Market

11 Victorian TAFE Association Inc Registered Training Organisations (Australia, 2015) Australia: Victoria: Victorian Skills Gateway The Role of the Public Provider in a Competitive TVET Market

12 Victorian TAFE Association Inc Contemporary VET landscape - Victoria 2015 Over 443,000 government funded VET students per annum 12 TAFEs, 4 dual sector universities About 500 Registered Training Organisations with funding contracts with the Victorian Government TAFE delivers approximately 27% of government funded training (2015) Victorian Registration & Qualifications Authority (VRQA) The Role of the Public Provider in a Competitive TVET Market

13 Victorian TAFE Association Inc Victorian public VET market share in decline…. The Role of the Public Provider in a Competitive TVET Market Source: Victorian Training Market Half Year Report - July 2015, DET

14 Victorian TAFE Association Inc …in a declining Victorian VET market The Role of the Public Provider in a Competitive TVET Market Source: Victorian Training Market Half Year Report - July 2015, DET

TAFE Rescue Fund VET Quality Review VET Funding Review VET Reform Package Declining VET Market Perceptions of VET Training Products…… ….. & the role of TAFE The Role of the Public Provider in a Competitive TVET Market Victoria’s changing political landscape

16 Victorian TAFE Association Inc The role of public VET in a competitive market The Role of the Public Provider in a Competitive TVET Market Source: Department of Education & Training: Implementation of Skills and Jobs in the Education State

Increase international education revenue, through a sector- wide, strategic approach that is developed in partnership with Government. Take a key role fostering and sharing innovative practices within their local industry partners TAFEs become providers of choice Focus areas Partner with Government to co- develop policy and programs, and demonstrate the quality and access benchmark for VET provision Offer a wide range of training especially through regional hubs that delivers to thin and niche markets Enhance student experiences, ensure high-quality learning, and build aspiration for skills development in disadvantaged communities Enablers Establish and cultivate Centres of Excellence that specialise in the provision of skills and services that meet the needs of their local industry partners Vision Distinct roles Focus on, and provide leadership in, the delivery of apprenticeships and high-quality traineeships New TAFE MEA from 2017 TAFE state-wide asset strategy Partner on key Government initiatives Lead the VET system in excellence Increase participation by people facing barriers to education and learning Work with enterprises to apply skills to improve productivity New funding for innovation, community service activities, high needs learners, and thin/niche markets and to meet the additional costs of a public provider Improved accountability Outcomes TAFEs increase their enrolments TAFEs’ operating models become more efficient and effective TAFEs become financially sustainable Organisational capability Governance reforms

18 Victorian TAFE Association Inc Who is the client? The Role of the Public Provider in a Competitive TVET Market Individual Community Private RTOs VET market Government Economy Industry Business Public Providers And who serves?

19 Victorian TAFE Association Inc Victorian Government aspirations for VET The Role of the Public Provider in a Competitive TVET Market Source: Department of Education & Training: Implementation of Skills and Jobs in the Education State Pre-2016 Open market Students not empowered consumers Providers drove outcomes Provider boom and bust Industry, public and students lost confidence, including in TAFEs (by association) Poor alignment to jobs 2018 Funding streams suit needs of segments of the VET market Training participation is aligned to industry need Subsidy rates stable, providers can invest in training and Budget is managed Government's quality expectation clear and student and industry feedback promotes improvement Public confidence in both TAFE and the training system boosted Sustainable and dynamic TAFE system 2025 Training provides people with the skills they need for the jobs they want Training aligns to industry and employer skill needs Training supports industry growth and productivity in the economy Industry drives training in the VET system TAFEs at the centre of innovation deployment to businesses Graduates, facilities and services that can improve every Victorian business Disengaged cohorts actively engaged into training and into the workforce

20 Andrew Williamson Executive Director L3, 478 Albert Street, East Melbourne, Victoria, Australia The Role of the Public Provider in a Competitive TVET Market