Report from the Chair
The full Primary Skills Victoria Annual Report 2010-11 is available for download at the following link.
Primary Skills Victoria Annual Report 2010-11
Chairperson's Report 2011
It has been my privilege to be the Chairman of PSV over the past two years. Added to this, my previous experience as both Deputy Chair and a member of the Executive has increased my depth of knowledge of the Vocational Education & Training system and given me an understanding of the complexities required to navigate and influence policy in such a dynamic arena. The one constant in all of this time has been change. We have seen the renewal of both state and federal governments and the installation of numerous VET policies all aimed at improving the system; this culminating in the most recent reform “Securing Jobs for Your Future” which is driving open contestability for funding in the training system across Victoria. It is expected that some form of this model implementation will eventually move across other states in line with national strategy.
The PSV Council continues to monitor these changes and, consistent with our charter, prosecute the need for an industry-led VET system providing quality skills development outcomes for students and industry employers which will, in turn, drive productivity and efficiency in Victoria.
Consistent with PSV custom, I have resigned the position of Chair this year to allow renewal of the executive and an injection of fresh ideas and visions for the Council. It is with pleasure and confidence that I welcome the incoming Chairman, Mr. Mike Walker, currently serving on the Executive and Council as a horticulture industry representative from the turf sector. Mike has been engaged in all Council discussions as they relate to the Performance and Funding Agreement with the Victorian Skills Commission and has paid particular attention to training policy implementation including issues related to VET delivery and the possible role and future functions of PSV and the industry training advisory system.
An industry-led system requires appropriate industry engagement. This does come at a cost which is borne by a dedicated network of industry representatives located in the peak industry associations and employee unions, as well as the individual business owners who continue to share a vision of VET that adds value, not only to the needs of industry, but also to those individuals who will undertake the training process and become the strong industry leaders of the future.
I therefore need to thank all of you, not only the PSV Council membership, but also the vast army of passionate industry people who give so freely of their own valuable time to participate in the system though the various industry, RTO and government advisory committees and at numerous other consultations on demand. Without you the Victorian VET system would be much the poorer and PSV would not function in any capacity.
Government Policies
It is worth noting that during this last 12 months the federal Labour government has been returned to power with a very small majority and there has been a change of state government from a Labour persuasion to a conservative Liberal/National Coalition with each of these events having an impact on the training system to varying degrees.
Nationally we have seen the continued strengthening of Skills Australia and further developments through the “Skills for Prosperity” initiative. As mentioned in previous annual reports, this strategy is very supportive of the Victorian reforms and is defined by the following goals.
- Putting learners and enterprises at the forefront of service
- Enabling skills use and productivity in enterprises
- Supporting communities: better targeted and coordinated effort
- Aspiring to excellence
- Delivering outcomes and understanding the sector’s contribution
- Providing agile and adaptive products and services
- Ensuring better pathways across education sectors
- Securing prosperity through sustained and balanced investment
The implementation of this initiative is characterised by a national VET system that promotes transparency and consistency through a national VET regulator in a demand-driven system of delivery predicated on open competition between public and private training providers. A number of additional policy levers have also been enacted as they relate to traineeships and apprenticeships specifically with regard to employer incentives, competency based completions and strategies to improve completion rates.
Within Victoria the change of government has seen VET policy and implementation return to the Education Portfolio under Minister Peter Hall. The “Securing Jobs for Your Future” strategy, although partially reviewed by the Essential Services Commission (ESC) with regard to fees and charges, has seen very little modification to the core recommendations and we have therefore, from the beginning of 2011, started to see the full implementation of a demand-driven VET system at all Certificate levels. The PSV Council continue to observe the implication of this and has provided reports to the Victorian Skills Commission (VSC) as well as a submission to the ESC review of VET fees and charges. The Council also intends to respond to upcoming parliamentary inquiries addressing agricultural education & training as well as farm sector workforce capacity later into 2011.
I am hopeful that the PSV Council’s recommendations will gain traction through presentation to the various Parliamentary Committees however, still of major concern with respect to the hands-off approach to a demand driven system, is the significant diminishing of consistent quality outcomes from RTOs, regardless of whether public or private, and the capacity of the VET system to monitor these given the unprecedented growth in delivery and the number of new private RTOs.
Both federal and state initiatives have established an environment that is exciting and visionary in many ways however, without proper management, they have the potential to dismantle a historically well-regarded training system which will lead to the loss of critical capital infrastructure as well as a dedicated teaching and VET administration cohort. This is a time where an independent and well informed industry voice is greatly needed in order to assist to develop and moderate government policy to ensure that best outcomes are achieved for all users.
Review of Industry Training Advisory Body Relationships
This year has seen the Victorian Skills Commission (VSC) engage the Nous Group to build on previous work undertaken by government (Escalier) to undertake a review of industry advisory relationships. This report was presented to the VSC in mid-October 2010 and released to the ITAB network shortly after; in short it presented three models.
- Straw Man 1: Align ITAB's with ISC's and supplement with task forces
- Straw Man 2: Reconfigure ITAB networks to reflect the value chain
- Straw Man 3: Location or regionally based ITABs
A subsequent briefing by the VSC indicated that, with the change of government, Minister Hall wished to have time to consider his position on this matter and would neither endorse nor reject the VSC recommendations. Subsequently he commissioned his own review, to be conducted by the Boston Group, for presentation by the end of 2011, to allow transition to any new arrangements by the end of June 2012. I, along with Greg Hallihan and a number of other ITAB Chairs and Executive Officers, sought and gained a meeting with Minister Hall to reinforce the need for independent industry advice and presented the following core values for consideration in any revision of the industry advisory system.
Core Value 1: Strong and active industry representation
- Driven by bi-partisan ownership and involvement, coordinated by VITABs, empowering, representing and championing smaller industry sectors, groups and SMEs
- 'Honest brokers': providing balanced, independent advice
- 'One size does not fit all': diversity of industry requires diverse solutions; industry (ITAB) role in The Act must be retained.
Core Value 2: Industry to influence training priorities and systems
- The VET system must deliver quality outcomes that meet the needs of industry
- The interests of VET 'supply' must be tempered with 'industry need and demand'
Core Value 3: Building and sustaining networks to deliver sophisticated advice and support
- VITABs do more than offer planning advice
- Develop communities and build their capacity to lead and participate in training reform
- The quality of advice provided by VITABs is informed and improved VITABs help industry 'navigate' the complexities of the VET system
Core Value 4: Delivering responsive industry advice and support
- Quick response and fast action is often needed to identify and support rapidly emerging industry needs
- Identifying these needs requires access to a wide segment of industry and knowledge of national and international trends
Core Value 5: Industry advice must be strategic
- Industry needs to deliver more than advice about the purchase of training Industry must have input to the 'bigger picture'
- Victoria's competitive advantage community commitment to lifelong learning
- Advice must be strategic, focused and aggregated at a State-level State level industry advice must be recognized as a vital input to the innovation economy
- Quality advice is an investment not a cost
Core Value 6: Industry has a central role in supporting a Whole of Government approach
- Strong, inclusive and sustained industry input is required to support a range of government departments and programs
- Industry requires the capacity to influence and drive State initiatives Coordination of effort across Government Departments is required at a State level
Core Value: An on-going commitment to a national and consistent VET system
- Victoria will achieve a competitive advantage through a strong VITAB structure advocating Victorian industry needs on the national stage driven by a by-partisan approach
Core Value 8: Continuous Improvement of industry advisory structures
- VITABs acknowledge and welcome the need for ongoing improvement of advisory processes — for all sources of industry advisory groups SV needs and expectations need to be clearly articulated
- The importance of strong and effective governance by VITABs is recognised
The meeting with the Minister was constructive and I hope we will see support for a credible independent industry voice at the core of any new arrangements decided upon by the Minister in 2012.
It is worth noting that due to the Review all ITAB funding agreements for 2011-12 were offered for a duration of only twelve months with the content reflecting a very strong bias towards workforce development, demand stimulation and an evaluation of market effectiveness.
PSV Achievements & Relationships
PSV continues to work constructively with AgriFood Skills Australia (AFSA) resulting in the following key outcomes.
- The implementation and annual review of the Memorandum of Understanding between the two bodies culminating in a project to conduct a Workforce Development Plan for Oasis Horticulture.
- The endorsement of the three training packages.
- The instigation of a continuous improvement process that has industry and State ITABs front and centre in assessing which projects should receive priority and subsequent ITAB signoff on all continuous improvement plans.
- Participation in AFSA consultations and forms including development of the Environmental Scan.
- Membership of James Dennis on the Rural & Related Industries Standing Committee (AFSA)
- PSV hosting the Victorian round of implementation workshops for the National Training Packages with around 80 people attending the morning session (AHC10) and around 40 for the afternoon workshop (ACM10).
Australian Wool Innovation Ltd (AWI) have continued to support PSV in coordinating three and five day Wool Handler Workshops that have encouraged in excess of 50 rural young people and new entrants to experience the wool industry and develop industry skills. This year we have successfully conducted programs throughout the State in the following regions.
- Bendigo
- Mansfield
- Nhill
- Hamilton
The Nursery and Garden Industry Victoria (NGIV) had completed, with considerable success, the Nursery Cadetship Program. Of the 20 students who started the prevocational course, which included a two-day practical placement each week; six of these were successful in gaining apprenticeships with a further six gaining direct ongoing employment in the nursery industry. Industry participation remained high during the program with a number of the businesses engaged indicating that they would wish to continue offering work placements and apprenticeships for another round of cadets.
NGIV is committed to continuing to run the program and see it as a strategic part of industry workforce development into the future. The NGIV has allocated resources internally to fund the operation in 2011-12 with PSV representatives participating on the steering committee and providing strategic advice and direction as required.
Annually PSV conducts the initial criteria assessment and ranking for primary sector applications for the Victorian Training Awards. Twelve applications were received this year with three achieving finalist selection in three different categories:
- Lisette Mill (CLM) Vocational Student of the Year
- Patrick O Donohue (Agriculture) Trainee of the Year
- Jessica Pendlebury (Vet Nursing) School based Apprentice/Trainee of the Year.
This is the primary sector’s most successful representation in many years and, on behalf of the PSV Members, I wish these candidates the best of luck in the final judging process. I would also like to make special mention of two other applicants who had been highly recommended by PSV but were unfortunately not selected by the Skills Victoria panel as finalists for the VTA. Our congratulations however go to Victorians Rebecca Dynon (Turf Grass Association of Australia) and Dan Oswin (Australian Golf Course Superintendents Association) were both awarded the National Turf & Golf Course Industries’ respective Australian Graduate of the Year titles in June.
Training & Development
With full implementation of Securing Jobs for Your Future now occurring in Victoria the VET system has seen an increase of some 44% in delivery across all sectors. PSVs coverage has increased over the same period in the vicinity of 7% to 10%, predominantly driven by the registration of unprecedented numbers of private training providers. Delivery across the sector by public TAFEs has remained relatively static with some decline however private RTOs have registered a dramatic increased of some 112% raising concerns with the Council over the future viability of a number of TAFE institutes and their capacity to meet industry training needs in thin markets and rural industries where delivery costs are higher.
Industry has also raised concern about the quality, quantum and type of delivery being undertaken to achieve these figures. The Council commissioned the secretariat to investigate these concerns and report findings to the members and the various parliamentary reviews. In summary it was found that questionable practices were being undertaken by some private and public RTOs to credential qualifications through Recognition of Prior Learning (RPL) without meeting specific industry standards. The PSV Council has informed the Victorian Registration and Qualifications Authority (VRQA), VSC and the government of the findings and has asked for an industry audit to be conducted specifically in agriculture and production horticulture to ensure that industry’s confidence in the VET system is maintained.
Staffing
The Council has been extremely fortunate to add Chris Bergemann, as the industry liaison officer, to the current secretariat of Greg Hallihan and Tracie Webb. This has created a stable, well-balanced and committed team which industry is very fortunate to have during a time of great uncertainty in the VET system. I would therefore like to thank each of them personally for their tireless work and preparedness to meet the changing needs of industry and the expectations of all our stakeholders.
Igor Grattan
Chairman
Primary Skills Victoria