Legislative Council Fifty-Fifth Parliament, First Session (55-1) 55 1 Parliament of South Australia Legislative Council published Bills TAFE SA Bill TAFE SA Bill TAFE SA Bill Second Reading Second Reading The Hon. E.S. BOURKE Legislative Council Minister for Infrastructure and Transport Minister for Autism Minister for Emergency Services and Correctional Services The Hon. E.S. BOURKE (Minister for Infrastructure and Transport, Minister for Autism) (15:58): I move: That this bill be now read a second time. I seek leave to have the second reading explanation and explanation of clauses inserted in Hansard without my reading them. Leave granted. The TAFE SA Bill 2025 responds to the recommendation of Associate Professor Jeannie Rea in the report for the 2023 Roadmap for the Future of TAFE SA, that the TAFE SA Act 2012 be reformed to articulate repositioning of TAFE SA, with reforms reflected in functions, governance and the management structure. The Government commissioned the Roadmap Report to engage with industry, unions, government, TAFE SA staff and students on long term changes required to support TAFE SA to deliver skills needs for the State. Out of this work, I announced a first action, to review the TAFE SA Act 2012. This was to ensure TAFE SA's legislation is more focussed on delivering in the public interest and on government priorities; and places TAFE SA at the centre of the Government's goals for skills development for the State. Since its incorporation in 2012, TAFE SA has operated as a statutory corporation under the direction of an independent Board of directors. I have publicly stated that the 2012 Bill doesn't support TAFE SA to be the public training provider the public expects. I don't reflect on those members in this House who passed the Bill then, as here in SA and Nationally VET and TAFE was operating in a very different market to where we are today. TAFE SA is the public provider. It should be focused on delivering quality vocational educational outcomes for all South Australians – with acting in the public interest as its core requirement. Our government has high expectations of TAFE SA, to play its role in regional and remote delivery, teaching in thin markets and being at the forefront of new and growing areas of curriculum development. I'm proud that this Bill sets out clear objectives that realign TAFE SA's purpose. Development of the Bill was facilitated by a Project Reference Group, tasked with leading a review to establish a fit-for-purpose governance framework for TAFE SA, and consequential changes to the Act. Guiding principles for this work were that TAFE SA: develops and delivers industry-relevant training aligned to government priorities, supporting a strong economy through a skilled and agile workforce ensures eligible South Australians have the training they need to participate fully in their local communities and economy, including through removing barriers to access is an effective and efficient organisation with clear governance arrangements. Out of this work a draft Bill was developed, which transitions TAFE SA from a public corporation to a statutory authority. The Government consulted with key stakeholders on a draft version of this Bill, and respondents to the review provided valuable feedback, which has resulted in a number of improvements and refinements, included in the Bill. The Bill enshrines the legislative means to transition TAFE SA from a public corporation to a statutory authority, without eroding corporate governance performance and accountability standards currently applied to TAFE SA through the general provisions of the Public Corporations Act 1993. Similar to legislation for other statutory authorities, the Bill ensures TAFE SA obtains its authority and operating context from its enabling Act, and its functions, level of independence, and the respective roles of the Board, Chief Executive and the Minister are derived from its enabling legislation. To highlight TAFE SA's role and importance at the centre of the vocational education and training sector, the Bill introduces Objects which are informed by the aspirational and contemporary values for the State's vocational education and training system, similarly expressed in the Adelaide University Act 2023 and South Australian Skills Act 2008. Under the Bill, TAFE SA is responsible for: delivery of high-quality, responsive and industry-relevant education and training that responds to the needs of employers, and aligns with the strategic priorities of the South Australian Government; equitable access to education and training for all eligible South Australians that assists them to build the skills needed to contribute to the economic, social and cultural life of their communities; and performing as an efficient, transparent, innovative and accountable public institution underpinned by strong governance, effective leadership, and a commitment to public interest and educational excellence. Functions under the Bill are also updated to reflect contemporary values for TAFE SA and VET, so that TAFE SA is to: Focus on excellence and demonstrate integrity Demonstrate quality and innovation in teaching including through the application of leading and contemporary industry practices Enable pathways to further learning or training in VET or at university; and promote lifelong learning Engage with the broader VET sector Provide appropriate student support services and be responsive to the diverse needs of students Focus on the impact and success of its services on students, staff and the communities that TAFE SA serves; and Engage with Aboriginal and Torres Strait Islander peoples to provide education and training appropriate to meet their needs and those of their communities Provide inclusive and culturally safe services on all TAFE SA campuses. Importantly, the Bill also ensures our continued focus on delivering training in regional and remote areas. Ensuring equitable access to education and training for eligible South Australians is a core object of the Bill. TAFE SA is often the only provider in regional and remote regions as it is not viable for non-government providers. It's one of the unique reasons why the public provider is so important, and this Bill reflects that. TAFE SA will, of course, continue to perform its commercial functions, and in so doing, the Bill ensures it must apply prudent commercial practices. But unlike the current Act's broad application of the Public Corporation Act's commercial principles to TAFE SA, the Bill ensures that TAFE SA perform its functions in the public interest first and foremost, having regard to its objects and its business plan. It is critical that the board of TAFE SA can tap into the expertise of member directors with direct industry experience and experience in the education, training and employment sectors. The Bill does this by changing the attributes for TAFE SA Board membership to include members who collectively have expertise, abilities and experience required for the effective performance of TAFE SA's functions including: direct industry experience or direct experience in the education, training or employment sectors; and knowledge or expertise in the education and training of persons who have experienced disadvantage in accessing education, training and work or from non-metropolitan, regional and remote areas. These attributes are in addition to directors possessing skills, experience or expertise in commerce, corporate governance, economics, finance, law and management. The Bill formalises the authority of the TAFE SA Board to appoint an acting Chief Executive, for any period for which the Chief executive is absent or unavailable to carry out official duties; and requires the Board to meet a minimum four times a year. The Bill also formalises the authority of the TAFE SA Board to establish committees, or subcommittees to advise or assist TAFE SA in relation to its functions. The Bill requires TAFE SA to prepare a Business plan and authorises the Minister to provide a Statement of priority to TAFE SA. This replaces the current Ministerial Charter and Performance statement requirements under the Public Corporations Act 1993. The Minister must consult with the Treasurer and TAFE SA in the development of a Statement of Priority and TAFE SA must have regard to and address the requirements of the Statement of priority in preparing its Business plan. In other words, the Ministerial Statement of priority is key to indicating to TAFE SA the Government's expectations and aspirations for TAFE SA's forward outlook, and how planning and delivery of its activities and operations for the pending financial year support those deliverables; and TAFE SA must address this in its Business plan. A new power is added to authorise TAFE SA to issues a barring notice in a manner specified in regulation in relation to specified conduct. Breach of a barring notice will result in a penalty and is enforceable. This will extend protection to staff and students of TAFE SA on all its campuses from unwanted conduct by others. The Bill increases the maximum fine for a breach of a by-law to $2,500, up from $1,250. TAFE SA's rule making powers are expanded to include setting standards in relation to student admission and selection; staff behaviour or conduct; and staff or student academic standards. This adds clarity to the scope of matters that a TAFE SA rule may cover. In the interests of administrative efficiency, the requirement for Governor confirmation of a proposed TAFE SA rule or by-law is removed from the current Act by the Bill. However, proposed rules and by-laws will continue to require agreement of the TAFE SA Board and, in addition to Ministerial approval, by-laws will continue to be tabled in Parliament and be subject to disallowance. In the development of the Bill, detailed consideration has been given to ensuring TAFE SA will continue to be subject to robust accountability and transparency standards across the breadth of its operations. This is partly achieved through the operation of other legislation in relation to statutory bodies and their governing boards; and partly through the selective inclusion in the Bill of provisions derived from the Public Corporations Act 1993. For example, there are provisions requiring TAFE SA to advise the Minister as soon as reasonably practicable of any matter that affects its financial or operating capacity; and to authorise requirements or recommendations by the Treasurer to pay income tax equivalents or dividends, to ensure compliance with competitive neutrality principles. I commend the Bill to members. I seek leave to insert the explanation of clauses without my reading it. Explanation of Clauses Explanation of Clauses Part 1—Preliminary 1—Short title 2—Commencement These clauses are formal. 3—Object This clause sets out the objects of the measure. 4—Interpretation This clause defines terms used in the measure. Part 2—Administration Division 1—TAFE SA 5—TAFE SA This clause continues TAFE SA as established under the TAFE SA Act 2012 and sets out its corporate characteristics. 6—Functions This clause sets out the functions of TAFE SA. 7—Protection of proprietary interests This clause provides that TAFE SA has a proprietary interest in all official insignia and sets out the manner in which the official insignia may be used by persons other than TAFE SA. An offence with a maximum penalty of $20 000 applies for a person who uses the official insignia of TAFE SA without the relevant consents set out in the clause. 8—Ministerial direction This clause sets out the manner in which the Minister may give directions to TAFE SA. Division 2—TAFE SA Board 9—Board appointment and responsibilities This clause establishes the Board of directors of TAFE SA, sets out their primary responsibilities and makes provisions regarding the appointment, number and required qualifications of directors. 10—Conditions of office of director This clause provides for the appointment and conditions of office of a director of the Board. 11—Committees and subcommittees This clause provides for the manner in which that the Board may establish committees or subcommittees and the procedures applying to the operation of such committees or subcommittees. 12—Board proceedings This clause sets out the manner and form of meetings of the Board. 13—Conflict of interest under Public Sector (Honesty and Accountability) Act 1995 This clause sets out that a conflict of interest of a director will not arise under the Public Sector (Honesty and Accountability) Act 1995 by reason only of the fact that the director has an interest in a matter that is shared in common with those engaged in or associated with the technical and further education sector generally. 14—Common seal This clause provides for the manner and operation of the common seal of TAFE SA. 15—Minister's or Treasurer's representative may attend meetings This clause provides for the manner and circumstances in which a representative of the Minister or the Treasurer may attend meetings of the Board. Division 3—Chief Executive and other staff 16—Chief Executive appointment and responsibilities This clause provides for the appointment terms and conditions of the Chief Executive of TAFE SA. 17—Other staff This clause provides for the manner in which other staff of TAFE SA may be employed. 18—Use of staff etc of administrative unit of Public Service This clause provides that the Chief Executive may, by agreement with a Minister responsible for an administrative unit of the Public Service, make use of the services of the staff, equipment or facilities of that unit. Division 4—Rules and by-laws 19—Power to make rules This clause sets out the manner in which TAFE SA may make rules for various purposes. 20—Power to make by-laws This clause sets out the manner in which TAFE SA may make by-laws for various purposes. 21—Evidentiary provision This clause sets out various evidentiary provisions applicable in relation to the by-laws. 22—Fines and expiation fees This clause provides that fines and expiations in relation to the by-laws must be paid to TAFE SA. Division 5—Barring notice 23—Barring notice This clause provides for the manner and circumstances in which TAFE SA may bar a person from TAFE grounds. Division 6—Reporting and information requirements 24—Business plan This clause requires TAFE SA to prepare a business plan that complies with the requirements set out in the clause. 25—Minister to be advised of change in financial or operating capacity This clause requires TAFE SA to advise the Minister as soon as reasonably practicable after becoming aware of any matter that materially affects the financial or operating capacity of TAFE SA or gives rise to an expectation that TAFE SA may not be able to operate within approved budgets or savings targets or meet its debts as and when the fall due. 26—Annual report This clause requires TAFE SA to provide an annual report to the Minister on the performance of its functions in the previous financial year. 27—Provision of information to Minister This clause requires TAFE SA to provide information or documents to the Minister in accordance with the provisions set out in the clause. Division 7—Statement of priority 28—Minister to provide statement of priority This clause requires the Minister to provide TAFE SA with a statement of priority outlining the government's priorities for TAFE SA in respect of a financial year or such other period as specified by the Minister. The clause sets out the obligations of the Minister and TAFE SA in relation to the statement of priority. Division 8—Financial and other provisions 29—Guarantee of liability by Treasurer This clause provides for the liabilities of TAFE SA to be guaranteed by the Treasurer. 30—Tax and other liabilities of TAFE SA This clause provides for the manner in which the Treasurer may require TAFE SA to pay tax or council rates. 31—Dividends This clause provides for the manner in which certain dividends may be paid to TAFE SA. Division 9—Delegation 32—Delegation This clause sets out the manner in which the Minister, the Board or the Chief Executive may delegate functions under the Act. Part 3—Miscellaneous 33—Regulations This clause provides for the manner in which regulations may be made under the Act. Schedule 1—Repeal, amendments, saving and transitional provisions Part 1—Repeal of Act 1—Repeal of TAFE SA Act 2012 This clause repeals the existing TAFE SA Act 2012. Part 2—Amendment of Education and Children's Services Act 2019 2—Amendment of section 110—Interruption of service where officer leaves teaching service These amendments make consequential amendments to substitute legislative references to the repealed Act with references to the current measure. 3—Amendment of section 113—Entitlement of persons transferred to the teaching service These amendments make consequential amendments to substitute legislative references to the repealed Act with references to the current measure. Part 3—Amendment of South Australian Skills Act 2008 4—Amendment of section 23—Staff This amendment make consequential amendments to substitute legislative references to the repealed Act with references to the current measure. Part 4—Saving and transitional provisions This Part contains saving and transitional provisions consequent on the repeal of the TAFE SA Act 2012 and the enactment of this measure. Debate adjourned on motion of Hon. D.G.E. Hood.