Victorian VET Funding Review Submission

The MCA supports the Victorian Government’s notion of crafting ‘a more stable funding system (to) ensure its investment in training aligns with the goals of the government’s Back to Work plan’.

The alignment of  training and industry policy is strongly endorsed.  Six key growth areas have been identified where Victoria can build on existing strengths - in the service industries (professional services, and social and personal services) and medical technology and pharmaceuticals, new energy technology, food and fibre, transport, defence and construction technology, and international education.

Industry is central to the training quality equation because it provides jobs.  A job is the best guarantee of effective and ongoing skills development as knowledge needs to be applied continually. The MCA has repeatedly urged a focus on skilling outcomes rather than the training system, driven by meaningful
industry-led partnerships between employers and training providers. In a truly deregulated market, the supply side would adapt to meet the needs of the demand side.

This is still not occurring in the manner of a mature market.  Major training quality issues are compromising the effectiveness of training spend and, in some cases, safety.

Previous Government responses have been overwhelmingly regulatory in nature and focussed on inputs (eg. paper-based audits).

However, skilling outcomes are what counts for the individual, employer and the wider economy.

In summary, the MCA:

  • Supports the VET Funding Review and the notion of a more stable funding system ensuring investment in training aligns with the goals of the Government’s Back to Work plan
  • Supports the Victorian Government’s notion of aligning training policy with industry policy
  • Urges a focus on ‘skilling outcomes’ rather than ‘the training system’
  • Urges that TAFE industrial arrangements should be made more flexible to enable TAFEs to compete with private providers
  • In this context, we urge that there should be broader consideration of TAFE Community Service Obligation funding

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