Transcript Minister's presentation for MAV TAFE Forum

Refocusing VET in Victoria - Meeting with the Municipal Association Victoria
Hon. Peter Hall, Minister for Higher Education and Skills
Friday 31 August 2012
The changes that bring us here today are about Government’s
efforts to build a modern VET system that:
 Provides for as many people as possible to develop skills that lead to
jobs
 Gives people confidence in the training system – so they know their
qualification will lead to a better job or more certain future
 Gives businesses confidence that they can access the skilled people
they need
 Government is able to monitor – to ensure good quality training
 Supports priority areas and allocates resources where they are most
needed
 Is easier to navigate and understand
 Is responsive to Victoria’s changing employment needs
To understand the changes we need some background
 Prior to 2009: Government purchased a fixed
number of training places from a group of
approved providers – the great majority of training
delivered by TAFEs.
 From June 2009: Victoria commenced
implementation of an uncapped, market driven VET
system.
 From January 2011: A fully demand driven system
– underpinned by the Victorian Training Guarantee.
So what happened in response to these changes?
 The number of training providers contracted to
deliver government-subsidised training has risen
from around 250 (in 2008) to over 600 (in 2011).
 Training enrolments have increased by 44 per cent.
 Investment in training has risen from around $800
million (circa 2008) to in excess of $1.3 billion in
2011/12.
The costs of the system far outstripped what was provided for in previous
budgets, or the projected costs of the reforms
Goverment subsidised training, Victoria
$M
1500
Actual spending
2012-13 Budget
• Pre skills-reform
~ $800m a year
• Original provision 2011-12
~ $900m
1000
Original projections
• Expected expenditure 2011-12
$1.3bn
500
• Future provision 2012-13+
$1.2bn
0
2008-09
2009-10
2010-11
2011-12
2012-13
* Note: 2012-13 figures are estimates only. No definitive level of expenditure can be given due to the demand driven nature of the
system.
This extra investment achieved a lot that was good
 Opened opportunities for more people to gain
qualifications – in both regional and metropolitan
Victoria
 Initiated more innovative and responsive practice from
training providers to better meet the needs of industry
 Provided incentives for people to keep learning and
deepen their skills and qualifications
 Gave many unqualified and disadvantaged Victorians
the chance to gain their first qualifications
However, a number of challenges and opportunities
were also identified…
So what were some of the challenges? What went wrong?
 Too much training in some areas which contribute less to
employment, productivity and skill acquisition
(for example a 1,955% increase in funding for fitness instructors; massive growth in
some low level qualifications that did not lead to jobs)
 Opportunistic behaviour by some training providers
 Some concerns about quality – due to the way the system used to
operate
 The VET system became too difficult for people to understand,
navigate and work out if a course will lead to a good job
All of the above resulted in a system that delivered inadequate public
value, and was financially unsustainable. Further reform was needed to
create a modern VET system that builds skills that lead to better jobs…
So how are we building the modern VET system we need?
Continued and greater
investment in skills
that get people jobs
A more flexible and
responsive system
Higher expectations of
training providers
• A new industry
participation model
• All apprenticeship subsidies
• Stronger powers of inspection
increased
and enforcement for the
• 21 per cent of courses (> 220
VRQA
courses) have a higher
• Stronger entry standards for
subsidy than the previous
training providers wishing to
small TAFE rate
deliver government
• 150 courses largely
subsidised training
unchanged, with subsidy
• A new Market Monitoring
rates within 5% of current
Unit to monitor how the
levels
market is functioning
• Separate payments to TAFEs
including issues of quality,
redirected into high value
price and competitiveness
courses
• More direct
relationships between
employers and training
providers – less reliance
on intermediaries
• Removal of controls on fees –
but continued support for low
income students; unqualified
young people; Indigenous
Victorians – and fee free
training for young people in
State care/care leavers
Real consumer choice
and better information
• Roll out of a one-stop-shop
training website for employers
and students
• Trialling new quality metrics,
including industry ratings and
industry-moderated
assessment
Eligibility for the Victorian Training Guarantee:
 Victorians aged under 20 can access training at any
level, regardless of any qualifications already held.
 Those aged 20 and over can gain access to training
in any qualification higher than they already hold.
 Access to Foundation level skills is unlimited to all
Victorians, regardless of age or qualifications
already held.
 Access to training in an apprenticeship qualification
is similarly unlimited, regardless of age or previous
qualifications.
Concessions and loadings for priority groups remain
 Who qualifies for a concession?
 All Health Care Card holders, or their dependents
 A range of loadings exist:
 Regional loading – a 5% loading for any training
undertaken in a regional location
 Indigenous loading – a 50% loading applies to all
Indigenous students
 Youth loading – a 30% loading for any 15-19 year old
student from a low SES background who does not have
a senior secondary certificate
Examples of subsidy changes
Course
Old rate - Small
TAFE
Old rate - Large
TAFE
10.39
10.10
9.24
Cert IV in
Children's
Services
(Outside school
hours care)
6.93
6.74
6.16
Cert IV in Aged
Care
9.53
9.26
8.47
Cert III in
Hospitality
7.79
7.58
6.93
10.39
10.10
9.24
Cert IV
Agriculture
Cert III in
Hospitality
(Commercial
Cookery)
Old rate –
Non TAFE
New Rate
New rate +
regional
loading (5%)
10.00
8.00
10.00
1.50
11.50
New rate +
youth
multiplier (1.3)
10.50
13.00
8.40
10.40
10.50
13.00
1.58
1.95
12.08
14.95
An example of how concessions work – Certificate III in ABC
 Non-concession student:






Government subsidy:
Student fee:
Qualification requires
Government pays
Student pays
Training provider receives
$1.50 per s.c.h
$4.50 per s.c.h
200 s.c.h
200x$1.50:
200x$4.50:
$300
$900
$1200
 Concession student:
 Government subsidy:
$1.50 per s.c.h
 Student fee:
$0.90 per s.c.h (20% of non-concession student fee)
 Government pays: subsidy,
200x$1.50=
$300
plus concession reimbursement
$432 (60% foregone revenue)
$732
 Student pays
200x$0.90:
$180
 Training provider receives
$912
TAFEs remain a vital part of the system - the removal of central planning and government
constraints means they can become more innovative and flexible in order to better meet the
needs of industry
“A strong public training provider network will continue to be a vital feature of this system. Our TAFEs
and dual-sector universities are highly valued by Victorian learners and businesses. They will continue to
play a critical role in delivering training that meets the needs of their communities.
In particular, government will continue to support the TAFEs to:
• lead the development of high-quality and innovative curriculum, teaching practices and
assessment, including for learners with complex learning needs
• build on their strengths in exporting education services interstate and overseas
• foster participation in higher level qualifications and in higher education through clear pathways,
strong partnerships with universities and other higher education providers and through higher
education delivery within the TAFE
• be efficient and able to effectively compete in a demand-driven, contestable training system,
including by applying technology to improve access to and the efficiency of education and training
delivery.”
Source: Refocusing Vocational Training in Victoria (released in 2012-13 Budget)
The TAFE Transition process
 The TAFE transition process is overseen by an independent four-member body, the
TAFE Reform Panel, which is chaired by Mr Ken Latta.
 TAFE institutes are developing Business Transition Plans which the TAFE Reform
Panel will assess and use to inform the development of a Roadmap for the sector.
 The TAFE Reform Panel is supported by a TAFE Transition Taskforce which is
facilitating regular discussions with TAFE institutes on their plans, and holding
monthly meetings with TAFE CEOs.
 All Councils have been invited by the Panel to provide submissions on key issues.
Jul
Aug
Sep
Oct
Nov
Business Transition Plans
(due Sep 7)
Plans developed by TAFE
institutes setting out how they
will respond to changes over
next three years
Dec
2013
Roadmap (early 2013)
Document to communicate changes
in sector to stakeholders
Assessment and
feedback on Business
Transition Plans by
TAFE Reform Panel
Implementation
of changes
through 2013
What else is happening to strengthen our training market?
 Continued roll out of the $20 million Regional Partnerships
Facilitation Fund – a second round of grants to be announced later
this year
 Skilling the Valley – working with local councils, industry and others
to meet the skill needs of the Latrobe Valley
 Establishing seven Technology Enabled Learning Centres across
Gippsland – bringing study opportunities to local areas
 Reviewing the role and structure of Learn Local (ACE) provision – as
part of better meeting the needs of disadvantaged and hard to reach
learners
Good News Stories











Advance TAFE
Wodonga TAFE
The Gordon
Chisholm Institute
partnership
GippsTAFE
Technology Enabled Learning Centres
Teaching Partnerships
DECA
William Angliss Institute
Bowens Hardware
VTA
OneHarvest partnership– 800 employees
Australian Defence Force (ADF) - $10m contract
NBN - $1m contact
ADF School of Catering – 10 year anniversary
Waratah Restaurant and Leongatha campus
Up to 22 locations across Gippsland
GOTAFE
‘Reach Out’ teaching
Simonds House of Learning – 800 employees
Mint Group
Questions?