House of Representatives Committees

Standing Committee on Employment, Education and Workplace Relations

Inquiry into the Role of Institutes of TAFE
Submissions

This document has been scanned from the original printed submission. It may contain some errors

Submission 76

ACCI SUBMISSION TO THE HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON EMPLOYMENT, EDUCATION AND TRAINING ON:

NOVEMBER 1997

Introduction

The Australian Chamber of Commerce and Industry (ACCI) is the peak council of Australian business associations. ACCI members are employer organisations in all States and Territories and all major sectors of Australian industry. Through our membership, ACCI represents over 350,000 businesses nation-wide, including the top 100 companies. That makes ACCI the largest and most representative business Organisation in Australia.

Membership of ACCI comprises State and Territory Chambers of Commerce and national employer land industry associations. Each ACCI member is a representative body for small employers or sole traders, as well as medium and large businesses.

Each ACCI member Organisation, through its network of businesses, identifies the concerns of its members and plans united action. Through this process, business policies are developed and strategies for change are implemented.

ACCI has worked closely with Government to ensure that the needs of business are taken into account in the development of policies and has contributed significantly to reforms within the education and training system.

There is general support from the business sector for the Federal Government's package of education and training reforms. An industry led outcome is critical to the successful implementation of these reforms. ACCI and its member organisations have continued to emphasise at all levels of Government the need for policies to focus on industry needs. Employers play an important role in setting training policy, establishing links with education and training institutions and providing training for employees.

The pressures to increase training and skills acquisition are enormous. These mainly stem from technological and structural changes, industry competition and workplace change. A well developed vocational education and training system is crucial to the broader microeconomic reform agenda. These pressures have also acted as a driver in determining the way in which future education and training services must be delivered on the ground.

The fundamental changes being implemented will help expand employment opportunities for all Australians and particularly for young people. As well as enhancing productivity the reforms promote pathways from school to employment. Positioning of technical and further education institutions (TAFE's) in the light of these changes is an important issue which needs to be addressed as a matter of some priority.

Background

The new training initiatives will open up the national training market. It has placed competitive pressures on training providers to deliver quality customised training, particularly structured training for apprenticeships and traineeships. Measures such as user choice, national industry and enterprise competency standards and modernised entry level training arrangements will all help to take industry forward. Industry also needs a responsive and flexible training system.

TAFE's were set up to provide courses which articulate within the workplace. This has largely been true of the trade areas and fee-for-service training. There has been a growing tendency for elements of TAFE to enter the credential race to get full articulation with universities or to maximise credit transfer. Articulation pathways have become blurred and inconsistent.

TAFE's have often found it difficult to respond quickly and flexibly to training demands. They have operated on a supply driven system, although this has been slowly changing within some campuses. Over time, TAFE infrastructure and facilities have become under utilised. The full use of capital assets has slowly fallen away as a result of the need to move to more flexible training options which cannot always be accommodated within existing facilities. The need for training diversity has added to this problem.

As public funding for TAFE's has been tightened, Institutes have become more reliant on other funding sources in order to remain viable. Significant variations have emerged in delivery costs for comparable training.

ACCI's Position

ACCI supports education and training principles which:

User Choice

ACCI supports the full introduction of 'user choice' in the vocational education and training system. It fosters a partnering approach between industry and training providers which enhances the responsiveness and flexibility of the training system. This in turn facilitates industry expansion.

The new apprenticeship and traineeship arrangements enable employers and trainees to determine the training provider and negotiate the means by which the training will be delivered. ACCI supports moves to examine the introduction of a voucher system which enables eligible people with training needs to be issued with a training voucher enabling them to purchase training from any accredited provider. This would enable a more complete introduction of 'user choice.'

ACCI will maintain an active interest in the implementation of 'user choice' particularly in:

ACCI is aware that the ACTU has taken a different view on the introduction of 'user choice'. ACCI does not support the ACTU position. Earlier this year a detailed study was undertaken by ANTA of ten selected user choice pilot projects. The training outcomes from these projects have been much richer than anticipated, even allowing for the short duration of most pilots. Employers and community groups involved are strongly committed to the user choice concept. Having a greater say has made them more active participants in the training system.

The pilots also indicate that user choice has the potential to improve access and equity by encouraging greater responsiveness by training providers to the needs of disadvantaged groups. Disadvantaged clients have more opportunities to express their needs and have grater confidence that they will be met.

Third Party Access

As the training market becomes more competitive providers come under increasing pressure to deliver affordable and quality training. ACCI supports measures which enable alternative training providers to have access to publicly funded VET infrastructure (facilities and equipment). There are situations in which it is not economical and in the interests of the VET system to duplicate this infrastructure. Also, opening up access creates more training opportunities, particularly in regional economies.

Access by third parties is already being granted on commercial terms in some cases but presently there is no general right of access. Competitors in the training market have a right of access where:

Third party access increases utilisation of facilities, maximises the return on the public funded capital investment. A market based approach for enabling access, as opposed to a regulatory approach, is important in that it avoids complex bureaucratic rules and mechanisms which are normally inherent in regulatory models. The market approach also encompasses the need to separate the role of managing the public infrastructure from the training and service delivery role. If there is separation, access would be enhanced because of the asset managers need to maximise the rate of return on the assets.

In most cases, TAFE's technical facilities are collectively operated and form part of major TAFE complex. Disaggregating them would make them more accessible to other providers, thus maximising their use.

The market based approach to third party access also:

Third party access would potentially benefit public and private providers wanting to deliver services within and across regions as well as those schools involved in delivering VET services.

Articulation Pathways and TAFE/University Relationships

Articulation, credit transfers and recognition of prior learning are important elements; however, they must be oriented towards nationally consistent outcomes. Tradespeople who could reasonably expect to articulate with technician type paraprofessional training often find themselves locked out because of the pre-occupation of TAFE's with university transfer credits.

Two fundamental strategies are important in order to achieve articulation between TAFE's

and Universities:

It is important that pathways between the TAFE and University sectors be maximised to enable flexibility of access by students. Articulation arrangements between TAFE Diploma offerings and University Bachelor degrees are presently unclear.

Partnership arrangements between Universities and TAFE should be established to enable joint delivery of programs between the sectors. This maximises articulation pathways particularly in terms of student access to opportunities in both sectors. The development of positive relationships between the two sectors, as opposed to a forced merger, is far more likely to be successful in achieving effective and efficient outcomes.

Universities should not increasingly assume responsibility for TAFE activities. There is a perception within the business community that if TAFE activity is to become the responsibility of Universities, the capacity of industry to influence training development is diminished. Also, Universities should not regard TAFE as primarily a feeder into its degree courses. This is just one of the many pathways available to students.

Positioning TAFE's

ACCI encourages all organisations, including TAFE, to recognise that there is an active vocational education and training market. The move to open up this market has placed the delivery of training squarely in the commercial sector. This makes it a demand driven system able to respond to industry needs.

Like other training providers, TAFE's must focus on a business culture and operate within competitive neutrality principles. They must optimise funding and operate as 'business units' with much more autonomy and control over their activities. This will mean rationalising and modernising facilities to meet training demands. As part of this, economies of scale must be addressed. Efficiency in training delivery must be improved, achieving maximum use of resources and at the same time not compromising the needs of the business sector. TAFE's must be able to respond quickly to applied skills training demands within the vocational education and training system.

Summary

ACCI supports the following initiatives:

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