Transcript Slide 1

TAFE CAMPAIGN 2005
May 2005
Michaela Kronemann
Federal Research Officer
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Contents:
•
•
•
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The Commonwealth role in funding VET
Impact of the resource pressures
A new federalism: the federal agenda
Future funding & federal conditions
AEU campaign 2005
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Funding Overview
Governments provide 78.3% of recurrent
revenue for publicly funded VET.
The Commonwealth provides:
States
recurrent
Comm.
recurrent
•
•
Comm. capital
States
capital
28.7% of recurrent
government funding
61% of capital funding.
The states and territories
continue to provide the bulk of recurrent funding.
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
ANTA Agreements- funding
1993-97
An initial $100 million and $70m per year (cumulative)
to fund enrolment growth. States required to maintain
effort.
1996-97
Budget cuts reduced funding base by a cumulative
1998-00
Growth funding abolished, Commonwealth funding
cost of
2001-03
$240m. Labour market programs slashed.
freeze. Growth through efficiencies: estimated
loss of growth funding - $377m.
Limited growth funding restored, states required to
match. Commonwealth input $230m over 3 years,
states sought $900m.
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Failed negotiations for 2004-06
• Commonwealth offer – no additional growth funds –
only indexation of 2003 amount, $119.5 million for
Welfare Reform Measures from previous budgets.
• States argue they need $348m more.
• Minister Nelson imposes penalties for rejecting offer.
• States reluctantly sign up to a 12 month rollover for
2004:
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No indexation of growth funds
•
Comm. direct purchase of 7,500 places ($20.5m)
•
Indexation of base funding, terms and conditions
apply (eg matching growth funds)
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Commonwealth funding for VET
COMMONWEALTH CONTRIBUTION TO
VET/TAFE REVENUE (2003 prices)
NCVER Financial Inf ormat ion 2003 & earlier, ABS 6401.0
1150.0
1113.5
1040.6
1100.0
1010.8
1050.0
951.7
1000.0
991.9
964.0
934.9
950.0
900.0
850.0
800.0
1997
1998
1999
2000
2001
2002
2003
C’wealth funding is 6.5% less than in 1997
(CPI adjusted).
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
REAL CHANGE IN VET/TAFE REVENUE
(1997 = 100)
110.0
105.0
100.0
103.2
100.0
103.8
95.0
90.0
93.5
89.1
90.8
86.6
85.5
85.0
84.0
80.0
NCVER Financial Information 2002
& earlier, ABS 6401.0
75.0
1997
1998
1999
Commonw ealth
2000
State
2001
2002
Total Revenue
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
2003
Proportion of revenue by source
Ancillary Trading
& Other
Student Fees and
Charges
The proportion of
total operating
revenue coming
from the
Commonwealth
has fallen from
25% to 22.5%.
5.9
5.5
4.3
4.1
Fee for Service
2003
1997
11.5
9.3
Commonwealth
Government
22.5
25.0
State
Government
0
NCVER Financial Information 2003 and earlier
55.8
56.1
10
20
30
per cent
40
50
The states’
contribution has
fallen from 56.1%
to 55.8%.
60
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
VET system growth
Since 1997:
• Enrolments increased by 272,100, or
18.8%
• Annual hours increased by 78.1
million hours, or 26.8%
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
REAL CONTRIBUTION TO VET COSTS
PER STUDENT HOUR ($ per AHC)
Change (%):
8.0
7.0
Comm -26.3%
$8.57
6.0
$6.98
States -18.6%
5.0
4.0
3.0
2.0
$3.82
$2.87
$2.81
1.0
$2.71
Other
-5.8%
Total
-18.1%
Comm
0.0
1997
2003
State
Other
NCVER Financial Information 2003 & earlier,
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
ABS 6401.0
Share of funding for Non-TAFE Providers
$58.6m in 1995 $316m in 2003
12.0
• 79.9 %
increase
since 1997
10.0
per cent
8.0
• Share fell
from 6.7%
in 2002 to
6.5% in
2003
6.0
4.0
2.0
0.0
NSW
VIC
QLD
WA
SA
TAS
NT
ACT
AUST
1997
3.4
3.8
8.1
4.2
6.2
2.7
5.2
4.3
4.4
2003
3.7
7.9
9.9
7.3
6.8
5.1
7.3
11.0
6.5
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Unmet Demand for TAFE
TAFE student places:
1998
44,400
2000
48,700
2001
40,100
2002
44,100
2003
45,900
Other :
15,600
17,000
16,500
10,600
9,500
Total VET:
60,000
65,700
56,600
54,700
55,400
Unmet demand for TAFE is increasing.
68% of those unable to gain a place in post school
education and training sought access to VET.
Unmet demand for TAFE was 3.5% of all those who did
participate in TAFE in 2003.
ANTA 2004
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Impact of the Resource Pressures

Concerns re quality: Schofield, 2000 Senate report.

Higher class sizes, rationalisation and reductions in
TAFE courses, cuts to student services,
amalgamations and closures and colleges facing
significant financial difficulties.

The overall failure/withdrawal rate for students has
increased from 13.7% in 1997 to 15.6% in 2003.
NCVER 2004)

Growth in precarious employment (but some recent
moves back to more secure employment).

Increased workload and stress for teachers: unpaid
overtime equivalent to 6500 teachers.
(Kronemann 2001)
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Skills shortages
• Unions and employers concerned: ACTU estimate a
shortfall of 130,000 skilled workers over 5 years.
• Growth in new apprenticeships has been in areas like
retail rather than trades.
• Industry-led, employer-subsidy driven approach has
failed to address skills shortages.
• Complex causes – and solutions. (ACTU 6 pt plan.)
• Skills shortages are both real and a rationale for
deregulatory ‘solutions’.
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
The Coalition agenda
in brief:
• new federalism
more control over state & territory activities
through funding conditions and direct
funding
• Privatisation
user choice, tendering, third party access,
encouraging privatisation
• Industrial relations
attacks on worker rights and role of unions
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Election announcements
(skills shortages skills shortages skills shortages skills shortages…)
• Institute for Trades Skills Excellence
• Australian Technical Colleges
• Some specific measures re apprentices: tool
kits, extension of Youth Allowance, pre-voc
places in Group Training Companies,
scholarships etc.
• post election:
Abolition of ANTA
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Australian Technical Colleges
• 24 ATCs by 2008, $349m over 4 years
• Up to 300 select-entry students or 7,200 total
• Years 11& 12, academic and trade course, & schoolbased New Apprenticeship
• Need to be registered as schools and RTOs (or
partnership arrangements)
• Industry led and endorsed, industry Chair of
Governing Council
• Run autonomously by Principal, offer performance
pay and AWAs
• Tendering by consortia
• States & territories required to provide school
funding.
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Abolition of ANTA
• Transfer of responsibility to DEST by July 2005
• New Ministerial Council for VE (VE MINCO)
• Replacement of ANTA Board advice with new
National Industry Skills Committee to provide advice
to VE MINCO.
• New multi-lateral funding agreement with the states
– national objectives, funding (and conditions).
• Bilateral agreements re performance levels and
implementation of national priorities, can include
additional conditions.
• New legislation needed to enable new structures and
funding to proceed.
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Federal funding offer 2005-08
Reported:
• An ‘additional’ $174.7m over 3.5 years
• Basically redirected money – re-inclusion of VET
Priority Places Program (put out to direct tender last
year) & $3.8m p.a. from Indigenous Strategic Initiatives
Program, plus indexation for 2004 and 2005.
• States required to match funds to deliver up to
116,400 new places by 2008– trades, skills
shortages (eg child care), mature age, people
with a disability.
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Federal conditions on funding ‘offer’
• Greater autonomy for Institutes, with AWAs and
performance pay
• User Choice reform and expansion
• Implementation of ‘true’ competency based training
by removing impediments in state based awards
• Third party access to facilities that get Comm.
Infrastructure funding
• Adherence to the National Construction Code &
Implementation Guidelines
• Development of a national fees policy to limit fee
increases
• Joint funding pool for Indigenous Australians ($3.8m
matched by states)
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
April MINCO meeting
• ANTA MINCO met 15 April, failed to agree re future
funding arrangements.
• Agreement to continue current funding until end
2005 (legislation required to establish new
structures).
• Further meeting late May/early June (now 8 June).
• State & territory communiqué calling for increased
investment in training & concern re the conditions.
• Department officers to report back to next MINCO re
impact of Comm. proposals on availability and
quality of training before an agreement is signed.
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Federal Budget
• Federal budget on 10 May funds election
commitments re New Apprentices etc as expected.
Funding for Welfare to work measures.
• ‘Additional’ funding offer for 2005-2008 now
increased from $174.7m to $215m as a result of
‘welfare to work’ measures –
$39m for 2006-08. (bulk is still Priority Places
funding returned to states and indexation).
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Legislation ‘bombshell’
• On 11 May, Government introduces Skilling
Australia's Workforce Bill 2005 – lays out
funding levels and the conditions which
states and territories must agree to in
order to get VET funding.
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Conditions on federal VET funding (1)
Conditions on funding include:
• Offer AWAs to all staff.
• Give more authority to Directors for recruitment and
remuneration.
• Have performance management systems including
performance pay and managing underperformance.
• Neither encourage or discourage union membership.
• Change practices and policies except where directly
inconsistent with a current EBA/Award.
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
Conditions on federal VET funding (2)
• Increase entrepreneurialism & commercial activities.
• Fully comply with User Choice.
• Increase proportion of New Apprenticeships eligible for
User Choice funding by 5% per year.
• Participate in establishing a national unit price band for
each New Apprenticeship.
• Remove requirements in awards for time-based training.
• Make TAFE facilities available to third parties on a
commercial basis.
• Have Annual State VET Plan approved by Federal
Minister.
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
No federal funding after July 2005?
• The Commonwealth provides 29% of recurrent
funding. (That’s about 450,500 student places).
• The legislation would allocate $605.8 million for July
– December 2005.
• States and territories will cease to receive
funding from the Commonwealth from July
2005 unless they agree in writing to the
conditions set out in the Government’s
legislation if it is passed.
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006
National Campaign 2005
What you can do:
• Support AEU campaign activities.
• Help build activism and recruitment.
• Keep Federal politicians informed about TAFE
issues and concerns: invite them to your
Institute.
• Inform local employers and unions about loss
of course offerings & student waiting lists.
• Inform your local community, industries and
students about TAFE issues.
• Keep informed.
www. aeufederal.org.au
Say ‘NO!’
to AWAs
Authorised and published on the internet by P. Forward, AEU Federal TAFE Secretary, 120 Clarendon Street Southbank VIC 3006