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New models for Australia’s TAFE Institutes
The relationship between VET and Higher Education: Policy, trends and the rise of private
training
Martin RiordanCEO, TAFE Directors Australia
‘Evolve Technologyone’ – Gold Coast Conference Wed 19th February 2014
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
My Presentation
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
PART I
The role of TAFE Directors Australia
Domestic undergraduate enrolments 2009-2012
Source: ACER (2013). Higher education growth, change and the role of private HEPs
Domestic undergraduate enrolments 2009-2012
Source: ACER (2013). Higher education growth, change and the role of private HEPs
Non-Table A
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
Higher Education qualifications in TAFE
YEAR No. Registered Higher Education Providers
No. Delivering No. Qualifications Offered
2009 10 9 68
2013 10 23 105
Delivery Models
Dual Sector Universities
University/VET Networks
Cross-sectoral dual awards
Franchising
Physical co-location
Polytechnic partnerships
Concurrent RTO/HEP status
Guaranteed pathways
Credit transfer/course mapping
Cross sectoral electives
Joint delivery
Joint accreditation
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.
Rationale
• 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.
Challenges
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
PART II
COAG NPA Agreement – Governance reforms
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
COAG and the National Partnership Agreement (Effective 1st July 2013)
• 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
Queensland
Skills for All is South Australia’s 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
South Australia
Under the Government’s 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.
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
New South Wales
•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
Western Australia
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”.
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
Victoria
Innes Willox, CEO, Australian Industry Group, said•“It is of significant concern to industry that we won’t 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”
Response to State/Territory VET reforms -- Industry --
Response to State/Territory VET
TDA advocacy campaign --
New governance for TAFEs – mentoring statutory authorities, CEO mentoring
Online learning – Outsourcing for ICT Schools
New enterprise investment into TAFEs (WA oil & gas )
Promote review of rigid Training Package curriculum
UK-pilot to introduce new Enterprise Training for individual learners – building careers
