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Submission by the National Centre for Vocational Education Research (NCVER) to Standing References Committee on Education, Employment and Workplace Relations Industry Skills Councils The Standing References Committee on Education, Employment and Workplace Relations is seeking submissions for the inquiry into Industry Skills Councils.

The Committee is particularly interested in matters outlined in the terms of reference including related matters believed to be relevant.
The National Centre for Vocational Education Research (NCVER) is responding to this inquiry with matters we believe to be relevant to this inquiry by highlighting key messages from evidence based research on the importance of Industry Skills Councils particularly in the area of development and continuous improvement of training packages.

NCVER is a not-for-profit company owned by the Commonwealth, state and territory ministers who are responsible for training.
Our responsibility is to collect, manage, analyse, evaluate and communicate research and statistics about vocational education and training.

We are contracted to manage the National VET Provider Collections which collect data on programs of publicly funded training, including nationally recognized training.

NCVER use these data to provide the basis for research and analysis to inform and measure performance of the VET system.
In addition NCVER undertakes a strategic program of research which addresses the national research priorities for tertiary education and training specified by the Ministerial Council for Tertiary Education and Employment.

GEN ER AL R ESPON SE NCVER does not wish to comment directly on the terms of reference.

However, we thought that it would be useful to provide some data on the training associated with the various Industry Skills Councils and some relevant research.
Industry Skills Council–: NCVER Submission (#94550) 1 Statistics Tables 1-3 below give a detailed analysis of the student participation in training packages assigned to Industry Skills Councils.

These data are derived from the Australian vocational education and training students and courses and apprentice and trainee statistical collections.

Table 1 shows current and historical activity on training packages assigned to industry skills councils.
It indicates that in 2009, 1.7 million students were enrolled in publicly funded VET and of that total, 1.13 million students enrolled in training packages assigned to Industry Skills Councils.

The mapping between training packages and Industry Skills Councils is at Appendix A.
Table 1 Students (’000) by industry skills councils16, 2005–09 Industry skills council16 Agri-Food Community Services and Health Construction and Property Services Electrocomms and Energy Utilities ForestWorks Government Innovation and Business Manufacturing Skills Australia17 Service Skills Australia SkillsDMC Transport and Logistics Total training packages assigned to industry skills councils Total training packages not assigned to industry skills councils17 0.0 - 0.0 - - Total training packages Total non-training packages 866.6 784.2 956.2 719.8 985.7 679.3 Total students 1650.8 1676.0 1665.0 1059.1 640.6 1699.7 1130.0 576.7 1706.7 A dash (-) represents a true zero figure, with no data reported in this category.
For notes on tables, see http://www.ncver.edu.au/statistics/vet/ann09/table_notes.pdf.

Source: NCVER National VET provider collection 2009 http://www.ncver.edu.au/statistic/publications/2264.html Industry Skills Council–: NCVER Submission (#94550) 2 In Table 2 the data show that in 2009 a total of 351,600 qualifications were completed of which 295,600 were qualifications attached to training packages assigned to Industry Skills Councils.
Table 2 Qualiﬁcation completions18,19,20,21 (’000) by industry skills councils16, 2005–08 Industry skills council16 Agri-Food Community Services and Health Construction and Property Services Electrocomms and Energy Utilities ForestWorks Government Innovation and Business Manufacturing Skills Australia17 Service Skills Australia SkillsDMC Transport and Logistics Total training packages assigned to industry skills councils Total training packages not assigned to industry skills councils17 Total training packages Total non-training packages Total qualification completions 235.4 235.2 262.2 295.6 - - 235.4 61.0 296.4 235.2 57.0 292.1 0.0 262.3 56.9 319.2 - 295.6 55.9 351.6 A dash (-) represents a true zero figure, with no data reported in this category.
For notes on tables, http://www.ncver.edu.au/statistics/vet/ann09/table_notes.pdf Source: Australian vocational education and training statistics: Students and courses 2009 http://www.ncver.edu.au/statistic/publications/2264.html Industry Skills Council–: NCVER Submission (#94550) 3 Table 3 is a breakdown of the 2009 apprentice and trainee student participation in training packages assigned to Industry Skills Councils.

Each training package is also assigned an occupation.
We see that the councils tend to have training packages that cut across a number of occupational groups.
Table 3 Apprentice and trainee commencements, trade and non-trade occupations,6,7 by industry skills councils17 and selected training characteristics, 2009 (’000) (Revised 19/7/10) Trades Non-trades Technicians and trades workers Managers Professionals Community and personal service workers Clerical and administrative workers Sales workers Machinery operators and drivers Labourers Existing worker Existing worker Newly commencing worker School-based status School-based Not school-based Industry skills councils17 Agri-food Community services and health Construction and property services Electrocomms and energy utilities ForestWorks 10.9 60.6 3.3 3.1 4.6 66.9 7.8 1.8 0.1 6.2 1.2 3.2 15.8 0.0 9.2 0.0 Government Innovation and business 2.8 21.0 Manufacturing Services SkillsDMC 11.6 0.5 0.1 0.6 0.7 0.2 6.5 1.1 0.1 7.5 0.2 0.0 0.0 0.0 0.0 0.8 6.3 Transport and logistics 0.2 0.0 Training packages not assigned to industry skills councils17 Training package Non-training package Total Blanks represent a true zero figure, with no contracts reported in these categories.
For notes on tables, see http://www.ncver.edu.au/statistics/vet/ann09/table_notes.pdf Industry skills councils represent particular industries and groups of training packages.

For more information on how training packages are grouped by industry skills council, see the supporting documents at <http://www.ncver.edu.au/publications/2263.html>.
Source: NCVER Australian vocational education and training statistics: Apprentices and trainees - Annual 2009 http://www.ncver.edu.au/statistic/publications/2263.html Industry Skills Council–: NCVER Submission (#94550) 4 Relevant research We conclude this submission by highlighting recent research that may be of interest to this inquiry.
Responding to changing skill demands: Training Packages and Accredited Courses forthcoming, Misko J, This research is based around how Industry Skills Councils are responding to workplace change.

The research is still in progress, but a draft working version is attached as a separate file.
The project takes a look at workplace changes experienced by enterprise and how Industry Skills Councils are responsive to such changes through the development and review of Training Packages and engagement with stakeholders.

We analyse the coverage and content of accredited courses, skill sets and new units of competency, and detail content analyses of selected units of competency.
The findings indicate that: • Regulation and business needs drive changes in the way the competency-based training system operates.

• The system has strong mechanisms for identifying the needs of specific industries and occupations and formulating units of competency in Training Packages and Accredited Courses.

However, too much bureaucratic red tape and unnecessary detail makes the system sluggish in responding to emerging needs in a timely fashion.
• Having strong mechanisms for the development and review of Training Packages and accredited courses is only part of the picture.

These must be complemented by effective teaching and rigorous assessment practice, as well as up-to-date materials and technology for learning.
In training we trust: Communicating regional training need and demand to VET providers 2008, Rushbrook P, Pickersgill R. NCVER: http://www.ncver.edu.au/vetcontext/publications/2082.html One of the challenges for VET providers is to be able to communicate effectively with industry.

They must be able to gather market intelligence.

While the report has mainly a regional focus it does examine the methods of communication between VET providers, and industry.
Formal communication methods include client partnerships and advice from industries bodies, while informal methods include friendships and networks between employers, communities and VET providers.
Competence and competency-based training: What the literature says 2009, Guthrie H. NCVER: http://www.ncver.edu.au/teaching/publications/2153.html The most important role of the Industry Skills Councils is to develop training packages which are based on the specification of competencies relating to the tasks that workers undertake.

Thus the concept of competency is central to the whole raison d’etre of Industry Skills Councils.
This literature review provides an historical account of the development of competency-based (CBT) training in Australia and summarises the issues arising from a number of reviews conducted on elements of the national training system.

It also explores the variety of ways in which competence is conceived both in Australia and overseas.

The literature suggests that: • • • competence can be conceptualised in two broad ways.
One takes a view that competence is a personal construct, while the other grounds competence in the context of an occupation and even a particular workplace.

It suggests that a balance needs to be struck between these two constructs support for CBT and training packages remains strong, but that attention needs to be given to the quality of both delivery and assessment.
The literature also suggests that training packages could be better understood and used, and that some refining of the underpinning concepts, processes and products is required the professionalism of vocational education and training teachers and trainers needs to be reemphasised and enhanced.

The literature also suggests that perhaps it is time to revisit the nature and level of training for VET’s professional staff.
Industry Skills Council–: NCVER Submission (#94550) 5 Training skilled workers: Lessons from the oil and gas industry 2005, Figgis J, Standen A. NCVER: http://www.ncver.edu.au/teaching/publications/1597.html This report explores ways existing workers develop advanced skills in a technically demanding industry.

The underpinning rationale is that the ability to develop workforces operating at the leading edge of skill and knowledge is critical if Australian enterprises are to be globally competitive.
It is also important to understand whether the policies and practices of the formal vocational education and training (VET) sector—which have, in recent years, emphasised entry- level training—are equally applicable to advancing the skills of already skilled workers employed in their industry of choice.

The hydrocarbons industry is a technically demanding global industry that takes training seriously.
Large companies spend many millions of dollars each year on the capability of their workforces and even the smallest companies now regularly review and update their work practices.

This training has, however, been dealt with as a private, even proprietary, matter but it has recently developed a new interest in connecting with the formal VET sector through its response to the Chemical, Hydrocarbons and Oil Refining Training Package PMA02.
The oil and gas industry has shown particular interest in the package's well-defined process operation competencies, and its new incident response and emergency management competencies (which have not been available in such a systematic and rigorous form before).

Competencies, not qualifications, are what enterprises in this industry care about both in recruiting and advancing their workforces.
For training at the advanced skills end of the spectrum, the technical equipment and expertise required are likely to exceed the resources of most non-enterprise-based registered training organisations.

The solution is to develop partnerships where careful attention is given to the VET sector's potential contribution.
The general trend observed in this study is that organisations in industries subject to conditions similar to the oil and gas industry will face new challenges in developing the skills of their workforce.

In particular, assessments must be more thorough, job specifications and selection criteria must be strengthened, and more realistic linkages between job profiles and competency standards introduced.
Inter-firm cooperation in training 2008, Cooney R, Long M. NCVER: http://www.ncver.edu.au/industry/projects/10324.html This research investigates cooperation amongst Australian manufacturing organisations with regard to training.

It identifies the characteristics of organisations that cooperate, the business practices that support such cooperation, the type of training delivered jointly and the benefits that arise.
Organisations more likely to cooperate with other organisations to provide joint training are in a strong business position in competitive markets.

They are profitable medium- sized and larger organisations with a growing workforce.

These organisations see the skills of their workforce as a source of competitive advantage, and joint training is only one part of their total training effort.
The research indicates that there is scope for more cooperation between organisations in training their employees and there are benefits to be gained in doing so.

It found that some organisations that did not currently have cooperative training arrangements with other organisations indicated that assistance from government, industry or employer organisations would encourage them to seek out cooperative arrangements.
The research concluded that without policy and program support, cooperative training arrangements will continue to be the province of a small number of organisations who independently initiate their own joint training activities.
Industry Skills Council–: NCVER Submission (#94550) 6 Appendix A: training packages grouped by industry skills councils Industry skills council Training packages Agri–Food MTM – Australian Meat Industry FDF – Food Processing Industry RTF – Amenity Horticulture RUH – Horticulture (superseded by RTF) RTE – Rural Production RUA – Agriculture (superseded by RTE) AGF – Agri-Food AGR – Conditionally endorsed Agri-Food (superseded by AGF) RGR – Racing Industry RTD – Conservation and Land Management RUV – Animal Care and Management Community Services and Health SFI – Seafood Industry SUG – Sugar Milling CHC – Community Services HLT – Health ZBS – Australasian Red Cross Blood Services (confidential) Construction and Property Services PRM – Asset Maintenance PRS – Asset Security (superseded by CPP) BCG – General Construction (superseded by CPC) BCF – Off-site Construction (superseded by CPC) BCP – Plumbing and Services (superseded by CPC) PRD – Property Development and Management (superseded by CPP) CPP – Property Services CPC – Construction, Plumbing & Services Integrated Framework Electocomms and Energy Utilities UET – Transmission, Distribution and Rail UTT – Electricity Supply Industry – Transmission and Distribution (superseded by UET) UEE – Electrotechnology Industry UTE – Electrotechnology Industry (superseded by UEE) UEG – Gas Industry UTG – Gas Industry (superseded by UEG) UEP – Electricity Supply Industry – Generation Sector UTL – Lifts Industry (superseded by and included in UEE) Industry Skills Council–:
 NCVER Submission (#94550) 7 UTP – Electricity Supply Industry – Generation (superseded by UEP) ForestWorks FPI – Forest and Forest Products Industry FPP – Pulp and Paper Manufacturing Industries Government CSC – Correctional Services LGA – Local Government PSP – Public Sector NWP – Water Industry UTW – Water Industry (superseded by NWP) PUA – Public Safety (confidential) Innovation and Business BSA – Administration (superseded by BSB) BSB – Business Services FNA – Finance (superseded by FNB) FNB – Financial
 Services (superseded by FNS) FNS – Financial Services ICA – Information and Communications Technology ICT – Telecommunications BSZ – Assessment and Workplace Training (superseded by TAA) CUE – Entertainment Industry CUF – Screen and Media CUL – Museum and Library/Information Services CUS – Music CUV – Visual Arts, Craft and Design ICP – Printing and Graphic Arts TAA – Training and Assessment TAE - Training and Education Manufacturing MEM – Metal and Engineering Industry PMB – Plastics, Rubber and Cablemaking AUM – Automotive Industry Manufacturing AUR – Automotive Industry Retail, Service and Repair LMF – Furnishing Industry LMT – Textiles, Clothing and Footwear MCM – Competitive Manufacturing (superseded by MSA) MEA – Aeroskills MSA – Manufacturing MSL – Laboratory Operations PMA – Chemical, Hydrocarbons and Oil Refining PMC – Manufactured Mineral Products PML – Laboratory Operations (superseded by MSL) ZCA – Service Technician – Portable Fire Equipment (Chubb Fire) Service WRB – Beauty Industry Skills Council–: NCVER Submission (#94550) 8 WRH – Hairdressing THH – Hospitality (superseded by SIT) SIT – Tourism, Hospitality and Events SIR – Retail Services WRR – Retail (superseded by SIR) SIF – Funeral Services SRC – Community Recreation Industry SRF – Fitness Industry SRO – Outdoor Recreation Industry SRS – Sport Industry THC – Caravan Industry THT – Tourism (superseded by SIT) WFS – Funeral Services (superseded by SIF) WRF – Floristry WRP – Community Pharmacy
 (superseded by SIR) WRW – Wholesale (superseded by SIR) ZWA – Woolworths (confidential) SkillsDMC BCC – Civil Construction RII – Resources and Infrastructure MNQ – Extractive Industry MNM – Metalliferous Mining DRT – Drilling Industry MNC – Coal Transport and Logistics TDT – Transport and Distribution (superseded by TLI) TDA – Aviation (superseded by AVI) AVI – Aviation TDM – Maritime TLI – Transport and Logistics ZPO – P & O Ports ZQF – Qantas (confidential) (superseded by AVI) ZQR – Queensland Rail –
 Civil Infrastructure (confidential) No industry skills council TAL – Transport and Logistics (conditionally endorsed) ZBE – Boral Interior Lining (confidential) ZKO – Kodak Australasia (confidential) ZRG – Ricegrowers Co-operative Limited (confidential) ZWV – Humanitarian (confidential) Industry Skills Council–: NCVER Submission (#94550) 9