Search results

The Centre for the Economics of Education and Training (CEET) in Victoria was asked to provide an analysis of the factors that will contribute to increased demand for TAFE and to identify areas where increased investment in TAFE will further government objectives and contribute to innovation and to economic and social development. The paper highlights the critical role of Victoria's TAFE Institutes if the State Government's objective of building an innovation based economy in Victoria and its goals and targets for educational participation and attainment are to be achieved. The paper highlights: (i) the contribution of adult workforce participation rates to economic growth and the consequent need to equip the aging Australian workforce with the knowledge and skills for participation in the labour market of the future; (ii) the challenge to meet the learning needs of adults without post school qualifications particularly those without adequate levels of literacy for effective social and economic participation; (iii) the growing pressures on TAFE Institutes to provide programs for the 15-19-age cohort; and (iv) the contribution of TAFE Institutes to innovation, to meeting future workforce skill needs and overcoming skills shortages. This paper concludes that these factors combined with the State Government's policy objectives, support the case for increased investment in TAFE so as to increase participation rates and further raise the quality and relevance of outcomes. It also highlights, relative to other states and to the national average, the historic under funding of VET by governments in Victoria a fact that was confirmed by a recent report by the Commonwealth Grants Commission. It also points out that the increased state funding for TAFE announced during the State election will be eroded if further productivity savings are imposed on TAFE, and if wage increases are not fully supplemented. The paper calls for these increases to be provided as a net ongoing addition to the 2003 TAFE recurrent funding base. Finally, it concludes by calling for both levels of government to raise their investment in TAFE in Victoria at least to national average levels, in the context of the new Australian National Training Authority Agreement, and for increases in contributions from enterprises and from individuals already in employment where outcomes contribute directly to occupational upgrading.