Karen McNamara (Dobell, Liberal Party) Share this | Hansard source

I rise to support the National Vocational Education and Training Regulator Amendment Bill 2015. This bill builds upon this government's reform of the vocational education and training—VET—sector to ensure that Australia is equipped with a skilled workforce and a productive economy.

This bill introduces measures to enhance the integrity of the VET system; provide an effective balance between protection and regulation of the VET system; and improve the efficiency and operation the NVETR Act and, consequently, the Australian Skills Quality Authority.

This government is working constructively to enhance the operation of Australia's VET system. The federal government will provide almost $6 billion this year alone in support for vocational education and training through direct funding for programs, support to the states and territories, and student loans. In electorates, such as Dobell, it is essential that this funding is directed at proven programs that meet the needs of our local labour market and sectors of the economy with a high demand for skilled workers.

The 2011 census identified in Dobell that 24 per cent of residents aged over 15 had a certificate-level qualification. Only 18 per cent have attained undergraduate and/or postgraduate qualifications. The census also identified that manufacturing, trade, accommodation and food services, construction, health care, and social assistance made up 62 per cent of all employment within Dobell. Furthermore, one-third of employed persons aged 15 years and over nominated their occupation as labourers, machinery operators, technicians or trades workers. With only one in two students in Dobell obtaining a year 12 qualification, these numbers highlight the importance that vocational and education training plays on the Central Coast.

I engage on a regular basis with local job service agencies, apprenticeship support providers and other training organisation to ensure that the training they deliver is aligned with local job requirements. No benefit is derived from training for training's sake. Government funding must be directed at addressing local skills and job needs, and providing training that addresses skill shortages within the local economy.

Sadly, over recent years, this has not always been the case. For too long, we have seen taxpayers' money wasted on training that has failed to meet employer and industry requirements, and has also failed the student. In addition, the previous government failed to safeguard quality standards and allowed unscrupulous providers to operate unfettered. This has resulted in students, who have completed training, being unable to secure employment, due to their skills and knowledge failing to meet workplace requirements and standards. For example, I have been informed by cafe owners in Dobell of situations where young people have presented with a Certificate II in Hospitality; yet, when placed in a practical workplace environment, they lack the necessary skills to meet the business needs, including face-to-face customer service skills.

In fact, it would appear, particularly in Dobell, that we now have an oversupply of certified baristas and fitness instructors in the job market. This is an example of training program failing to consider the needs of the local employment market. Not only are these examples a misuse of taxpayer funds; the results are psychologically damaging to job seekers who are trying to do the right thing only to be let down by a training providers who have failed to equip them for the workplace. This also places the student at an unfair financial disadvantage.

The intent of this bill is to improve the quality of Australia's VET system by enhancing the quality of education and training provided by the VET sector; improving transparency in the marketing of VET courses; reducing the regulatory burden by lengthening registration periods; and amending administrative arrangements to reduce red tape and better position the national regulator to investigate unscrupulous providers. Above all, this bill seeks to protect the integrity of the VET sector. This sector needs strong quality assurance in order to deliver high-quality training outcomes for students.

Employers are entitled to have confidence in the training received by potential employees. Regardless of which organisation has provided training, there should be consistently high standards to ensure that relevant knowledge and skills are taught to students.

As a member of the Standing Committee on Education and Employment, a strong vocational training sector is an area I strongly believe in. Our recently concluded inquiry into TAFE demonstrated the vastness of Australia's VET sector.

The TAFE sector is the largest education and training provider in Australia with 61 government owned TAFE institutions and university TAFE divisions. While the federal government has no direct administrative role in TAFE, it exercises a regulatory function through the Australian Skills Quality Authority by registering training organisations and accrediting courses.

Through COAG, various levels of government have agreed to six objectives for the VET system, including: a national system of streamlined industry defined qualifications with flexibility to respond to major national and state priorities and emerging areas of skills needs; a modern and responsive national regulatory system that applies a risk-management approach and supports a competitive and well-functioning market; and ensuring that consumers are provided with the information they need to make choices about providers and training that meets their needs. These objectives, while focused specifically at TAFE, form the basis of amendments within this legislation.

The bill is addressing concerns that have been raised in relation to the ability of the VET sector to respond to emerging issues promptly and effectively. Such delays have the potential to impact upon the quality of training offered by registered training organisations. The bill establishes he capacity for the Minister for Education and Training to develop and enforce standards in relation to quality in the VET sector. Quality standards will focus the quality of training by establishing a new standard to address emerging issues which impact on the quality and integrity of training for individuals and students. Importantly, the quality standards will ensure that unanticipated changes in the VET sector can be quickly addressed in a timely manner.

These new powers will provide the Commonwealth the equivalent of 'emergency' powers to address known or emerging quality issues that compromise student interests and the quality of outcomes. They will also provide industry and individual states and territories a direct avenue of action to the Commonwealth to urgently address issues of concern. Prior to the issuing of a standard, the minister will consult with key stakeholders, including state and territory ministers, along with industry partners. Furthermore, standards will be issued within weeks, providing better protection for students. Currently it can take up to 12 months to change a standard. This is simply too long to make a change if there are critical issues impacting on the quality of the training being provided to students. The quality standard will become a condition of registration for registered training organisations.

This bill will also enhance he requirements of advertising and offering of VET courses. This is in response to concerns raised in regard to methods undertaken by some registered training organisations with respect to the marketing of their courses. Current arrangements mean that it can be at times unclear to students enrolling online who is responsible for delivering their course. This bill will provide greater transparency by requiring individuals marketing VET courses, including brokers, to be explicit in their communication and advertising to prospective students about which organisation will be responsible for issuing the qualification or statement of attainment. Under these reforms, when a student receives marketing material they will be able to clearly identify the registered training organisation responsible for the qualification they are signing up to complete. Under this amendment, the Australian Skills Quality Authority will be able to pursue anyone, not just training providers, who fail in their obligation to demonstrate who is responsible for the quality of the training. This government is committed to ensuring that students receive the highest quality education and training through our VET system. These reforms continue to build upon the work the government is undertaking to improve quality in the VET sector.

Already we have introduced tough new regulatory standards for training providers which came into effect on 1 January 2015 for new providers and will apply to existing providers from the 1 April 2015. In addition, the Australian Skills Quality Authority is moving towards a risk-management model of regulation to ensure focus is on those who are doing the wrong thing. On the 19 January, the government launched the National Training Complaints Hotline, which is a joint initiative with the states and territories to provide a single point to make it easier for complaints to be heard and actioned. Following this announcement I visited Peter Willcockson, managing director of local small business, Express Lube, in Dobell. Peter, who employs nine apprentices across his business, welcomed the news, saying:

As a small business operator it is important that apprentices are well educated and are able to adapt to working in a workshop. However this isn't always the case. From experience I see apprentices arrive at my business not knowing bask mechanical theories. In some cases we are talking about second year apprentices.

Peter's comments back up the actions of the government and the need to improve the quality and standard of training provided to students in the VET system. It is inexcusable to see people arriving at work with training under their belt, not knowing basic theories and unable to do their job. This is the sort of feedback that can be reported to the National Training Complaints Hotline and investigated.

The government's reforms require an effective national regulator. We want the Australian Skills Quality Authority to spend less time dealing with compliance and more time addressing unscrupulous practices and dodgy operators. The bill makes a suite of administrative amendments to strengthen the national regulator and to better place them to fulfil the above objectives. The regulator has, in the course of conducting its functions, identified a number of areas where administrative improvements may reduce regulatory burden and improve efficiency. These administrative amendments seek to streamline and improve processes in addition to reducing the regulatory burden on the sector. These include: enabling the regulator to request information from persons holding themselves out as a regulated entity; clarifying that all organisations that are constitutional corporations covered by the civil penalty and offence provisions and prescribed in part 6 of the NVETR Act; and improving the sharing of VET information between agencies.

In another step to reduce the regulatory burden on the sector, the bill seeks to increase the registration period for providers from five to seven years. This amendment allows the Australian Skills Quality Authority to better target its resources towards higher risk registered training organisations. We are continuing to fulfil our commitment to reduce red tape and compliance in order to strengthen our economy and reduce costs to business. Importantly, this is a cut in red tape for those registered training organisations that do the right thing. Rather than having to re-register every five years, organisations will only have to go through the process every seven years.

This amendment will allow the regulator to redirect its effort away from the renewal process and focus on better targeted and more random auditing, compliance and enforcement actions against poor-quality providers. This is in response to findings by the Australian Skills Quality Authority who stated that re-registration based auditing is a less effective approach to quality assurance when compared with targeted or random audit activities. Our reforms are forged in partnership with students, employers, training providers and the states and territories, with the common goal of improving the quality of Australia's VET sector. The days of training for training's sake are over, as are the days of unscrupulous operators taking advantage of students and the Australian taxpayer. This government is looking at further action beyond this legislation before the House. We will crack down on inducements, such as free iPads or cash rebates, tighten marketing practices and enhance duty-of-care provisions for training providers to abide by, when they sign up a student to a student loan. It is unconscionable for training providers to offer incentives in order to sign up students and receive government payments. If this is their approach to attracting students, you do have to wonder what level of training and education they are providing to vulnerable young people.

The lack of a regulator compliance framework has unfortunately seen vulnerable students taken advantage of by these dodgy training providers. We will be seeking to address the rapid expansion of the VET Fee-Help and its misuse by providers. The Australian government has committed $68 million over four years to the Australian Skills Quality Authority to enforce these new standards, and we will continue to reform the Australian VET sector to ensure that the needs of students are front and centre and that they receive the necessary education and training to address labour-force shortages. This is the only approach that, we believe, will deliver lasting benefits for students, such as those on the Central Coast—where VET accounts for a quarter of our post-school qualifications. It is the only approach that will best prepare residents on the Central Coast for employment in the local labour market. With over 50 per cent of local jobs found in industry, which is heavily dependent on vocational training, we must ensure that students are spending their time preparing for work in fields where there are available jobs.

I am proud to be a member of the government that is delivering real support to students undertaking vocational training and education, including Trade Support Loans and a new Australian Apprenticeship and Traineeship Support Network to commence on 1 July. I will continue to work along with local VET providers on the Central Coast and ensure that this government strengthens our VET providers—(Time expired)

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