The implementation of national entitlement across States & Territories – A TDA perspective VDC Webinar 25 June 2014 Pam Caven Director Policy & Stakeholder Engagement, TAFE Directors Australia

National Entitlement to Training adopted by COAG in April 2012 Introduction of a national training entitlement for vocational education and training students and a competitive market place agreed by all States and Territories.

No common agreement across Australia’s States and Territories about: the nature of entitlements for students, the quality criteria that should be applied to providers in receipt of public funds, and the governance arrangements for public providers, recognition of the role of public providers in servicing local communities.

TAFE Directors Australia represents 58 publicly funded TAFE institutions: represents its members on key government policy bodies organises an annual conference & seminars keeps members informed via a weekly newsletter; and makes submissions to key government enquiries. The role of TAFE Directors Australia

A constantly changing and confusing situation for learners and for industry, Severe financial difficulties for a number of publicly funded TAFE institutes, The speed of implementation and the lack of appropriate checks and balances with implementation A growing issue - The Productivity Commission stated that that “more than one quarter of training funds were allocated through competitive tendering in 2012 compared to just 2% in 2008”. Costs of national entitlement

Significantly different fees and levels of subsidy for the same national courses Enrolment limits being applied to RTOs (public and private) in what is meant to be an open and competitive market Entitlement model driving costs down with an adverse impact on quality of provision The unintended consequences

South Australia In November 2012, TAFE SA was established as a Statutory Corporation. Skills for All is the policy framework for its suite of skills reforms. Higher subsidy given to courses that address skills shortages For all other courses full fees will apply and are very complex, based upon units of study, not qualification being studied Diploma and above qualifications have access to VET FEE Help ICLs TAFE SA market share of publicly funded skills training has decreased from 66 %in to 60 % in South Australia did in 12 months what Victoria did over 4 years % of funds are now contestable

Tasmania (1) The Skills for Work agenda with full implementation of National Entitlement by 2017, includes Entitlement to a government subsidised training place in a Certificate III qualification The introduction of ICLs. VET FEE HELP from 1 July 2014 The development of an Endorsed Provider Model for RTOs For 2014, TasTAFE is being protected by a funding guarantee from the Government to ensure that Community Service Obligations can be met Skills Tasmania – has refrained from publicly launching campaigns announcing or promoting the entitlement concept.

Tasmania (2) Support for public VET training is under pressure from: The removal of the funding guarantee beyond 2014 (whereby the true impact of the variable funding model will impact on TasTAFE’s bottom line); The impact of economic conditions on demand for training The growth in competition with the private RTO sector

Great Skills. Real Opportunities - overarching blueprint for the State’s VET sector The Government established the Ministerial Industry Commission By 1 July 2014, all subsidised qualifications under the Certificate 3 Guarantee will become contestable. Queensland

VET reforms: –Amalgamation of 13 former TAFE institutes to six regions –Rationalisation of under-utilised sites –Establishment of a ‘cost disadvantage grant’ prior to fully contestable training market from 1 July 2014 –TAFE asset ownership will be transferred to a specialist entity that will operate commercially, letting land and buildings to TAFE and non-TAFE providers. –Significantly reduced the price per hour paid to TAFE institutes for training delivery. Queensland(2)

Smart and Skilled commence implemented from 2014 with an entitlement to government subsidised training up to Certificate III level commencing from 1 January New South Wales

To date: –2014 NSW Skills List which defines the qualifications eligible for government funding. –A NSW Quality Framework. –New student fees and training provider subsidies will be announced in 2014 for implementation from 2015 –TAFE and ACE providers will be funded to deliver Community Service Obligations from –New governance arrangements will see greater separation and transparency between the Department and TAFE NSW. –Reform to employment model to achieve greater efficiency and flexibility –The recent NSW budget doubled the amount of the training funds for contestable training contracts. New South Wales 2

Under Future Skills WA courses will still be delivered by State Training providers (formerly TAFE colleges) and preferred training providers In addition to the 600 State priority courses (80 industry qualifications) the Department will continue to fund a range of qualifications in the general industry training and foundation skills courses categories. Training providers may at their discretion, waive course fees for students experiencing severe financial hardship. The Department will not compensate Western Australia

The full impact of the implementation of the National Partnership Agreement on Skills Reforms not yet clear Budget efficiencies over the last 5 years have seen yearly budget reductions Student Fees – fees for VET programs in the ACT have only been increasing Entitlements and ICL’s are to be implemented in 2015 CIT will remain a statutory authority of the ACT Government but will have to compete more for its government fundsrfundsevenue as the NPA is fully implemented. Department will not compensate ACT

The entitlement model introduced in 2013 for delivery by the 2 public providers (Charles Darwin University and Batchelor Institute of Indigenous Education) 13 private providers undertaking delivery in Each of these RTOs has attained NT Endorsed Training Provider Status Additional funding was announced for private providers in the 2014/15 NT budget while the public providers had reduction in overall funding Northern Territory

TAFE continues to lose market share – In 3 years its share dropped from 75% of delivery hours in 2008 to 42% at the end of 2012, private providers 48%; ACE providers 12%. Data for 2013 shows TAFE enrolments are at 32%, dual sector universities VET 8%, Learn Local (ACE) 11% and private RTOs 48%. Victoria 1

The Victorian Government has implemented the following VET reforms: Competition for Government funding Only a government subsidised place if student does not hold higher level qualifications Uncapping of student fees Expansion of income contingent loans 5 bands of funding in 2012 for new enrolments and in 2013 for all enrolments, resulting in 20% of SCH funding increase and 80% getting a decrease Substantial increase in student fees All TAFEs and around 300 private RTOs funded at the same level CSOs, TAFE operational base funding and statutory obligation funding paid to TAFE as ‘full service’ providers discontinued from January 2013 Victoria 2

The big winners in Victoria have been the for profit private providers. For TAFE in Victoria is campus closures and rationalisations, course closures and staff redundancies. Funds previously given to TAFE for specific purposes were redirected to the general pool to fund VET delivery across the state. Dramatic decrease in youth enrolment. The numbers of students undertaking government subsidised training aged without year 12, not at school and enrolled in Cert II or above decreased 16% from Victoria 3

Trends include –Cuts to the public provider –An increase in student fees –CSOs rarely funded –Increased focus on provider quality TDA has found an unlikely ally –Jennifer Westacott, Chief Executive, Business Council of Australia. In a speech at Swunburne University Ms Westacott referred to the “diminishing funding” for VET.( It is more “politically palatable” to make cuts to VET than schools). What are the trends emerging for National Entitlement?

“ We simply cannot afford to see VET as the “also ran” of education”

Thank you…