It gives me pleasure to make a contribution to the debate on the Education and Training Reform Amendment (Skills) Bill 2011.
The rant we just heard from the opposition was an absolute disgrace and a bending of the truth in many ways, and I will spend some time talking about that today.
First of all, this bill seeks to amend the Education and Training Reform Act 2006 to remove doubts about the power of TAFEs and adult education institutions to operate outside Victoria. Secondly, the bill makes amendments to that act to overcome gaps in technical problems in the legislation in relation to authorising work placements and ensures eligibility for WorkCover protection for students engaged in these placements. Basically what we are doing is fixing the mess of the previous government.
Yes, these are amendments to the act, and the bill does not necessarily detract what is currently taking place as part of the international operations of TAFEs or the work experience that many young people undertake; however, when this bill was first introduced in 2006 there was a lot of ambiguity left by the previous government. What we are seeking to do is to clean that up.
Firstly, I will talk about the tertiary education sector and the fact that it is Victoria's no. 1 export. It equated to a contribution of some $5.5 billion to the Victorian economy in 2010. In the TAFE sector alone, the contribution is $62 million.
With a $5.5 billion contribution, it is our no. 1 export. We want to ensure that we continue to grow this sector which is vital to our economy. It is a dual sector, comprised of the university and TAFE sectors, and we want to ensure that both parts of it are on a level playing field. I will address that further when I talk about the importance of clearing up the ambiguity in regard to allowing TAFE operators to operate outside Victoria. This bill certainly does clear that up.
It was very interesting to hear the comments of the member for Eltham. Firstly, he said this is a minor bill and does not really mean much, but then he went on to say that we had not extensively consulted with the sector in regard to this bill. I would like to remind the opposition that we have engaged in consultation in regard to this bill. We always consult. We are a transparent government, unlike the opposition when it was in government. We met and consulted with the Victorian TAFE Association.
We also met and consulted with the Australian Council for Private Education and Training. Even in regard to a minor amendment like this, on both occasions we made sure that the sectors were well and truly informed about what we were doing.
These amendments are about cleaning up the mess and the ambiguity. They will ensure that in these two vital sectors we are internationally competitive, and they will ensure that students get practical, hands-on work experience, a vital component of any young person's education.
Already for many years, many people have been undertaking vital work placements, but let us face it, if there is uncertainty when it comes to insurance practices, it is an issue for not only the students but also many of the industries, which will not take on young people if there is uncertainty in regard to those insurance practices. We are clearing up these problems that were left by the previous government in 2006. That is what this bill seeks to do.
I draw the attention of the house to some of the spin we have just heard from the opposition on a number of different points. On many occasions we hear this Chicken Little stuff: 'The sky is falling in! It's all over. We may as well shut the doors and cease to exist'. That is so far from the truth. I will begin by talking about the funding for the Victorian certificate of applied learning (VCAL). Under the Baillieu government the funding for VCAL has increased 9.5 per cent, resulting in a significant increase in the delivery of VCAL programs.
VCAL is now a mature program, and significant funding for coordination has been provided over the last eight years. Schools have been using this funding to ensure that it continues to exist and grow. We want to ensure that those placements remain and that students are able to take them up. That is why that increase in funding has taken place.
We certainly do not shy away from funding VCAL. Funding will continue to grow and be provided to government schools, and when they need to coordinate programs, that can be supported with this funding. The Baillieu government is committed to not only maintaining funding for VCAL but also funding its growth. It was interesting to hear the opposition say that overall funding of vocational education and training (VET) has decreased and we are continuing to reduce that funding. Again we hear an alarmist attack by the opposition which tends to distort the truth and never let the numbers get in the way of a good story.
Management and numbers have never been a strong suit of the opposition; this was certainly true when it was in government, and it continues to be the case in opposition. In 2011 the Victorian government made a record investment of around $1.2 billion in vocational education and training. This is expected to increase to $1.3 billion in 2012. This is an increase, not a decrease. We will continue to grow this sector to enable it to undertake the vital work that it does.
I refer to the Brumby government's modelling in regard to anticipated growth, which was just out of whack. The Brumby government anticipated a level of growth of 3 to 6 per cent each year from 2008, and it provided $139 million over four years to fund that anticipated growth. Again, numbers were never the strong suit of the former government. The actual growth had been in the order of 44 per cent and cost $400 million more than the former government provided. It just shows that the former government had absolutely no clue when it came to funding programs.
I refer to some 425 000 Victorians who will undertake subsidised training next year. That was 130 000 more than in 2008 when the former Labor government decided to open VET funding to full private competition. This had an impact when it came to numbers and funding, but we will continue to fund this very important sector and ensure that it continues to grow. Vocational education and training is an important part of the education sector in Victoria. As I said, it contributes much to the economy, certainly from its international activities, and needs to be supported.
The member for Eltham said the bill would result in increased ministerial powers. This also is not correct. Because the jurisdiction has increased in size, the change has been made to account for that increase. This is a very important change, because we want to ensure proper good governance and good business practice.
If TAFE institutes are able, as they currently are, to operate in an international sphere, we want to ensure that the minister has proper governance and control over all jurisdictions in which TAFE operates.
The amendments in this bill are good and sound. They should have been made in 2006 under the former government but were not. The amendments will clean up the anomalies that arose during the time of the former government and ensure that TAFE institutes continue to grow and develop. I commend the bill to the house.