Victoria kills funding for ITABs

KILLING funding for industry advisory bodies will improve information about industry skill needs, according to the Victorian Government.

Peter Hall

THE Victorian Government has withdrawn funding from its 16 industry training advisory bodies, amidst rumours that the state's open training market has blown the education department's budget by hundreds of millions of dollars.

Skills Minister Peter Hall, who is informing ITAB bosses of the new arrangements this afternoon, says the changes will make it easier for companies and industry to “articulate their training needs” to the government.

But insiders say the changes will undermine information about industry skill needs in what’s supposed to be an industry-driven training system.

They say the move is about helping to fill a funding gap of as much as $300 million caused by the soaring cost of the new training market, after skyrocketing private college enrolments increased total hours of government-funded training by over two-thirds in just three years.

The 16 ITABS give the government independent advice on training needs and skill shortages, and encourage training by workers.

Insiders say they perform a unique role by giving a “consolidated” view of industry needs, which takes into account union as well as employer views.

Mr Hall said ITABs had “previously played a constructive role in Victoria’s training system”, but it was time for a change to this “old model”.

“The new model will use the bodies and associations employers already value to directly influence the training market, ensuring training is more responsive to the needs of a skilled workforce and economy,” he said.

The new arrangements include an “industry skills consultative committee” drawn from peak industry associations and employers.

Mr Hall said they would be rolled out over the next nine months, and that industry sectors wishing to retain their existing ITABs could do so through their own funding.

The Victorian Employers’ Chamber of Commerce and Industry supported the changes.

“The [new] model … reflects the important role business and industry needs to play in providing government with first-hand, practical advice on industry training needs,” said Chief Executive Mark Stone.

Sources estimate the move could save the government $3m.

South Australia, which has committed to a Victorian-style open training market, has also slashed funding for its ITABs from $1.8m to $900,000.

All states and territories apart from Tasmania have industry skills advisory bodies of one sort on another, although they vary in structure and levels of government support.

Until now Victoria has been regarded as particularly supportive of its ITABs.

In 2008 Victoria’s former Labor government promised them an extra $4 million and a “strengthened role”, as part of the reforms to open government training funds to private competition.

This would allow the ITABs to develop “a consolidated industry information service available to students, careers advisors, employers and others seeking to facilitate the take-up of training in areas of shortage”, its white paper said.

However a 2010 review of the reforms found that the ITABs were representing the interests of industry rather than the government, and questioned whether they should continue in their present form.

It’s not clear how handing the advisory baton to industry bodies will resolve this conflict of interest.

Mr Hall said the new arrangements would entail a “far greater network than previously available” involving more than 12,000 “direct industry consultations”.

The government will also convene an annual conference, establish a “skills website and e-marketplace” and develop a “charter of consultation” outlining the Education Department’s commitment to talk to industry.