Issues and Funding in VET Gerald Burke Victoria and South Australia Group Training Conference Mt Gambier 4 June

2 Issues  Finance, quality and equity – VET and higher ed.  Economic outlook – changing requirements of employers by level and field  How much will supply need to expand  National quality assurance  International students, Critical Skills List, MODL and export revenues  Developing a national skills strategy  Transitions from VET and higher educ

Operating expense Education $ million% of GDP Universities15, % TAFE5, % Total Universities and TAFE20, % GDP1,132, % 3

Govt recurrent expend VET per hour change Australia % NSW % Vic % SA % 4

Income VET system Income of the VET system 2007, $ million South AustraliaVictoria Fee-for-service5012%39224% Government Agencies215%1147% Other143%1419% Overseas Student Fees154%1006% Contracted overseas00%362% Adult and Community Education00%0 Ancillary Trading 82%362% Student Fees and Charges 246%594% Revenue from Government32880%1,06366% Total revenue409100%1,613100% 5

PPP proposed spending $ million Revised Budget Budget n

Commonwealth non-RTO spending $ million Revised Budget Budget Australian Apprenticeship Centres Employer incentives Australian Apprenticeship Access Program

Australia Population Total mill %14.667%2.913% %14.867%3.014% %15.666%3.615% %16.465%4.317%25.3 Increase million

9 Requirements from economic changes CEET trend projections October 2008 Employment up10.6 million in 2008 to to 12.4 million in 2020 % with qualifications up from 60 per cent to 73 per cent % without Cert III+ falls from 46 per cent to 30 per cent– less than required by COAG. The numbers with quals grow from 6.4 mill to over 9.0 mill Allowing for net turnover this means 4.7 million quals Over half in VET despite slower growth in VET occupations Big expansion in requirements at Diploma level…

10 International students DIAC changes to Critical Skills List Review of MODL Effects of international students on reputation of VET quals