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Changing Government policy and participation in contestable markets

Changing Government policy and participation in contestable markets. RMIT VET Link- Informed and Ready – 25 th of September 2009. Change of Preference TAFE First Preferences for Government Funded Places: Market Share.

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Changing Government policy and participation in contestable markets

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  1. Changing Government policy and participation in contestable markets RMIT VET Link- Informed and Ready – 25th of September 2009

  2. Change of Preference TAFE First Preferences for Government Funded Places: Market Share Chancellery / Planning Group

  3. Change of Preference TAFE First to Third Preferences for Government Funded Places Chancellery / Planning Group

  4. CONTESTABLE MARKETS FOR GOVERNMENT SUPPORTED PLACES (GSP) Much remains the same. We are used to competition – for government grants, international students, AFP students, research grants… …but now the market allows for greater mobility of demand and supply of GSP. FROM Government ‘bulk’, passionless purchasing Institutions deliver to an agreed GSP ceiling with relative certainty in discipline and location Students apply for available places TO Students (enabled by government) make purchase decisions (program, institution, location) Institutions vary supply based on demand and strategy Governments set broad performance targets (quality, socio-economic) Chancellery / Planning Group

  5. Market Design / Managed market reforms for a National Tertiary System Education institutions Students Intermediaries Governments Industry Chancellery / Planning Group

  6. STATE OF THE NATION (and State) Victorian VET market National HE market (EFTSL) (m SCH) RMIT load (2009) Chancellery / Planning Group

  7. GOVERNMENTS • Federal / Higher education • Focus on quality, student choice and increased engagement • 40% of 25 to 34 y.o with a UG qualification by 2025 • 24,000 new graduates per annum / 360,000 over 15 years • Increased focus on equity with 20% of students low SES • State / VET • Industry led with student choice • Performance driven funding • Eligibility rules for a GSP: • Under 20 – open • Over 20 – only for a higher qualification • Very limited exemptions • VET FEE-HELP (the student pays – albeit in the longer term) Commonalities Student choice, industry engagement, labour market / socioeconomic objectives, governance, funding mechanisms, quality / performance • CoAG targets / entitlements: • Halve those of working age without a Cert III or higher • Double those with a diploma or advanced diploma • 90% of young people 20-24 will have a year 12 or equivalent • 15-19 yo will be entitled to an education or training place for any government subsidised qualification; • 20-24 yo will be entitled to an education or training place for any government subsidised qualification resulting in a higher level qualification Chancellery / Planning Group

  8. EDUCATION INSTITUTIONS – VU Case study Socio-economic status Migrant status / language Aspirations Work circumstances Undergraduate Australian FT Workers 2nd Generation Australians International students • Understand need • Target services • Develop pathways Professor Elizabeth Harmon, Vice-Chancellor, Victoria Univedrsity. Higher Education Summit. Malbourne, April 2009 Chancellery / Planning Group

  9. STUDENTS Factors of importance for deciding where to apply Student groupCluster of most important factors (in descending order) Young (under 21 years) Offered the right subject, overall image, social life, teaching reputation, employment prospects, entry qualifications Older mature (25 yrs+) Offered the right subject, attitude to mature students, teaching reputation, academic support facilities, distance from home Vocationally qualified/access Offered the right subject, teaching reputation, academic support facilities, employment prospects Connor et al (1999), Making the right choice: How students choose universities and colleges. Institute for Employment Studies / Universities UK. Chancellery / Planning Group

  10. STUDENTS • 14 factors influencing choice • Curriculum and course availability • Location / distance from home • Relevance of course to chosen career path • Reputation of the institution • Job placement and careers counselling • Costs associated with attendance • Admissions criteria • Prestige and status of the institution • Educational facilities • Campus size and type • Extra curricular opportunities (clubs, sports, etc) • Campus facilities • Student welfare programs • Teaching and research staff, qualifications and experience • Brennan, L. (2001). How prospective students choose universities: a buyer behaviour perspective, PhD thesis, Centre for the Study of Higher Education, The University of Melbourne. Chancellery / Planning Group

  11. THE OTHER MARKET PARTICIPANTS Industry Key agent in purchase decisions Suasion with governments and regulators Collaboration with providers Support for education industry reform (qualified) Intermediaries GUG VTAC Rankings Unions / professional associations Peak bodies (eg ATN, TDA, UA) Chancellery / Planning Group

  12. CHALLENGES • In the shift to the demand side we will need a very good understanding of the market, motivations of the individual and activity of competitors. • Understanding our position/s in the market and responding: • Nimble cherry picker • ‘Base load’ provider • Discipline specialisations • A combination • How will we manage the tension between contestable markets, institutional objectives and government expectations (equity, engagement, age based targets)? • In the convergence of government policy (State / Federal, VET / HE) how do we optimise our dual sector status? • Systems and processes that can manage greater load and capacity changes than has been the case historically. Chancellery / Planning Group

  13. EDUCATION INSTITUTIONS “…you can’t afford to do this in the typical research intensive universities or universities that have a significant research function” Professor Alan Robson, Go8 Chair and Vice-Chancellor of the University of Western Australia “…if you give these sorts of entitlements to students and let them go where they want to go, that will determine the structure of the sector” Professor Ross Milbourne, ATN Chair and Vice-Chancellor of UTS Higher Education supplement – AFR, Monday 4th of May, 2009 Chancellery / Planning Group

  14. Questions to think about and action! • How do we contribute to the Governments targets? • Possibly in improving on our 20% Tafe articulation to Higher Ed would help in the 40% degree, 20% Equity and increasing the number of completions. Chancellery / Planning Group

  15. Questions to think about and action! • How do we contribute to the Governments targets? • Possibly in improving on our 20% Tafe articulation to Higher Ed would help in the 40% degree, 20% Equity and increasing the number of completions. • How can we engage better with industry in increasing our brand and accordingly our commitment to WIL? Chancellery / Planning Group

  16. Questions to think about and action! • How do we contribute to the Governments targets? • Possibly in improving on our 20% Tafe articulation to Higher Ed would help in the 40% degree, 20% Equity and increasing the number of completions. • How can we engage better with industry in increasing our brand and accordingly our commitment to WIL? • How do we continue the work on ensuring we improve Quality, Viability and Relevance? Hence maintaining our market position and demand and revenue. Chancellery / Planning Group

  17. Questions to think about and action! • How do we contribute to the Governments targets? • Possibly in improving on our 20% Tafe articulation to Higher Ed would help in the 40% degree, 20% Equity and increasing the number of completions. • How can we engage better with industry in increasing our brand and accordingly our commitment to WIL? • How do we continue the work on ensuring we improve Quality, Viability and Relevance? Hence maintaining our market position and demand and revenue. • How do we position ourselves when a large number of students (in particular programs) have become ineligible (Higher Level Qual)? Chancellery / Planning Group

  18. Questions to think about and action! • How do we contribute to the Governments targets? • Possibly in improving on our 20% Tafe articulation to Higher Ed would help in the 40% degree, 20% Equity and increasing the number of completions. • How can we engage better with industry in increasing our brand and accordingly our commitment to WIL? • How do we continue the work on ensuring we improve Quality, Viability and Relevance? Hence maintaining our market position and demand and revenue. • How do we position ourselves when a large number of students (in particular programs) have become ineligible (Higher Level Qual)? • In preparation for the increase in contestable load (approx. 25%), what is it that you can do to “contestable-proof” your program? Chancellery / Planning Group

  19. Questions to think about and action! • How do we contribute to the Governments targets? • Possibly in improving on our 20% Tafe articulation to Higher Ed would help in the 40% degree, 20% Equity and increasing the number of completions. • How can we engage better with industry in increasing our brand and accordingly our commitment to WIL? • How do we continue the work on ensuring we improve Quality, Viability and Relevance? Hence maintaining our market position and demand and revenue. • How do we position ourselves when a large number of students (in particular programs) have become ineligible (Higher Level Qual)? • In preparation for the increase in contestable load (approx. 25%), what is it that you can do to “contestable-proof” your program? • How quickly/effectively do we respond to government initiatives (Extra hours on offer)? Chancellery / Planning Group

  20. Questions to think about and action! • How do we contribute to the Governments targets? • Possibly in improving on our 20% Tafe articulation to Higher Ed would help in the 40% degree, 20% Equity and increasing the number of completions. • How can we engage better with industry in increasing our brand and accordingly our commitment to WIL? • How do we continue the work on ensuring we improve Quality, Viability and Relevance? Hence maintaining our market position and demand and revenue. • How do we position ourselves when a large number of students (in particular programs) have become ineligible (Higher Level Qual)? • In preparation for the increase in contestable load (approx. 25%), what is it that you can do to “contestable-proof” your program? • How quickly/effectively do we respond to government initiatives (Extra hours on offer)? • Where do you see your program/school in 5 years time? Chancellery / Planning Group

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