Transcript Slide 1

1.
NATIONAL VET AGENDA
2.
INTERSTATE EXPERIENCE
3.
NSW CONTEXT
4.
THE CAMPAIGN
NATIONAL VET AGENDA

In April 2012, all states and territories signed up to the
National Agreement for Skills and Workforce Development
(NASWD)

Agreement has meant that all states and territories are
developing policies that fundamentally change how
Vocational Education and Training (VET) is delivered in
Australia.

The underlying fundamental principle that underpins these
changes is that the VET sector must open up to market
forces.
 Already
leading market shift away from public
sector TAFE, and towards a rapidly expanding
private for-profit sector.
The
intention is to transfer the cost of VET
funding from a government responsibility to the
individual.

Interstate evidence has shown the private forprofit VET sector is of dubious quality, operating in
a policy setting which advantages low quality, low
cost training

...more on that later
a national ‘entitlement’ to training only for first
qualification up to Certificate III, available at
public or private providers;
 access to income contingent student loans
(ICLs) at the diploma and advanced diploma
level;
 undermine of community service obligations
 making all government funding contestable


Between 2007 and 2011, nationally, TAFE system publicly funded
enrolments dropped from 75.0% to 59.6%

During the same period the enrolment of publicly funded
enrolments in private providers grew from 14.5% to 33%

In NSW, for the same period, the figures for TAFE show a decline
from 76% to 66.1% with the growth in publicly funded
enrolments in private providers growing from 10.4% to 24.0%

Evidence presented to a recent Senate Budget
Estimates Hearing by the chief of the Australian
Skills Quality Authority (ASQA) showed that the
regulatory body was inadequately resourced to
monitor the quality of Registered Training
Organisations (RTOs)

About 5000 RTOs nationwide...and growing daily

The Monash University Centre for the Economics of
Education and Training (CEET) Report, TAFE Funding
and the Education Targets, (November 2011):
Government recurrent expenditure per hour of
training declined by 15.4% between 2004 and 2009 –
part of a longer term trend that saw funding per student
contact hour in VET decline by about 25.7% from 1997.

VET is the only sector, nationally, to have a fall in funding
during this period (1999-2011).
1999-2011 Sector comparisons
Student enrolment growth
& relative funding
2000
1800
1600
1400
1200
1000
800
600
400
200
0
2003
2004
2005
2006
Students
2007
2008
Relative funding
2009
2010
2011

More than 1.06 million students were enrolled in TAFE in 2012

People attend TAFE throughout their whole working lives:
550 000 were aged 15‐24
440 000 aged between 25‐44
260 000 were over 45

TAFE provides accessible education and training for all Australians:
65 000 Indigenous students
80 000 students with a disability
190 000 students from a non‐English speaking background

390 000 apprentices & trainees undertaking off‐the‐job training while
enrolled at TAFE

TAFE is providing an important pathway to skills and employment for young
Australians
One in three of 15‐19 year olds are at TAFE
One in five 20‐24 year olds are at TAFE

Estimated* - $1 invested in NSW TAFE, it returns $6.40 to NSW economy
* Allen Consulting Group
INTERSTATE EXPERIENCE

In 2011, SA TAFE market share was 74%,
private providers 26%

In 2012, SA TAFE market share was 62%,
private provider share 38%

Huge growth in private RTOs accessing
government funding

Huge increase in student fees and charges

Huge shift in the VET “market”:
In 2008 – TAFE had 75% market share,
private RTOs 14%
In 2012 – TAFE had 44% market share,
private RTOs 46%
18

TAFE Queensland will be stripped of all assets, which
will be transferred to a specialist commercial
management entity. The assets will then be
“rationalised” and made available for use by private and
public RTOs

The Queensland reforms go further than SA and Victoria
– TAFE was left in control of its assets in those states.

TAFEs will be handicapped and positioned at a
commercial disadvantage. Private providers own their
own assets, are not obliged to share facilities with
competitors, even where they have purchased their
facilities from government funds.
NSW CONTEXT

In 2012, the NSW Government announced a $1.7 billion cut to education
in NSW, which for TAFE included an estimated $80 million cut

This follows the $54 million reduction to the state training budget in
June 2012

Loss of 800 jobs in TAFE over four years, largely due to the imposition of
the 1.2% Labour Expense Cap

Course delivery will be rationalised within Institutes and some courses will
be cut altogether

May 2013 NSW Budget showed an additional cut of $10 million

NSW Government’s response to the National Agreement has
been the development of the Smart and Skilled policy to be fully
introduced in July 2014

Key features of Smart and Skilled will be an ‘entitlement’ to
training up to Certificate III, with a proposal to expand this
‘entitlement’ to higher level qualifications

Introduction of income contingent loans for Diplomas and
Advanced Diplomas

Availability of ‘entitlement’ or subsidised training is restricted to
the first qualification in NSW.

“…enable public providers to operate
effectively in an environment of greater
competition, recognising their important
function in servicing the training needs of
industry, regions and local communities, and
their role that spans high level training and
workforce development for industries and
improved skill and job outcomes for
disadvantaged learners and communities.”

[Clause 25 (d) 2012 NASWD]

NSW cuts to TAFE are clearly in breach
of the Agreement as they threaten the
viability of TAFE.

The Independent Pricing and
Regulatory Tribunal (IPART), will set the
‘price’ that TAFE and all other providers
will have to offer for VET courses.
THE CAMPAIGN
Join the campaign at
stoptafecuts.com.au
Like us on Facebook at
www.facebook.com/stoptafecuts
Follow us on Twitter at
@TAFECampaign
stoptafecuts.com.au