Matterson, Victoria - Australian Chamber of Commerce and Industry (ACCI)

Response:

Enhanced industry involvement in the VET system is vital to ensuring Australia can meet our workforce and skills needs into the future.  Any reform of the system needs genuine and ongoing engagement with industry to ensure qualifications and training provide their workforce with the skills needed for them to be competitive. However, whilst ACCI believes there is real room for greater industry engagement and greater focus on quality training, we stress that there is no need to entirely overhaul the VET system.  ACCI instead recommends the Government focus on fixing elements of the VET sector, instead of endeavouring to re-invent the wheel.  This would provide far less disruption to the sector, and recognises that in many cases, the issues with the current system just require some minor tweaking.  

Industry influence on training package design is paramount to a successful VET sector.    If training qualifications are not meeting the requirements or standards of industry, they are not achieving their purpose.  
With a constantly evolving workforce, it is vital industry is able to inform and direct training requirements promptly and easily.  

Whilst we acknowledge the role of the Industry Reference Committees, as they currently stand they do not always portray a current and accurate industry perspective.  ACCI recommends granting industry a greater say in the membership of Industry Reference Committees, as there have been too many complaints that the membership is often dominated by self-interested parties, or people who no longer have a current connection to industry and are out of touch with what industry needs. Industry confidence that the VET sector will deliver quality training per industry standards will be boosted by this enhanced industry role.  

The work of the Industry Reference Committee would also be enhanced by greater access to current data from NCVER and ASQA.  This information should incorporate information on the use of current qualifications, and any concerns surrounding quality or misuse. 

In addition to ensuring greater industry currency and representation on the Industry Reference Committees, ACCI must also stress the need for Industry Reference Committees to be the body responsible for directing the work of the Skills Services Organisations and not the other way round.  Industry Reference Committees are the ones speaking on behalf of industry in the first instance to identify and update industry occupations and to update competencies (skills standards) as they relate to each job role.   This is crucial to ensure training that accurately delivers the relevant occupational skills standards, therefore their role must be to lead the process.  We continue to hold a number of concerns surrounding the responsiveness of the Skills Service Organisations to concerns raised by Industry Reference Committees, and believe this impacts on the effective working relationship.

We note also that we are still awaiting a review into the work of the Skills Service Organisations, and until such time as there is evidence of the success of this approach, no additional responsibility should be granted to these bodies.  

ACCI supports a shared vision for VET between industry and Government.  There needs to be a robust, evidence-based format for ensuring training meets the need of current and forecast workforce requirements.  

To this end, ACCI believe there is considerable scope for more and better engagement with industry.  Industry must be driving the training reform, overseeing the key changes to training packages and have the ability to engage on a continual basis with those delivering training.  

Given the limitations of this submission, ACCI will also be providing the Department of Education Skills and Employment with a separate submission to further outline our views on industry engagement.  

Response:

Yes

Response:

ACCI's membership includes more than 80 association and state chambers. Around 25 of these have a vested interest in VET, covering a host of sectors including plumbing, construction, surveying, air-conditioning mechanics, electrical, retail, hospitality. and pharmacy  These members have been closely consulted in the formulation of our views. 
 
We note the decline in satisfaction with the quality of training provision.  Employers want their employees to have learned a set of skills standards appropriate to their industry, for the jobs that currently exist and those likely to exist in the near future.  Instead, the focus on qualifications is often leading to too broad based training, which may fail to equip participants with the skills they need for their specific role.  

Whilst acknowledging the work of the Industry Reference Committees, ACCI’s position is that there needs to be a better mechanism for ensuring current and adequate representation of industry.  It is imperative that there is  adequate resourcing of both the Industry Reference Committees and the Skills Service Organisations.  It is also critical these bodies have the funding they need to enable them to undertake their responsibilities, ensuring they are equipped to fully research and evaluate potential changes to training packages.  Without adequate funding, there will be unnecessary delays in the review and evaluation of current training packages, potentially causing further delays in necessary revisions.  

In addition to ensuring greater industry currency and representation on the Industry Reference Committees, ACCI must also stress the need for Industry Reference Committees to be the body responsible for directing the work of the Skills Services Organisations and not the other way round.  Industry Reference Committees are the ones speaking on behalf of industry to formulate training that accurately delivers the relevant occupational skills standards for industry, therefore their role must be to lead the process.  We continue to hold a number of concerns surrounding the responsiveness of the Skills Service Organisations to concerns raised by Industry Reference Committees, and believe this impacts on the effective working relationship. ACCI’s position is where Industry Reference Committees feel unsupported by their Skills Service Organisation, we believe there is a need to reiterate they can select an alternative Skills Service Organisation.  It is vital they are able to have a sound working partnership, and as the customer, they should be encouraged to move services, should the relationship be lacking. 

Response:

Industry has the reasonable expectation that VET providers will deliver staff who have not only the occupational skills standards required by industry, but who are also work-ready.  These work-ready skills form a basis for all employment and include basics such as communication and problem solving.  However, it is imperative that the key focus of VET be to ensure participants receive the specific occupational skills relevant to industry.   

ACCI is a strong advocate for Pathway courses.  These courses may also include pre-apprenticeships, and should be established on an industry by industry basis, to ensure they are appropriately tailored for the needs of each industry. These courses could play an important role in imparting a base level of skills needed by a range of industries, with the participant then undertaking a more targeted program of training to ensure they receive the occupational skills standards needed for their specific role. 

Regular reviews and updates of training packages will enable better understanding of the synergies between the training requirements across different industries.  Here there may be a role for the National Skills Commission to undertake these reviews. 

Response:

With decreasing employer confidence in the quality of VET training, there is a clear need for improved industry involvement in training package design.  

This decreasing employer confidence with the VET sector is largely focused on the quality of training delivery, as training packages are not necessarily providing the occupational skills needed by industry.  Too often the training is too broad based, which can result in less time being spent on teaching the occupational skills standards required by industry.  

ACCI is supportive of greater industry influence on the representation on the Industry Reference Committees, which would help ensure the voices of industry are heard to ensure their views are incorporated into the design and modification of training packages.  

ACCI also recommends additional flexibility for updating training packages as needed.  By enabling Industry Reference Committees to enact minor changes under the auspices of the AISC, there would be additional scope to meet the changing workplace needs of industry.  Training providers would have the option whether to take on these minor changes in the first instance, however, the expectation is, that quality providers would follow the wishes of industry and tailor their package accordingly. 

ACCI strongly advocates for the establishment of a National Apprenticeship Advisory Board.  This Board could inform the implementation of SAF National Partnership Agreements, as well as providing input and oversight for reform projects at the national level.  Barriers to apprenticeships could also be a priority focus on the Board.  

Response:

ACCI strongly believes there is no need for a complete overhaul of Australia’s VET sector.  We believe more tailored, targeted change would lead to a preferable outcome, given we currently have a good quality system, albeit one that would certainly benefit from some changes.  The key points ACCI wishes to see is to stress the need to reign in the role of non-industry actors, who are pushing the VET sector in the direction of more broad-based qualifications.  These qualifications are not in line with the needs of industry, and instead risk delivering training packages that are too broad in their mandate, failing to equip participants with the core skills needed by industry.  

Greater industry representation would be achieved in part by granting Industry more influence on the membership of the Industry Reference Committees.  Representatives must be able to demonstrate current industry involvement.  

We support faster time to market of training package amendments, and propose the ability of Industry Reference Committees to have capability to enact minor amendments.  

Please note, we will provide a more comprehensive submission to the Department, to fully outline our position.