Some support for apprenticeships but no extra funding for TAFE in the Budget

by Linda Simon

The Federal Budget announced a $668 million package of vocational education and training (VET) measures.

This funding is over four years, except for the $83.6 million for Australian Technical Colleges (ATCs) which is over five years.

Overall funding for VET has increased from $1.6 billion to $1.75 billion, but this increase is generally due to indexation.

The Federal Government's package is comprised of five initiatives:

1. Apprenticeship Wage Top-Up -- a tax free payment of $1000 per year for first and second year apprentices under 30 years old in trades facing skills shortages -- $342.5 million
2. Apprenticeship Training Vouchers of up to $500 per year for all first and second year apprentices in trades facing skills shortages to help meet course fees -- $206.4 million
3. $83.6 million for three more ATCs
4. Support for Fast Track Apprenticeships
5. Fee-Help for full-fee paying students in diploma and advanced diploma courses, where there is agreed credit for a university degree.

In the Budget announcement about universities, there was also a $209 million Structural Adjustment Fund to motivate Victoria-style dual sector university-TAFE structures.

While the additional payment to apprentices might be useful in making their wages more competitive with those of wages in low-skill jobs, it could also be seen as just another employer incentive for those employers already paying above-award wages in a competitive market.

The other initiatives continue the Howard Government's determination to shift the cost of education to individuals and to fund individuals through vouchers rather than systems.

In a meeting with the Vocational and Technical Education Minister Andrew Robb following the Budget, TAFE TA representatives drew his attention to the need to fund TAFE to be able to take on increased numbers of apprentices due to reduced attrition rates (as a result of these Budget initiatives), and concerns around Fee-Help. The Minister indicated that it was not his intention to introduce income-contingent loans below diploma level, but he was unable to address the impact of certificate level courses being embedded in diploma courses. He continues to reinforce his views that TAFE institutes should have greater autonomy, and he intends to raise this at the next Ministerial Council meeting on vocational and technical education in June.

Whilst it was disappointing that the Budget contained no direct increase in funding for TAFE, it was not unexpected.

What was unexpected was that the Opposition Leader Kevin Rudd, in his speech in reply, also continued to ignore TAFE. TAFE has not yet been included as part of the so-called "Education Revolution". Instead he announced a $2.5 billion Trades Training Centres in Schools plan. The funding announced could not possibly see new trades centres built in Australia's 2650 secondary schools, and the ALP has failed to pick up on the strength of partnerships between schools and TAFE in this area.

This failure of the ALP to show its support for public education through TAFE was particularly problematic as this was the same week that some 40 TAFE members from across Australia were involved in lobbying Federal politicians on May 9 and 10.

A NSW contingent of 20 teachers and Officers had appointments with some 40 MPs and will visit others in their electorates. The message coming through from Liberal MPs in general was that TAFE was a state issue and should take up issues with the State Government. The general attack on the NSW Government continues past the NSW election.

When questions were raised around the difference between the National Centre for Vocational Education Research's figure that shows a 26 per cent decrease in vocational education and training funding over the last decade, and the claims by the Federal Government of record expenditure, it is obvious their expenditure includes a range of items including employer incentives and welfare to work initiatives, that have little direct impact on educational delivery. However, Federal Government MPs appear very reluctant to take responsibility for the policies that drive funding decisions, including those included within the Skilling Australia's Workforce act.

Some National Party MPs were more sympathetic and concerned about the plight of their local TAFE colleges.

Overall, Government support for ATCs remains strong, despite their lack of enrolments and outcomes. Three new ATCs were announced in the Budget for western Sydney, Perth and Brisbane. Minister Andrew Robb claims there are 2000 students currently enrolled in the 11 ATCs that are now operating. These figures need to be followed up, including the number of students who actually have gained apprenticeships.

Whilst most Labor MPs indicated their support for additional funding for TAFE, both in terms of recurrent and capital funding, this has not been translated into policy announcements. TAFE teachers will continue to lobby around TAFE.

Linda Simon is TAFE TA Secretary.

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Last Modified: 24 May 2007