1. New models for Australia’s TAFE Institutes The relationship between VET and Higher Education: Policy, trends and the rise of private training Martin Riordan CEO, TAFE Directors Australia ‘Evolve Technologyone’ – Gold Coast Conference Wed 19 th February 2014

2. PART I – The role of TAFE Directors Australia Expansion of TAFE in higher education Toward review of tertiary models in Higher Education PART II -- COAG and the National Partnership Agreement on Skills and Workforce Development Australian state & territory reforms to TAFE governance Individual procurement opportunities My Presentation

3. TAFE Directors Australia represents 61 publicly funded TAFE institutions: National network of the 61 public provider (TAFEs) including six dual sector universities with TAFE divisions Established a network for the 10 TAFE HEPs, with Community Colleges in Canada & US, FE Colleges UK, Hong Kong THEi & Indonesia polytechnics Corporate Affiliates – TechnologyOne PART I The role of TAFE Directors Australia

4. Domestic undergraduate enrolments 2009-2012 Source: ACER (2013). Higher education growth, change and the role of private HEPs

5. Domestic undergraduate enrolments 2009-2012 Source: ACER (2013). Higher education growth, change and the role of private HEPs Non-Table A

6. YEARHE Diploma Associate Degree Bachelor Degree HE Grad. Cert/Dip MastersTOTAL 2009230351068 20134345683105 Higher Education qualifications in TAFE YEARNo. Registered Higher Education Providers No. DeliveringNo. Qualifications Offered 200910968 20131023105

7. Delivery Models Dual Sector Universities University/VET Networks Cross-sectoral dual awards Franchising Physical co-location Polytechnic partnerships Concurrent RTO/HEP status Guaranteed pathways Credit transfer/course mapping Cross sectoral electives Joint delivery Joint accreditation

8. TAFE institutes: have typically built degrees onto areas of vocational specialisation in conjunction with industry partners, often responding to skill shortages have experience in supporting industries/ enterprises to achieve their workforce development goals have a strong track record in working with students from low SES backgrounds (in fact, TAFE scores higher than HE on all equity benchmarks) have a very large foot print nationally, especially in regional and remote areas. Rationale

9. Inequitable government funding arrangements Students, often first in family in higher education, who need support in their studies Status – the perception that TAFE institutes are second-rate by comparison with universities Sustaining a tertiary orientation Workforce capability – scholarship. Challenges

10. ISSUESACTION TAFE governanceStatutory authority – out of state departments of education and training VET skill placesFunding for VET – DECREASES ‘Blurring’ between HE and VET sector boundaries PART II COAG NPA Agreement – Governance reforms

11. 1.Introduction of a national training entitlement and increased availability of income contingent loans 2.Phased in over two years across states and territories 3.Designed to develop a more open competitive public VET training market 4.improving participation and qualifications completions at higher levels 5.recognising the “important function of public providers “ in servicing the training needs of industries, regions and local communities” 6.assuring the quality of training delivery and outcomes COAG and the National Partnership Agreement (Effective 1 st July 2013)

14. Creation of a new statutory entity by the beginning of July 2013 The amalgamation of 13 institutes into 6 institutes, plus merger Central Queensland TAFE with CQU A fully contestable market by 1 July 2014 Student contributions will vary with ‘priority’ qualifications Strong quality benchmarks Differential funding for TAFE, but a work in progress. Government supports a ‘managed market’ IE priority skill qualifications will be nominated within Qld Entitlement Queensland

15. Skills for All is South Australia’s framework: All South Australians aged 16 and over are eligible for a government subsidised place. Certs I & II plus some critical skills qualifications (eg Cert III Electrotechnology) have no student fees, but above these levels fees apply and are very complex, based upon units of study not qualification being studied. Diploma and above qualifications have access to VET Fee Help income contingent loans A managed market, dedicated quality criterion for VET funding Pilot of Cert IV student loans South Australia

16. Under the Government’s Smart & Skilled policy changes commenced on 1 January 2013: Fees in TAFE rose by 9.5% and the student concession fee from $53 to $100 Reduction of around 800 positions over the next 4 years Referral to Independent & Pricing & Regulatory Tribunal (IPART) for proposed fees & charges (pending) Further cuts to the TAFE budget may be required to offset the implementation of the Gonski reforms. New South Wales

17. The Minister for Education, Adrian Piccoli in 2012: “The Government is receiving $2.5 billion less in revenue each year….along with the increasing cost of delivering education and training services across NSW by an average of 6% each year means general expenses in the education portfolio have outstripped growth in Government revenue and this is simply unsustainable”. A review of central support functions for TAFE NSW and efficiency improvements resulting in the reduction of around 800 positions over the next 4 years LATEST …. Delay in NSW entitlement to Jan 2015 New South Wales

18. WA Government supports a managed market for VET (Like Queensland and SA) A limited entitlement system from July 2014 Entitlement is envisaged to apply to areas of skills shortage eg engineering/nursing Only about 15% of government subsidised training is currently opened up to contestability WA government is “on record” in wanting to ensure only high quality contracted providers – remains outside ASQA Western Australia

19. Premier summarised some of the VET policy failures in an address to Parliament on 16 August 2012 “Enrolments had exploded for courses that were cheap to deliver and were profitable for providers but which did not deliver on the job. “When cash is offered (to students) for training courses to be undertaken, when iPads are offered and when there is a blow out in one year of $400,000, it has to be addressed. You cannot stay silent. You have to be responsible”. Victoria

20. 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 (does not apply to under 20 yr olds, foundation studies or apprenticeships) Uncapping of student fees Expansion of income contingent loans 5 bands of funding, resulting in 20% of SCH funding increase and 80% getting a decrease LATEST … $200M restructuring plan for Victorian TAFEs, pending Commonwealth approval of ‘transition plans’ under Commonwealth NPA Agreement – pending State election Victoria

21. Innes Willox, CEO, Australian Industry Group, said “It is of significant concern to industry that we won’t be able to then drive the skills pool in the future and kids in regional Australia will miss out on opportunities to gain skills and then get into the workforce” Response to State/Territory VET reforms -- Industry --

22. Response to State/Territory VET TDA advocacy campaign -- New governance for TAFEs – mentoring statutory authorities, CEO mentoring Online learning – Outsourcing for ICT Schools New enterprise investment into TAFEs (WA oil & gas ) Promote review of rigid Training Package curriculum UK-pilot to introduce new Enterprise Training for individual learners – building careers

23. Thank you… mriordan@tda.edu.au www.tda.edu.au mriordan@tda.edu.au www.tda.edu.au