I have had the great pleasure and opportunity this term in the Assembly to meet with staff, students and Institutions in the Vocational Education and Training (or VET) sector. I have come to understand that it is a sector that is more than just about Skills. It also encompasses knowledge, understanding and application. It is about Innovation and entrepreneurship. And I think it is an important sector in the ACT for the business community and deserves key support from everyone.
Did you know there are 79 Vocational and Training Institutions in the ACT? This includes the CIT, as the ACTs only government TAFE institution. Then there is a significant Independent Registered Training Organisation (or RTO) sector, which does much of the heavy lifting of the training burden in the ACT, where they have benefitted not only the individuals but also the economy and society as a whole.
In fact, according to this year’s Productivity Commission Report on Government Services (ROGS), there are over 60 thousand students annually who enrolled in the VET sector in the ACT. Over 80% of those students who enrol in VET courses do so with an Independent RTO, completing courses at every level of training and study. Yet this sector receives less than 20% of funding.
I was surprised to discover that this lack of funding support was a policy position of the Labor-Greens government. The Labor-Greens agreement for the 10th Assembly makes it abundantly clear that they will not support independent RTOs. This is to the point of not providing adequate funding – with a minimum of 75% to go to the CIT, any support or promotion, or even acknowledging that they do a good job.
This funding is more like 90%, with the ROGS showing that only 10.5% went to the independents. Yet, 80% of students in VET training courses do so in the independent sector. There is significant inequity in the system.
This is even though, according to recent research, independent RTOs contribute an estimated $1.5 billion of value to the ACT economy annually. Their majority work in training,
- enhances many individuals’ productivity, employability and income,
- their contribution to training students helps to achieve economic excellence and a competitive edge in the international market, and
- they play a significant role in the upgradation of skills for future economic growth
I have been following this up in the Assembly. During the 2020-21 Annual Report hearings, I asked the Minister for Skills, Mr Steel, why so little funding went to the independent training sector. The Minister stated that they supported the CIT as the premier government institution and were confident of the quality of the training they provided. I then asked him if he was saying he was not confident of the quality of the courses and training delivered by the independent training sector. The Minister failed to express his confidence, instead repeating that he was confident in the CIT and the training they provided, and that was why the government provided at least 75% of the funding to them, which, as we know, is almost 90%.
Then, during the 2021-22 Annual Report Hearings, I followed a similar line of questioning. This time he made the inaccurate assertion, as evidenced by the National Centre for Vocational Education Research (NCVER), that the Independent RTOs only taught short courses. However, Independent RTOs train more students in diplomas and certificates than the CIT and have higher completion rates than the CIT.
Furthermore, there is a lack of support in other areas, such as promoting the Independent sector. Of the eight states and Territories, the NT links directly to the Federal government websites, Tasmania, Queensland, NSW, Victoria, and South Australia give user choice. Only WA and the ACT do not link directly to private RTOs, though the WA site does mention them and that there are 500 of them available.
From my discussions with many local Independent RTOs, I have been able to establish that many do not get any support here, and that is certainly evidenced on the Study Canberra website, which mentions the CIT primarily – RTOs get two sentences buried at the end of the page, with a generic link to the Federal My Skills website.
This is not useful, even for international students, as this site does not list which providers are CRICOS registered trainers, essential for those travelling into Canberra from overseas. A better link would be to the Study Australia site, which has appropriate information, especially for international students and local students.
Don’t get me wrong. I also think the CIT staff do a great job training our students. But I want to acknowledge the significant contribution that the independent RTOs make to the ACT VET sector and the ACT economy.
I will continue to follow this up with the ACT government and call on them to support the needs of those students seeking to undertake training in the independent sector by providing adequate funding and information about this sector through the Study Canberra and other websites and study centres in the ACT.