140627 ps-ritc-seares final report submissionv0.2

1. Submission
August 2014
The Resources Industry Training Council Level 10, 2 Mill Street, Perth, Western Australia
Locked Bag N984, Perth WA 6844 p +61 8 9220 8530 f +61 8 9221 3701 w ritcwa.com.au
Contact
Nigel Haywood
n.haywood@cmewa.com
Independent Review of the Vocational Education and Training Sector in Western Australia 2013-14 Submission on the independent review final report

2. Independent Review of the Vocational Education and Training Sector in Western Australia
2013-14
Page 1 of 6
Contents
About RITC ........................................................................................................................... 2
Recommendations ................................................................................................................ 2
Context ................................................................................................................................. 4
State Training Provider Network ........................................................................................ 4
State Training Board and Industry Training Councils ......................................................... 5
Conclusion ............................................................................................................................ 6

3. Independent Review of the Vocational Education and Training Sector in Western Australia
2013-14
Page 2 of 6
About RITC
The Resources Industry Training Council (RITC) is a state government funded joint venture between the Chamber of Minerals and Energy of Western Australia (CME) and the Australian Petroleum Production and Exploration Association (APPEA) providing strategic advice on the workforce development needs of Western Australia’s mining, oil and gas and downstream process manufacturing industries.
Members of these peak organisations account for over 95 per cent of mineral and energy production in Western Australia and over 90 per cent of national oil and gas production.
The Western Australian resources sector is diverse and complex, covering exploration, processing, downstream value adding and refining of over 50 different types of mineral and energy resources.
In 2013, the value of Western Australia’s mineral and petroleum production was $113.8 billion, accounting for 91 per cent of the state’s total merchandise exports and thus representing the majority of Western Australia’s 43 per cent contribution to Australian merchandise exports. Furthermore, royalty payments to the State Government are forecast to total $6.1 billion in 2013-14.
Western Australia’s downstream process manufacturing industry is concentrated and, like the resources sector, is diverse in nature covering activities such as basic chemical and chemical product manufacturing, polymer and rubber product manufacturing, non-metallic mineral product manufacturing and primary metal and metal product manufacturing. Combined, these industries account for around 2.5 per cent of employment in this state (2011 ABS census).
Recommendations
The RITC has appreciated the opportunity to participate in consultations that have been undertaken by the review chair, Emeritus Professor Margaret Seares, and to provide comment on the review discussion paper and final report. This review comes at a critical time in the evolution of Western Australia’s vocational education and training system. A number of critical reforms are currently being implemented, with the FutureSkills initiative being the centrepiece.
The RITC considers the review provides important context for such reforms and charts a possible future that will allow all vocational education and training system participants to operate in the most efficient and effective way possible. The RITC supports the general direction of final report recommendations and their timely implementation. In particular:
o Consistent with its position as Western Australia’s state training authority, the Department of Training and Workforce Development should assume responsibility for strategic leadership of Western Australia’s VET sector.
o It is timely to undertake a thorough review of Western Australia’s state training provider operational framework with a focus on implementing review recommendations targeted at maximising the flexibility, efficiency, effectiveness and relevance of this network.
o It is imperative to address the State Training Board’s independence (recommendations 32 and 33) and for the Minister for Training and Workforce Development to implement these recommendations as soon as is practically possible.

4. Independent Review of the Vocational Education and Training Sector in Western Australia
2013-14
Page 3 of 6
o Review final report recommendations relating to information flows (recommendations 34, 35, 36, 37 and 39) should be implemented for the 2015/16 planning year in consultation with the industry training council network, State Training Board and DTWD.

5. Independent Review of the Vocational Education and Training Sector in Western Australia
2013-14
Page 4 of 6
Context
The VET system is dynamic and tasked with meeting the needs of a diverse client base including government, industry, individuals and communities. A significant risk is the system becoming “all things to all people” thereby losing focus and purpose. Reform agendas pursued since the 1980’s have endeavoured to make the system more client focused, efficient and effective.
In recent times, concerns have been raised regarding the quality of training delivery/assessment and system outcomes. Latest National Centre for Vocational Education Research system data (calendar year 2013) points to a decline in publicly provided VET. Nationally, publicly funded vocational education and training subject enrolments declined by 3.9 per cent and student numbers fell by 3.4 per cent. In Western Australia, publicly funded vocational education and training student numbers fell by 2.1 per cent during 2013 with subject enrolments falling by 1.8 per cent.
To address this decline, a view on the strategic positioning of Western Australia’s vocational education and training system must be developed.
Consistent with its position as Western Australia’s state training authority, the Department of Training and Workforce Development should assume responsibility for strategic leadership of Western Australia’s VET sector. Accordingly, the RITC supports review recommendations addressing the Department’s role, functions and its involvement in assisting to provide clarity around aspects of VET system architecture in this state (Recommendations 1, 21, 22, 24, 27, 28, and 31).
State Training Provider Network
In its response to the review discussion paper, the RITC supported continuation of a competitive training market in Western Australia. In order for this market to be effective and efficient, it is essential for Western Australia’s public training providers to be competitive. Existing inflexibilities and cumbersome administrative arrangements are seen as deterrents to a well-functioning, contemporary public provider network. To address this, it was recommended that:
 Industrial arrangements underpinning operations of state training providers be reformed;
 Administrative frameworks that unnecessarily divert resources from training delivery and assessment be streamlined;
 Frameworks that apply to state training provider commercial operations be streamlined in order to facilitate new partnerships with industry; and
 Sunk investment in publicly funded state training provider infrastructure be maximised through implementation of practical third party access arrangements.
The RITC appreciates the final report recommendations addressing state training providers reflect issues raised by the RITC in its discussion paper submission.
It is timely to undertake a thorough review of Western Australia’s state training provider operational framework. The RITC supports review recommendations targeted at maximising the flexibility, efficiency, effectiveness and relevance of this network.

6. Independent Review of the Vocational Education and Training Sector in Western Australia
2013-14
Page 5 of 6
State Training Board and Industry Training Councils
It its submission to the review discussion paper, the RITC noted any re-invigoration of Western Australia’s VET sector was dependent upon a strong industry voice capable of clearly articulating current and future industry workforce development needs. The RITC Advisory Board considered this could be best achieved through a truly independent State Training Board and a stronger, more direct relationship between the Board and its network of industry training councils.
Accordingly, the RITC supports recommendations made in the review final report addressing the State Training Board’s independence (recommendations 32 and 33) and calls on the Minister for Training and Workforce Development to implement these recommendations as soon as is practically possible.
The review terms of reference specifically targeted a framework for streamlined information flows from industry and the VET sector to the Minister, including the role of industry training councils, State Training Board, DTWD and the Training and Accreditation Council in the provision of information and how advice is provided.
In responding to the review discussion paper, the RITC saw scope to reform existing arrangements between industry training councils, the State Training Board and DTWD to allow a sharper focus to be placed on matters of importance to all parties. The mechanism to achieve this would be bilateral negotiation of planning documents on an annual basis. Training council business plans would therefore be capable of expressing priorities of government, the State Training Board and industry.
Review final report recommendations relating to information flows (recommendations 34, 35, 36, 37 and 39) are supported by the RITC and should be implemented for the 2015/16 planning year in consultation with the industry training council network, State Training Board and DTWD.

7. Independent Review of the Vocational Education and Training Sector in Western Australia
2013-14
Page 6 of 6
Conclusion
The RITC welcomes the review final report and looks forward to ongoing engagement throughout the recommendation implementation process. Directions contained in review recommendations are necessary to ensure the state’s VET system has the capacity to respond to challenges arising from economic and societal change in the state. It is recognised that many recommendations, particularly those relating to state training providers, pose significant departures to current arrangements and for some, the scope of change may be seen as too great.
In the face of a rapidly changing operating environment, a reform agenda is required to ensure a return on public investment in Western Australia’s VET sector is maximised to the benefit of industry, communities, government and individuals.
If you have any further queries regarding the above matters, please contact Nigel Haywood, Manager RITC on (08) 9220 8538 or n.haywood@cmewa.com
Authorised by
Position
Date
Signed
Deputy Chief Executive
15 July 2014
Document reference
140627-PS-RITC-Seares final report submission0.2