WHAT THIS GOVERNMENT HAS DONE SO FAR Since coming to office, the Andrews Labor Government has undertaken significant work to restore confidence in our training system and to improve its performance. QUALITY We have taken a strong stand on quality, completing the Review of Quality Assurance in Victoria’s VET System in June 2015 and implementing a range of initiatives to improve quality including: an immediate audit blitz on contracted training providers resulting in the withdrawal of a number of Victorian Training Guarantee funding contracts; an additional $30 million over 3 years to boost compliance resources and implement the recommendations of the Review of Quality Assurance; new training provider contracts and greater accountability; and stronger provider performance assessment. This work is a key step in creating the sort of training system Victoria’s students, industry and economy needs and deserves and it will set the foundation for ongoing, system wide reform. JOBS The Government has an ambitious plan for economic and jobs growth. The Back to Work Scheme is focused on driving future growth and providing relief to Victorian businesses that hire unemployed youth, long-term unemployed Victorians and retrenched workers, to help create 100,000 jobs. A package to boost the Back to Work Scheme, including extended employer benefits and additional training initiatives to further support vulnerable Victorians to get a job. The scheme includes $20 million for a Reconnect Program that will help address the drop in early school leavers taking up training. $15 million to create new Skills and Jobs Centres across Victoria, including $7 million for regional TAFEs. The new hubs will be the first point-of-call for students looking to start training, workers needing to re-skill, unemployed workers needing support for retraining and for employers. These initiatives will inject much needed funding into the training sector and help to ensure that people accessing training are developing the skills they need to get a job. 4
A CLEAR VISION FOR WHAT GOVERNMENT EXPECTS FROM THE VET SYSTEM The Review advocates for the Government to play a more active role in the VET system than has been the case in the past few years and for all players to share a common view of what the system is expected to achieve. It is vital that all participants share a common view of what the VET system is expected to achieve, to provide clarity and facilitate the pursuit of common goals. A NEW STABLE AND SUSTAINABLE FUNDING MODEL The Review proposes that the funding be built around the principles of choice, contestability and diversity; achievement of Government policy objectives, such as increasing attainment levels and responsiveness to labour market needs; stability; sustainability; and, effective budget management. The current unstable and unsustainable funding model is not meeting our State’s needs. It isn’t promoting the right types of training, and isn’t providing good value for the $1.2 billion investment that the State makes. The new funding model that Government develops will build on the original concept of a contestable market driven by student demand, but will enable the training system to deliver what the economy needs now and into the future, and to achieve the greatest possible benefit from the public funds invested. Over the coming months, Government will engage with key stakeholders, develop and refine the design of this model, so that a new model can be communicated to the market in advance of implementation, which will commence progressively from 2017. SKILLS AND JOBS IN THE EDUCATION STATE 7
SNAPSHOT - WHAT A REFORMED TRAINING SYSTEM WILL LOOK LIKE Government will be more active in managing the training market and will work with industry and the new Victorian Skills Commissioner to ensure that the market provides the training Government and the economy needs. Victoria’s VET system will operate under three overarching objectives: Deliver quality training that meets current and future industry needs Ensuring employer confidence through the availability of a adaptable and productive workforce and servicing the job needs of local communities, industries and the economy. Grow employment and further education outcomes Helping people to transform their lives, their careers and their future and move between different stages of education and training. Promote equity and address disadvantage Creating job and study opportunities for all Victorians to get the skills they need for the jobs they want, no matter their level of disadvantage or their situation. In developing a new system, Government will seek to: More actively engage with industry to boost productivity and deliver workforce needs Have a new, stable funding model which will be responsive to the needs of students, industry and the changing economy Target funding towards quality training that leads to jobs, increased productivity and economic growth Provide levels of funding that reflect the cost of delivering quality training See TAFE institutes, Learn Local and other community providers thrive, with new funding streams that allow them to again play their unique role in generating the skills that Victoria and supporting disadvantaged learners Include a new, more supportive model for high needs learners, which will incorporate new approaches to ensure that funding is targeted to those students who need it most Be consumer-focused and provide more information and support for students and employers to assist them in making training choices Provide dedicated funding through a Workforce Training Innovation Fund, which will bring industry and providers together to develop cutting edge programs for the future workforce Target funding for training delivery the market is not likely to deliver the best outcomes, such as in thin markets or specialist training in regional areas. 14