Review of Resourcing Vocational and Technical Education (VTE) Action Group

Over the last decade a strong national vocational and technical education (VTE) system has been established.  There is emerging consensus that the training system needs to respond to structural changes that are reshaping the Australian economy and labour market.  Critical industries currently face skills needs, and unemployment rates are at the lowest for years.  While some of the current shortages are cyclical, other changes are structural and reflect trends that are likely to impact on the labour market over the coming decades.

The resolution from the June 2005 Ministerial Council meeting about the Commonwealth-State and Territory Funding Agreement and New National Training Arrangements in relation to resourcing reads:

Ministers, in an environment of constructive co-operation:

iii  noted the States’ and Territories’ concerns about the level of funding and agreed to the proposed review of resourcing arrangements in paragraph 16;

                        Paragraph 16 states

As a way forward, it is proposed as part of the draft agreement at Attachment 1 to undertake a review of resourcing arrangements for vocational education and training giving particular attention to:

a)  identifying and modelling the impact of various policy drivers on demand for VTE;

b) the balance of public and private investment in VTE; and

c)  fees policies to ensure more equitable access to VTE and to minimise the impact of any fee changes.

The Review of Resourcing VTE Action Group is to review resourcing arrangements for vocational and technical education (VTE) and provide advice and develop recommendations in relation to:

1. The overall framework and level of resourcing required for vocational education and training over the next five years to 2010, and if feasible, for a further five years to 2015, taking account of the impact of the changing social and economic environment and government policy on demand for VTE;
   
   
2. The identification and modelling of the impact of various policy drivers on demand for VTE;
   
   
3. The balance of public and private investment in VTE, taking account of the efficiency of public investment;
   
   
4. Fees policies to ensure more equitable access to VTE and to minimise the impact of any fees changes;
   
   
5. Informing the development of priorities for government action and funding for the term of the next Commonwealth-State Agreement for Skilling Australia’s Workforce, based on the analysis of resources required in 2010;
   
   
6. The roles of government, industry and individuals in funding VTE; and
   
   
7. The impact of any resourcing model on the VTE system and its clients.

The Action Group will take account of, and as far as possible use, the previous work undertaken in this area.  In particular:

• Future Demand for Vocational Education and Training Report by Access Economics Pty Ltd for ANTA, 2003;
  
  
• Future Demand for Vocational Education Report by Access Economics Pty Ltd for DEST, 2004;
  
  
• Impact of specific Policies for Publicly Demanded VET – Gerald Burke;
  
  
• Future Levels of Demand for VET – Peter Grant;

The Action Group will take account of the outcomes of the Council of Australian Governments’ current consideration of skilling issues.

Aurora Andruska	Group Manager, National training Directions Group, Department of  Education, Science and Training
New member to be determined	Australian Chamber of Commerce and Industry (ACCI)
Jim Barron	Group Training Australia (GTA)
Phil Clarke	Victoria Department of Education
Nick Evans	Tasmania Department of Education
Scott Flavell (Chair)	Qld Department of Employment and Training
Andrew Ford	ACT Department of Education and Training
Pat Forward	Australian Council of Trade Unions (ACTU)
Martin Graham	NSW Department of Education and Training
Kim Jenkinson	NT Department of Employment, Education and Training
Megan Lilley	Australian Industry Group (AIG)
Richard Osborne	SA Department of Further Education, Employment, Science and Technology
Mr Martin Riordan	TAFE Directors Australia (TDA)
Juliana Stackpool	Australian Council of Private Education and Training (ACPET)
Simon Walker	WA Department of Education and Training

The Action Group met on 21 March in Brisbane and agreed to:

• Report to the next meeting of MCVTE in June 2006 about the links between skills and the labour market, and how the national training system is placed to serve industry and business in meeting emerging skills needs;
  
  
• Commission research to assess emerging skills needs and the capacity of the vocational and technical education sector to meet those needs; and
  
  
• Provide practical options on resourcing the sector by the end of the year as part of COAG’s reform agenda in vocational and technical education.