An interim report into the nation’s Vocational, Education and Training sector (VET) by the Productivity Commission has found the sector to be underperforming, excessively complicated and suffering from ad hoc policy approaches.
In its report, National Agreement for Skills and Workforce Development Review, the Commission says the VET sector had been hit by COVID-19 and was also likely be part of the recovery strategy.
“A better VET sector will help people gain new skills and find jobs, ultimately lifting productivity and wages,” Commissioner Jonathan Coppel said.
“The report floats options for a fundamental re-orientation of Australia’s VET system, with a revised Commonwealth-State agreement to set out an agreed, coherent policy direction,” he said.
“We hope the report will provoke a broad discussion of big reform.”
Mr Coppel said there was substantial scope to reduce waste and better target the Government’s $6.1 billion spend.
“The challenges of COVID-19 have meant the VET sector has found new ways to deliver training online — we should be equally open to testing new ways to support people acquiring skills,” he said.
“We want to see an improved VET sector that gives students and employers more flexibility and choice.”
He said the Commission’s interim report found there were dozens of different subsidy rates, even for the same courses.
Mr Coppel said the report looked at options for improving affordability by expanding access to student loans for a broader range of training, with safeguards to prevent the “rorting” that occurred under the old VET FEE-HELP program.
The Commission’s 322-page interim report can be accessed at this PS News link.
