Transcript The Implementation of the SETA Grant Regulations and their

THE IMPLEMENTATION OF THE
SETA GRANT REGULATIONS AND
THEIR IMPACT ON THE PRIVATE
PROVISION OF EDUCATION,
TRAINING AND DEVELOPMENT IN
SOUTH AFRICA
Rick Edmonds
APPETD
‘Legislative’ context
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Constitution of the Republic of South Africa, 1996
Education White Paper 3, 1997
Higher Education Act, 1997
Skills Development Levies Act, 1999
FET Colleges Act, 2006
National Development Plan 2030, 2013
White Paper for Post-School E & T, 2013
Guidelines on the Implementation of the SETA
Grant Regulations, 2013
• Twenty Year Review, 2014
Constitution
Preamble
• Improve the quality of life of all citizens…;
Education
29. (3) Everyone has the right to establish …
independent educational institutions that (c) maintain standards …
(4) … state subsidies …
White Paper 3
2.55 … private provision plays an important
role in expanding access to higher education
Higher Education Act
51 Registration of PHEIs
(a) …registered … as a private higher education
institution in terms of this Act;
FET Colleges Act
28 Registration of private college
(b) registered … as a private college
in terms of this Act.
Skills Development Levies Act
• Employers must pay 1% of all their workers’ pay
to the skills development levy every month.
• SETAs get 80% of the money
• Employers get back some of the money back
from SETAs as a refund if they train their
workers.
• The Skills Development Fund gets 20% of the
money, which is used for special training, etc.
National Development Plan
Overview of the current post-school system
Private providers are playing an increasingly
important role …
A large number … funded through the skills levy
HESA proposal … Next Generation of Academics
• Increase the throughput rate … private and
public higher education institutions …
White Paper for Post-School E & T
5. Private Education Provision
• Private post-school institutions help to meet
the rising demand …
• … funded by … SETA training budgets ...
• Private institutions play a significant role …
private FET college sector …; in 2009 it
constituted 20.5% … over 20 years, 537 362
students achieved qualifications …
White Paper for Post-School E & T
Minister’s Preface
… diverse range of educational institutions and
institutional types … cater for the millions …
Executive Summary
SETA funding of training will come from the
discretionary grant. Providers could be public,
private or even the employers’ …
… outcomes from the changes are yet to be felt
NSFAS
Approximately 100,000 students are enrolled at
PHEIs and PFETs …
NSFAS discriminates against poor students … at
private institutions (eg CIDA)
Revised Grant Regulations exacerbates this
discrimination
‘new’ SETA Grant Regulations
2. General problem statement
… grant disbursement … disproportionately
involves private education and training providers …
4.1 Mandatory grants
… 20% grant for submitting a WSP and ATR …
4.2 Discretionary grants
… 80% of funds to be spent on PIVOTAL
programmes that address scarce and critical skills
Twenty Year Review, 2014
3.2.3.1 Education and skills
• unemployed people completing learnerships …
22 000 per annum … challenges in placing
learners in … sustainable employment
• SETAs to spend more on substantive courses …
at public colleges and universities
• Only 4% of the 2007 intake of FET colleges
completed their qualifications in 2009.
• Youth unemployment … was 44% in
2013 … 2.6 million.
Comment
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Implementation timeline
Implications - APPETD
Concerns - SEIFSA
Problems – Skills Portal
Confusion - ASDFSA
Disturbing Implementation Timeline
26 Nov 2012 GCIS: DHET to publish Grant Regulations
02 Dec 2012 DHET announces New SETA Grant Regs
03 Dec 2012 New SETA Grant Regulations gazetted
11 Dec 2012 Special SETA CEO'S forum: SETA Grant Regs
10 Jan 2013 DHET advised SETAs to align Strategic Plans
13 Jan 2013 ETDP SETA new Grants Disbursement Policy
15 Jan 2013 SETAS submit draft aligned Strategic Plans
30 Jan 2013 SETAS submit Approved Strategic Plans
01 Apr 2013 SETA Grant Regs Implementation date
Implications - APPETD
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Statements & gazettes while interested parties on leave
Stakeholders thus unaware of the new regulations
2012: < 1,000 employers submitted WSPs to ETDP SETA
2/3 of levy-paying employers too small to submit WSPs
NGOs & exempt employers do not submit WSPs
Therefore skills data is negatively impacted & unreliable
80% of discretionary grants now to PIVOTAL programme
Unemployed youth access to skills training limited
Participation by employers will reduce
Implications – APPETD (contd)
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Public providers will become main grant beneficiaries
Levy-paying private providers will be further impacted
Mandatory grant reduced from 50% to 20%
Less incentive for levy-paying employers submit WSPs
Continued employer commitment to SD will be tested
Will result in fewer WSP, ATR and PP submissions
Critical data from Plans and Reports more unreliable
Private ETD providers will be impacted, some close
Further reduce levy payments from employers to SETA
Concerns - SEIFSA
• Substantial reduction in the mandatory grant to
employers
• Mandatory grants are important incentive for
companies to submit WSPs and ATPs
• Sector consistently demonstrates ongoing support for
skills development in line with national policy
• Counter-effect on the ability of companies to invest in
training, given the significant costs associated with
skills development
Problems – Skills Portal
• ICT sector concerned about definition of PIVOTAL …
training leading to qualifications or part-qualifications.
• Time taken to develop innovative IT qualifications via
QCTO: by the time the qualification is developed, it
will be obsolete.
• How do small companies implement PIVOTAL
programmes?
• Absence of staff on formal programmes will require a
replacement - add 10% cost to the payroll
• Company can’t pass on the additional cost to the
customer.
Confusion - ASDFSA
• … no longer be possible to claim any refund for short
courses and programmes …
• Many small companies … not able to afford to
implement full learnerships and apprenticeships.
• …skills development is moving away from private
providers …
• Pivotal grant planning and reporting will continue to
grow at the expense of … unaccredited short courses
and skills programmes and also accredited skills
programmes and short courses
Summary
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Few employers now submit WSPs to ETDP SETA
Collected skills data is thus unreliable
80% discretionary grants now to PIVOTAL programmes
People needing scarce & critical skills will be hurt
Levy-paying private providers will be impacted
Mandatory grant reduced from 50% to 20%
Result in fewer WSP, ATR and PP submissions
Levy payments from employers further reduced
Reliability of skills data further compromised
THANK YOU