Chapter 1 - Government Senators' Report
1.1
On 15 June
2005, the Senate referred to the Legislation Committee the
Australian Technical Colleges (Flexibility in Achieving Australia's Skills
Needs) Bill 2005 for inquiry and report by 18 August. A total of eight submissions
were received.
Background and purpose of the bill
1.2
In September 2004, the Government announced an election
commitment to establish Australian Technical Colleges in 24 identified regions
as part of a broader strategy to address skills needs. The election commitment reflects
the view that the Government should target regional and metropolitan areas
which have experienced skills shortages in certain trades and which are
supported by a strong industry base. It is expected that each college will
provide tuition for up to 300 students each year.
1.3
The purpose of the Australian Technical Colleges Bill
is to implement the Government's election commitment. It appropriates $343.6
million over five years for their establishment and operation. This funding is
in addition to recurrent funding by the Commonwealth that the colleges will be
eligible for under the Schools Assistance Act (2004), and recurrent funding that
states and territories also provide for schools. The additional funding
provided under the bill will be allocated to colleges on the basis of need, to
cover establishment and operational costs.
1.4
Students attending the colleges will have the
opportunity to combine academic studies relevant to the trades, leading to a
senior secondary certificate of education. Combined with a Schools-Based New
Apprenticeship in a trade, students will end up with a nationally recognised
training package qualification.[1] The
Government believes that the colleges will provide high quality education and
training facilities, and an integrated program of academic and vocational
education that is relevant to a trade career. According to the Minister for
Vocational and Technical Education, The Hon
Gary Hardgrave
MP:
The Colleges will promote pride and excellence in trade training
skills by creating a distinct culture and ethos. Attracting talented and
committed staff to the colleges will be a high priority as well as offering
appealing and flexible working conditions, including rewards linked to
excellent performance, and by giving staff the option of an Australian
Workplace Agreement.[2]
Addressing skills shortages
1.5
We have heard much from the Opposition and other
critics to the effect that the technical colleges initiative amounted to policy
making on the run and that the Government was allocating Commonwealth funds for
a proposal very short on detail. This ignores the fact that establishment of
the colleges is part of the Government's overall strategy to tackle the skills
shortage problem and consolidate work that has already been done with industry
to develop practical solutions to current and future industry skills needs. This
legislation is fundamental to the Government's reform of the vocational and
education training system. As Minister Nelson
told a conference at the University
of Melbourne in March 2005, the
Government's reform is underpinned by three key objectives:
- that industry and business needs to drive
training policies, priorities and delivery;
- that better quality training and outcomes for
clients, through flexible and accelerated pathways, be achieved; and
- that all processes be simplified and
streamlined.[3]
1.6
There is nothing new about the problem of labour and
skill shortages. The Government acknowledges that some trades have experienced
skills shortages for the better part of 25 years. It is widely accepted that
labour and skills shortages are exacerbated during times of economic growth and
low unemployment, both of which are hallmarks of this Government's record of economic
management. Government members on the committee agree with the Australian
Chamber of Commerce and Industry that skill shortages is a complex labour
market problem for which there are no easy solutions.[4] For over nine years, the Coalition
Government has been active in working with industry to address shortages
through a mix of initiatives and strategies of which this proposal is arguably
the most important.
1.7
The colleges will play an important role in expanding
the School-Based New Apprenticeships. The DEST submission makes the important
point that of the 12,500 School-Based New Apprenticeships offered in the 12
months to December 2004, approximately 65 per cent were in sales and personal
services, tourism and hospitality, and business whereas only 14 per cent were
in trade related areas (six per cent in automotive, four per cent in building,
three per cent in engineering and mining, and one per cent in food processing).
It is expected that the colleges will address this imbalance by requiring that
students are offered a Schools-Based New Apprenticeship in a trade, wherever
possible.[5]
1.8
Government senators believe that the Prime Minister's
election-campaign initiative is an instance of creative and innovative policy-making
that takes the vocation and training system in a new direction. Uncoordinated
VET in schools policies adopted in different states have not proven to be
successful overall in addressing the national skills shortage. The technical
colleges will breathe new life into the national training system by focusing on
those trades identified by the 2004 National and State Skill Shortage List as
currently having high skill needs. The five priority industries include:
- metal and engineering (machinists, fabricators,
toolmakers, welders, sheet metal workers);
- automotive (mechanics, auto electricians, panel
beaters, vehicle painters);
- building and construction (bricklayers,
plumbers, carpenters);
- electrotechnology (refrigeration,
air-conditioning, electricians); and
- commercial cookery.[6]
1.9
On the supply side of the equation, there is some
concern from business and industry that people in the VET system are being
educated and trained in ways that do not always fulfil the needs of employers.
The technical colleges will give substance to the Government's belief that the VET
system should send a powerful signal to young people that trade skills offer a
proven path to a rewarding career. These will be 'lighthouse' institutions to
be emulated by other schools. They will provide an incentive for more students
to stay on at school and encourage more students to pursue a trade qualification.
Providing a high quality technical education and promoting pride and excellence
in the acquisition of trade skills is essentially what the colleges are about. On
the demand side of the equation, industry will have an opportunity to drive the
VET options available to students who attend the new colleges by the provision
of training that is relevant to industry needs. Government senators believe
that the legislation will enable industry demand, rather than supply-side
factors, to drive the VET options which the colleges will make available to
students.
1.10
The initiative to establish new technical colleges is
consistent with spending initiatives by the Government to encourage skills
growth across a range of trades. The Government, for instance, has provided direct
assistance to New Apprentices through extension of income support payment
eligibility, an $800 tool kit and $1000 tax exempt trade learning scholarships.
The Government has also created additional training places and has trialled new
approaches, such as accelerated New Apprenticeships.[7] This is in addition to the current VET
in Schools funding which is part of the $8 billion in general recurrent funding
provided in 2005 for government and non-government schools under the National
Goals for Schooling in the Twenty-First Century declaration.[8]
1.11
The committee majority notes the strong interest which
has been shown in the colleges so far. More than 160 expressions of interest were
received in the six months to July 2004. The establishment of the colleges also
has the strong backing of business and employer bodies such as the Victorian
Employers Chamber of Commerce and the Australian Chamber of Commerce and
Industry.[9] The level of interest shown
in the colleges is partly a response to the extensive community consultation
forums which Minister Hardgrave
undertook in all 24 regions during February and March of this year. These
forums, which were attended by representatives from business, employer and
industry associations, followed the release of a discussion paper by DEST in
January 2005.[10] In late March, the
request for proposal documentation was released, seeking proposals to establish
the colleges and setting out the selection criteria against which proposals
would be assessed. A total of 73 proposals for the colleges were received.
1.12
The Government has recently announced that it will
commence negotiations with successful applicants to establish the first 12 colleges
in 2006 and 2007 for the following regions: Illawarra, Port Macquarie,
Bairnsdale-Sale, Bendigo, Eastern
Melbourne, Geelong, Gladstone,
Gold Coast, Townsville, Adelaide
and Darwin.[11] Information on the DEST website shows
that a number of successful applications, including for the Gladstone,
Gold Coast, Townsville and Darwin
regions were initiated by consortiums of industry, employer and community
interests. Taking Darwin
as an example, the successful application from the Territory Construction
Association, on behalf of the Darwin Industry Consortium, comprised all major
industry associations, Chamber of Commerce Northern Territory, Motor Trades
Association, Australian Hotels Association Northern Territory and Group Training
Northern Territory. The consortium also has the support of the Northern Territory
Department of Employment, Education and Training, the Charles
Darwin University
and local public and non-government schools. The committee majority believes
that the speed with which these collaborative relationships involving parents,
employers, young people, schools and industry have been formed is an
encouraging development in first phase of the Government's initiative to reform
the VET sector. The high level of interest already shown in the technical
colleges from a broad range of industry sectors provides a strong foundation upon
which the colleges can develop into educational and training centres of
excellence to meet the needs of employers and young people wishing to undertake
a trade career.
1.13
It is especially significant that some state
governments have shown interest in this initiative. The Victorian Government
support has been acknowledged in the success of Ringwood
Secondary College
as lead partner with St Joseph's
College, Ferntree Gully and mixture of public, private and community
organisations. In Bendigo, the
local senior secondary college is also an important partner in the local
venture. This answers criticism about uncoordinated implementation of
Government policy. Where state governments have permitted, there has been
considerable collaboration in establishing a facility which will harmoniously
complement existing local training facilities.
1.14
A decision as to the location of the remaining colleges
will be made in late 2005. According to DEST, the first colleges will begin
accepting students in 2006 with all 24 regions operational by 2008.
Technical colleges and their operation
1.15
Each of the colleges will enable students to undertake
academic studies and trades-related vocational courses, as well as the
opportunity for each student to commence a Certificate III School-Based New
Apprenticeship. However, the bill before Parliament does not provide a single
model for the operation of the colleges. The Government believes that each of
the colleges will need flexible and innovative delivery arrangements and
timetables in order to fulfil a combination of academic tuition, vocational and
technical training and School-Based New Apprenticeship training.
1.16
In the drafting of its legislation, the Government has
been careful not to prescribe any particular model of operation for the
colleges. The Government believes that each college should be able to operate
in a manner which best suits the needs of industry and students in each of the 24
regions. It will therefore consider any model which has the backing of the
local community, business and industry groups and which meets the broad
requirements for the colleges as set out in the department's discussion paper
and request for proposal documentation. According to Minister Hardgrave:
The flexibility to tailor arrangements to local needs will be
especially important in the initial years of each college. Colleges may
commence operations by offering training in a specialised trade that is of
particular relevance to the local region and is one of the industry groups
which have been identified by the Australian Government as a priority. Over
time the college could be expected to broaden the range of trade training
offered, based on the needs of the local community.[12]
1.17
Be that as it may, the colleges will be required to
meet some minimum requirements. According to DEST, each college will have to
enter into a funding agreement with the Government which will set out key
requirements, performance measures and reporting and monitoring arrangements.
They will also be required to have an access and equity strategy in place to ensure
that there are no barriers to students from different backgrounds who wish to
pursue the opportunities the colleges offer.
1.18
A consistent criticism of the Government's proposal is
that the new colleges will duplicate training already provided by schools and other
registered training organisations, including TAFEs. This argument, however,
shows a complete failure to understand how the colleges will be fundamentally
different from existing training organisations. Unlike TAFEs, local industry
and community representatives will play an important role in ensuring that the
colleges teach relevant skills to students. According to the DEST submissions:
Local industry and community representatives, through their
leadership role in the governance of each of the Australian Technical Colleges,
will have an important role to play in ensuring that the Colleges teach
relevant skills to students – that the training provided matches the skills
required by local businesses to redress existing and projected skill needs.[13]
1.19
The colleges will be specialist schools with high
quality facilities providing tuition for years 11 and 12 students. As the
Minister has stated: 'The TAFE system is for what you do after school, the
Australian technical college approach is for what you do while you're still at
school'.[14] The colleges will be
endorsed and led by industry. They will also be run autonomously by principals
who will be able to offer employment to teaching staff under Australian
Workplace Agreements (AWAs), including a performance pay element to attract and
retain the best available staff. The discussion paper released by DEST states
that the colleges will offer '...attractive work conditions emphasising
flexibility, high quality facilities, strong professional learning and ongoing
support for teachers'.[15] This reflects
the Government's commitment to creating working environments which provide both
flexible employment arrangements and rewards linked to excellent performance.
1.20
The issue of AWAs continues to be raised by Opposition
senators. To argue that the Government has embarked on an ideological crusade by
linking industrial relations reforms, including AWAs, indicates that Opposition
senators are unaware of what flexibility in the workforce means. AWAs are the
means by which teachers and other staff may be rewarded for time and effort
which is beyond the standard hours of schooling. The militant opposition to
AWA's by unions and the Opposition likewise could be described as 'ideological'.
Government senators believe that staff employed by the technical colleges
should be given a choice in their working arrangements. Given that the new
colleges are not linked to any system, AWAs offer the best way to proper
remuneration in circumstances where a certified agreement is not likely to be
practical. AWAs are fully consistent with the intention of the legislation. As Minister
Hardgrave has explained:
There is no compulsion about people taking on individual
agreements, but we allow people the opportunity to actually gain one. In other
words, if you want to work for the base wage, then that's your business and
that's your agreement. But if because you're a person of quality and a teacher
of quality, we think a teacher of quality should be able to negotiate a higher
wage and a better wage. I think teachers around Australia
want to do that.[16]
Changing the culture of vocational education
1.21
The committee notes the Government's determination that
students in years 11 and 12 who complete apprenticeships should have their
achievements valued as much as students who attain a university degree. Government
senators believe that a cultural shift is required, away from the view that
trade occupations and vocation training are less attractive than university. It
is important that a high quality technical education comes to be valued as much
as a university degree. This bill provides a practical way through to
establishing this principle in formal schooling.
Conclusion
1.22
The significant funding measures contained in the
Australian Technical Colleges bill underpin the Government's bold new approach
to Australia's
skills shortage problem. The Government's main objective with this legislation
is to maintain and further strengthen the vocational education and training
sector by building an industry-led system that delivers what Australian
businesses, communities and individuals need. The establishment of technical
colleges in the 24 regions which have been identified by the Government will
promote a career path in trade occupations in key industries as a valuable and
rewarding option for young people. Passage of this legislation will ensure that
the new colleges will be able to play a pivotal role in raising the profile and
status of vocational educational and training.
Recommendation
The committee majority commends this bill to the Senate and recommends
its passage without amendment.
Senator Judith Troeth
Chair
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