Martin Riordan CEO TAFE Directors Australia September

2 1.A snapshot of electrical apprentices in Australia 2.A snapshot of the apprenticeship policy settings 3.Challenges 4.Opportunities

3 Source: NCVER (2013). Australian vocational education and training statistics, Apprentices and trainees, December quarter, In-training, seasonally adjusted, 2003–13 (’000)

4 Source: NCVER (2014). Apprentices and Trainees. Early Trend Estimates June quarter, 2014 Trade and non-trade commencements seasonally adjusted, 2004–14 (’000)

5 Source: NCVER

 Complexity of the system across jurisdictions  Low completion rates (average of 48% across apprenticeships) ◦ About 60 % completion rates for electrical apprentices  Declining funding models and loss of support services (Budget)  Decreasing interest by students in apprenticeships  Low investment by employers  Impact of the expansion of the university sector 6

 Regulatory burden  Training packages ◦ Changes cost time and money ◦ Teach out times at odds with apprenticeships ◦ Complex pre-requisites and packaging rules that reduce flexibility ◦ Difficult to map old to new packages  Funding  Recruiting skilled teachers and maintaining currency  Language and literacy levels of apprentices  Competitive training markets (thin markets). 7

 Minister Macfarlane, Skills Summit, 2014: Three priorities for VET: 1.Industry – led 2.Growth in apprentices 3.Cutting red tape One of Australia’s greatest strengths is the adaptability and creativity of our workers. We must use that strength to its full advantage, by restoring pride in the value of a trade or an apprenticeship. 8 Source: Minister’s speech 11 September, 2014

Budget Programme 1: Building Skills and Industry Skills Fund  Enable growth and productivity for globally competitive industries  Shift from traditional manufacturing base to knowledge intensive competitiveindustries in areas of global growth such as:  Food and agribusiness;  mining equipment, technology and services;  medical technologies and pharmaceuticals;  oil and gas;  and advanced manufacturing including defence and aerospace. 9 Source: PORTFOLIO BUDGET STATEMENTS , INDUSTRY PORTFOLIO

Programme 1: Building Skills and Capability 1. Growth in the number and proportion of Australians with VET skills 2. Growth in number of skilled employees in knowledge industries 3. Growth in the number of apprentices 4. Growth in the apprenticeship completion rate 5. Change in reported employer satisfaction with VET graduates 6. Contribution to productivity growth 7. Changes in individual returns from investment in education and training. 10 Source: Portfolio Budget Statements , INDUSTRY PORTFOLIO, 2014

 Overall reduction in investment in skills training of $1.1 B  The cessation of the Tools for Your trade programme (from July 2014 )  Implementation of Trade Support Loan Scheme ($20,000 loans to be repaid when income exceeds 53,345). ◦ For apprentices undertaking a Certificates III or IV qualification in an occupation on the National Skills Needs List and certain Certificates II-IV agriculture/horticulture qualifications.  Recent changes from Apprenticeship Centres to the Australian Apprenticeship Support Network (some shifting of funds). 11

12  Accelerated Australian Apprenticeships Program  Australian Apprenticeship Access  Alternative Pathways Programme  Australian Apprenticeships Mentoring Program  Workforce English Language and Literacy (WELL) Program  Apprenticeship to Business Owner Program  Australian Apprenticeships Access Program  Step Into Skills Program  Incentives for higher technical skills  Skills Connect Fund

1. Collaborative partnerships 2. Pathways & relationships with apprentices 3. International opportunities. 13

Overall increase in VETiS enrolments  Improve pathways for apprentices: ◦ Pre-apprenticeship programs ◦ VET in Schools models ◦ School based apprentices, alternate TTCs ◦ Higher qualifications (post trade)  Provide better support for employers and apprentices/trainees  Value apprenticeships and traineeships  Improve career advice and screening services (LL&N)  Weight the incentives for employers to successful outcomes  Consider how young people are included in growing global industries. ◦ 14

 Key success factors for young people in VET in Schools: ◦ Partnerships between employers, education and community ◦ Providing structured learning in work settings ◦ Tailored curriculum ◦ Learning support ◦ Focusing on students’ needs and interests ◦ Role of Group Training? ◦ Strong career advice/support. ◦ 15 Policy Funding Innovative Training Pathways Partnerships Monitoring and Support

TAFE Institute Survey 41 responses 30 offshore partnerships 39 responses 22 offshore partnerships PARTNERSHIPS China9591 PNG815 South Korea167 Malaysia84 Singapore114 India283 Students offshore58,516n/a 4. TDA Offshore Partnership Survey

Case study - partnering with China Interviews conducted with College Principals and Vice Principals revealed the following priorities: Curriculum Development Funding models for partnering Staff and student mobility/ exchange Improving quality of colleges, specifically learning and teaching Improving student’s employment prospects Internationalisation.

18 STRENGTHOPPORTUNITY Apprenticeships Collaboratively work to address the challenges Stronger role for Group Training and Provider partnerships System complexity Consistent funding models across jurisdictions VETiS Leveraging growth & aligning with global industry vision International Supporting quality skills in regional international markets 4. Tap into Australia’s strength’s ….

19 Jonathon Clack TAFE NSW – Illawarra Institute Winner Industry Excellence Awards Excellence in Electrotechnology