1. Challenges in ‘VET’ & how these may be addressed ? Martin Riordan, CEO TAFE Directors Australia 25 March 2013 STRATEGIC PARTNERSHIPS SYMPOSIUM DIISRTE / ANU CRAWFORD CENTRE FOR PUBLIC POLICY

2. Issues facing VET COAG targets for workforce productivity Higher education attainment Increased workforce participation Changing industry skill needs Innovation and technology (NBN) Skill shortages Australian Workforce Development Funds Reforms to VET in each state and territory The shift to an entitlement model and training market Different governance and funding arrangements in each state and territory NSW, Queensland & Victoria each seeking recognition under NPA, for share of $1.75B reward payments Victorian back down with additional $200M latest signal of change Queensland proposal to push ahead with governance / TAFE reform NSW Treasury reference of Entitlement pricing to iPART NSW

3. Issues facing VET (cont.) An interconnected tertiary environment Most TAFE Institutes are now Higher Education Providers or in some form of partnership/alliance with a university Limited Commonwealth funding to support students studying HE in VET available (currently only available to Holmesglen and NMIT) The international education market Australia in the Asian Century Student visas & internships for those partner countries working with TAFE Green Skills Importance of VET in developing green skills for the future – international benchmarking Quality provision New level of regulatory and registration context (NSSC) Referral of powers by some States to the Commonwealth resulting in varying regulatory arrangements across jurisdictions.

4. Issues facing VET (cont.) An interconnected tertiary environment Most TAFE Institutes are now Higher Education Providers or in some form of partnership/alliance with a university Limited Commonwealth funding to support students studying HE in VET available (currently only available to Holmesglen and NMIT) The international education market Australia in the Asian Century Student visas Green Skills Importance of VET in developing green skills for the future Quality provision A changing regulatory and registration context (ASQA regulating VET, TEQSA regulating Higher Education) Current review of quality standards for VET and HE providers. Referral of powers by some States to the Commonwealth resulting in varying regulatory arrangements across jurisdictions.

5. Issues facing VET (cont.) Apprenticeships in crisis Dwindling consistency in completions in key trades MBA/HIA epressing serious shortages into the future Industrial impasse (unions and employer groups) Progress of AWPA after ‘National Workforce Development Strategy’ Investment buy-in by Government for raising the levels of qualifications in the workforce ? Greater alignment between business improvement and skills programs and between regional employment and workforce development Incorporating work integrated learning into educational programs.

6. TDA’s response 1. TDA Strategic Plan Strong focus on mentoring role TAFE supporting increased workforce participation, TAFE & industry partnerships, and higher education in TAFE 2. Suite of policy position papers Key policy issues – Emphasis on leading with quality 3. National and international networks Benchmarking and collaboration 4. New member services National Scholarships Foundation

7. 1. TDA Strategic Plan 2013-15 Lead with innovative advocacy in the new VET environment 1. Key objectives: Advocacy – a sustainable, quality TAFE sector in a competitive training market Leadership in policy development -- Position Papers Launch of new services for members ~ TDA National Scholarships Foundation 2. Strategies:  Survey members, consumers and industry Completed Victorian (2010, 2011) and Queensland surveys (2012) Survey of 61 TAFE CEOs, senior executives Mentor the ‘game plan’ change for TAFE Industry perspectives Local approaches to enhance TAFE/ industry partnerships Bilateral work between TDA /state-based business networks Innovation Member services Tuition Assurance Scheme Scholarship Foundation

8. Strategic Plan – Paradigm change 2008-092013-14 GOVERNANCE Victoria & ACT individual governance GOVERNANCE All TAFEs will move to statutory authorities BRANDING Victoria individual approach to governance BRANDING All TAFEs migrating to individual branding, with TAFE theme remaining in several states PARTNERSHIPS Limited number of Victorian TAFEs PARTNERSHIPS Widespread approach – Targets industry funded, university articulation TERTIARY 5 Victorian TERTIARY 23 TAFEs now registered HEP providers INTERNATIONAL Victoria and some Western Australia INTERNATIONAL 25 TAFEs -- 40,000 international students onshore, 45,000 offshore (in China alone)

9. Survey on TAFE - findings General community perceptions in QLD – sample 1,000 Almost 80% of Queenslanders – especially employers - regard TAFE as an extremely important community asset; one worth preserving regardless of cost 83 % agree that TAFE plays an essential role in developing a highly skilled and productive workforce in Queensland 78% agree that TAFE provides a quality standard of education Over 80% agree that TAFE courses of high quality courses and are reliable and trustworthy 74% agree that TAFE is important for disadvantaged groups within the community to obtain the skills they need 84% agree that TAFE is critical for regional areas 9

10. Perceptions of Employers and Managers Employers generally agree with the general community In questions for employers or managers only, we found: 63% agree that TAFE has the capability to address the skill needs of their businesses Over 70% agree that TAFE works closely with local industry Over 60% would recommend a TAFE qualification to others in industry Over 60% regard TAFE courses as innovative The majority of the sample were in small business. 10

11. 2. TDA Position Papers Innovative industry partnerships Paper produced by Dr John Mitchell ‘Reinventing service delivery’ consisting of six case studies of exemplars of innovative partnerships between TAFE and industry Launch of the publication was held in late Feb 2013 Publication will be launched in QLD, VIC and WA in coming months Skill shortages – Apprenticeships & Traineeships Record evidence of emerging issues/shortages Record duplication and confusion (AWPA) Lack of alignment with Employment Services & RTOs TAFE in the interconnected tertiary sector Paper outlining the role and value of TAFE in tertiary education Accompanying document containing 6 cases studies of students who have completed or are undertaking a degree in TAFE who may not have had the opportunity otherwise. Both to be published in May, 2013

12. 2. TDA Position Papers (cont.) The role of TAFE in skills development Paper forthcoming in response to reforms in each state and territory and the recent release of ‘Future Focus, 3012 National Workforce Development Strategy’ produced by the Australian Workforce and Productivity Agency. Quality provision in VET Paper forthcoming in response to the NSSC’s discussion paper on new quality standards for VET released last week, ‘Improving vocational education and training – the case for a new system’. The role of TAFE in developing green skills Case studies of embedding sustainability in training programs A survey of 61 TAFEs indicating: 83% of Institutes have a current sustainability plan 81% Institutes cited active programs in sustainability with 30% of courses including sustainability competencies. Several TAFE Institutes, mostly regionally-based, having strong community, regional and industry partnerships in sustainability.

13. 3. TDA Networks National - Regional Australia network for TAFE - TAFE higher education professional network Representation from Victoria, NSW, SA, WA, QLD and ACT International International Higher Education in VET Network USA – Community College Baccalaureate Association UK – Association of Colleges (AoC) International Green Skills Network Commissioned to create East Asia Summit 18-nation TVET network Mentor & joint leadership programmes with China and Indonesia polytechnics UNESCO UNIVOC regional agency

14. Contacts Martin Riordan – CEO TAFE Directors Australia Email: mriordan@tda.edu.aumriordan@tda.edu.au Telephone: + 61 2 9217 3180 Facsimile: + 61 2 9281 7335| THANK YOU