TAFE SA

The Hon. T.A. FRANKS (14:39): Supplementary: in the minister's understanding of the welcoming of the TAFE sector and congratulating them on National TAFE Day today, is she aware of the words of the AEU in their submission to the House of Representatives inquiry that in their conclusion:

The South Australian government has failed in its responsibility to the Parliament of South Australia by undermining TAFE through the introduction of full contestability for VET funding, and by the government’s Skills for All agenda.

The Hon. G.E. GAGO (Minister for Employment, Higher Education and Skills, Minister for Science and Information Economy, Minister for the Status of Women, Minister for Business Services and Consumers) (14:40): I am aware, and I have enormous respect for the AEU. As all unions do, they play a very important role in our community. The union is entitled to their opinion and I am aware of their views on this matter; however, the government has a different view on this. We have undertaken significant reform in this sector; we have shifted from a system that had numerous single administrative units and TAFE organisations scattered all around South Australia, each running itself. We moved (I cannot remember the exact number now) from a large number to about three and then in recent years we have moved from three to one: our new statutory authority, TAFE SA.

We have said that we would move to a model of contestability to open up the marketplace to more training operators, and we did this as a means of improving productivity, of being able to provide more courses at cheaper costs and to be able to reach more people, having more people trained by opening up that marketplace. That has been an extremely successful productivity driver. It has worked very effectively. We have seen our VET sector here in South Australia go from what was nationally the most cost-inefficient sector in the nation—that is what we had to wear—to now the most cost-efficient sector in the nation. It is those reforms, including that change in model, that have assisted us in that way.

The Hon. I.K. Hunter: And your great leadership.

The Hon. G.E. GAGO: And my great leadership, and those before me. I have outlined (so I will not go through it again) our commitment to TAFE SA and the valuable role that they continue to play in the provision of VET services to South Australia. Their role is still pivotal in a whole range of ways. They are an excellent, very high-quality service provider and they are also responsible for delivering our community service obligation, those elements that have particular emphasis on access and equity to those who are the most disadvantaged and are unlikely to be picked up easily through some of those other training providers.

It is a great partnership. I admire and respect the work that TAFE does and congratulate them on the enormous and very valuable contribution they make to this state, but make no apology on the reforms that we have made and will continue to develop.

The PRESIDENT: The chamber has all of a sudden become very orderly. What's happened? The Hon. Mr Hood.