"The Productivity Commission Study Report on the National Agreement for Skills and Workforce Development (NASWD) released on 21 January provides a raft of recommendations designed to improve the quality and effectiveness of the Australian vocational education and training system," said Innes Willox, Chief Executive of the national employer association Ai Group.
"While the system may not be in crisis further reform is necessary to ensure that Australia has the skilled workforce required for the modern economy. Over $6.4b is invested into the training system annually by Commonwealth and State & Territory governments. Employers and students alike should reasonably be able to expect a high performing system that effectively and efficiently meets their needs, both now and into the future.
"Developing a new agreement between the Commonwealth and State/Territory governments is an important and overdue first step. A new agreement has the potential to reset the underpinning of the system. It can have a clear articulation of principles and purpose, be more transparent and coherent and facilitate improved funding arrangements. Improvements to product development, consistencies of subsidies, fees and loans, and support for lifelong learning and foundation skills are all important.
"Many of the suggested reforms will require further consideration. Of note are suggested reforms to the apprenticeship system. While many of the suggestions are supported, such as improving recruitment practices, streamlining incentive arrangements, Ai Group has some concern around opening up trade pathways to non-apprenticed arrangements. The Australian Apprenticeship system must be fit for purpose, developing critical skills to help drive our economy. This reform needs to be driven from a clear understanding that trade skills are best developed in the context of work. Many key trade-based qualifications are specifically designed for this purpose. They enable the development of complex skills through real work application over time. This is the best guarantee for job-readiness, relevance and employability. Proposed changes to apprentice structures, including award payment arrangements will require careful consideration.
"The VET sector has long needed a more coherent national approach that focuses upon meeting the current and future needs of employers and students alike. This report will help shape this outcome," Mr Willox said.
Media enquiries: Tony Melville – 0419 190 347
