Industry Training Federation
Janice Shiner
Chief Executive, TEC
Thursday 27 July 2006
Overview
• The Minister’s comments on the next steps in
the Tertiary Reform
• The role of ITOs
• The role of the TEC
• Next steps
Five strands of work
• Five strands of work that are contained in five
Cabinet papers plus Cabinet paper on the
transfer of TAMU
• Overview paper
• Distinctive contributions
• Investing in a Plan
• A New Tertiary Funding System
• Quality Assurance and Monitoring
• Relocating the ownership monitoring and
related functions for TEIs
Your feedback
• Industry Training Organisations agree that a
focus upon performance and outcomes should
form the centre of the new system, and that a
focus upon relevance, quality and return on
investment should drive funding. They are
keen that there is more effective support and
use of the strategic leadership role of ITOs
within the new system.
The ITF told us
• ‘The government (should) take a whole of
system approach to this stage of the reforms
rather than focussing on just one part.’
Investing in a plan: Cabinet decisions
Stakeholders advise on priorities:
Government (STEP), learners,
employers, iwi, ITOs, etc
Quality
assurance of
provision and
TEOs
TEC establishes investment strategy
TEC monitors the
outcomes
TEOs offer plans for investment
TEC assesses plan according to
outcomes to date, viability/governance,
distinctive contribution, and quality
TEC and TEO agree
outcomes for the
approved plan, areas
for capability building
Distinctive Contributions: Cabinet decisions
Industry Training Organisations
• The role of Industry Training Organisations will
continue to be qualifications design and setting
standards, arranging for the delivery of training,
and providing leadership within the industry on
matters relating to skill and training needs
ITPs: Cabinet decisions
• The Institutes of Technology and Polytechnics
will have three roles:
• To act as a regional facilitator, building a shared
expertise about the tertiary education needs of
the region
• To provide skills for employment and
productivity that contribute to a regional and
national network of provision
• To provide foundation education, offering entrylevel education that builds literacy, language
and numeracy and/or staircasing to higher
learning
Distinctive contributions: further work
• By December 2006, we (TEC lead) need to
report back on:
• The distinctive characteristics of wānanga
• The role of PTEs
• Designing the regional facilitator role
• Further work on the research-based nature of
degree level provision
New funding system: Cabinet decisions
• All tertiary expenditure for teaching and learning
is to be constrained
• Ministers to set a three year aggregate track of
spending on an annual basis
• Within the overall amount, Ministers will decide
how much to invest in the different parts of the
tertiary sector on the basis of sub-sector
• To enable the TEC to manage this environment,
Ministers will set funding targets on the basis of
sub-sector with tolerance bands within which we
can operate
New funding system: Cabinet decisions
• In approving a provider’s plan, the TEC will
provide a funding commitment of up to three
years
• This funding commitment will be subject to a
provider’s performance and delivery against
their plan
New funding system: Cabinet decisions
• The student component funding system is to be
replaced by a new funding mechanism that has
two components:
• Student Achievement Component, which provides the
government’s contribution to the costs of teaching and
learning and other costs driven by student numbers
• TEO component which provides the government’s
contribution to costs that support each provider to focus
on its specific and distinctive role in the network of
provision
• The new funding system will be implemented from
1 January 2008 with the intention that all components of it
will be in place by 2009
Further work in 2007
• By March 2007 we need to have investigated
the impact that the different subsidy rate for
industry training is having and report back with
any options for reform
QA and monitoring: Cabinet decisions
• The new system needs to have:
• A focus on outcomes
• Consistent and appropriate quality standards for accountability
purposes
• Common performance indicators and benchmarks, and indicators
that relate to the distinctive contribution of sub-sectors
• Risk identification, assessment and intervention
• Reliable and valid information
• Information available to government and the public
• Responsibility on tertiary education organisations to assess and
report on, quality and performance
• On-going external review and validation
QA and monitoring: Cabinet decisions
• Agreed in principle that a coherent quality
assurance and monitoring system be
developed that includes:
• All tertiary education organisations funded
through the TEC be required to undertake
self assessment
• A system of external validation be developed
that includes a regular review cycle as well as
scope for reviews when risk or performance
issues are identified
QA and monitoring: Cabinet decisions
• The quality assurance function should be
independent from the purchase and monitoring
• Monitoring of the performance of tertiary
education organisations accessing public
funding function remain with the TEC
• Existing legislative arrangement that gives
New Zealand Vice-Chancellors Committee
(NZVCC) independent responsibility for quality
assurance in the university sector be
maintained
QA and monitoring: Cabinet decisions
• The TEC is accountable for ensuring that public
money is well spent and note that it will discharge this
responsibility through a range of mechanisms
• Agreed in principle that one such mechanism is that it
will ‘commission’ the Qualifications Authority to
undertake the quality assurance function for tertiary
education organisations apart from universities
• A separate relationship would be established with the
NZVCC to ensure that the TEC has the information
and processes it needs for quality assurance in
universities
Challenges for the sector and central agencies
• Cabinet noted that a fundamental culture shift
is required to introduce this system, and that
whilst the incentives within this system are
aligned to achieve this shift, it will require
ongoing intensive engagement from
government agencies, as well as other
capability development work
Challenges for ITO
• Sector Leadership role
• Workplace learning – pedagogy
• Quality Assurance in workplace learning
• Working with a network of providers/provision
Challenges for the TEC
• Pervasive and far reaching changes that need
a cohesive and coordinated development and
implementation approach
• Requires significant changes in capability
• A review of the organisational structure
• A tough look at some of our business
processes
A new way of working
• High trust/high accountability/low compliance
costs
• New roles and responsibilities – investment and
stakeholder management
• Appointment of some key people with
experience of the sector
• Requires effective working across education
agencies and with the sector
Programme objectives
• To develop and implement a new investment system for
tertiary education that:
• Aligns planning, funding, and quality assurance and
monitoring systems and processes to achieve more
strategic investment decisions that support achievement
of New Zealand’s development goals
• Strengthens the capability of the system and the players
within it to operate effective in the new environment
• Supports a high-trust, high accountability, low compliance
environment
• Supports a differentiated approach
• Supports continuous improvement and innovation
Programme objectives (continued)
• To effect change in the sector so that the
outcomes sought by government are achieved
• To ensure that key stakeholders and providers
are informed of the proposed changes and are
able to contribute meaningfully to their
development and implementation
Programme objectives (continued)
• To ensure that:
• The policy developed through the programme is
able to be implemented and achieves the
outcomes sought
• The implementation of the policy reflects the
policy intent
• The scale of implementation is appropriate to the
outcomes sought
• A feasible and phased implementation path is
adopted to ensure quality deliverables and
outcomes
Reminders
• Exciting and necessary reform – but not to
underestimate challenge
• Transition period will need to be managed carefully
• Ensure that change moves forward across the
whole sector in concert
• That consultation continues to inform process
• That change of this nature takes time, commitment,
resilience and trust
• Its as much about culture change as it is about
implementation
Next steps
• Range of report backs – end of this year and
early next year
• Consultation process to reflect timetable – so
some funding issues first
• Today is the start of that consultation process
• Working towards 2008 start
• TES and STEP later this year to inform
priorities