TAFE Governance & Regulations Forum February 24, 2010 The Urgency of Reforms Virginia Simmons Board Member, TDA

Overview About TAFE Directors Australia Governance Context Policy Context Two case studies on how governance affects policy responses Implications for A National Training System CONCLUSION

TAFE Directors Australia TAFE Directors Australian Inc (TDA) is the peak body representing Australia’s educational network of TAFE institutes. Membership includes institutes, universities of technology, institutes of technology and polytechnics from every state and territory. TDA was established by TAFE Directors in 1998 and incorporated as a not-for-profit educational organisation TDA is a key advocate for TAFE on governance and other issues.

TDA’s Mission and Vision Mission: To provide leadership at a national level as the ‘public provider voice’ for Australia's vocational education. Vision: TAFE: Australia's provider of choice in vocational education As the national voice of public provider vocational education, TDA commissions research and independent reviews on vocational education, and stages regular professional development programs for executive membership.

Governance in VET - Context TAFE’s overlay with VET ◦ Private sector governance arrangements ◦ Other RTO governance arrangements Governance levels ◦ National - presentation focus ◦ State ◦ Regional ◦ Institute

Governance Models for TAFE – Continuum across Australia Centralised – limited autonomy Decentralised – significant autonomy Advisory Bodies Public service employment of staff Centralising of operational surpluses Centralised marketing/branding Board of Directors Institute employment Institute retention of operational surpluses Institute marketing/branding

Disclaimer Because of the different governance arrangements from state to state, TDA’s position is to support the governance arrangements of each member and hence to support each State’s approach. The views expressed in this presentation should be seen in this light.

Current Policy Imperatives Improved Tertiary Pathways Better TAFE Infrastructure Improved Quality Sustainability/ Green Skills International Education Social Inclusion

Current Policy Imperatives - Examples Improved Tertiary Pathways AQF Review/TEQSA Better TAFE Infrastructure EIF Improved Quality National VET Regulator Sustainability/ Green Skills National Green Skills Agreement International Education Market Failure Social Inclusion – COAG Targets

Case Study Improved Quality National VET Regulator

Layers of Governance in VET Nous Consultation on the National VET Regulator

TDA’s Position on the National VET Regulator (NVR) TDA supported the concept of a NVR subject to: Agreement on the model being reached with all states and territories – WA and Vic have not agreed The NVR being given robust powers i.e. ‘teeth’ – awaiting draft legislation The NVR being sufficiently resourced to exercise its powers – awaiting draft legislation.

Case Study International Education Market Failure

Some Government Responses 2009  Ministerial Missions – Federal and State  Senate Inquiry into the Welfare of International Students  Education Services for Overseas Students (ESOS) Amendment Bill  Senate Inquiry into the ESOS Act  Review of International Education (Bruce Baird)  International Student Roundtable  Review of the Migration Occupations in Demand List (MODL)  Review of the National VET Regulator  Additional state/territory initiatives

TDA’s Position on Market Failure in International Education TDA’s response has been one of frustration: Need to respond to each government initiative – resource intensive Need to differentiate TAFE from unscrupulous or low quality providers TAFE - ‘tarred with the same brush’ - has lost business and will suffer until the whole of VET is reformed

A National Training System? Congested governance arrangements *  Authorising and oversight layer – Ministers and their highest level joint jurisdictional committees  Legal, advisory and policy layer – VET Departments, advisory bodies and legislation  Product and provider registration layer – registering and accrediting bodies, guidelines, frameworks, products and contracts for programs  Market layer – providers, students, business and industry * Courtesy Nous

A National Training System? In each state:  Different governance arrangements  Different levels of autonomy  commercial capability  Different policy positions on the public and private sector  Different approaches to market design  Different funding levels  staffing practices  Different fee structures  Different public perceptions of VET

Conclusion Current governance arrangements are complex, cumbersome and confusing impede timely and effective development and implementation of government policy are a disservice to students are preventing TAFE from developing to its full potential Yes, reform is urgent …

Thank you