New models for Australia

1
New models for Australias TAFE Institutes The
relationship between VET and Higher Education
Policy, trends and the rise of private
trainingMartin RiordanCEO, TAFE Directors
Australia Evolve Technologyone Gold Coast
Conference Wed 19th February 2014 
2
My Presentation

• 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

3
PART I The role of TAFE Directors Australia

• 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

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
Non-Table A
Source ACER (2013). Higher education growth,
change and the role of private HEPs
6
Higher Education qualifications in TAFE
YEAR HE Diploma Associate Degree Bachelor Degree HE Grad. Cert/Dip Masters TOTAL
2009 2 30 35 1 0 68
2013 4 34 56 8 3 105
YEAR No. Registered Higher Education Providers No. Delivering No. Qualifications Offered
2009 10 9 68
2013 10 23 105
7
Delivery Models
Concurrent RTO/HEP status Guaranteed
pathways Credit transfer/course mapping Cross
sectoral electives Joint delivery Joint
accreditation

• Dual Sector Universities
• University/VET Networks
• Cross-sectoral dual awards
• Franchising
• Physical co-location
• Polytechnic partnerships

8
Rationale

• 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.

9
Challenges

• 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.

10
PART II COAG NPA Agreement Governance reforms
ISSUES ACTION
TAFE governance Statutory authority out of state departments of education and training
VET skill places Funding for VET DECREASES Blurring between HE and VET sector boundaries
11
COAG and the National Partnership Agreement
(Effective 1st July 2013)

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

12
(No Transcript)
13
(No Transcript)
14
Queensland

• 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

15
South Australia

• Skills for All is South Australias 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

16
New South Wales

• Under the Governments 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.

17
New South Wales

• 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

18
Western Australia

• 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

19
Victoria

• 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.

20
Victoria

• 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

21
Response to State/Territory VET reforms --
Industry --

• Innes Willox, CEO, Australian Industry Group,
  said
• It is of significant concern to industry that we
  wont 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

22
Response to State/Territory VETTDA advocacy
campaign --New governance for TAFEs mentoring
statutory authorities, CEO mentoring Online
learning Outsourcing for ICT SchoolsNew
enterprise investment into TAFEs (WA oil gas
)Promote review of rigid Training Package
curriculumUK-pilot to introduce new Enterprise
Training for individual learners building
careers
23
Thank youmriordan_at_tda.edu.auwww.tda.edu.au