Reform and change in Australian VTE and implications

for VTE research and researchers

By Aurora Andruska20 April 2006

Overview

• Setting the scene• The new national training system

– what has changed– why it changed– more changes ahead

• the Council of Australian Governments (COAG) agenda

• The role and challenges for research

Setting the scene

Recent reforms in the national training system

Demand driven

• Education/training must provide the skills that industry and business need

Recent reforms in the national training system

Strengthened industry role– More flexible and responsive training

provision– Greater competition in the training market– Institute of Trade Skills Excellence

• Improved performance from training providers

The new national training system

What has changed

• Federal system• Multilateral agreement• Bi-lateral agreements

Skilling Australia’s Workforce Act 2005

Agreements under the legislation are leveraging change

• Skills shortages• Responsiveness and flexibility• Outcomes, high quality• Mature age workers • More private provision • Specific reforms targeted

The national governance and accountability framework

Ministerial Councilof

Australian and State/Territory Governments

National Industry Skills

Committee

National Centre for Vocational Education Research

National Senior

Officials Committee

National Quality Council

Industry skills boards

MinisterialCompany

NATIONAL SKILLS FRAMEWORK

NATIONAL GOVERNANCEAND ACCOUNTABILITY

FRAMEWORK

INDUSTRY LEADERSHIP AND ENGAGEMENT

National Qualifications

Online Product Support

Quality Assurance

National Quality Council

Public Reporting onProvider Performance

Legislation

Commonwealth-StateFunding Agreement

Ministerial Council

National Senior Officials Committee

Planning andReporting

Client AdvisoryMechanisms

Research

High level advice toMinisterial Council

National Industry

Skills Committee

Policy development and monitoring performance

Development and review ofNationally recognised

Qualifications,including Training Packages

Representation on ActionGroups

and Advisory Mechanisms

Participation in setting research priorities

Bilateral Funding Agreements

Industry plays a key role in the new system

In the new system the Australian Government has a leadership role

The Australian Government provides national leadership on VTE policy.It also provides:

• One third funding for the public sector

• Funding for specific programs in particular apprenticeships

More changes ahead

The Council of Australian Governments agenda

All governments have agreed to tackle skills shortages

Meeting the skills gap is on the COAG agenda

Next Stages of Reform

• Higher level skills • Lifting educational participation and

attainment • Making system more responsive to

demand • Increasing Australia 's investment in VTE• Enhancing user choice• Regulation of training providers• Building stronger relationships between

firms and training providers

Why has it changed

There are national imperatives

• Strong economic growth• Globalisation of the economy• Need for skilled employees • Ageing population• Changes to work structures and patterns• Value of education exports

….. and issues for the VTE system

• University qualifications do not meet the needs of all industries

• Young people need options for work and training• Existing employees need new, different skills• Assistance is needed by

– Adults re-entering the labour market– Young people at risk of not getting jobs– Indigenous Australians and people with disabilities

More jobs may need VTE skills than university qualifications

Qualification

Current profile of population

Potential pathway for jobs

% of 15-64 population

% of employment

University 19.3 21.7

VTE 29.1 62.8

No tertiary 51.6 15.5

The recent reforms will

• More effectively address industry skills needs– including skills shortages

• Attract more young people into VTE– Australian Technical Colleges– Extra financial support for New Apprentices

Research roles and challenges

Research has a vital role in the national training system

It supports: • Quality assurance by measuring success• Informed evidence based policy

development• Better understanding of our system• Innovation in training delivery and

content

How to make research relevant

To support the national training system in meeting the needs of business and industry research must be relevant:• Practical• Local• Timely• Applied • Flexible

What that means for research The challenge is to:• Engage with industry to identify research

needs• Think GLOBAL – act LOCAL!• Conduct action research, which is

practical, local, timely, able to be applied, flexible and fully evaluated

What that means for industry

• Industry gets relevant research to identify local training needs

• Education providers align their training provision to industry needs

• Industry has the skilled workforce it needs to support Australian prosperity

Will industry engage?• Industry are currently successfully

engaging across the national training system

• Industry will engage if they know that research will lead to real outcomes

• There are many examples of industry using it’s own research to drive innovative partnerships with government, training providers and the community

A successful partnership…

Mining Industry – the XTRATA example

Xtrata:• identified a projected skilled labour

shortfall• engaged with key stakeholders • two phase innovative solutions

developed and implemented

Another successful partnership…

NCVER consortium – A well skilled future. Partnership between researchers and business

Aim of research: • Understand how the labour market is

evolving• Understand how VTE system can

maximise its contribution to skills needs

Thank You