NSW TAFE Commission Board submission to the Commonwealth Senate Standing Committee on Education and Employment's Inquiry into the role of TAFE

NSW TAFE Commission Board submission to the
Commonwealth Senate Standing Committee on Education
    and Employment’s Inquiry into the role of TAFE

Introduction
The NSW TAFE Commission Board (the Board) appreciates the opportunity to
contribute to the Commonwealth Senate Standing Committee on Education and
Employment’s Inquiry into the role of TAFE (Senate Inquiry).

The Board provides strategic direction for TAFE NSW and advice to the NSW
Minister for Education. TAFE NSW is an innovative and dynamic organisation
offering customised training solutions that cater to diverse learner, industry and
community stakeholders and supports economic development across the State.

On 1 May 2013, the Board made a comprehensive submission to the 2013 House of
Representatives Inquiry into the role of TAFE. This previous submission addressed
similar terms of reference to the current inquiry. The Board supports this Committee
considering the Board’s previous submission as part of its current deliberations.

Although this additional submission makes no new recommendations, it provides
supplementary information highlighting recent State and national developments
impacting on TAFE NSW.

TAFE NSW – an overview

With expert teachers and support staff, state-of-the art facilities and extensive
industry partnerships for example with organisations like AusGrid, BlueScope Steel,
CISCO, Le Cordon Bleu Australia, Telstra, RailCorp, Ramsey Health Care,
Woolworths, and thousands of small and medium enterprises, TAFE NSW sets the
benchmark for quality.

The 2013 Australian Large Training Provider of the Year was TAFE NSW – South
Western Sydney Institute. Likewise, a partnership between TAFE NSW – Western
Sydney Institute and Racing NSW won the 2013 Australian Industry Collaboration
Award. TAFE NSW – Western Institute’s Western Connect was awarded a 2013
NSW Premier’s Award for Public Service in the Revitalising Regional NSW category.

TAFE NSW has deliberately increased delivery of higher level training to help
support the State’s economic goals. From 2008 to 2012, the number of TAFE NSW
graduates with Certificate III or higher qualifications increased by 41 per cent, from
61,588 to 86,539. Significantly, during this same period Aboriginal student graduates
with qualifications at or above Certificate III increased by 83 per cent, from 1,436 to
2,628.

TAFE NSW delivers a significant proportion of training to people facing
disadvantage. In 2012, 56 per cent of government funded students in TAFE NSW
were from low socio-economic backgrounds and 27 per cent were unemployed.
Since 2011, TAFE NSW has offered a range of specialist higher education courses.
TAFE NSW Higher Education qualifications are in niche industry areas and designed
to ensure graduates are job ready with both practical and theoretical skills. As at
February 2014, there were 708 students enrolled in nine nationally accredited
courses at nine locations.

State and National Developments
Let’s Talk about TAFE

Let's Talk about TAFE was TAFE NSW's largest ever public consultation. It was
conducted by the Board in 2013 at the request of the NSW Minister for Education,
the Hon. Adrian Piccoli MP. It sought feedback on what the people of NSW value
about TAFE NSW, how effective it is in meeting industry and community needs and
how TAFE NSW needs to adapt in a changing environment.

The Let’s talk about TAFE project consisted of a representative survey of 1,905
adults in NSW, 844 detailed responses to an online consultation and 70 face-to-face
forums and meetings with students, employers, industry, staff and community and
special interest groups.

The independent Newspoll survey found that TAFE NSW is almost universally
recognised, with 97 per cent of people aware of TAFE. Of those, 96 per cent say the
services provided by TAFE NSW are valuable to the State; 94 per cent say TAFE
services are valuable for business and industry; and 97 per cent believe TAFE is
very important in providing apprentice training.

Let’s talk about TAFE showed that TAFE NSW is deeply valued as a networked
organisation with its state-wide footprint of Institutes; and plays a critical role in skills
training across the State, especially in regional and rural areas, by providing a range
of quality local training options, and an alternative to university. It also showed that
while people in NSW understand and value the significant role TAFE plays, there is
recognition that it must adapt to remain relevant and competitive in a changing
environment.

The full report of Let’s talk about TAFE was published on 28 August 2013 and can
be downloaded from: www.tafensw.edu.au/about/ltat

TAFE NSW Statement of Owner Expectations

On 28 August 2013, Minister Piccoli released the NSW TAFE Commission
Statement of Owner Expectations (the Statement). The Statement is framed by NSW
2021: A plan to make NSW number one and sets out new directions to ensure TAFE
NSW services are efficient, effective and relevant in the new competitive
environment.

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The Statement sets specific objectives for TAFE NSW as the public VET provider,
not least of all providing stability throughout the reform process. TAFE NSW is to be
the backbone of the training system in NSW. This includes setting the benchmark for
quality, supporting the NSW Government’s economic priorities and increasing
individuals’ workforce capability.

TAFE NSW will continue to be funded as the State’s public provider, but is expected
to compete for entitlement funding, increase its commercial revenue and decrease
reliance on government funding. TAFE NSW is required to be effective and efficient
as a government owned business.

The Statement articulates TAFE NSW’s critical role to provide access to a broad
range of courses and high quality training for people regardless of where they live or
their circumstances. This includes providing specialist and accessible training
services, foundation skills and second chance education options to ensure that
people who face disadvantage can gain the education and skills they need for the
workforce.

TAFE NSW is ideally placed to support low socio-economic status and otherwise
disadvantaged students through vocational programs into higher education
programs. As the previous submission highlighted, TAFE NSW has developed a
tertiary pathway model that extends access to higher education qualifications
through supportive and authentic ‘work ready’ degree programs.

The Statement outlines new governance and budget arrangements for TAFE NSW
including:

      greater separation from the Department of Education and Communities
      a separate and distinct budget for TAFE NSW allowing it to operate as a
       distinct financial entity with greater transparency
      greater authority and accountability for TAFE NSW Institutes as separate
       entities wholly owned and controlled by TAFE NSW
      greater authority within an agreed accountability framework for Institutes to
       manage their finances, assets and workforces.

The Statement requires the Board to submit an annual Statement of Business Intent
to the Minister, identifying major risks and critical areas of performance
accountability.

The Minister’s Statement of Owner Expectations can be downloaded from:
www.tafensw.edu.au/about/soe.

Education Investment Fund

The Board’s submission to the 2013 House of Representatives Inquiry highlighted
the importance of the Education Investment Fund (EIF). This funding enabled TAFE
NSW Institutes to better meet the needs of niche industry areas, such as transport
and health, by funding improved infrastructure and facilities.

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On 17 December 2013, as part of the Mid-Year Economic and Fiscal Outlook
2013/14, the Commonwealth Government discontinued the EIF Regional Priorities
Round ($187.4 million).

Recommendations

Within the context of these recent developments, the Board reiterates its earlier
recommendations, that the Commonwealth Government:

  1. publicly articulates the role and value of TAFE and the essential contribution
     TAFE makes nationally to the economy, community and in addressing
     disadvantage

  2. increases Commonwealth funding for vocational education and training (VET)
     by at least the Consumer Price Index (CPI) per annum to work towards parity
     between the education sectors

  3. amends the rules regarding the National Workforce Development Fund to
     allow training providers to have direct access to funds to facilitate and support
     the engagement of small and medium enterprises

  4. extends the streamlined visa processing and post-study work rights available
     to international students enrolling in universities to students enrolling in public
     TAFE institutions

  5. strengthens the role of TAFE in providing tertiary pathways by:
       recognising the contribution, capacity and quality of TAFE Institutes as
         tertiary providers
       agreeing to the provision of Commonwealth Supported Places higher
         education funding for public TAFE Higher Education providers to deliver
         undergraduate degrees in skill priority areas linked to low socioeconomic
         targets
       supporting existing TAFE NSW Institutes’ bids for Education Investment
         Fund (EIF) funding
       consulting with stakeholders to develop a principles-based framework that
         encourages TAFE and higher education collaborations to make the most
         efficient use of public funding and facilities

  6. increases the level of funding available to the Australian Skills Quality Authority
     (ASQA) to support a higher level of quality under revised national standards for
     National VET Regulator registered training providers

  7. promotes opportunities for States to work together to ensure that their
     students, employers and training providers in cross border regions are not
     disadvantaged and can benefit from VET reforms.

Conclusion
TAFE NSW drives a strong economy and supports vibrant communities by
developing the skills that individuals, enterprises and communities need to thrive.
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The Board is committed to ensuring that TAFE NSW maintains its focus on providing
quality training during and after the current reforms. The Board welcomes the
opportunity to contribute further evidence to this inquiry.

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