ANZAM WORKSHOP 2009 Peter Noonan. Framework for Review Terms of Reference Excluded innovation and research which was to be dealt with in Cutler Review.

ANZAM WORKSHOP 2009

Peter Noonan

Framework for ReviewTerms of Reference

Excluded innovation and research which was to be dealt with in Cutler Review

Included focus on broader tertiary sectorStarting point was the future economic and

social needs of Australia and the role of HE in that context not HE system and institutions in the first instance.

Review of HE not just universitiesNeed for a shared long term visionImportance of building population and workforce

knowledge and skillsConsistency with COAG human capital agendaThis drove both growth, attainment targets and

focus on equity

Framework for ReviewA National Framework for Higher Education

Encompassing policy, funding, governance and regulation

An enduring framework – transparent, competitive and dynamic

Dealing with essentially mature system and institutionsNo case for government mandated and driven

restructuring as was the case in 1980sInternationally competitive

In broad terms – student outcomes, experience, attainment levels, equity, research, sustainability

Focus today on aggregate demand, growth and demand driven funding and broader tertiary sector

Focus on domestic rather than international students

Important links between educational attainment, effective labour force and social participation and productivity.

Increaser participation directly linked to equity objectives

Powerful connection between Human Capital and Equity Agendas

COAG outcomes and targets: Halve the proportion of Australians aged 20-64 without

qualifications at Certificate III and above between 2009 and 2020;Does not specifically address contribution of Higher EducationNeed to now align undergraduate targets and broader COAG

targets

Access Economics report for Review modelled the demand and supply of graduates

Supply of graduates depends uponPopulation growth (including migration)Year 12 completionHigher education participation rates Completion rates

Labour market demand for skills depends on:Overall levels of economic activity;Future levels of skills needs and ‘skills deepening’.

Access projections suggest an additional 36,000 graduates per year (across all age groups).

Average annual increase in domestic HE students of 1.7% between 2002 and 2007, compared to average annual growth of 3.7% through the 1990s.

Access projections and government target suggest return to 1990s growth levels:

Governments response By 2025 40 of 25-34 year olds hold Bachelor

Degree or above217,000 additional graduates by 2025

Australian population will also continue to grow including in prime participation age cohorts

200,000 required just to keep pace with population growth

Growth is also important in relation to population aging as the actual and relative size of older age cohorts increases.

Without growth, age participation rates in HE will decline

Skills shortages a major issue at commencement of Review.

Economic downturn highlights dangers of detailed central planning

Student choices highly sensitive and responsive to labour market conditions and demandReview focus on student centred and demand

based fundingRemoval of caps

Governments responsePhased removal of caps

Attempts to influence choice through controls on course intakes won’t succeed. Choice must be shaped by active engagement by business, government, professional associations. e.g. recent decisions on teachers pay,

conditions and career structures.Recent enrolment trends and preliminary

2009 data suggests swing back to areas of skills shortages.

Collaboration and engagement with business essential help shape demand and understand emerging skills needs.

Workforce retraining and development a critical priorityChallenge to both traditional delivery methods and

qualification structuresDiffering needs of older learnersDemand for specific skills sets;Bundling of units;Flexible deliveryImportance of informal learning and tacit knowledge

Competition from private providers and corporate sector particularly in business, management, governance, finance IT etc

Supply and demand for coursesNeed for high quality and evidence based

information on emerging industry and occupational needs:To assist with informed student choice;As an input to planning at the institutional

level;To monitor aggregate trends relative to

evidence.

Challenges and Opportunities for Business SchoolsCore offerings are essential to the current and future

workforce but domestic demand reported to be sluggish

Key domestic markets will be increasingly driven by capacity to stimulate demand from older age cohorts

Importance of enterprise markets and relationships and capacity to package programs tailored to meet enterprise needsImportance of understanding enterprise needs

Demand for likely to be strong for shorter and flexible qualifications rather than longer and less flexible qualifications

Importance of equity and participation agenda;What are relative participation levels in business schools

from low SES and low participation groups?

Challenges and Opportunities for Business SchoolsPotential across broader tertiary sectorNeed for coherent and integrated

qualifications frameworkReference to AQFC to revised AQF and also

improved credit transfer and student pathways between VET and HE in both directions

Importance of links and better integration with secondary schoolsWhat are the flows from students with business

related Year 12 subjects into business schoolsIs there potential to remodel upper secondary

and initial HE provision?