By CLAIRE FIELD
It could mean more places funded at a lower rate
The Prime Minister’s recent comments on the new VET funding agreement have the support of both the TAFE sector and independent providers. Both are looking forward to a leading role in the new arrangements.
The PM indicated that the new agreement will draw on elements of the National Health Reform Agreement – specifically “national efficient pricing and activity based funding models”. He also expressed concerns about “a lack of visibility over the quality of training providers.” The Joyce Review and ASQA Rapid Review recommendations to publish all provider audit reports and provider-level data will address this latter issue.
Returning to funding – the sector needs national consistency in fees and subsidies and an overall increase in funding. It is the efficient price which is tricky.
It will work for independent providers but I am surprised that the TAFE sector is so supportive.
TAFEs are currently under some pressure:
* TAFE Queensland is headed for a budget deficit of at least -$38.4 million
* TAFE NSW teachers are concerned about quality in short courses
* Box Hill Institute is facing a class action after problems with aviation training
Against this backdrop and often facing higher delivery costs, the introduction of an efficient price risks seeing more training places funded at a lower rate per TAFE enrolment.
Leading TAFE thinker, Don Zoellner, has expressed his concerns about the impact of markets and efficient pricing on TAFE. He considers that TAFE’s role in delivering public value should be recognised in its funding model. I think he is right.
On Friday we will see more details of the new VET funding agreement.
National efficient pricing (plus hopefully long-term funding stability) will be good for independent and community providers and their students. The question is whether the new approach will also deliver for the TAFE sector?
Claire previously managed TAFE NSW Planning and Performance Review and was seconded to the Commonwealth for VET reform negotiations with states and territories.