New models for Australia’s TAFE Institutes How training ”entitlement” is evolving across States & Territories Martin Riordan CEO, TAFE Directors Australia ‘Evolve Technologyone’ – Gold Coast Conference Wed 19th February 2014  

My Presentation PART I – The role of TAFE Directors Australia COAG and the National Partnership Agreement on Skills and Workforce Development PART II -- Australian state & territory reforms to TAFE governance Individual procurement opportunities

The role of TAFE Directors Australia PART I The role of TAFE Directors Australia TAFE Directors Australia represents 61 publicly funded TAFE institutions: National network of the public provider (TAFEs) including six dual sector universities with TAFE divisions representation on key government policy bodies organises an annual conference & seminars Communications including weekly email newsletter Corporate Affiliates – TechnologyOne

COAG and the National Partnership Agreement (Effective 1st July 2013) Introduction of a national training entitlement and increased availability of income contingent loans Phased in over two years across states and territories Designed to develop a more open competitive public VET training market improving participation and qualifications completions at higher levels recognising the “important function of public providers “ in servicing the training needs of industries, regions and local communities” assuring the quality of training delivery and outcomes

National Charter for TAFE National Charter for TAFE. Quality criteria are substantially enhanced as the basis of value for money in public funding in a competitive VET system Governance enables flexibility and responsiveness Recognition of the innovation and leadership roles of TAFE, including its pivotal position in rural and regional Australia Fair and adequate funding of TAFE services

PART II Governance reforms fundamental element to NPA Agreement ISSUES ACTION TAFE governance Statutory authority – out of state departments of education and training Funding for VET skill places Funding for schools & universities – INCREASES Funding for VET -- DECREASES

Queensland Creation of a new statutory entity by the beginning of July 2013 The amalgamation of 13 institutes into 6 institutes, plus merger Central Queensland TAFE with CQU A fully contestable market by 1 July 2014 Student contributions will vary with ‘priority’ qualifications Strong quality benchmarks Differential funding for TAFE, but a work in progress. Government supports a ‘managed market’ IE priority skill qualifications will be nominated within Qld Entitlement

South Australia Skills for All is South Australia’s framework: All South Australians aged 16 and over are eligible for a government subsidised place. Certs I & II plus some critical skills qualifications (eg Cert III Electrotechnology) have no student fees, but above these levels fees apply and are very complex, based upon units of study not qualification being studied. Diploma and above qualifications have access to VET Fee Help income contingent loans A managed market, dedicated quality criterion for VET funding Pilot of Cert IV student loans

New South Wales Under the Government’s Smart & Skilled policy changes commenced on 1 January 2013: Fees in TAFE rose by 9.5% and the student concession fee from $53 to $100 Reduction of around 800 positions over the next 4 years Referral to Independent & Pricing & Regulatory Tribunal (IPART) for proposed fees & charges (pending) Further cuts to the TAFE budget may be required to offset the implementation of the Gonski reforms.

New South Wales The Minister for Education, Adrian Piccoli in 2012: “The Government is receiving $2.5 billion less in revenue each year….along with the increasing cost of delivering education and training services across NSW by an average of 6% each year means general expenses in the education portfolio have outstripped growth in Government revenue and this is simply unsustainable”. A review of central support functions for TAFE NSW and efficiency improvements resulting in the reduction of around 800 positions over the next 4 years LATEST …. Delay in NSW entitlement to Jan 2015

Western Australia WA Government supports a managed market for VET (Like Queensland and SA) A limited entitlement system from July 2014 Entitlement is envisaged to apply to areas of skills shortage eg engineering/nursing Only about 15% of government subsidised training is currently opened up to contestability WA government is “on record” in wanting to ensure only high quality contracted providers – remains outside ASQA

Victoria Premier summarised some of the VET policy failures in an address to Parliament on 16 August 2012 “Enrolments had exploded for courses that were cheap to deliver and were profitable for providers but which did not deliver on the job. “When cash is offered (to students) for training courses to be undertaken, when iPads are offered and when there is a blow out in one year of $400,000, it has to be addressed. You cannot stay silent. You have to be responsible”.

Victoria The Victorian Government has implemented the following VET reforms: Competition for Government funding Only a government subsidised place if student does not hold higher level qualifications (does not apply to under 20 yr olds, foundation studies or apprenticeships) Uncapping of student fees Expansion of income contingent loans 5 bands of funding, resulting in 20% of SCH funding increase and 80% getting a decrease LATEST … $200M restructuring plan for Victorian TAFEs, pending Commonwealth approval of ‘transition plans’ under Commonwealth NPA Agreement – pending State election

Response to State/Territory VET reforms -- Industry -- Innes Willox, CEO, Australian Industry Group, said “It is of significant concern to industry that we won’t be able to then drive the skills pool in the future and kids in regional Australia will miss out on opportunities to gain skills and then get into the workforce”

Response to State/Territory VET TDA advocacy campaign -- New governance for TAFEs – mentoring statutory authorities, CEO mentoring Online learning – Outsourcing for ICT Schools New enterprise investment into TAFEs (WA oil & gas ) Promote review of rigid Training Package curriculum UK-pilot to introduce new Enterprise Training for individual learners – building careers

ADVOCACY & POSITION PAPERS TAFE “direct engagement” in future Federal-state Agreements 2. Enterprise models for TAFE partnerships 3. Skill sets for skill funding (articulation under Training Packages) 4. Funding for TAFE higher education 5. Streamlined visas for TAFE international students 6. Alternate pathways for apprenticeships 7. Contribution to productivity from government investment in skills

Thank you… mriordan@tda.edu.au www.tda.edu.au