WIXLIB

7TDA Chair, Stephen ConwayMinister for Tertiary Education, Jobs, Skills, andWorkplace Relations, Senator the Hon Chris Evans, MPTDA CEO, Martin Riordan, Shadow Minister forEmployment Participation, the Hon Sussan Ley MP,and TDA Chair, Stephen ConwayCampus President, Broward College, Florida, Dr BarbaraBryanChair Mongolian TVET Agency, Mr Byambasuren,Minister Evans, and Chief Executive of HolmesglenInstitute, Bruce MackenzieChilean Ambassador, HE Pedro Pablo Diaz

8Conference speakers and panellistsMonday 5 September 2011Welcome by Stephen Conway, Chair, TAFEDirectors Australia and Managing Director,TAFE SA – Adelaide SouthANDREW THOMSONWelcome to Country by Glenn DoyleMINDY FELDBAUMWelcome address by theHon. Adrian Piccoli MP, NSW Minister forEducationDR MARY SPILDEMC: Ellen FanningTDA Gala Dinner Speakers: Thérèse Rein,Founder and Managing Director of IngeusLimited and His Excellency Pedro Pablo Diaz,Ambassador of ChileROBIN SHREEVEBOB PATONDAVID WILLIAMSSUE SLAVINTHE HON. JOHN DAWKINS AOKEITH SPENCEMIRANDA TAYLORJOHN COYLEDR PHILLIP TONERTHE HON. SUSSAN LEY, MPMARCY DRUMMONDDR MICHELLE FOXDR V CELESTE CARTERLINDA BROWNKEVIN HARRISWAYNE COLLYERNICHOLAS HUNTMARK HOWLANDMARIE HILLRICHARD CLIFFORDDR DIANNE ORRMARTIN RIORDANPAT FORWARD

9Panelsession:A balancing act.PlenarysessionsMC: Ellen FanningThis session introducessome of the big issuesfaced by the VocationalEducation and Training(VET) sector in thenext three years.BradleyBOB PATONCrossDAVIDWILLIAMSSUE SLAVINWhiteTaylor (Lilley)NoonanROBIN SHREEVE

10Strategic directions for VET:radical reform or business asusual?compulsory foundation and trade skills, manyintermediate, technical and managerial occupationspreviously the domain of VET are now beingincreasingly serviced by the university sector. TheBradley Review reforms mean that universities arewell positioned to expand to meet this demand.Without reform, VET, in this growing but changingmarket, risks stagnation.The need for more skills in theAustralian economyRobin ShreeveChief Executive OfficerSkills AustraliaEmail: Robin.Shreeve@SkillsAustralia.gov.auIntroductionOn the basis of their experience over the past twodecades, many in the VET sector would arguethat ‘radical reform’ is ‘business as usual’. VETprofessionals have witnessed the end of TAFE’smonopoly on public funding, the formation of sixtylarge institutes from hundreds of smaller colleges,the rise of competency-based training as well asgovernment’s insistence on industry leadership andgreater efficiency and diversity in providers.With an ageing workforce, reform fatigue is itself anissue for the sector.I will argue that the Australian economy’s need formore skills and the imperative to shift to a moresustainable economy provide great opportunities forthe Tertiary Education Sector in general. However,for the VET sector, there are also significant threats.Whilst VET remains the principal supplier of postThe scenario development and modellingundertaken by Skills Australia indicates that undercurrent economic conditions we will have majorskills shortfalls unless we increase supply (SkillsAustralia 2010, pp. 13–14). This is a significantnational risk. Skills shortages produce wageinflation that leads to general inflation that isnormally corrected by higher interest rates that limiteconomic growth. In current conditions, based on an‘Open Doors’ high growth scenario, Skills Australiaestimates that Australia will need an additional2.3 million people qualified to Certificate III Leveland above by 2015.1 This does not mean there willsimply be an additional 2.3 million new jobs in theworkforce. Rather, it consists of new entrants withhigher qualifications replacing those retiring aswell as existing workers upgrading their skills (skillsdeepening) along with around 800,000 new jobsthat require advanced qualifications.2To satisfy this demand, Skills Australia hasrecommended that we increase tertiary educationenrolments across VET and Higher Education (HE)by around 3% per annum (cumulating) over thenext fifteen years (Skills Australia 2010, p. 9). Asignificant number of jobs will also require theirskills to be deepened, including the ‘green’ skillsnecessary to move to a less carbon emitting

11economy. We also believe that we need to increaseworkforce participation from the current 65% to69% by 2025 (Skills Australia 2010, p. 9) – partiallyto offset the impact of ageing populations – whatBernard Salt has called the ‘baby bust’ that mirrorsthe post war ‘baby boom’.The risks for TAFE institutesNow, all this growth sounds good for TAFE institutes.It could be but there are significant risks that requireurgent attention.Tom Karmel has quantified what many longsuspected – a VET qualification will not get youthe job it got you twenty years ago. Degrees areincreasingly the currency for many future jobs – notTAFE certificates and diplomas (Karmel 2011, p. 2).More worryingly for VET, a recent study based ondata from the Longitudinal Survey of AustralianYouth (LSAY) has concluded that in terms ofpathways for school leavers,.for males two paths stand out:Year 12 followed by university study; andYear 12 followed by an apprenticeship.Apprenticeships and traineeships score wellfor ‘satisfaction with life’. For females, the bestpath is Year 12 followed by university study,and this is true for those with a relatively lowacademic orientation as well as those with ahigh academic orientation (Karmel & Liu 2011,p. 13).One wonders what this means for all those otherVET certificates that are not delivered to young maleapprentices. Qualitative research by Barbara Pocockon low paid workers indicates that a VET credentialhelps older workers get and keep a job. These arepositive attributes but do not necessarily lead tocareer progression (Pocock et al. 2011).This questioning of the value of a VET qualificationis taking place in an environment where the maincompetition – universities – has the uncappedfunding and institutional autonomy to take on TAFEinstitutes.So what can be done?TAFE institutes need to build on the significantreforms of the past twenty years. They have to beseen to be open to change and not be defensiveabout what has yet to be done.They will need a demand-led funding system to beable to compete with the universities, especially inhigher level qualifications. This will require culturalacceptance of ‘income contingent loans’ to enableindividuals as well as government and enterprisesto help fund the expansion of the system. It will alsomean that VET will have to become less opaqueabout performance at the individual provider level.If you give purchasing power to students rather thanbureaucracies, all the evidence suggests studentsneed good information to make informed choices– otherwise competition will be driven mainly byprice. This could drive down quality – another issuein the system.TAFE institutes need the autonomy to offerappropriate qualifications that match workforceneeds and their own institutional capabilities. Thiswill not be easy. They will have to accommodatethe need of their owners – the State and TerritoryGovernments – and come to a lasting settlementwith their staff and staff unions to progress the newagenda.Part of this settlement might include recognitionof the need to invest more in the development oftheir existing staff. But this internal developmentshould not preclude the recruitment of new staff

12with new skills and attitudes to ensure they havethe necessary capacity and capability. I suspectrecruitment is a major issue for TAFE institutes. Thereis a suspicion that some institutes rely too muchon converting existing casual staff into full timeteachers. Many ex casuals become excellent full timeteachers. Institutes who recruit only from this pool,however, risk missing out on highly skilled industryspecialists and industry researchers with veryup-to-date experience who have not got the time toteach part timeOne thing is certain – TAFE has plenty of capabilityto draw on. How it does this, and how it creativelyshapes its own future, are its main challenges.ReferencesKarmel, T 2011, The implication of skills deepening for vocational educationand training in Australia, National Centre for Vocational EducationResearch (NCVER), Adelaide, SA.Karmel, T & Liu, S-H 2011, Which paths work for which young people?,National Centre for Vocational Education Research (NCVER), Adelaide,SA.Pocock, B, Skinner, N, McMahon, C & Pritchard, S 2011, Work, life andVET participation amongst lower-paid workers, National Centre forVocational Education Research (NCVER), Adelaide, SA.Skills Australia 2010, Australian workforce futures: a national workforcedevelopment strategy, Canberra, ACT.Notes1Updated estimates based on Access Economics modelling forAustralian workforce futures.2Updated estimates based on Access Economics modelling forAustralian workforce futures.

Who should drive the VETsystem: providers or industry?13VET as a service industryThe challenge for VET is whether it is a serviceindustry or whether it is shaped for other things. Theimplication that VET institutions are service providersis anathema to some yet if the fundamental premiseof support for industry is accepted, then service iswhat it’s all about. The challenge faced by many VETproviders is to maintain and continue to grow theirestablishment. Growth opportunities may not easilybe found and, in fact, may only present throughactivities that go beyond core business.Bob PatonChief Executive OfficerManufacturing Skills AustraliaEmail: bobpaton@mskills.com.auIndustry leadership in VETIntroductionIndustry leadership has been an underpinning tenetof our VET system for the last twenty years or more.This has been forever challenged and continuesto be reinforced from time to time by both peakindustry bodies as well as governments. However,recent changes are once more threatening theprimacy of industry in determining the purpose andoutcomes of Australia’s VET system.I am using the premise of the VET system beingthere to provide the skilled workers neededby industry to support our economy. The VETsystem also covers a range of other functions, andparticularly those relating to equity in our society.And, yes, we continue to see moves to grow the VETsystem to accommodate aspects of education thatcould be better served by others.If Australia’s current and future workforce is tobe sufficiently productive to ensure success andmaintain our quality of life, the continuing need forgrowth and development of workers is absolutelyessential. Although each enterprise carries a highresponsibility for that growth, there is an expectationthat they will be supported by government-fundedservices, such as education and training expertise,when needed.VET outcomes – is it good for you andgood for me?We all know of the ‘Yes Minister’ hospital where thesmooth functioning was really upset by having todeal with patients. VET providers have made manypositive changes and improvements to how learnersare treated and how their needs are met, yet Icontinue to hear stories of poor service provision byVET providers, both public and private institutions.What needs to occur for the establishment of aculture and practice where a learner is providedwith the best VET services possible for the particularlearner’s needs?If my GP treated me in the same way as some ofthese stories I continue to hear, I’d probably not bearound to write this.

14VET outcomes – what’s best forindustry?The move to an industry-led VET system broughtsevere reaction when it was introduced. Thatreaction continues to roll through the VET system, atthe provider level as well as in other bureaucracies.Despite the revolution of qualifications (whethermodule-based or Training Packages) with a veryhigh degree of inherent variability, many optionsare never realised. It has been said that ‘industry’often doesn’t know what it wants (where ‘industry’ enterprise) and so a fairly standard trainingprogram is offered, mostly at the convenience of theprovider. Although VET is a key part of our existence,most enterprises are more focused on businessperformance, their bottom line and other morepressing matters. If ‘industry’ isn’t offered choices,and extensive ones at that, then ‘industry’ won’tknow what they want because they don’t knowwhat’s available.With trainee and apprenticeship programs, wherethe learner is also an employee, how much effort ismade to engage an employer in some meaningfuldialogue about how progress will be measured anddetermined in terms of workplace performance?VET outcomes – who should determinethe specifications?Industry leadership is determining the outcomeson the basis of our VET system through TrainingPackages. It is acknowledged that accredited coursesalso sit in that space, but these are a minor partof the framework. The abuse of Training Packagequalifications to meet different needs – ones thatwere not included in the fundamental purposeof those qualifications, continues to be a majorconcern of industry. Examples include the provisionof a qualification designed to meet the needs ofa trade apprenticeship to full time learners (bothdomestic and international) and, in fact, grantingqualifications to those learners. We are clearly‘missing the boat’ on this. How can one of theselearners ever be deemed competent when their onlywork experience may be some form of casual oroccasional workplace engagement?

Contestable funding anduncapped higher education15In Victoria we are nine months into a fullycontestable VET market under the Victorian TrainingGuarantee where policy levers determine eligibilityfor government supported places. We are notingsignificant growth in government funded trainingand shifting market share.Uncapped higher education placesDavid WilliamsExecutive DirectorVictorian TAFE AssociationEmail: dwilliams@vta.vic.edu.auIntroductionLast year at the TDA Conference, I addressed a panelsession themed ‘Competitive VET, a case study’.Twelve months on and the significant challenges ofa reforming system are continuing with acceleratingpace and new challenges on the horizon. RobinShreeve has outlined the key challenges in thetertiary space from university providers and I concurwith his views.In the contestable funding market we are seeingsignificant national changes in purchasingarrangements through the National WorkforceDevelopment Fund, transformational changeoccurring in South Australia through the ‘Skills forAll’ policy implementation, and in Queensland,through the ‘Strategic Priorities’ initiativeunderpinned by the Allen Consulting Report‘Queensland Post-Secondary Education and TrainingReview’ and the associated government response.Within twelve months of an entitlement modelbeing implemented in VET in Victoria, there willbe an entitlement model in higher education.Many Victorian TAFE CEOs predict that the fullimplementation of uncapped higher educationplaces will place the ongoing viability of TAFEdiplomas and advanced diplomas at significantrisk. As Robin Shreeve has highlighted today, theresearch of Tom Karmel, (NCVER) in relation to‘Skills Deepening’ options1 supports the views ofmany Victorian TAFE CEOs. They are of the viewthat 2012 will bring, potentially, very significantdeclines in AQF 5 and 6 level TAFE enrolments infavour of higher education enrolments in associatedegrees, diplomas and bachelor offerings. This is,in part, due to the public perception of VET versushigher education qualifications, liberal accessto government funds through CommonwealthSupported Places, universities’ self-accrediting statusand, in Victoria’s case, policy levers that deny accessto government VET funding if higher qualificationsare held. The challenge will be to have competitivelypriced and attractive TAFE options for studentsthrough courses that are clearly distinguishable fromhigher education qualifications or articulate intohigher education.Contestable funding, entitlementcriteria and provider requirementsContestable funding cannot be looked at without

16considering eligibility to government supportedfunding and provider requirements. At the momentwe have a variety of models of entitlement oreligibility.subsidy. Students will also be able to access a oneoff training subsidy to undertake a course at a lowerlevel than their existing qualification, includingthose with a degree or above.Skills Australia propose in the ‘Skills for Prosperity’2roadmap a full public subsidy for those undertakingvocational courses up to and including CertificateIII, and all foundation skills courses. For CertificateIV and above, co-funding between individualsand governments, supported through an incomecontingent loan is proposed.Queensland through the ‘Post-secondary Educationand Training Review’4 has a different model. Itproposes a closer alignment with the Victorianentitlement model with additional featuressuch as capped funding for students with initialqualifications up to degree level, with higher feesto reflect higher individual returns and the capacityof the state to intervene in the market by notfunding or capping specific qualifications in areas ofoversupply or low priority.Currently in three States, we have three variationson the entitlement model either introduced, inprogress towards implementation, or proposed tobe introduced.In Victoria, the entitlement model through theVictorian Training Guarantee provides for agovernment-subsidised place for all people upto the age of 20, and for those over 20 providedthe student is undertaking a course at a higherqualification level than currently held, with theexception of designated foundation courses andapprenticeships. Varying minimum and maximumfees apply to different categories as well as access toVET FEE-Help at diploma and above levels. Studentsundertaking a course at the same or lower level thancurrently held, other than foundation courses, do notattract government support and are required to befull fee paying except for some discrete exemptionsavailable from a limited pool of funds.In South Australia, ‘Skills for All’3 proposes atraining subsidy will be available at the higherlevel up to an advanced diploma. A subsidy at thesame qualification level will be available twice atCert

Sydney Institute of TAFE NSW Turner Hall (Building B) - Ultimo College Cnr Mary Ann and Harris Streets Ultimo NSW 2007 Our Postal Address TAFE Directors Australia National Secretariat Sydney Institute of TAFE NSW Ultimo College PO Box 707 Broadway NSW 2007 Telephone: 02 9217 3180 Facsimile: 02 9281 7335 Email: memberservices@tda.edu.au