Current and Emerging Policy Issues – Implications for TAFE Institutes in Victoria VTA HR Conference 2008

Policy Context National Victoria New Commonwealth\State VET Agreement Election commitments Productivity Places Trade Centres in schools Skills Australia Industry Skills Councils COAG Skills and Productivity agenda Inquiry into Higher Education – a broad tertiary sector? Victoria Securing Jobs for Your Future – Skills for Victoria New Commonwealth\State VET Agreement 2

Policy Context Return to cooperative federalism in national VET governance. Productivity Agenda Working Group Chaired by DPM Early childhood schooling and skills and workforce development Objectives, output measures, progress measures and future policy directions Skills and Workforce Development sub group chaired by Victoria Outcomes agreed by COAG. Consistency between State and National Reform Directions Influence of Victoria on COAG reforms Focus of Victorian Skills reforms ICL for Diplomas and Advanced Diplomas in Victoria 3

Objectives Link between educational participation attainment and productivity. Targets for early childhood, schooling, post compulsory education and older age groups. Focus on attainment levels - not just participation. Focus on increasing participation and improving outcomes particularly for indigenous Australians Reskilling the existing workforce: Foundation skills Higher level skills 4

Objectives Stronger focus on nature of skills required for 21 st century economy and labour market and skills usage: labour market participation, ongoing learning, productivity as well as occupational competence Skills supply more responsive to demand Focus on workforce development not just formal VET Victorian Skills Reforms: investment, navigating the training system, TAFE capital development, capacity of the public VET workforce and capacity of the ACFE sector 5

Strategies Increased investment by government industry and individuals: Productivity places; Extension of HEIF to Education Investment Fund Training Guarantee -Demand based funding (Victoria); First major VET funding reform since ANTA Agreement; 172,000 additional places $33 million for capacity building in TAFE and community providers 6

Strategies RTO capability More effective and outcomes focussed regulation VET workforce development NQC project Governance reform System level Provider level Commonwealth\State Agreement for Skills and Workforce Development Part of broader reforms to SPPs Provide framework for reforms Greater focus on outcomes Potential for differences between States\Territories 7

Strategies Strengthening demand Contestability for public funding; Comprehensive and accurate information to support informed choice; Skills for growth program in Victoria Efficient and consistent regulation Reforming products (joint NQC\COAG project) Ensuring VET programs and qualifications : Provide competencies for 21st century workforce and economy Meet needs of diverse learner groups and enterprises – school leavers, pathways to higher education, enabling skills, existing workers Enable RTOs to respond flexibly 8

Strategies Strengthened independent\industry labour market analysis and advice. National Skills Australia Advice on productivity places; Broader roles for Industry Skills Councils Environment scans; Advice to Skills Australia; Victoria Strengthening the role of the Victorian Skills Commission Additional funding to State ITABs for consolidated industry information service 9

Importance of Workforce Development Focus ‘A major re-positioning where workforce development is a move away from a focus upon the individual employee and a “deficit” view where rectification of the skills problem is seen to rest with the individual. Rather the workforce development approach today argues that the employee operates within a wider system, as well as in an organisational context that will determine what specific policies and practices can be put in place and what might work best in the short and longer term’. Callan 10

Review of Higher Education Issues under consideration Concept of a broader tertiary sector The extent to which VET Diplomas and Advanced Diplomas should be seen as part of higher education provision Commonwealth funding for these qualifications and position of other jurisdictions on extension of HECS Level of higher education provision through VET providers and eligibility for HE funding. Scope for resource and facilities sharing and joint provision of programs Balance of provision and level of demand between the sectors 11

The future school leaver population HE Review Discussion Paper 12

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Numbers of domestic and overseas students in higher education, 1997-2006 HE Review Discussion Paper 14

Estimated unmet demand, 2001-2008 by state HE Review Discussion Paper 15

Impact of Changes Full impact of emerging national policy directions still emerging: Mechanisms for allocation of productivity places within jurisdictions in terms of Commonwealth\State agreement and state funded places; Conditions for entry to market, price and eligibility for capital funding (e.g. EIF); Extent to which a national VET market for public funding is created; Extent of shift to national regulation and audit; Extent of changes to National Training Packages and AQF Level of differentiation between the States 16

Issues for TAFE Institutes Preparing for increased contestability – need for Councils to undertake a full strategic and risk assessment. Importance of understanding existing and potential markets and strengths and weaknesses of current provision; Access to and use of environment scans, Skills Australia data etc Capacity for market analysis within institutes Ensuring Councils, management and staff understand changing environment; Positioning institutes for capacity building initiatives: Capital Workforce development 17

Issues for TAFE Institutes Information management systems Preparing for increased public access to performance information Quality assurance and compliance – need for Councils to be confident of internal Institute QA and compliance monitoring (continued) 18

Issues for TAFE Institutes Understanding the shift from VET to workforce development Focus is on organisational workforce needs not individual learner needs Importance of providing information and advice to enterprises not just training Role of brokers and intermediaries and potential for partnerships Importance of effective governance and areas for improvement in governance framework and performance 19