Creating Opportunities out of Challenges

1
Our Business
On the Move

• Creating Opportunities out of Challenges

2
Our Business program

• On the Move Understanding the changing VET
  environment
• Opportunity Knocks Building a successful
  relationship, evaluating a
• business opportunity and knowing what
• products and services will meet your clients
  needs

3
Understanding Riverina Institute

• Why are we here?
• Our Profile Facts and Figures
• External Environment
• Whole of Business
• Funding Sources
• How we are performing?
• Where to from here?

4
Riverina Institute Profile
Facts and Figures

• Demographics
• Structure
• Where we fit

5
Institute Performance against 2008 Targets
6

• But we cannot afford to be complacent. TAFE
  NSW is facing a level of competition we have
  never faced before. Our customers have higher
  expectations and they are certainly not afraid to
  tell us about them. We have, for some time,
  described our students and industry as our
  customers. I think, now, this is how they see
  themselves. If we cant deliver what they want,
  when and how they want it, they know they can go
  elsewhere. And they do.
• Marie Persson, DDG TAFE, August 2007

7
Discussion

• How is the external environment
• of VET changing?

8
What affects Riverina Institute?

• COAG agenda
• Commonwealth funding agreements
• Industry requirements and response
• Market design focus
• Review of Higher Education
• VET capacity in schools
• Other State directions

9
Market design 1

• States rewarded for adopting 8 areas of market
  design
• Quality Outcomes national regulation of RTOs
  (NARA)
• Information to consumers (industry and
  individuals) to facilitate choice - of training
  provider, products, and services
• Client Choice public funding for training
  delivery allocated where the client chooses
• Student Entitlement demand driven funding where
  eligible students receive govt support for their
  training of choice

10
Market Design 2

• Separation of Purchaser/Provider autonomy of
  public providers
• Contestability of funding all public funds for
  delivery of training open to all RTOs registered
  within that jurisdiction
• Competitive Neutrality public RTOs not to have
  advantages over other providers (capital, taxes)
• Nationally Competitive Market all eligible RTOs
  can access public funding and provide training in
  any jurisdiction in Australia.

11
VET in Schools

• Trade Training Centres in Schools program (2.5
  billion over 10 years
• 500,00 - 1.5 m per school
• Funding for upgrades, refurbishments, new
  facilities
• For training in skills shortage areas to Cert III
• Application requires coordination with TAFE and
  other providers to ensure no duplication of
  facilities in the area

12
Whole of Business

• What does this mean to you?

13
Whole of Business Approach

• Its about
• knowing the needs of our customers
• knowing where we have a competitive advantage
• tailoring our programs for different customer
  needs
• linking and integrating services (recognition,
  job placement, counselling, library, learner
  disability support) with training and skills
  development
• diversifying our funding sources to ensure
  sustainability
• competing in the marketplace.

14
Overview of Contestable Funded Training Programs
2008
Program Name Purpose
Strategic Skills Program (SSP) Meet skill shortages and support skills development in industries facing barriers to growth.
Traineeships Training New entrants Entry-level employment that combines with structured training.
Existing Worker Traineeships Developing skills of existing employees.
Prevocational Training To prepare entry level people for apprenticeships.
Workplace English Language and Literacy (WELL) To improve literacy, numeracy and language skills in the workplace support participants in meeting current and future employment and training needs. Also resource and strategic funding available.
15
Overview of Contestable Funded Training Programs
2008 (contd)
Program Name Purpose
Language Literacy Numeracy Program (LLNP) To improve English language literacy and numeracy skills in Centrelink and Job Network clients Vocation Specific Advanced English for professional purpose.
Adult Migrant English Program (AMEP) Improve adult migrant English skills and so employability.
New Access Apprenticeship Program (NAAP) Program for jobseekers who experience barriers to skilled employment or who need support to obtain and maintain a New Apprenticeship.
BVET Emerging Priorities mature age Funded at the rate of 2,844 per place and are sub-categorised as 30 places to meet existing workers skills gap and 30 places Skills through partnership with industry. This money has been allocated to assist the government meet its mature age training commitments under the state plan.
16
Productivity Places Program

• Federal Government initiative
• 450,000 places over 4 years
• 20,000 places from 1 April for job seekers
• 15,200 at Cert II and 4,800 at Cert III
• A significant proportion to be referred from job
  network
• Skill shortage areas.

17
Traineeships

• Of 22,085 EWT in NSW in 2007
• of the market
• Of 39,606 NET in NSW in 2007
• of the market

- Institute had 472
- TAFE NSW had 2622 or 11.8
- Institute had 190
- TAFE NSW had 6056 or 15.2
18
Commencements
INTERNATIONAL (YTD Nov 2007)

NSW Govt providers 3,415
NSW Private Providers 31,076
NSW total 34,491

19
Institute Priorities for Spending

• Balance the budget
• Innovation funding
• Developing capability 21C
• Building capacity at Institute and College level,
  e.g. IT upgrades

20
How are we performing?

• Workplace delivery
• Recognition
• Skilling Australia's Workforce (SAW)
• Financial Comparison (2003-2007)

21

• Discussion
• To respond to the new environment
• and ensure RIs sustainability -
• what do I need to change about
• myself, my section, the Institute?
• what's in it for me?

22
TAFE NSW Strategies

• Employer Services focus, workforce development
  Improving the Bottom Line
• TAFE and 21st Century Workforce Guarantee PD
  for staff
• More independence for Institutes, purchasing
  agreements
• Promotion of information on performance and
  courses
• Responding to expanded user choice in NSW

23
Messages 1

• Competition know your competitors, can costs be
  reduced
• Extend partnerships with enterprises to attract
  business national and local
• Build partnerships with universities and schools
• Provide comprehensive brokerage and advisory
  services for employers

24
Messages 2

• Demand driven funding know the market and the
  clients, use market intelligence, go for the
  winnable markets
• Promote existing support services to attract
  clients, for example, libraries, counselling
• Upgrade and expand information to clients
• Take funding opportunities for skills development
  for the future
• Extend TAFE staff workforce development.