Reform and change in Australian VTE and implications for VTE research and researchers By Aurora Andruska 20 April 2006

Overview Setting the scene The new national training system – what has changed – why it changed – more changes ahead the Council of Australian Governments (COAG) agenda The role and challenges for research

Setting the scene

Recent reforms in the national training system Demand driven Education/training must provide the skills that industry and business need

Recent reforms in the national training system Strengthened industry role – More flexible and responsive training provision – Greater competition in the training market – Institute of Trade Skills Excellence Improved performance from training providers

The new national training system What has changed

Federal system Multilateral agreement Bi-lateral agreements Skilling Australia’s Workforce Act 2005

Agreements under the legislation are leveraging change Skills shortages Responsiveness and flexibility Outcomes, high quality Mature age workers More private provision Specific reforms targeted

The national governance and accountability framework Ministerial Council of Australian and State/Territory Governments National Industry Skills Committee National Centre for Vocational Education Research National Senior Officials Committee National Quality Council Industry skills boards Ministerial Company

NATIONAL SKILLS FRAMEWORK NATIONAL GOVERNANCE AND ACCOUNTABILITY FRAMEWORK INDUSTRY LEADERSHIP AND ENGAGEMENT National Qualifications Online Product Support Quality Assurance National Quality Council Public Reporting on Provider Performance Legislation Commonwealth-State Funding Agreement Ministerial Council National Senior Officials Committee Planning and Reporting Client Advisory Mechanisms Research High level advice to Ministerial Council National Industry Skills Committee Policy development and monitoring performance Development and review of Nationally recognised Qualifications, including Training Packages Representation on Action Groups and Advisory Mechanisms Participation in setting research priorities Bilateral Funding Agreements Industry plays a key role in the new system

In the new system the Australian Government has a leadership role The Australian Government provides national leadership on VTE policy. It also provides: One third funding for the public sector Funding for specific programs ­ in particular apprenticeships

More changes ahead The Council of Australian Governments agenda

All governments have agreed to tackle skills shortages

Meeting the skills gap is on the COAG agenda

Next Stages of Reform Higher level skills Lifting educational participation and attainment Making system more responsive to demand Increasing Australia 's investment in VTE Enhancing user choice Regulation of training providers Building stronger relationships between firms and training providers

Why has it changed

There are national imperatives Strong economic growth Globalisation of the economy Need for skilled employees Ageing population Changes to work structures and patterns Value of education exports

….. and issues for the VTE system University qualifications do not meet the needs of all industries Young people need options for work and training Existing employees need new, different skills Assistance is needed by – Adults re-entering the labour market – Young people at risk of not getting jobs – Indigenous Australians and people with disabilities

More jobs may need VTE skills than university qualifications Qualification Current profile of population Potential pathway for jobs % of population % of employment University VTE No tertiary

The recent reforms will More effectively address industry skills needs – including skills shortages Attract more young people into VTE – Australian Technical Colleges – Extra financial support for New Apprentices

Research roles and challenges

Research has a vital role in the national training system It supports: Quality assurance by measuring success Informed evidence based policy development Better understanding of our system Innovation in training delivery and content

How to make research relevant To support the national training system in meeting the needs of business and industry research must be relevant: Practical Local Timely Applied Flexible

What that means for research The challenge is to: Engage with industry to identify research needs Think GLOBAL – act LOCAL! Conduct action research, which is practical, local, timely, able to be applied, flexible and fully evaluated

What that means for industry Industry gets relevant research to identify local training needs Education providers align their training provision to industry needs Industry has the skilled workforce it needs to support Australian prosperity

Will industry engage? Industry are currently successfully engaging across the national training system Industry will engage if they know that research will lead to real outcomes There are many examples of industry using it’s own research to drive innovative partnerships with government, training providers and the community

A successful partnership… Mining Industry – the XTRATA example Xtrata: identified a projected skilled labour shortfall engaged with key stakeholders two phase innovative solutions developed and implemented

Another successful partnership… NCVER consortium – A well skilled future. Partnership between researchers and business Aim of research: Understand how the labour market is evolving Understand how VTE system can maximise its contribution to skills needs

Thank You