Market Facilitation Strategy Industry engagement in a demand driven VET system CEET Conference October 2010 John Spasevski

Contents Policy Context The million dollar question What is Market Facilitation? Five models of Market Facilitation Food for thought Your questions

Policy Context Securing Jobs for Your Future The Victorian Training Guarantee 172,000 additional places Skills Victoria in DIIRD – why? –Skills an important driver of economic development –Established networks and relationships across DIIRD industry areas

The million dollar question How does government facilitate greater industry engagement with the tertiary education system: –To increase flattening productivity growth –To improve Victoria’s economic competitiveness –To attract greater investment

DIIRD Industry Policy Framework Infrastructure How well is it working? Transport Energy Water Telecommunications Labour and Skills Regulation Collective Commonwealth & State Sets the conditions for PRODUCTIVITY GROWTH Driven by Innovation INCREASED COMPETITIVENESS INVESTMENT JOBS EXPORTS REGIONAL GROWTH OUTCOMES Enhancing Growth

Labour and Skills Victoria relies on its human capital to generate productivity: to grow businesses, create & sustain jobs, & generate the wealth to invest in infrastructure & services.

Productivity Productivity is the prime determinant in the long run of a nation’s standard of living…. High productivity … supports high levels of income … It also creates the national income that is taxed to pay for public services which again boosts the standard of living. The capacity to be highly productive also allows a nation’s firms to meet stringent social standards which improve the standard of living, such as in health and safety, equal opportunity and environmental impact’ Michael E Porter, The Competitive Advantage of Nations (1991)

What is Market Facilitation? Removing barriers and exploiting opportunities for increased training uptake: –Across industry / employers –For hard to reach / disadvantaged learners Informing and equipping employers to take advantage of new bargaining power To ensure alignment between the supply of and demand for training

Engaging Priority Industry Sectors and Regions Regional Development Regional Economic Planning Workforce Victoria Industry Workforce Development Strategy Skills Victoria Market Facilitation Strategy Boosting engagement and participation of individuals and enterprises with the tertiary education and training sector to meet regional and industry needs

Five models of Market Facilitation 1.Sector specific – Finance Sector Project 2.Occupational – Clinical Coders 3.Regional – Skilling the Valley 4.Hybrid – Region / Defence Manufacturing 5.Disadvantaged learners – VSC sub- committee

Finance Sector Demonstration Project Victorian Skills Commission Skills Pledge signatories Skills Audit of existing workers Mapping to training package qualifications Using the Victorian Training Guarantee

Critical skill shortage now Significant cost to public Changing Commonwealth requirements – e.g. activity-based funding Poaching from other states Limited training options Clinical Coders – Department of Health

Transition to a low carbon economy Which industries are growing? What are the new and emerging areas? Current skills profile of the workforce Ensuring supply-side capability to deliver Processor capability project Skilling the Valley

Important regional industry Changing skill requirement in large employer Skills and capability audit Utilising the Victorian Training Guarantee Defence Manufacturing in Regional Vic

Impact of eligibility and funding policy How do we improve outcomes: –Getting people into training –Supporting greater completion –Assisting people into employment VSC VET Access and Equity Advisory Committee Disadvantaged Learners

Important considerations How should government facilitate the market? Government owns TAFEs but what about contestability? Industry, enterprise or regional level engagement Data challenges – how do we know we’re making a difference?

HAPPY TO TAKE QUESTIONS Thanks