1. CEET Conference 2012 Social Inclusion and VET in a Patchwork Economy Virginia Simmons A.O.

2. Overview Introduction Social Inclusion - the Tasmanian Context The Challenges of Tasmania’s Economy Background to the Review of Public Sector VET in Tasmania Strategies for Social Inclusion

3. 1. INTRODUCTION Tasmania is a small, beautiful and remote part of the world with unique features and rich natural resources that the world increasingly values Tasmania’s Economic Development Plan

4. Social Inclusion Since 2007 the Australian Government has had an explicit social inclusion policy to: improve the quality of essential government services, particularly in areas such as education and training, employment, health and housing ensure that those services work more effectively in the most disadvantaged communities develop partnerships between governments, businesses, not- for-profit organisations and the community and engage disadvantaged communities to help find solutions to address their particular needs Labour force participation is seen as key to improving social inclusion

5. National VET Policy The Parties are committed to increasing the level of workforce participation and providing the support an individual experiencing disadvantage or disengagement (including young people), may need towards gaining skills that lead to employment or other meaningful engagement in society. This includes consideration of strategies and performance indicators to ensure the needs of students with additional needs, including those with disability, are addressed. Critical to achieving this are partnerships between enterprises, employment service providers, community and government as well as better integration of services at the local level. National Agreement for Skills and Workforce Development Clause 4

6. National VET Policy The Parties are committed to addressing the issue of social inclusion, including responding to Indigenous disadvantage. That commitment is embodied in the objectives and outcomes of this agreement. In addition, the Parties have agreed other objectives and outcomes – for example, in the National Indigenous Reform Agreement – which the Parties will pursue through the broadest possible spectrum of government action. Consequently, this agreement will be implemented consistently with the objectives and outcomes of all National Agreements and National Partnerships entered into by the Parties. National Agreement for Skills and Workforce Development Clause 5

7. “TAFE is just like the old SEC” Senior Victorian bureaucrat “TAFE is a sheltered workshop” Senior South Australian official Senior industry leader “Wake up! The days of the professional educator in VET are over” Social Inclusion and TAFE There is currently considerable despondency among TAFE institutes nationally about the future of public sector VET, including its capacity to contribute to social inclusion. PRIVATISATION BUDGET CUTS COMPROMISED QUALITY SEC – State Electricity Commission TAFE is ‘just another provider’, with no particular social role to fulfil.

8. 2. SOCIAL INCLUSION – THE TASMANIAN CONTEXT

9. Socio-Economic Status DECILEACTNSWNTQLDSATASVICWAGRAND TOTAL 10.1%6.0%0.2%5.6%12.8% 21.7% 4.9%3.7%6.2% 20.1%7.9%3.3%9.7%13.2% 18.6% 7.5%5.1%8.4% 30.0%9.1%4.9%7.2%12.4%9.3%7.7%6.8%8.2% 40.0%7.4%1.7%8.2%9.7%8.1%7.2%6.6%7.5% 50.0%6.9%16.1%6.8%6.2%6.8%9.5%7.5% 60.9%7.7%10.2%7.4%6.8%5.8%7.3%11.1%7.7% 71.0%7.8%6.6%10.4%10.6%8.0%10.1%12.1%9.4% 86.0%10.4%25.8%17.4%13.4%11.3% 11.2%12.3% 943.2%11.6%22.3%15.5%8.6%6.9%18.6%16.4%14.8% 1048.6%25.3%8.9%11.8%6.4% 3.6% 16.0%19.5%18.1% TOTAL100% PROPORTION OF USUAL RESIDENT POPULATION IN EACH SOCI-ECONOMIC DECILE BY STATE Source: Skills Tasmania Analysis based on 2006 Census Data ABS: Cat 2033.055.001

10. Educational Attainment Source: ABS

11. Qualifications State/Territory of Residence15-64 age group New South Wales70.8 Victoria71.0 Queensland68.9 South Australia65.6 Western Australia98.6 Tasmania60.6 Northern Territory65.2 A.C.T.81.9 AUSTRALIA69.8 PROPORTION OF PERSONS WITH YEAR 12 COMPLETION OR CERTIFICATE II LEVEL OR ABOVE Source: Table 1.8, Education and Work, May 2008; ABS: Cat 6227.0

12. 3. THE CHALLENGES OF TASMANIA’S ECONOMY

13. Labour Market Participation Tasmania’s population  500,000 Tasmania’s working age population >15yrs  400,000 150,000 not in labour market 250,000 in labour market = those in work or looking for work Not participating = 40% Participating = 60% Participating = 60% Who are these 150,000 not participating ?  20,000 unemployed  20,000 unemployed  230,000 employed  50,000 over 70 yrs  45,000 domestic duties  20,000 students  24,000 marginally attached  6,000 interested in work at a later time 

14. Unemployment Rates Labour Force RegionUnemployment Rate Australian Capital Territory3.6 Western Australia3.9 Northern Territory4.2 New South Wales4.8 Victoria5.6 South Australia5.7 Queensland5.9 Tasmania6.8 Source : ABS Labour Force Survey. Seasonally adjusted data except for Northern Territory and the Australian Capital Territory which are trend data. AUGUST 2012

15. Labour Productivity * All years expressed in 2009-10 price levels Source: estimated from ABS labour Force 6291.0 and State Accounts 5220.0

16. 4. BACKGROUND TO THE REVIEW OF PUBLIC SECTOR VET IN TASMANIA

17. The Review In 2009, the former ‘TAFE Tasmania’ split into two entities, each with different missions and functions In a small state and for other reasons, this had mixed results: ─some notable examples of success and innovation ─mostly confusion, fragmentation, waste, unproductive competition, patchy quality and stakeholder disengagement A review was commissioned by the Minister for Education and Skills in late 2011 The Report was handed down in April 2012 Implementation is currently underway

18. Approach Outcomes from broad-based consultation about what will work best for Tasmanian circumstances ─20+ consultations with c.a. 300 individuals ─41 organisational and 32 individual submissions AND Ensuring Tasmania is positioned in the national context: – National Partnership Agreement ($39.1m COAG funding at stake over 4 years) – the emerging tertiary landscape

19. Outcomes/Issues Renewed image and identity for VET in Tasmania Vision for the future of public sector VET Reform of the legislative framework Single entity public provider Formalised network of secondary level RTOs Strategic partnership with UTas: one TAFE/one university state Clear policy framework for adult and community education Strategies to ensure sustainable provision of VET in rural and remote areas

20. 5. STRATEGIES FOR SOCIAL INCLUSION

21. Priorities Improved employment / labour market participation / productivity Pathways to Higher Qualifications Provision in rural and remote areas

22. TasTAFE INDUSTRY BODIES Participation/ Attainment Productivity/ Work Readiness INDIVIDUAL ENTERPRISES & WORKPLACES COLLEGES/ SCHOOLS HIGHER EDUCATION (UTas) ADULT & COMMUNITY EDUCATION PRIVATE RTOs Formal Network R31-38 Strategic Partnership R39-42 Industry Advisory Bodies/ Mentors Clear Policy Framework R43-48 Coordination P.35 TasTAFE: Relationships

23. Vision for Public Sector VET Recommendation 3 The Tasmanian Government, as owner of the public VET system, consider articulating a vision for its future that is communicated to the Tasmanian community

24. Legislative Framework Recommendation 4 All aspects of VET governance, delivery, administration and co-ordination be covered by a single, contemporary and aspirational piece of legislation and the objects and provisions of the legislation be written so as to ensure all components of public sector VET are working towards a common goal.

25. Rural & Remote Areas Recommendation 49 Measures be developed to ensure a sustainable level of provision in rural and remote areas consistent with demand and communicated to the communities concerned.

26. VET in Schools/Colleges Recommendation 31/34 DOE host a structure to enable ongoing liaison between a formalised network of providers of VET in schools/colleges and the new single entity …..

27. VET & Higher Education Recommendation 39 A forum be created to enable the new entity and University of Tasmania to develop a formal, multi-dimensional and strategic partnership with the aim of becoming a model for Australia.

28. VET Act: Draft Objects The objects of this Act are to ensure that Tasmania has a system of vocational education and training and other skills development that: 1.builds Tasmania’s future economic and social prosperity 2.ensures Tasmania has a highly skilled workforce that meets the current and future skill needs of Tasmanian businesses, industries, communities and individuals 3.is directed by government policy informed by industry advice about training required to meet current and future skills needs of the Tasmanian economy 4.provides individuals with skills and qualifications necessary to commence and continue in the workforce and to participate society

29. Draft Objects (contd) 5.develops skills of employers and employees, including apprentices and trainees, that will increase productivity 6.provides high quality, innovative and nationally recognised vocational education and training, delivered through a wide range of delivery models 7.supports learners throughout their working life to move between schools-based education and training, higher education, other education, vocational education and training and employment 8.works collaboratively with other education sectors and in partnership with employers 9.ensures that public training providers are responsive to the needs of individuals, employers and industry, and operate effectively and efficiently in a managed training market.

30. TasTAFE: Draft Functions (a) to provide quality vocational education and training (including to entitled persons) leading to nationally recognised skills and qualifications (b) to provide foundation skills training leading to accredited qualifications (c) to provide other forms of accredited education and training as approved from time to time by the Minister (d) to develop, in consultation with industry, models for the provision of vocational education and training to employed persons for the purposes of developing skills including addressing skills shortages in the workforce

31. TasTAFE: Draft Functions (e) to collaborate with employers in the development of skills needed to improve workforce productivity and to advance the Tasmanian economy (f) to provide vocational education and training in areas of government policy or priority for delivery in rural and remote communities or where there is demand that is less effectively catered for by other training providers (g) to provide services for students and employers from the working age population in relation to the provision of education and training for the purposes of developing skills in the current and future workforce

32. TasTAFE: Draft Functions (h) to consult with and where practicable enter into partnerships with other education providers to deliver vocational education and training (i) to collaborate with schools-based education and training, higher education providers and in partnership with employers to support learners to move through education and training to employment (j)to advise the Minister of any significant development relating to the provision of vocational education and training (k)deliver any other function of TasTAFE under this or any other Act.

33. Summary Improved quality of essential government services, particularly education training and employment Ensuring these services work effectively in disadvantaged communities Developing partnerships to find solutions to address particular needs Improved labour market participation ─A Vision for public sector VET ─New legislative framework ─Strategies to maintain provision in rural and remote areas ─Formal structure for ongoing liaison with network of secondary level RTOs ─Partnership with Higher Education ─VET Act draft Objects ─TasTAFE draft functions Australian Government policy on social inclusion emphasises: Tasmania’s reforms reflect this policy through: