Size matters in VET

Which providers will dominate VET in future, asks John Mitchell. What is the ideal size for a VET provider? This question springs to mind after one vice-chancellor recently called for the creation of large polytechnics to offer vocational certificates and diplomas and associate degrees. The polytechnics would be additional to 59 TAFE institutes that currently exist. However, of the 4000 or so training providers currently in VET, most are small businesses with fewer than 20 full-time staff. Will VET’s future consist of an odd tussle between big and little: between polytechnics and TAFE institutes in the red corner and small providers in the blue? Polytechnics proliferating? The proposal that some form of polytechnic be created as “sub-entities of universities” was laid out in The Australian (12.08.09) by Professor Stephen Parker, vice-chancellor of the University of Canberra. He said he had given up on the idea that universities and TAFE colleges could become “smoothly interoperable”, so is advocating the invention of a new type of institution instead. In passionately seeking new ways to increase university enrolments, Parker has possibly offended many people in the way he mounts his argument for polytechnics. They may include staff at the neighbouring Canberra Institute of Technology, as well as Brisbane’s Southbank Institute of Technology and the dual-sector universities and many TAFE colleges, all of which are proud of their roles in offering graduate certificates and diplomas and, in some cases, degrees, and none of which are acknowledged by Parker. And he doesn’t mention the new Tasmania polytechnic. Given the number of people he may have inadvertently put offside, he may find it hard to win many converts to his vision of polytechnics proliferating. Small providers mushrooming? While the idea of a string of polytechnics remains, small training providers are struggling with the high costs associated with observing quality regulations. Savvy private providers now estimate the costs of maintaining quality systems at somewhere between $100,000 and $200,000 per year and rising, depending on the breadth of courses delivered. Given the escalation of costs, small providers may have only a limited time in the sun. This view is supported by the fact that 118 RTOs in Victoria had their registration either cancelled or suspended in the 12 months to 30 June 2008 (seewww.vrqa.vic.gov.au/vet/cancel0809.htm). Is mid-sized best? Perhaps mid-sized RTOs will emerge as the dominant model of VET RTO. One of the organisations that may be a sign of the future is the largest community college in NSW, Riverina Community College, with its headquarters in Wagga Wagga and 10 small campuses in surrounding towns. The college has 60 regularly employed staff equating to 35 equivalent full-time staff, supported by 200 tutors. Last year, the college enrolled 19,500 students and generated 565,000 student contact hours. The college has an impressive array of achievements, including its recent success in the face of fierce opposition in winning an employment services contract, its ongoing provision of 23 programs for migrants and indigenous people, its creation three years ago of a beauty school and the imminent opening of its hairdressing school. CEO Annita Booth sees it as a business advantage that her operation is smaller than a TAFE college. “We can move very quickly. If we see an opportunity we just grab it and run. We’ve worked very hard to raise funds and we use them to take advantages when they come up,” says Booth. Used to competing with TAFE, Booth is now more concerned with the threat from universities. “With universities coming into VET, we all need to find niches to survive.” Booth looks at the risks involved in a new venture like setting up a hairdressing school in a former hairdressing salon, and minimises the risks by “focusing on as many opportunities as possible” that the salon will offer. “We are trying to narrow our offerings down to four or five areas, instead of being everything to everybody. Areas like transport and logistics, aged care, hairdressing and beauty, and business and hospitality.” TAFE leaders who were around in the 1980s may smile ruefully as they ponder the mid-sized community college model that was TAFE back then. In fact, 25 years ago, many TAFE colleges were called community colleges. Could we see a return to the 1980s where there were 80 or so moderately sized TAFE colleges in NSW instead of the current 10 huge institutes? And over 20 colleges in South Australia instead of the current three mega institutes? The Riverina Community College’s business model includes staying connected to the local community in order to identify niche opportunities, offering a small range of high-demand programs, employing a tight core of full-time staff and wide pool of specialist trainers, and remaining small enough to be opportunistic and large enough to afford a rigorous quality regime. As commercial competition intensifies in VET, for many providers being the right size may mean the difference between having a future or not. Neither polytechnics, nor TAFEs nor small providers are assured of success". Contact Annita@rcc.nsw.edu.au Dr John Mitchell is a VET strategist. Contact johnm@jma.com.au and seewww.ibsa.org.au/jma