tag:theconversation.com,2011:/uk/topics/vet-reforms-12319/articlesVET reforms – The Conversation2022-02-03T03:17:57Ztag:theconversation.com,2011:article/1755232022-02-03T03:17:57Z2022-02-03T03:17:57ZWho’ll teach all the students promised extra TAFE places? 4 steps to end staff shortages<p>Under Labor’s proposed <a href="https://alp.org.au/policies/future-made-in-australia-skills-plan">Future Made in Australia Skills Plan</a>, Australians studying in an industry with a skills shortage will be supported through the provision of free TAFE places. This will include 45,000 new places. If Labor does that without expanding the present <a href="https://www.pmc.gov.au/resource-centre/domestic-policy/vet-review/strengthening-skills-expert-review-australias-vocational-education-and-training-system">depleted teaching workforce</a>, we’re likely to see more current teachers bailing out and corners cut in teaching practices.</p>
<p>Our 2021 <a href="https://www.ncver.edu.au/research-and-statistics/publications/all-publications/attracting-industry-experts-to-become-vet-practitioners-a-journey-not-a-destination">research</a> for the National Centre for Vocational Education Research (<a href="https://www.ncver.edu.au/about-ncver/about-us">NCVER</a>) found the shortages of VET teachers and trainers extend to virtually every industry. If these shortages are not overcome, the result will be an inadequately trained vocational workforce. This in turn will have an impact on the country’s skill levels and productivity.</p>
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<p>Not that the present federal government has much to be proud of in this regard. Although Vocational Education and Training (VET) significantly underpins the nation’s workforce development, it has limped along under recent national governments.</p>
<p>TAFE, the public provider, has remained a poor relation. <a href="https://www.afr.com/policy/health-and-education/vet-for-monday-20180321-h0xrib">Workforce shortages</a> have continued, made worse by retirements from the <a href="https://www.skillsreform.gov.au/images/documents/Consultation_draft_of_the_VET_Workforce%20Quality_Strategy.pdf">ageing VET workforce</a> and by the need to expand training to cater for new and emerging industries.</p>
<p>For our <a href="https://www.ncver.edu.au/research-and-statistics/publications/all-publications/attracting-industry-experts-to-become-vet-practitioners-a-journey-not-a-destination">research</a> we talked with key members of almost 30 registered training organisations (RTOs) across Australia about the shortage of trainers. We also surveyed over 300 practising teachers and trainers (VET practitioners) about their experiences of moving into VET.</p>
<p>The challenge in overcoming the shortage of VET practitioners is to encourage experienced workers from trades and the professions to move into VET.</p>
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<h2>What are the key issues?</h2>
<p>The difference in salaries between industry and VET is a significant issue. It’s too simplistic an explanation for the lack of applicants, however. </p>
<p>For example, one disincentive is the nature of employment in the sector. Just over half of VET practitioners are employed in ongoing full-time roles. As one said:</p>
<blockquote>
<p>“People at the top of their industry don’t leave for a temporary contract.”</p>
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<p>Private training organisations reported they sometimes provide permanent employment for trainers simply to keep them “on the books”. One RTO principal told us:</p>
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<p>“I can’t afford to put them off because we’ll never get them back.”</p>
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<p>A further stumbling block is the inflexibility of the basic educational qualification as a point of entry. Trainers generally need to complete a Certificate IV in Training and Assessment (Cert IV TAE) <em>before</em> they can teach. There is only minimum provision for supervised practice without it.</p>
<p>Training organisations reported prospective trainers are reluctant to acquire the full qualification before they’re allowed to teach. Tradespeople with significant practical experience but no formal education since their apprenticeship were also anxious about “returning to study”.</p>
<p>Paradoxically, there was pushback from university-educated professionals in senior positions against the need for a vocational qualification.</p>
<p>The value of the certificate itself as a training qualification has been an <a href="https://www.researchgate.net/profile/Erica-Smith-4/publication/337013372_The_Importance_of_VET_Teacher_Professionalism_An_Australian_Case_Study/links/5dc0c1244585151435e8c507/The-Importance-of-VET-Teacher-Professionalism-An-Australian-Case-Study.pdf">ongoing contentious issue</a>. One ex-tradie wrote:</p>
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<p>“They want teachers to have ten years of industry experience […] but expect a six-day course to be enough to be a good teacher.”</p>
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<p>It’s understood changes to the qualification are in the wind. Let’s hope these include ones that will make entry to VET teaching more flexible. </p>
<p>Training organisations and trainers alike argued for better recognition of prior learning among those who already have a training or mentoring role. </p>
<p>Even after they make the transition, new practitioners sometimes leave VET because their expectations don’t meet the reality. This is especially true if their employer doesn’t provide appropriate orientation and support. One trainer said:</p>
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<p>“Day one I was given a USB with PowerPoint presentations on it and told to go into the classroom and deliver it.”</p>
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<img alt="Chart showing decline in apprenticeship and traineeship completions in Australia, 2010 to 2021" src="https://images.theconversation.com/files/443969/original/file-20220202-13-1hj0wgy.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/443969/original/file-20220202-13-1hj0wgy.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=391&fit=crop&dpr=1 600w, https://images.theconversation.com/files/443969/original/file-20220202-13-1hj0wgy.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=391&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/443969/original/file-20220202-13-1hj0wgy.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=391&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/443969/original/file-20220202-13-1hj0wgy.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=492&fit=crop&dpr=1 754w, https://images.theconversation.com/files/443969/original/file-20220202-13-1hj0wgy.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=492&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/443969/original/file-20220202-13-1hj0wgy.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=492&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="attribution"><a class="source" href="https://www.ncver.edu.au/research-and-statistics/infographics/historical-time-series-of-apprenticeships-and-traineeships-in-australia-infographic-1963-to-2021">Data: NCVER</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
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<h2>What can be done to end the shortages?</h2>
<p>We identified several strategies to attract more VET practitioners.</p>
<p><strong>1. Exploit career points and individual passion for teaching and training.</strong></p>
<p>A national media campaign could target prospective VET professionals at potential “turning points” in their careers. That might be, for example, when they are looking to move into something different from their everyday job, when family or financial responsibilities have eased, or when they are seeking an alternative work-life balance. Sell these as benefits beyond salary. </p>
<p><strong>2. Smooth the entry path.</strong></p>
<p>Provide more options to “try before you buy”. These might include “bite-size” opportunities to experience teaching in VET before making a commitment. Industry specialists could be allowed to teach short-term with a particular training skill set, rather than the full qualification.</p>
<p>It’s also essential to ensure prospective practitioners understand in advance how expectations in VET are different from those in their former workplaces. When they get there, give them a soft landing, especially those new to training. Show them they’re valued.</p>
<p><strong>3. Involve industry more.</strong> </p>
<p>Encourage and enable movement in and out of VET – so-called “<a href="https://www.researchgate.net/publication/262220931_How_vocational_teachers_describe_their_vocational_teacher_identity/link/606352f1299bf173677da67a/download">boundary crossing</a>”. This will enable practitioners to maintain their links and their industry currency. </p>
<p>There is also scope and reason for industry to be more directly involved in promoting and fostering the VET practitioner career.</p>
<p><strong>4. Enhance the status of VET.</strong></p>
<p>This can be done by promoting the uniqueness of the “<a href="https://www.tandfonline.com/doi/abs/10.1080/0309877X.2011.590584">dual practitioner</a>”. Arguably even more than at university level, VET employs tradespeople and professionals who have developed expertise in one career and channels them into a second career. As a VET teacher or trainer, their initial expertise is highly valued.</p>
<p>Our research showed many people in VET are passionate about its potential but some despair about its future. Whichever party is in power, expanding and equipping the VET workforce is a vital step forward.</p><img src="https://counter.theconversation.com/content/175523/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Darryl Dymock received research funding from NCVER. </span></em></p><p class="fine-print"><em><span>Mark Tyler received research funding from NCVER.</span></em></p>Federal Labor is promising to cover the cost of 465,000 TAFE places, including 45,000 new places. But there’s a chronic shortage of VET teachers and trainers, so that problem has to be fixed first.Darryl Dymock, Adjunct Senior Research Fellow in Education, Griffith UniversityMark Tyler, Senior Lecturer, School of Education and Professional Studies, Griffith UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1013902018-10-07T18:50:00Z2018-10-07T18:50:00ZVET needs support to rebuild its role in getting disadvantaged groups into education and work<figure><img src="https://images.theconversation.com/files/238049/original/file-20180926-48631-1e377je.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The vocational education sector has an important role to play in social inclusion of disadvantaged groups in learning and work.</span> <span class="attribution"><span class="source">www.shutterstock.com</span></span></figcaption></figure><p><em>This article is part of a series on the Future of VET exploring issues within the sector and how to overcome the decline in enrolments and shortages of qualified people in vocational jobs. Read the other articles in the series <a href="https://theconversation.com/au/search?utf8=%E2%9C%93&q=Future+of+VET">here</a>.</em></p>
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<p>In 1974, a <a href="http://hdl.voced.edu.au/10707/17052">review of the VET sector</a> set out an agenda for the future of the vocational education and training sector. It emphasised education and social inclusion in work as key functions of the sector, rather than mainly its “manpower role”. </p>
<p>In the ensuing decades, this emphasis has been overturned. The vocational education and training system of today is industry-led. It is funded primarily to <a href="https://www.education.gov.au/skilling-australians-fund">achieve employment outcomes</a>.</p>
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Read more:
<a href="https://theconversation.com/what-australia-can-learn-from-englands-plan-for-vocational-education-62418">What Australia can learn from England's plan for vocational education</a>
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<p>VET’s role in skill development and educating those who engage in the range of occupations that contribute to Australia’s economy is critical. But we also need to strongly support the role VET plays in getting disadvantaged groups into education and work.</p>
<h2>Previous social inclusion policies</h2>
<p>Social inclusion in this case reflects the federal government’s <a href="http://meetingpoint.org.au/assets/mp_s12_sipfa.pdf">social inclusion principles</a>, established in 2010. These were created to ensure people have the resources, opportunities and capabilities they need to learn, work and have a voice. </p>
<p>Social inclusion initiatives are designed for groups generally identified as possibly experiencing disadvantage, who require extra support to succeed in education and work. Students with a disability, students from culturally and linguistically diverse backgrounds (CALD), Indigenous students and students from low SES backgrounds, women, and people from rural, regional or remote locations or communities are among those who might need this support.</p>
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<img alt="" src="https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/238050/original/file-20180926-48653-1c6plsx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Disadvantaged groups, such as students with a disability or who come from rural communities, may need more help to get into education and work.</span>
<span class="attribution"><span class="source">from www.shutterstock.com</span></span>
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<p>The then Labor government established a <a href="http://www.nirs.org.au/images/stories/community_notices/Announcement_to_Stakeholders_August_2009.pdf">National VET Equity Advisory Council</a> (NVEAC) in 2009. Its task was to provide training ministers with advice on how to reform VET to ensure disadvantaged students achieved improved outcomes from participating in VET. Such outcomes include securing a job or further study. </p>
<p>NVEAC drafted the <a href="http://hdl.voced.edu.au/10707/167334">Equity Blueprint</a> in 2011. This set out the advisory committee’s advice to ministers on what reforms were needed to ensure the VET system could support all learners to achieve their potential, no matter what their circumstances.</p>
<p>These reforms were designed to be long-term, as system-wide reform takes time. Suggested reforms included:</p>
<ul>
<li>a new, more sustainable funding model for VET (including increased federal investment) </li>
<li>measuring and reporting on disadvantaged students’ progress and achievement to keep providers accountable </li>
<li>a national framework for building the capability of VET teachers to better train and support all students </li>
<li>listening to the voice of the learner so their actual needs and concerns would be addressed, including types of courses on offer, facilities and how they learn</li>
<li>investment in teaching foundation skills (such as literacy and numeracy) as a priority, and to do it better </li>
<li>embedding career, pathway and transition planning and advice into the VET and school systems to better support students into employment.</li>
</ul>
<p>Unfortunately, the Equity Blueprint was not implemented. With a change of government in 2013, NVEAC was disbanded. </p>
<h2>Where are we now?</h2>
<p>The VET sector has been increasingly <a href="http://www.voced.edu.au/content/ngv%3A40868">marketised</a>. This marketisation is seen in cuts to government funding of VET and the shifting of responsibility for funding post-school vocational education onto students. </p>
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Read more:
<a href="https://theconversation.com/changes-to-vet-might-be-good-for-business-but-not-for-students-31452">Changes to VET might be good for business, but not for students</a>
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<p>VET providers including TAFE, which has <a href="https://www.ncver.edu.au/__data/assets/file/0016/5920/nr04022_9.pdf">traditionally provided programs</a> to meet the specific needs of disadvantaged groups, have increasingly cut access and Certificate I and II courses. It’s these low-level courses that can provide the initial skills and confidence needed to enter the workforce or to progress to an industry-recognised qualification. </p>
<p>Despite some acknowledgement by state and territory governments in their annual planning documents that there’s still a role for VET in meeting its obligation to equity and community service, funding has not fully reflected this. When restructures of the system are designed and money is tight, equity programs are often the first on the chopping block. </p>
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<img alt="" src="https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=446&fit=crop&dpr=1 600w, https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=446&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=446&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=561&fit=crop&dpr=1 754w, https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=561&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/238054/original/file-20180926-48631-1hgkos9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=561&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Equity programs are usually first on the chopping block when money is tight.</span>
<span class="attribution"><span class="source">from www.shutterstock.com</span></span>
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<p>For example, the current restructure of <a href="https://d3n8a8pro7vhmx.cloudfront.net/youthaction/pages/1462/attachments/original/1519002239/VET_Report_2018.pdf?1519002239">TAFE NSW has cut</a> many of the educationally qualified staff who designed and delivered <a href="https://www.hunter.tafensw.edu.au/students/pages/outreach-programs.aspx">outreach</a> and support programs for students. This has meant reducing numbers of specialist staff for culturally and linguistically diverse students and those with disabilities. </p>
<p>Outreach programs provide opportunities for students to undertake relevant courses in their communities. This addresses both student and community needs. </p>
<h2>Equity groups left out</h2>
<p><a href="https://www.ncver.edu.au/">National Centre for Vocational Education Research</a> (NCVER) figures show <a href="https://www.ncver.edu.au/research-and-statistics/publications/all-publications/government-funded-students-and-courses-2017">a decline</a> in the participation of several equity groups in recent years. They include people from remote and very remote areas, those in the most socio-economically disadvantaged group, female students and students in the youngest age group (15 to 19). </p>
<p>The fact many of these equity groups were targeted in the <a href="https://theconversation.com/new-vet-student-loans-unlikely-to-weed-out-dodgy-private-providers-66575">VET FEE-HELP scandals</a> has possibly also undermined confidence in a VET pathway for these students.</p>
<p>Disadvantage often reaches into many aspects of a learner’s life, and that needs to be recognised and understood. Understanding issues around <a href="https://www.thesmithfamily.com.au/%7E/media/files/research/reports/research-disadvantaged-young-australians-learning-for-life.ashx">motivation to learn</a> and social disadvantage is necessary. </p>
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Read more:
<a href="https://theconversation.com/to-fix-higher-education-funding-we-also-need-to-fix-vocational-education-102634">To fix higher education funding, we also need to fix vocational education</a>
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<p>How motivated a student is informs how much time and effort they put into their study. Factors such as low socio-economic status, language barriers or hurdles, and competing responsibilities at home can have negative effects on motivation to learn. </p>
<p>An NCVER <a href="https://www.ncver.edu.au/__data/assets/pdf_file/0030/2096175/Improving-participation-and-success-in-VET-for-disadvantaged-learners.pdf">study</a> identified five effective strategies for supporting learners who become disengaged from study: </p>
<ol>
<li><p>address the overall barriers and challenges experienced by students, which might include home life and socio-economic concerns as well as learning issues </p></li>
<li><p>provide appropriate teaching that meets students’ specific needs, such as team teaching with professionals who have tertiary qualifications as well as experience in literacy and numeracy, or giving students additional support while studying a vocational course</p></li>
<li><p>be flexible in the delivery of programs such as outreach programs so they’re delivered where students feel most comfortable, in community settings and at times that meet their parental and caring responsibilities</p></li>
<li><p>offer ongoing support beyond VET, which might include counselling, careers advice and further training in foundation skills</p></li>
<li><p>provide students with pathways to further study and/or work through VET providers, government agencies and community groups working together. </p></li>
</ol>
<h2>What needs to happen now</h2>
<p>While VET has the capacity to offer socially inclusive educational programs, for successful and sustainable outcomes the training provider must also be able to work with other agencies supporting learners. A VET course is not the end of the journey. Government agencies and community groups can provide funding to ensure the VET qualification leads to meaningful work.</p>
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Read more:
<a href="https://theconversation.com/victorian-tafe-chaos-a-lesson-in-how-not-to-reform-vocational-education-7296">Victorian TAFE chaos: a lesson in how not to reform vocational education</a>
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<p>But success for many students is not just measured through completions and attainment of a qualification or job. When we talk about success here, it’s more in terms of less tangible outcomes such as building confidence, self-respect, life skills and engagement with their communities.</p>
<p>To rebuild this role, VET needs sustainable investment. Supporting disadvantaged learners is <a href="https://www.ncver.edu.au/__data/assets/pdf_file/0030/2096175/Improving-participation-and-success-in-VET-for-disadvantaged-learners.pdf">successful</a> when it’s an institution-wide commitment. </p>
<p>Such support requires the commitment of all levels of government, not only to ensure VET retains this capacity, but so there’s an obligation of social inclusion that goes beyond the classroom. It should also build strong relationships with employers and communities.</p><img src="https://counter.theconversation.com/content/101390/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Linda Simon has received funding from NCVER as a research grant 2016/17 and is a current member of the NTEU.</span></em></p>VET’s role in employable skill development is critical. But we also need to strongly support the role VET plays in getting disadvantaged groups into education and work.Linda Simon, Teacher in adult and vocational education, Charles Sturt UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1015162018-10-01T20:08:43Z2018-10-01T20:08:43ZA new national set of priorities for VET would make great social and economic sense<hr>
<p><em>This article is part of a series on the Future of VET exploring issues within the sector and how to improve the decline in enrolments and shortages of qualified people in vocational jobs. Read the other articles in the series <a href="https://theconversation.com/au/search?utf8=%E2%9C%93&q=Future+of+VET">here</a>.</em></p>
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<p>Attending a Vocational Education and Training (VET) graduation can be an uplifting experience. There’s the 45-year-old manufacturing worker who left school at 14 getting his first-ever qualification and a new job in construction, the Indigenous single parent who started a business based on what she learnt with her Certificate III in Hospitality, the female refrigeration apprentice who won a medal representing Australia at WorldSkills, and the Sudanese refugee who is now a university law student following his English Language and Tertiary Preparation Course. </p>
<p>These are not just inspiring stories about individuals. They show how the vocational system can increase workforce participation through developing skills in shortage areas, especially for disadvantaged groups. </p>
<p>Skills Australia once calculated if we raised workforce participation from 65% to the 69% they achieve in New Zealand, it would benefit the economy through increased tax and reduced social security income to improve government operating balances by as much as <a href="https://docs.education.gov.au/system/files/doc/other/wwf_strategy-2010.pdf">A$24 billion</a> a year. </p>
<p>The sector needs a new national set of priorities and operating principles fit for the future. To achieve this, a national review is necessary.</p>
<h2>The neglected middle child</h2>
<p>Why is VET so often characterised as the problem, neglected middle child of our post-school education and training system? A lot of it has to do with conflicts over basic questions of form and function – who should run the system, how it should operate, what its primary purpose is and what its relationship with other sectors should be. </p>
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Read more:
<a href="https://theconversation.com/deregulating-tafe-is-a-big-risk-to-the-labour-market-54171">Deregulating TAFE is a big risk to the labour market</a>
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<p>The last time the VET system had a largely agreed upon position on its purpose and operating framework was in 1974 following the <a href="http://hdl.voced.edu.au/10707/17052">Kangan Review</a> of the sector. Some 44 years on, the sector desperately needs another review.</p>
<h2>Industry’s concerns on the decline of VET</h2>
<p><a href="https://www.smh.com.au/education/vocational-education-industry-reforms-could-cripple-quality-providers-20161005-grvaye.html">Politicians</a> and <a href="http://www.bca.com.au/media/have-your-say-business-council-consulting-on-our-future-tertiary-system-">business leaders</a> are now showing concern about VET’s decline. </p>
<p>One argument is we now have too many people going to university. This is a waste of public money, it will result in critical skills shortages and is bad for some students who would be better off following the VET pathway. </p>
<p>Typically, the example is given of an apprenticeship that can bring higher initial pay and more certain full time employment. This is true for some traditionally male apprenticeships such as electrician, but less so for traditionally female pathways such as hairdressing or care. </p>
<p>You also see modern versions of the <a href="https://www.gooduniversitiesguide.com.au/study-information/types-of-institutions/tafe-institutes">argument</a> that some people prefer practical learning by doing, rather than academic learning, and that is a key feature of VET.</p>
<h2>Why?</h2>
<p>There are many aspects to this malaise. The sector is <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2017/12/Expenditure-on-education-and-training-in-Australia-2017.pdf">losing funding</a> and enrolments, it’s been battered by poorly thought out marketisation policies, and its students have been the victim of <a href="https://www.asqa.gov.au/news-publications/news/vet-fee-help-providers-under-microscope">loan scandals</a> by rogue providers. </p>
<p>VET operates in a <a href="https://melbourne-cshe.unimelb.edu.au/__data/assets/pdf_file/0010/2845774/Burke-Changes-in-funding-in-Australian-vocational-education-and-their-effects_.pdf">confused mess</a> of federal and state funding, governance and policy prescriptions. Externally, the labour market is changing with lots of professions – such as nursing – now demanding university degrees as entry qualifications. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/changes-to-vet-might-be-good-for-business-but-not-for-students-31452">Changes to VET might be good for business, but not for students</a>
</strong>
</em>
</p>
<hr>
<p>Universities have powerful alumni in business and politics. They prepare people for high-status professional careers, such as medicine or law. Critically, they have academic freedom. </p>
<p>In contrast the public VET provider, TAFE, is often treated like a government department. VET professionals are not free to comment publicly on government policy lest their views conflict with political positions or challenge direct ministerial control.</p>
<h2>VET’s own culture wars</h2>
<p>Various stakeholders have different views of VET priorities. Crudely put, VET is seen by different people as primarily:</p>
<ol>
<li> an industry trainer, similar to BHPs training department</li>
<li> an alternative to university in specialities such as fashion design and child care </li>
<li> a provider of foundation, “second chance” and initial vocational programs for disengaged adults and young people, similar to the <a href="https://www.bsl.org.au/">Brotherhood of St Laurence</a>.</li>
</ol>
<p>For the last 30 years, VET has been experiencing its own “culture war”. On the one hand there are some who work in the VET sector who like to look back to the “golden age” following the Kangan Report of 1974. The review emphasised life-long learning and educating the whole person, not just in technical skills. TAFE teachers needed graduate level qualifications in teaching to complement their industry qualifications and experience.</p>
<p>This vision lost out from 1990 onwards to a more instrumental one promoted by industry and trade unions which said VET’s purpose was to provide industry with workers who were skilled for specific jobs. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/233753/original/file-20180828-75990-b39wd6.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The vocational education and training sector has been losing funding and enrolments in recent years.</span>
<span class="attribution"><span class="source">NTEU Victoria/flickr</span>, <a class="license" href="http://creativecommons.org/licenses/by-nc-nd/4.0/">CC BY-NC-ND</a></span>
</figcaption>
</figure>
<p>The demonstration of specific industry-defined competencies became the key factor in gaining a credential, with less testing of understanding theory and knowledge. Graduate teacher qualifications were no longer necessary in this world of <a href="https://www.batchelor.edu.au/biite/wp-content/uploads/2012/06/CBT-Overview.pdf">Competency Based Training</a> – just a <a href="https://www.myskills.gov.au/courses/details?Code=TAE40116">VET Certificate IV</a> in Training and Assessment. </p>
<p>Besides advocating a competency approach, the new leaders of the system wanted “choice”. This led us through poor implementation and inadequate regulation to the <a href="https://www.afr.com/news/policy/education/private-colleges-vet-feehelp-loan-scandal-hit-160-million-and-counting-20160519-gozbmp">VET FEE-HELP scandals</a> we are now familiar with. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/vet-fee-help-reforms-will-merely-paper-over-the-cracks-of-a-system-prone-to-abuse-64425">VET FEE-HELP reforms will merely paper over the cracks of a system prone to abuse</a>
</strong>
</em>
</p>
<hr>
<p>This competency-based approach is now being <a href="https://melbourne-cshe.unimelb.edu.au/__data/assets/pdf_file/0011/2845775/Final-Anne-Jones-paper1.pdf">challenged</a>. In an age where we’re told many of tomorrow’s jobs don’t exist yet, it seems odd to prepare people solely with highly specific occupational skills. Especially because industry says it values generic skills such as communication, presentation, analysis and teamwork. Many VET graduates <a href="https://www.ncver.edu.au/__data/assets/file/0018/9261/linking-quals-and-labour-market.pdf">already never work</a> post-study, or work for a very short time in the exact occupation they gained their credentials in.</p>
<h2>The way forward</h2>
<p>VET needs a new national settlement with a set of priorities and operating principles that are fit for the future. Achieving this will not be easy as it involves resetting federal-state relationships and balancing the sometimes competing priorities of students and industry groups.</p>
<p>It will take a new national review similar to Kangan. The review may need to cover the entire post-secondary system. But if it does, we can’t forget VET is about educating people for the changing world of work, <em>especially</em> the disadvantaged. This not only makes good educational and social sense, but the pay off in increased workforce participation makes very good economic sense as well.</p><img src="https://counter.theconversation.com/content/101516/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Robin Shreeve is an independent consultant on workforce development and further education. He is an Adjunct Professor of Education at Federation and Western Sydney Universities and an Honorary Senior Fellow at the L H Martin Institute of the University of Melbourne. He is an independent Director of Western Sydney University Enterprises and President of the Australasian VET Research Association (AVETRA). Previously he has been the CEO of Skills Australia, three TAFE type Institutes in NSW and the UK and the Deputy Director-General of TAFE and Community Education at the NSW Department of Education and Training. </span></em></p>VET needs a new set of priorities and operating principles that are fit for the future.Robin Shreeve, Adjunct Professor, Federation University AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/803212017-07-03T05:53:56Z2017-07-03T05:53:56ZWhy exploitation and corruption continue to dog Australia’s VET sector<p>Victoria’s Independent Broad-based Anti-corruption Commission (IBAC) is currently <a href="http://www.ibac.vic.gov.au/investigating-corruption/public-examinations/operation-lansdowne">investigating</a> allegations of serious corruption at TAFE institutes. This is the latest in a series of scandals involving Australia’s vocational education and training (VET) sector.</p>
<p>IBAC’s <a href="http://www.ibac.vic.gov.au/investigating-corruption/public-examinations/operation-lansdowne">Operation Lansdowne</a> is probing how TAFEs have become embroiled in corrupt schemes that misappropriated millions of public dollars for training that never occurred. However, this sum is relatively minor compared to other reports from the sector. </p>
<p>In recent history, the VET sector has been beset with money loss, stranded students, and organisations collapsing. <a href="https://grattan.edu.au/wp-content/uploads/2015/02/234_norton_submission_vet_senate_inquiry1.pdf">Analysis</a> from the Grattan Institute estimates that 40% of the <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/03/VET_funding_in_Australia_Background_trends_and_future_directions.pdf">A$3.1 billion in loans</a> paid to training organisations through the federal VET-FEE HELP scheme are likely never to be repaid. </p>
<p>Additionally, the $650 million collapse of the training organisation <a href="http://www.smh.com.au/business/markets/pricewaterhousecoopers-accused-of-misleading-vocation-investors-20170329-gv8ywo.html">Vocation</a> is the subject of two separate class actions and numerous investigations, one of which involves a <a href="http://www.afr.com/brand/rear-window/vocations-john-dawkins-mark-hutchinson-file-defences-in-federal-court-20170403-gvcplu">former federal education minister</a>. </p>
<p>Reports of unethical practices have been widespread. <a href="http://www.smh.com.au/national/vocational-colleges-preying-on-retirees-in-trawl-for-government-cash-20150918-gjppgo.html">In one example</a>, nursing home residents signed up to what they thought was a free, four-day course on how to use Microsoft Word and email. Instead, the training organisation enrolled them in a technical course for IT professionals and received hundreds of thousands of dollars from the government. </p>
<h2>Why this is happening</h2>
<p>A <a href="http://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Education_and_Employment/vocationaled/Final_Report">federal parliamentary inquiry</a> found poor regulation and inadequate oversight as major contributing factors to the ongoing issue of corruption in vocational training. However, there is a need to also consider the certification regime of Australia’s VET sector. </p>
<p>Certification regimes are how authorities ensure the outcomes of an education system is valuable to society. </p>
<p><a href="http://www.sciencedirect.com/science/article/pii/S0276562411000047">Research</a> shows that a proper functioning certification regime is critical to the validity and reliability of an education system. A certification regime can have a major effect on the cost of education and its ability to deliver <a href="https://en.wikipedia.org/wiki/Distributive_justice">distributive justice</a>. </p>
<p>The media’s use of words like “<a href="http://www.news.com.au/finance/economy/federal-budget/government-plans-to-overhaul-vocational-students-loans-system/news-story/0f5b647bd251bb178ac92b578b0a98ac">shonky</a>”, “<a href="http://www.theage.com.au/victoria/stop-the-rorts-30-million-crackdown-looms-for-vocational-sectors-dodgy-training-providers-20150919-gjqbuk.html">rorts</a>”, “<a href="http://www.abc.net.au/news/2015-06-29/victorian-government-launches-crackdown-on-dodgy-training/6580074">dodgy</a>” and “<a href="http://www.smh.com.au/comment/rorted-by-the-public-sector--the-vocational-education-lesson-20151202-gldi64.html">shysters</a>” are all indicative of a certification regime that is failing to establish trust in the integrity and validity of the education outcomes it produces.</p>
<h2>Understanding certification in Australia’s VET sector</h2>
<p>Australia’s VET sector is structured very differently from secondary and university education. It uses a competency-based system that emphasises outcomes.</p>
<p>This approach was introduced in the 1990s to make the VET system more flexible and responsive. Education inputs, such as the length of study, were viewed as a poor way of measuring the quality of education provision. The system was designed to focus on signalling the presence of knowledge and skills that can be used in the workplace. </p>
<p>In a competency-based system, education can be certified regardless of where it is delivered, how the program is taught, or what assessment is undertaken. This means someone studying for a diploma can take anywhere between one week and two years before receiving their certification. It can be legitimate to be awarded the diploma without submitting a single written assignment.</p>
<p>This is in contrast to a university bachelor degree, which takes a minimum of three years and the submission of assignments totalling tens of thousands of words.</p>
<p>To be an accredited training provider, it is also not mandatory to have a physical presence like a school or campus. This may help explain why one <a href="http://www.news.com.au/finance/work/careers/dodgy-college-gave-away-ipads-to-supercharge-exploitation-of-vulnerable-communities-court-finds/news-story/f1f48d6f1dbe76cd504fe75a82464df9">training company</a> claimed $57 million while operating out of a small office above Silly Willy’s $2 shop in Western Sydney.</p>
<h2>The promise of competition and devaluing the role of TAFEs</h2>
<p>Over the past decade, a series of funding reforms were introduced to the VET sector that stressed the value of competition. There has been significant criticism of these reforms. A <a href="http://www.education.vic.gov.au/Documents/training/providers/market/vtmrfull2015.pdf">review</a> completed for the Victorian government noted:</p>
<blockquote>
<p>There has been too much emphasis on increasing both the number of providers and the intensity of the competition between them, and not enough care taken in ensuring they are delivering quality training.</p>
</blockquote>
<p>The features of the market reforms, and the certification regime of the VET sector, meant organisations could set up with relatively little investment, provide training of dubious quality, and leave once they had made their money. </p>
<p>In any certification regime, institutions also play an important role in providing quality assurance. Under these reforms, however, TAFEs were particularly hard hit – and the IBAC investigations show just how <a href="http://www.abc.net.au/news/2017-06-29/ibac-ex-tafe-executive-denies-wrongdoing-over-alleged-$1.8m-scam/8664812">compromised</a> they became. </p>
<p>Faced with job losses, campus closures and plummeting revenue, the TAFEs were forced to consider riskier arrangements like the ones currently being scrutinised by IBAC.</p>
<h2>Rethinking the certification regime of the VET sector</h2>
<p>This is not the first time questions have been raised about the quality of training in the VET sector. Almost a decade ago <a href="https://www.themonthly.com.au/issue/2010/november/1288836088/margaret-simons/exodus">the exploitation of international students</a> was under the microscope. <a href="http://www.voced.edu.au/content/ngv%3A23882">Research</a> from Monash University questioned the VET sector’s ability to produce graduates that matched the competencies being certified.</p>
<p>The repeated scandals in the VET sector show that the certification regime of the VET sector can be vulnerable to unethical practices. <a href="https://theconversation.com/australias-vet-system-needs-fundamental-change-heres-how-it-can-be-fixed-47701">Suggestions</a> have been made on how to increase the sector’s resilience. These are good places to start when looking at how to improve the system.</p>
<p>In any year, <a href="https://www.ncver.edu.au/__data/assets/file/0024/9393/socioeconomic-disadvantage-2612.pdf">26%</a> of 15-to-24-year-olds from lower socioeconomic backgrounds train in the VET sector. It is important to have a system that operates in their interests. Students need to be offered courses that are of high quality and beneficial to them. Government and industry need to have confidence that what is being certified is real and valuable. </p>
<p>A certification regime is based on trust. We need better ways to trust the value and legitimacy of what is being certified in our VET sector.</p><img src="https://counter.theconversation.com/content/80321/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Hurley does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>VET certification standards differ greatly from university. Students qualify for diplomas with no set course length, assignments, or campus contact.Peter Hurley, Postgraduate President and PhD Candidate in Education, Monash UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/665752016-10-07T04:38:39Z2016-10-07T04:38:39ZNew VET Student Loans unlikely to weed out dodgy private providers<figure><img src="https://images.theconversation.com/files/140821/original/image-20161007-32718-w4po67.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Women are likely to be disproportionately affected by the new VET student loan scheme.</span> <span class="attribution"><span class="source">from www.shutterstock.com</span></span></figcaption></figure><p>Education Minister Simon Birmingham <a href="http://www.senatorbirmingham.com.au/Media-Centre/Media-Releases/ID/3227/New-VET-Student-Loans-a-win-win-for-students-and-taxpayershttp://example.com/">argues that the new VET Student Loans program</a> – which will replace the flawed and highly controversial VET FEE-HELP scheme – will “restore credibility” and rebuild trust in vocational education and training. </p>
<p>He claims that the new loans program will help weed out dodgy private providers. These providers, however, have proved very adept at finding creative ways around regulation. </p>
<p>Without additional reforms to improve teaching and learning, it will be difficult to guarantee the quality vocational education needed to restore the confidence of students, employers and the wider community.</p>
<h2>VET Student Loans</h2>
<p>If the government’s legislation is passed, the new VET Student Loans program will operate from 1 January 2017. </p>
<p>Designed to stamp out practices that flourished under VET FEE-HELP, the proposed <a href="http://www.senatorbirmingham.com.au/Media-Centre/Media-Releases/ID/3227/New-VET-Student-Loans-a-win-win-for-students-and-taxpayers">new loan scheme</a> will be harder to access. </p>
<p>It sets a higher entry barrier for providers based on their industry links, student completion rates, employment outcomes, and track record as educational institutions. </p>
<p>Student loans are capped with three bands – A$5,000, $10,000 and $15,000 – which are designed to reflect differences in course costs. </p>
<p>Eligibility is restricted to courses that lead to employment. Students will be required to engage with the VET Student Loans portal to ensure their enrolment is legitimate. </p>
<p>Participating providers will be prohibited from using brokers and direct soliciting to recruit prospective students. There are also restrictions on the subcontracting of training delivery. </p>
<h2>Why was VET FEE-HELP flawed?</h2>
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<p>VET FEE-HELP was introduced in 2007 to <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/03/VET_funding_in_Australia_Background_trends_and_future_directions.pdfhttp://example.com/">address an equity issue</a>. Students in higher education courses have accessed <a href="http://www.assa.edu.au/publications/occasional/2006_No2_Income_contingent_loans.pdfhttp://example.com/">income contingent loans</a> for over 25 years, but the same opportunity to defer payment of tuition fees was not available to vocational students. </p>
<p>Initially VET FEE-HELP was restricted to courses that provided students with credit into higher education courses – a <a href="http://www.stoptafecuts.com.au/blog/redesigning-vet-fee-help-mess/">requirement removed</a> from 2012. </p>
<p>The introduction of VET FEE-HELP was one part of a broader reform process that included the establishment of a narrow form of competency-based training and, more recently, public funding of for-profit vocational education providers.</p>
<p>In this context the VET FEE HELP scheme presented the most extraordinary opportunity for unscrupulous operators. </p>
<p>Eligible Registered Training Organisations could sign up any number of students, and shortly after receive full course payment funded by the students’ VET FEE HELP loans. </p>
<p>Until 2015, this payment was not contingent on student progress. If students failed to start their course the provider was saved the cost and trouble of delivering an educational program and conducting assessments. </p>
<p><a href="http://www.accc.gov.au/media-release/careers-australia-undertakes-to-repay-commonwealth-for-vet-fee-help-diploma-courseshttp://example.com/">Evidence emerged</a> of exploitative organisations signing up students who had little or no prospect of completing their qualification. Some students were not aware of the extent and nature of their financial commitment.</p>
<p>A minority of registered training organisations relied on <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/03/VET_funding_in_Australia_Background_trends_and_future_directions.pdf">VET FEE-HELP as a major source of revenue</a>, but there was rapid growth in the number and value of loans they facilitated. </p>
<p>The <a href="http://www.senatorbirmingham.com.au/Media-Centre/Media-Releases/ID/3227/New-VET-Student-Loans-a-win-win-for-students-and-taxpayers">cost of the scheme</a> increased dramatically from $325 million in 2012 to $1.8 billion in 2014 and $2.9 billion in 2015. </p>
<h2>Quality vocational education</h2>
<p>Although there is broad support for taking action, public debate reveals uncertainty about the likely impact of this new loans initiative. </p>
<p>Reported concerns include:</p>
<ul>
<li><p>The effect of the loan caps on <a href="http://www.afr.com/news/policy/education/seek-may-be-hit-by-vet-feehelp-crackdown-says-ceo-andrew-bassat-20161005-grvcfnhttp://example.com/">access</a> to courses, such as nursing, which cost more than $15,000 to deliver. The fear is that additional fees could be prohibitive, especially for people from disadvantaged backgrounds.</p></li>
<li><p>The potential <a href="http://www.theaustralian.com.au/national-affairs/education/student-loan-change-to-target-womens-courses/news-story/babe14c1bda3d4fa54803f6c09ff5344">impact on women</a> given that two thirds of VET FEE-HELP borrowers are women, and courses attracting a higher proportion of women were identified as falling outside the program (for example, beauty therapy). </p></li>
<li><p>Whether <a href="http://www.smh.com.au/national/education/vocational-education-industry-reforms-could-cripple-quality-providers-20161005-grvaye.htmlhttp://example.com/">legitimate providers will be harmed</a> through the introduction of more stringent requirements aimed at the dodgy providers. </p></li>
</ul>
<h2>Will it be effectively regulated?</h2>
<p>A key question is: How will the new scheme be regulated? </p>
<p>Against what standards will providers be measured? And who will be responsible for ensuring these standards have been met? The main regulatory body, Australian Skills Quality Authority (ASQA), does not have the resources or the powers to address existing problems. </p>
<p>More work is required to define and measure a provider’s track record as an educational institution. </p>
<p>The proposed shift in the structure of payment also raises questions about the quality of vocational education courses and trust in qualifications. </p>
<p>Introducing “payment in arrears” – payment following completion of all or a component of the course – is understandable given the abuse of VET FEE-HELP. </p>
<p>However, without being held accountable for the quality of teaching and learning, there is a risk that some providers will take what is referred to as a “tick and flick” approach, pushing students through within minimal engagement in the shortest time possible. </p>
<p>The student will be issued a qualification, but if the course did not develop their knowledge, skills and attributes it will have limited value. This outcome is the opposite of the thrust of the proposed reform. </p>
<p>Placing greater control over student fees will not, in itself, lift the quality of student outcomes and ensure the integrity of the qualifications issued. </p>
<p>One clear way of distinguishing legitimate vocational education providers from the shysters and rent seekers is by looking at their commitment to teaching and learning. </p>
<p>There are no national level mechanisms to directly measure the quality of teaching and learning within the vocational education sector. </p>
<p>This means it is not possible to make registered training organisations accountable for their quality of programs. </p>
<p>To restore trust and confidence in the sector, the focus needs to be centred on developing and supporting teacher expertise. This involves improving the quality of teaching to achieve a greater impact on student learning. </p>
<p>If we cannot offer high quality of vocational education we betray our students, their future employers and the wider community. We waste money and destroy aspirations.</p><img src="https://counter.theconversation.com/content/66575/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mary Leahy receives research funding from governments and non-government organisations. </span></em></p><p class="fine-print"><em><span>Shelley Gillis has received research funding from a range of government organisations to investigate quality issues in vocational education and training.</span></em></p>Placing greater control over student fees will not lift the quality of student outcomes and ensure the integrity of the qualifications issued.Mary Leahy, Senior Lecturer, Melbourne Graduate School of Education, The University of MelbourneShelley Gillis, Associate Professor, Deputy Director, Centre for Vocational & Educational Policy, Melbourne Graduate School of Education, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/665562016-10-04T23:33:43Z2016-10-04T23:33:43ZPolitics podcast: Simon Birmingham on the new VET student loan scheme<p>A new vocational education and training student loan scheme will aim at putting a stop to rorting by dodgy private colleges. Education Minister Simon Birmingham tells Michelle Grattan the new scheme is being built from the ground up. </p>
<p>“First and foremost, [there will be] strong barriers to entry for the types of vocational education providers who can offer loans as part of it,” he says. </p>
<p>The reforms will see the number of courses available drop from more than 800 to “somewhere around the 300 or 400 mark”, Birmingham says. </p>
<blockquote>
<p>There are a range of different areas that have been subsidised over recent years - but certainly very odd areas - such as Chinese veterinary medicine, will no longer make the cut. A number of I guess lifestyle-type courses is the best way to define some of them. </p>
</blockquote>
<p>Birmingham also talks on his negotiations for a new school funding agreement and will soon announce a new higher education policy. </p>
<hr>
<p><em>Music credit: “Natural”, by Dlay on the Free Music Archive</em></p><img src="https://counter.theconversation.com/content/66556/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>A new VET student loan scheme will aim at putting a stop to rorting by dodgy private colleges. Education Minister Simon Birmingham says the new scheme is being built from the ground up.Michelle Grattan, Professorial Fellow, University of CanberraLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/644252016-08-26T03:53:33Z2016-08-26T03:53:33ZVET FEE-HELP reforms will merely paper over the cracks of a system prone to abuse<figure><img src="https://images.theconversation.com/files/135449/original/image-20160825-30231-12axt3p.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Will proposed reforms to VET FEE-HELP tackle abuse by private providers?</span> <span class="attribution"><span class="source">AAP/Dan Himbrechts</span></span></figcaption></figure><p>Education Minister Simon Birmingham <a href="http://www.smh.com.au/federal-politics/political-news/we-will-smash-their-business-model-simon-birmingham-outlines-private-college-crackdown-20160824-gqzxdz.html">has foreshadowed</a> further major changes to the troubled VET FEE-HELP loan scheme to rein in costs and tackle widespread abuse by unscrupulous providers.</p>
<p>But will these changes fix the problem? Or will they merely paper over the cracks of a system that is prone to abuse?</p>
<h2>What’s the problem?</h2>
<p>Since VET FEE-HELP was expanded in 2012 there have been <a href="http:///victoria/stop-the-rorts-30-million-crackdown-looms-for-vocational-sectors-dodgy-training-providers-20150919-gjqbuk.html">significant abuses of the scheme</a> by providers inappropriately enrolling thousands of students at excessive fees, with little prospect of these students being able to repay the debt they accrue.</p>
<p>In 2015 the government introduced some changes to the scheme to stop inappropriate and unethical marketing and inducements, and cap the level of revenue for each provider.</p>
<p>Prior to the federal election, the government <a href="https://docs.education.gov.au/node/40661">released an options paper</a> on the future of VET FEE-HELP. This looked at further reform options to take effect in 2017. The government has been considering submissions in response to the options paper and undertaking consultations prior to making these changes.</p>
<p>In his recent announcement, Birmingham did not discuss the details of the changes, but gave a strong indication of this thinking. <a href="http://www.senatorbirmingham.com.au/Media-Centre/Speeches/ID/3174/Opening-address-to-the-ACPET-2016-National-Conference">He argued</a>:</p>
<ul>
<li><p>People with little history in training in a certain field of study and limited or no employer support for their outcomes shouldn’t be enjoying taxpayer support to deliver such training.</p></li>
<li><p>Appallingly low student progression and completion rates are not acceptable and should not be at all tolerated.</p></li>
<li><p>Massive fee hikes, well above any reasonable cost of delivery, should raise red flags.</p></li>
<li><p>Experience now tells us that if there are obscenely high ramp-ups in enrolments then the likelihood is something questionable is going on.</p></li>
</ul>
<p>Birmingham <a href="http://www.abc.net.au/radionational/programs/breakfast/simon-birmingham:-govt-wants-to-'stamp/7783496">has also foreshadowed</a> the potential introduction of loan caps under VET FEE-HELP for specific qualifications. The level of the cap would vary depending on the cost of the qualification.</p>
<h2>What’s likely to happen?</h2>
<p>Based on what Birmingham has foreshadowed the reformed VET FEE-HELP scheme is likely to include:</p>
<ul>
<li><p>enforcement of requirements for ethical marketing and enrolments;</p></li>
<li><p>tougher entry standards and potentially a full re-accreditation process for providers;</p></li>
<li><p>closer monitoring or quality and enrolment levels;</p></li>
<li><p>maximum loan levels set for different qualifications; and</p></li>
<li><p>a limitation on the number of courses that are funded through VET FEE-HELP.</p></li>
</ul>
<p>These reforms to VET FEE-HELP are necessary. However, the scheme operates in two ways:</p>
<ul>
<li><p>for full-fee courses, where providers have set their own fee levels; and</p></li>
<li><p>through the states – which have overall responsibility for VET funding – for state-subsidised courses and where the states regulate student fees.</p></li>
</ul>
<p>Unsurprisingly, almost all of the growth in VET FEE-HELP has been for full-fee courses where the federal government has not been able to properly regulate and oversee the market. States were also <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/07/Redesigning-VET-FEE-HELP.pdf">able to shift costs</a> to the Commonwealth by moving courses from state-funded to full-fee courses.</p>
<p>The states also set requirements for VET providers to access funding, set prices, determine funding eligibility for courses and students, monitor quality, and generally oversee VET funding in each jurisdiction – including for courses the Commonwealth will also fund through VET FEE-HELP.</p>
<p>There is a high risk that under these two systems:</p>
<ul>
<li><p>providers will continue to shop between the Commonwealth and the states for the best price and conditions;</p></li>
<li><p>the states will continue to be able to shift costs to the Commonwealth;</p></li>
<li><p>providers will be subject to overlapping but inconsistent contractual and quality assurance requirements; and</p></li>
<li><p>students in VET certificate programs – who face increasingly high upfront fees – will not be able to access an income-contingent loan, unlike students in higher-level VET courses and in higher education.</p></li>
</ul>
<p>A new VET financing system is required: one that would encompass both state funding and VET FEE-HELP with clear roles for the Commonwealth and the states.</p>
<p>The system <a href="http://www.mitchellinstitute.org.au/reports/vet-funding-in-australia-background-trends-and-future-options/">should include</a> agreed pricing, quality assurance requirements, eligibility criteria and oversight in each state and an agreed commitment to the future resourcing requirements for VET into the future.</p><img src="https://counter.theconversation.com/content/64425/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Noonan is Professor of Tertiary Education Policy and a Professorial Fellow in the Mitchell Institute at Victoria University. The University receives funding from the Commonwealth and State Governments and is a VET FEE HELP provider.</span></em></p>Under the proposed plan for reform, there is still a risk that private providers will continue to shop between the Commonwealth and the states for the best price and conditions.Peter Noonan, Mitchell Professorial Fellow, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/589852016-05-09T00:22:29Z2016-05-09T00:22:29ZStudent loan caps must be part of total redesign of vocational funding system<figure><img src="https://images.theconversation.com/files/121641/original/image-20160508-2544-1d2u43i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">A cap is a sensible option, but it must form part of a total redesign of the VET financing system. </span> <span class="attribution"><span class="source">from www.shutterstock.com</span></span></figcaption></figure><p>In his budget address, Opposition Leader Bill Shorten said Labor would <a href="http://www.billshorten.com.au/labor_s_plan_to_stop_dodgy_providers_ripping_off_taxpayers_and_students">introduce a cap of $8,000</a> on student loans for vocational education and training (VET) courses. </p>
<p>A course loan cap is a sensible option, but it must form part of a total redesign of the VET FEE-HELP student loan scheme in the first instance, and of the whole VET funding system in the longer term. </p>
<p>Currently, there are no loan caps for courses where providers set their own fees and don’t receive a course subsidy through the states. </p>
<p>The Labor proposal is to set a maximum loan cap of $8,000 per course funded under VET FEE-HELP (except for some high-cost courses approved by the education minister). The cap doesn’t extend to higher education diploma and advanced diploma courses.</p>
<p>For those courses that are subsidised by the states where fees are regulated, the Commonwealth and the states already have in place fee benchmarks of $5,000 in 2011. This regulated fee is effectively a loan cap.</p>
<p>Unsurprisingly, most of the expansion in VET FEE-HELP and all of the problems with unscrupulous provider behaviour have been in the unregulated fee area, where some providers have charged fees of over 400% more than the price paid by the states for the same course. </p>
<p>The government itself has raised the option of capping loan fees in its recently released VET FEE-HELP <a href="https://docs.education.gov.au/system/files/doc/other/redesigning_vet_fee-help_-_discussion_paper_0_0.pdf">discussion paper</a>.</p>
<p>It’s an option the government should have considered last year in its initial reforms to VET FEE-HELP. </p>
<p>The government capped overall provider loan limits at the provider’s 2015 loan levels, but while restraining overall VET FEE-HELP payments, this measure did nothing to reduce excessive fee and loan levels for many courses.</p>
<h2>Other things to consider</h2>
<p>However, if loan limits are to be introduced for VET FEE-HELP, the rationale for setting the loan limits must be carefully thought through. </p>
<p>For example, are the loan limits related to course cost or to returns to students from the course – or some combination of the two? </p>
<p>How do VET FEE-HELP loan limits compare to the prices paid by the states for the same qualification? If the prices vary, how do we avoid cost shifting between the Commonwealth and the states to gain access to the highest price?</p>
<p>A further consideration is that loan fees are capped for VET FEE-HELP but not for higher education diploma and advanced diploma courses. Therefore, there will be major incentives for providers to shift their VET courses into the higher education sector, particularly where providers already operate in both sectors.</p>
<p>The government has also criticised the Labor policy on the basis that students will have to pay upfront fees where the provider fee is higher than the loan. </p>
<p>However, hundreds of thousands of VET students in certificate-level courses already pay upfront fees (as they cannot access VET FEE-HELP). </p>
<p>We need policy consistency across the VET funding system, not just within VET FEE-HELP.</p>
<p>With overall public investment in VET in decline, we need a framework for financing VET in Australia agreed by the Commonwealth and state governments. </p>
<p>This system has to span direct public investment in VET and income-contingent loans. </p>
<p>Course loan caps linked to prices agreed by the Commonwealth and the states should be part of that system. </p>
<p>But loan caps alone are only a partial solution to a much bigger policy problem – declining public investment in VET and a dysfunctional VET financing system, which to date neither side of politics has been willing to address.</p><img src="https://counter.theconversation.com/content/58985/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Noonan is a Professorial Fellow in the Mitchell Institute at Victoria University. The University receives funding through the HELP system for higher education and VET courses. </span></em></p>Loan caps are only a partial solution to a much bigger problem – declining public investment in VET and a dysfunctional VET financing system, which neither side of politics has been willing to address.Peter Noonan, Mitchell Professorial Fellow, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/477012015-09-21T20:13:59Z2015-09-21T20:13:59ZAustralia’s VET system needs fundamental change – here’s how it can be fixed<figure><img src="https://images.theconversation.com/files/95478/original/image-20150921-19277-iqc6wi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Maintaining community confidence in the value of VET qualifications is essential for a functioning labour market.</span> <span class="attribution"><span class="source">shutterstock</span></span></figcaption></figure><p>Stories about abuses in Australian vocational education and training (VET) <a href="http://www.theage.com.au/victoria/stop-the-rorts-30-million-crackdown-looms-for-vocational-sectors-dodgy-training-providers-20150919-gjqbuk.html">continue to appear</a> some six months after the federal government <a href="https://ministers.education.gov.au/birmingham/government-targets-vet-fee-help-scammers">announced reforms</a> that were meant to clean up the sector.</p>
<p>Lured by government subsidies, registered training organisations (RTOs) are enrolling people into VET courses that do not match their needs and for which there is a dubious case at best for taxpayer support.</p>
<p>Without fundamental changes to the funding and regulation of VET, the abuses are almost certain to continue. The current arrangements have two weaknesses that should be urgently addressed:</p>
<ol>
<li><p>a lack of transparency in who is doing what; and</p></li>
<li><p>a regulatory framework that focuses too much on how, and not enough on what, training is provided.</p></li>
</ol>
<h2>A tangled web</h2>
<p>Spruikers selling VET courses have become a familiar sight in shopping centres across Australia. Many are engaged as brokers, not even directly employed by the RTO that will be providing the training. Their interest is in signing up as many people as they can, not finding the most appropriate course for the learner’s needs. </p>
<p>RTOs are free to rebrand, change their name, or take over other training brands as they see fit. They are also largely free to sub-contract their delivery to another entity – which may not even be a registered training provider.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/95480/original/image-20150921-19274-nn9ojy.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/95480/original/image-20150921-19274-nn9ojy.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/95480/original/image-20150921-19274-nn9ojy.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/95480/original/image-20150921-19274-nn9ojy.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/95480/original/image-20150921-19274-nn9ojy.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/95480/original/image-20150921-19274-nn9ojy.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/95480/original/image-20150921-19274-nn9ojy.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/95480/original/image-20150921-19274-nn9ojy.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Spruikers just want to get bums on seats, they’re not concerned about matching the learners’ needs to their course.</span>
<span class="attribution"><span class="source">from www.shutterstock.com</span></span>
</figcaption>
</figure>
<h2>Process-driven regulation</h2>
<p>The weak VET regulation framework contrasts with the <a href="http://www.acecqa.gov.au/national-quality-framework/the-national-quality-standard">National Quality Standard for Early Childhood Education and Care</a>, introduced in 2012. </p>
<p>Under the National Quality Standard, each provider receives an overall rating and a rating for each of seven quality areas. To maintain their registration, childcare services need to report to the regulator on a range of inputs – from minimum staffing ratios and qualification levels for early childhood workers to available floorspace – and outputs, such as reviewing each provider’s learning plans.</p>
<p>While extensive (many RTOs would say onerous), the regulatory process in VET – overseen by the Australian Skills Quality Authority (ASQA) – does not have the same focus on regulating inputs and outputs. ASQA’s resources are spread thin, with responsibility for more than 4500 RTOs (more than 3000 of which are privately operated), while overall per-student VET funding <a href="http://www.aeufederal.org.au/application/files/9614/3315/0486/WRCAEU2015.pdf">has fallen 25%</a> between 1999 and 2011. </p>
<p>Most significantly, the VET regulator does not set minimum hours of delivery or minimum durations for courses. Instead, there are guidelines. It is left to the RTO’s discretion.</p>
<p>In principle, this supports learners by facilitating “competency-based progression”, allowing faster learners to complete their courses more quickly. Supposedly, it also encourages RTOs to innovate, by adopting non-traditional methods like online learning. In practice, it is a licence for profit-driven RTOs to shortchange students (and the taxpayer).</p>
<p>In Victoria alone, where the VET market was opened to private providers in 2009, public funding to for-profit providers grew <a href="http://www.aeufederal.org.au/application/files/9614/3315/0486/WRCAEU2015.pdf">from A$138 million to A$799 million</a> between 2008 and 2013. </p>
<p>RTOs are also not directly audited for the outcomes of their students. Instead, the regulator requires each RTO to have a plan for validating their assessment practices and reviews these plans. </p>
<p>The frequency of review is also a key difference between the childcare and VET sectors. Depending on their overall quality rating, each provider in early childhood education will be assessed at least once every one to three years. </p>
<p>ASQA subjects RTOs to audit on registration or when it seeks to add new qualifications to its scope. After the first two years, follow-up compliance audits occur only if ASQA assesses there is a risk of the RTO failing to comply with the <a href="http://www.asqa.gov.au/about/australias-vet-sector/standards-for-registered-training-organisations-(rtos)-2015.html">standards for RTOs</a>. </p>
<h2>Restore a sense of value to vocational qualifications</h2>
<p>Maintaining community confidence in the value of VET qualifications is essential for a functioning labour market.</p>
<p>The Certificate III is the cornerstone vocational qualification. The <a href="http://www.aqf.edu.au/">Australian Qualification Framework</a> specifies that a Certificate III should take between one and two years to complete. This may be extended up to four years if it is undertaken in combination with extensive workplace learning. </p>
<p>The trade certificates received by electricians, mechanics, plumbers and other people completing apprenticeships are at the Certificate III level. <a href="http://www.lsay.edu.au/publications/2416.html">Research</a> shows that a Certificate III qualification is the first level of post-school qualification that consistently increases the chances of graduates finding work and earning more money. </p>
<p>ASQA has expressed concern at the very short time in which students could complete their courses at some providers. In 2013, ASQA <a href="http://www.asqa.gov.au/verve/_resources/Strategic_Reviews_2013_Aged_Care_Report.pdf">found</a> that one-third of RTOs were allowing students to complete the Certificate III in Aged Care in less than 15 weeks. A similar review <a href="http://www.aqf.edu.au/wp-content/uploads/2013/05/AQF-2nd-Edition-January-2013.pdf">in 2015</a> found that 20% of RTOs were allowing students to complete the Certificate III in Child Care in less than 26 weeks. </p>
<p>Aged care and child care are prominent sectors with highly organised employer groups, professional associations and unions. The scope for abuse in less visible sectors – such as business, fitness and information technology – is even greater.</p>
<p>A lot is demanded of Australia’s VET system. It is expected to be a place where young people leaving school can pursue non-academic pathways, where workers can retrain and gain new skills to keep pace with a changing economy, and where people marginalised by the traditional education system (particularly Indigenous learners and migrants) can get a second chance.</p>
<p>If governments are not prepared to increase standards and funding for VET, then a fairer way of administering the system might be to restrict the entitlement and access to subsidies and VET FEE-HELP to certain categories. Here, young people, the unemployed and workers in need of retraining should be given the highest priority.</p><img src="https://counter.theconversation.com/content/47701/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Damian Oliver has conducted numerous commissioned research projects examining vocational education and training, including for TAFE NSW and the Australian Education Union. </span></em></p><p class="fine-print"><em><span>Serena Yu has consulted to a range of government and non-government organisations. She has received funding from the Australian Education Union.</span></em></p>Lured by government subsidies, registered training organisations are enrolling people into VET courses that do not match their needs and for which there is a dubious case at best for taxpayer support.Damian Oliver, Deputy Director (Business Development), Centre for Management and Organisation Studies, UTS Business School, University of Technology SydneySerena Yu, Senior Research Analyst, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/313702014-09-18T04:44:21Z2014-09-18T04:44:21ZRenewing federalism: our tertiary education system needs a rethink<figure><img src="https://images.theconversation.com/files/58848/original/xkvtmmf2-1410497409.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Funding of vocational education is suffering given neither the state nor Federal government has sole responsibility.</span> <span class="attribution"><a class="source" href="http://www.shutterstock.com/downloading_tips.mhtml?code=&id=150587615&size=huge&image_format=jpg&method=download&super_url=http%3A%2F%2Fdownload.shutterstock.com%2Fgatekeeper%2FW3siZSI6MTQxMDUyNjEzOCwiYyI6Il9waG90b19zZXNzaW9uX2lkIiwiZGMiOiJpZGxfMTUwNTg3NjE1IiwicCI6InYxfDEwMTI3NTg4fDE1MDU4NzYxNSIsImsiOiJwaG90by8xNTA1ODc2MTUvaHVnZS5qcGciLCJtIjoiMSIsImQiOiJzaHV0dGVyc3RvY2stbWVkaWEifSwiT1p2aHA5UHI5NU1ZeFpyMW9rMGpnc2dFNUI4Il0%2Fshutterstock_150587615.jpg&racksite_id=ny&chosen_subscription=1&license=standard&src=jgXb_TEZzdUmTTFA_aaYMQ-1-1">Shutterstock</a></span></figcaption></figure><p><em>The reform of Australia’s federation is under review. In this special series, we ask leading Australian academics to begin a debate on renewing federalism, from tax reform to the broader issues of democracy.</em></p>
<p><em>Victoria University’s Peter Noonan examines the effect of the funding relationship between the state and Commonwealth on tertiary education.</em></p>
<hr>
<p>A major imbalance exists in Australia’s tertiary education system. Left unaddressed it will lead to growing disparities in funding between higher education and vocational education and training, distort student choices and create an imbalance in skills in the Australian labour market. </p>
<p>An effective tertiary education system would comprise a range of high quality courses and providers operating across the vocational education and training (VET) and higher education sectors under an equitable funding system.</p>
<h2>What would an effective funding system look like?</h2>
<p>An effective tertiary education funding system should have three main features:</p>
<ol>
<li><p>Public subsidies that balance public and private benefits, course costs and the circumstances of individual students</p></li>
<li><p>Private contributions supported by income contingent student loans that ensure that students only pay when they start to get personal benefits</p></li>
<li><p>Student income support targeted to the needs and circumstances of individual students.</p></li>
</ol>
<p>There is already great diversity of courses and providers across the Australian tertiary education system with growing and better connections between the sectors. The Commonwealth also operates a consistent and comprehensive student income support system for tertiary education students. </p>
<p>But the potential of this system is undermined by growing divergence in how, and at what levels, VET and higher education are funded, and how, and at what level, the states fund their VET systems.</p>
<h2>The nature of the problem lies in the Federal/state divide</h2>
<p>This divergence in funding levels and models occurs because of the way higher education and VET are funded by the Commonwealth and the states.</p>
<p>The Commonwealth has full responsibility for funding higher education providers. It funds them through public subsidies supplemented by student fees. These fees are paid to providers either directly by students, or by the Commonwealth on their behalf through an income contingent loan. Student fees are regulated by the Commonwealth, but this could change if the government’s <a href="https://theconversation.com/where-to-now-for-the-higher-education-bill-31017">Higher Education Bill passes</a>.</p>
<p>The states have full responsibility for funding VET providers. VET student fees are regulated in some states and deregulated in others. However only VET students in Diploma, Advanced Diploma and a few Certificate IV courses have access to the Commonwealth’s income contingent loans schemes. Other students have to pay their fees upfront. </p>
<p>The major flaw in the funding system is that VET funding is a shared responsibility between the Commonwealth and state governments. The Commonwealth contributes to VET provider funding through agreements with each state and territory. These agreements were designed to provide a sustainable base for VET funding and VET enrolments but which have now broken down.</p>
<p>Most states don’t have the capacity or the will to make VET funding a priority. Victoria is the notable exception. VET fees are increasing but most VET students can’t access income contingent loans. They also generally have less capacity to pay than higher education students given a larger proportion of VET students are from <a href="http://avetra.org.au/wp-content/uploads/2010/04/48.00-Leesa-Wheelahan.pdf">low socio-economic backgrounds</a>. </p>
<p>As a consequence public investment in VET <a href="http://www.vu.edu.au/sites/default/files/mitchell-institute/pdfs/Peter-Noonan-TDA-speech-2Sep2014.pdf">has plateaued since 2011</a> and the future VET funding outlook is even bleaker. The Commonwealth has reduced its funding for the VET agreements with <a href="http://www.budget.gov.au/2014-15/content/bp3/html/bp3_03_part_2a.htm">the states from 2017-18</a>.</p>
<h2>The funding gap in tertiary education will widen</h2>
<p>The major gap between investment in higher education and VET - which has always existed - has widened significantly in recent years as the following graph shows. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/58965/original/r6mk499g-1410742363.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/58965/original/r6mk499g-1410742363.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/58965/original/r6mk499g-1410742363.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/58965/original/r6mk499g-1410742363.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/58965/original/r6mk499g-1410742363.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/58965/original/r6mk499g-1410742363.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/58965/original/r6mk499g-1410742363.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/58965/original/r6mk499g-1410742363.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
</figcaption>
</figure>
<p>Unsurprisingly VET enrolments decreased by <a href="http://www.ncver.edu.au/wps/portal/vetdataportal/restricted/dataContent/!ut/p/a1/pVPbTuMwFPyaPlo-cS5OHksDOBXhkoBo8lI5tlNStWmonQrx9Til0mqFCF3Wb5bmjGfGc3CJF7hs-aFZcdPsWr4Z7mWwTBwyY8yD-R1jAST06jHL2ZMLjOJnXOJStKYzL7hoxUHtl_qF75WcgOSGT0CbXqrWaMRbicSu32ulEQHHRbzXZs83DR8oOr5SUulm1R5vopG48F3qRSQIUeBUEfKICyiSoBCvK08KV_gyoAO61ypWNe835lG9GVzAUdOuNfbdJM5-QxQrLQaiBS6sf_jmTGE0Hic4zd-z64BcWEDIUoDkNs-u0svchZD-3zwE582PAM75XguZXU-ZR2-sZy8kkMQXLKbRoIWeAGMRHQFjGYwCrMnCuqDfy_Rx_qc0kVuHNa8FCkPpIk8oB3EiQwSccDfyiag9wPMzcmvWr6_l9FQkW6vF3-3u-mrTiOOe6AkQalnHZd57nzKfZ-ny4ekys-ivxS2-VrD4TZP_YYHmP3Xg5yzO3_Ruuw3XqnpXlZ9lWZ0na787vN_Ut-mUbZep_gBWgen3/dl5/d5/L2dBISEvZ0FBIS9nQSEh/?useDefaultText=0&contentIDR=53749268-61b9-4230-9d0e-afb4dc3c5d67&useDefaultDesc=0#">3.4% between 2012 and 2013</a>.</p>
<p>While the balance between public and private funding for higher education will change with budget cuts and fee deregulation, the growth trajectory in higher education funding will increase even if universities set fees at minimum levels required to offset budget cuts. </p>
<p>As a consequence the gap between investment in VET and higher education is likely to widen potentially leading to distortions in enrolments in the sectors, with declining quality and outcomes in VET. </p>
<p>VET is a prime candidate for reform in the federation, and reform has been attempted in the past. In 1992 the Commonwealth offered to assume full responsibility for VET funding from the states. The now dysfunctional shared funding model emerged as a compromise.</p>
<p>Various reviews since then have proposed that either the Commonwealth or the states should take full responsibility for VET funding based on the principle that a single level of government should have responsibility and accountability for specific areas of service delivery.</p>
<h2>What are the alternatives?</h2>
<p>A full reallocation of responsibility for VET from one level of government to the other is unlikely.</p>
<p>Perhaps its time for a different approach, based around tertiary education entitlement. The Commonwealth could extend the established higher education model of consistent public subsidies, student contributions and income contingent loans into VET by negotiating an agreed per student subsidy level with the states, leaving the states or institutions to set fee levels. </p>
<p>Alternatively the Commonwealth could negotiate a one-off transfer of VET funding from the states for agreed student cohorts (for example school leavers) and provide ongoing funding of an entitlement in both VET and higher education. The states could provide subsidies for student places in VET in areas of state priorities. </p>
<p>Different ways of thinking about the roles of the Commonwealth and the states in tertiary education are needed if we are to have a balanced and fair system across higher and vocational education. </p>
<hr>
<p><em>Renewing Federalism is in partnership with the Australian National University’s Tax and Transfer Policy Institute at the Crawford School of Public Policy and with the University of Melbourne School of Government.</em></p>
<p><em>Our Renewing Federalism series will culminate in a symposium on October 2 at ANU. If you would like to attend the event, please see event details and <a href="https://taxpolicy.crawford.anu.edu.au/events/4661/renewing-australian-federalism-starting-conversation">RSVP here</a>.</em></p>
<hr>
<p><strong>Read more in the series <a href="https://theconversation.com/au/topics/renewing-federalism">here.</a></strong></p><img src="https://counter.theconversation.com/content/31370/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Noonan is Professorial Fellow at the Mitchell Institute for Health and Education Policy at Victoria University and Professor of Tertiary Education Policy at the University. The University receives VET funding from the Victorian Government. </span></em></p>The reform of Australia’s federation is under review. In this special series, we ask leading Australian academics to begin a debate on renewing federalism, from tax reform to the broader issues of democracy…Peter Noonan, Mitchell Professorial Fellow, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/316202014-09-12T01:28:32Z2014-09-12T01:28:32ZReforms to VET are a good thing, but nowhere near enough<figure><img src="https://images.theconversation.com/files/58819/original/kk2vbdbp-1410481756.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Changes to the regulation of Vocational Education and Training are good, but they ignore the real problem, that the sector is chronically underfunded.</span> <span class="attribution"><a class="source" href="http://www.shutterstock.com/downloading_tips.mhtml?code=&id=207780916&size=huge&image_format=jpg&method=download&super_url=http%3A%2F%2Fdownload.shutterstock.com%2Fgatekeeper%2FW3siZSI6MTQxMDUxMDUwMCwiYyI6Il9waG90b19zZXNzaW9uX2lkIiwiZGMiOiJpZGxfMjA3NzgwOTE2IiwicCI6InYxfDEwMTI3NTg4fDIwNzc4MDkxNiIsImsiOiJwaG90by8yMDc3ODA5MTYvaHVnZS5qcGciLCJtIjoiMSIsImQiOiJzaHV0dGVyc3RvY2stbWVkaWEifSwicnF3amxDdjR1azRVUW9leGF1bDFMRE45TXk4Il0%2Fshutterstock_207780916.jpg&racksite_id=ny&chosen_subscription=1&license=standard&src=sLCwnA8wUekpgMRBtnqozw-1-62">Shutterstock</a></span></figcaption></figure><p>After announcing a <a href="http://www.minister.industry.gov.au/ministers/macfarlane/media-releases/lifting-apprenticeship-completion-rates-better-support">slew</a> of <a href="http://www.minister.industry.gov.au/ministers/macfarlane/media-releases/jobs-and-new-careers-young-australians-grow-businesses">changes</a> to vocational education and training (VET) earlier in the week, Industry Minister Ian MacFarlane made further changes yesterday to the <a href="http://www.minister.industry.gov.au/ministers/macfarlane/media-releases/governments-second-tranche-vet-reforms-deliver-industry-led-and">regulation of the sector</a>. While this is a positive step in the direction of reforming what some see as an ailing VET sector, the real problem is chronic underfunding. </p>
<p>The <a href="http://www.vetreform.industry.gov.au/">second tranche of reforms</a> announced yesterday are part of the government’s attempt to fix what the minister <a href="http://www.ianmacfarlanemp.com/media-releases/lifting-apprenticeship-completion-rates-with-better-support-for-apprentices-and-small-businesses">describes as a</a> fractured, unwieldy and overly bureaucratic system. Well, that message is nothing new, but an important question is will the reform process this time be comprehensive enough, and will there be the drive to see it though?</p>
<h2>The good news, bad news and some ‘please explains’</h2>
<p>The good news first. Giving high-quality apprenticeships and other vocational qualifications the esteem they deserve is a very worthy initiative. Seeing them as equivalent but different to a university degree is an important move towards creating a greater parity of esteem. </p>
<p>But this means we have to ensure that the VET brand is sound and highly regarded. Cracking down on unscrupulous brokers who are slipping through the regulatory net is a very positive step. Stopping rogue provision is another and that is the job of the national regulator, the Australian Skills Quality Authority (<a href="http://www.asqa.gov.au/">ASQA</a>). </p>
<p>This should not come at the cost of overburdening those providers that are doing the right thing by providing a quality learning experience relevant to the needs of their students and local employers. The move to allow the best providers to have delegated regulatory responsibility is another of the real positives the minister announced. This will enable these providers to concentrate on quality provision rather than compliance.</p>
<p>Where might the jury still be out? I would suggest in at least four areas: first, the move to open up the development of <a href="http://www.serviceskills.com.au/about-training-packages">Training Packages</a> - the national standards for skills in a specific industry - to greater contestability. The quality and flexibility of Training Packages has been always been a contentious issue as <a href="http://www.isc.org.au/">Industry Skills Councils</a>, who decide what the requisite skills in a given industry are, have sought, with varying success, to balance competing interests. At the coalface, providers find themselves criticised for not delivering what local employers want, yet they can risk being non-compliant if they are not seen to be faithfully following the Training Package.</p>
<p>The second uncertainty is the replacement for the National Skills Standards Council, which has been foreshadowed by the minister but whose membership is yet to be announced. This will need to provide a strong quality assurance function if we move to what might well be a more devolved and varied set of standards bodies like that in the early ‘90s. If this is to be the case, we will need to avoid the turf wars and competition that characterised this period. </p>
<p>Such a body will be vital to oversee and ensure the integrity of all VET sector qualifications. In the past, models based on representation (the National Quality Council) and expertise (the National Skills Standards Council) have been tried. What will be the model this time?</p>
<p>Next, the minister has announced yet another review of Training Packages. This will be the third in my living memory: the first was under the Australian National Training Authority, which was closed down before the recommendations were implemented. I was more intimately involved with the second, conducted under a joint National Quality Council and Council of Australian Governments (COAG) steering committee. </p>
<p>That was not, I can tell you, an easy process. The inherent conservatism of VET’s stakeholder groups meant that the reforms proposed then probably did not go far enough. In fact, what was proposed was unwound to some extent on implementation.</p>
<p>So I wish this new Training Package reform process a lot of luck. It will need it. </p>
<p>One of the minister’s interesting proposals is more “skill sets” training. This is worth a look, particularly for upskilling or more broadly skilling existing workers. Will training in “skills sets” attract government funding as part of a more flexible approach, however?</p>
<p>The final area where the jury is still out is the quality and usability of the standards for training providers to be introduced early next year. It is vital that ASQA and providers have standards they can both work with. One fear is that the latest version will make the regulator’s job harder, not easier. Another is that they will not be sufficiently precise so that providers can clearly understand what is expected of them.</p>
<h2>All of this misses the point, VET is chronically underfunded</h2>
<p>It may be that all of this talk of reform is missing a couple of important points. First, VET is continually expected to do more with less. <a href="http://www.lhmartininstitute.edu.au/userfiles/files/Peter%20Noonan_TDA%20speech_2Sep2014.pdf">A recent paper</a> by VET researcher Peter Noonan points out:</p>
<blockquote>
<p>While investment in schools and universities in Australia has risen significantly in recent years, there has been a much lower rate of growth in VET, with an even bleaker funding outlook in years to come. </p>
</blockquote>
<p>This needs to be redressed. The other area of real concern is that while all this reform is being proposed, little, if anything, is being done to ensure that VET teachers and trainers have the skills, support and ongoing professional development they need to do their highly important work effectively. </p>
<p>You can regulate and change all you like, but it is the teachers and trainers on the ground who will make the real difference. They need the resources to be able to do this.</p><img src="https://counter.theconversation.com/content/31620/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Hugh Guthrie receives funding from a range of bodies to conduct VET related research</span></em></p>After announcing a slew of changes to vocational education and training (VET) earlier in the week, Industry Minister Ian MacFarlane made further changes yesterday to the regulation of the sector. While…Hugh Guthrie, Principal Research Fellow, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.