❓ Hon Alison Xamon raises concerns about reduced funding for the Department of Training and Workforce Development and its impact on training targets and State Training Providers. The Minister responds by outlining additional funding, efficiency measures, and governance frameworks to support the sector.
AnsweredQoN 5664Legislative Council
QuestionView source ↗
I refer to the significant decrease in the estimated total cost of services and in total income of the Department of Training and Workforce Development in the 2012-13 Budget and the 'considerable challenges' the department will face to reach the new reform milestones under the COAG National Partnership on Skills Reform signed on 13 April 2012, and I ask —
(1) Can the Minister explain how the department will be able to meet its own training targets in the face of reduced funding?
(2) Can the Minister advise which programs or services will be cut?
(3) Will the Minister be taking steps to protect the financial viability of State Training Providers in an increasingly competitive training market that has reduced Commonwealth support?
(4) If yes to (1), please detail these steps.
(5) If no to (1), why not?
(6) What is the current net cash flow position for each of the training providers?
(1) Can the Minister explain how the department will be able to meet its own training targets in the face of reduced funding?
(2) Can the Minister advise which programs or services will be cut?
(3) Will the Minister be taking steps to protect the financial viability of State Training Providers in an increasingly competitive training market that has reduced Commonwealth support?
(4) If yes to (1), please detail these steps.
(5) If no to (1), why not?
(6) What is the current net cash flow position for each of the training providers?
AnswerView source ↗
Answered
14 August 2012
Responded by
Minister for Training and Workforce Development
Response time
63 days
(1) Yes. The State Government has provided additional funding of $99.1m for training delivery for the 2012 and 2013 calendar years which includes $38.2m to compensate for reduced funding under the new Commonwealth National Partnership Agreement on Skills Reform and will enable the Department to meet its training targets for those years.
The reduction in total cost of services largely reflects one-off Royalties for Regions funding for the Skills Training Initiative, one-off Commonwealth funding related to the Education Investment Fund and the impact of the efficiency dividend, offset in part by funding for the remedial works program and other adjustments.
(2) The efficiency dividend will be achieved via a combination of general efficiencies and a reduction in general institutional training through the rationalisation of non-critical skills training, and will not include delivery related to apprenticeships, traineeships or priority institutional training as identified in the States Priority Occupation List.
(3) Yes.
(4) Western Australia has already put in place a number of mechanisms to support the viable and sustainable functioning of State Training Providers.
The State Training Provider Governance Framework serves as a strong and vibrant governance tool that helps the Government in understanding and identifying challenges faced by State Training Providers in a timely manner and taking appropriate risk management measures as necessary.
As part of the implementation of the Governance Framework, the Department of Training and Workforce Development is working closely with State Training Providers to ensure they will be able to:
. work with greater autonomy;
. have clearer accountability; and
. have streamlined and transparent reporting relationships.
The Department of Training and Workforce Development will continue to implement the State Training Providers Governance Framework with further enhancements in the coming years, through the development of a monitoring framework which will reward high standards of governance with greater autonomy.
(5) Not applicable.
(6) The Department does not collect this type of financial information from all training providers. Each of the State Training Providers publish their financial statements and budget estimates in their Annual Reports. The 2011 actuals and the 2012 budget estimates, including cash balances are included in the State Training Providers' 2011 Annual Reports.
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The reduction in total cost of services largely reflects one-off Royalties for Regions funding for the Skills Training Initiative, one-off Commonwealth funding related to the Education Investment Fund and the impact of the efficiency dividend, offset in part by funding for the remedial works program and other adjustments.
(2) The efficiency dividend will be achieved via a combination of general efficiencies and a reduction in general institutional training through the rationalisation of non-critical skills training, and will not include delivery related to apprenticeships, traineeships or priority institutional training as identified in the States Priority Occupation List.
(3) Yes.
(4) Western Australia has already put in place a number of mechanisms to support the viable and sustainable functioning of State Training Providers.
The State Training Provider Governance Framework serves as a strong and vibrant governance tool that helps the Government in understanding and identifying challenges faced by State Training Providers in a timely manner and taking appropriate risk management measures as necessary.
As part of the implementation of the Governance Framework, the Department of Training and Workforce Development is working closely with State Training Providers to ensure they will be able to:
. work with greater autonomy;
. have clearer accountability; and
. have streamlined and transparent reporting relationships.
The Department of Training and Workforce Development will continue to implement the State Training Providers Governance Framework with further enhancements in the coming years, through the development of a monitoring framework which will reward high standards of governance with greater autonomy.
(5) Not applicable.
(6) The Department does not collect this type of financial information from all training providers. Each of the State Training Providers publish their financial statements and budget estimates in their Annual Reports. The 2011 actuals and the 2012 budget estimates, including cash balances are included in the State Training Providers' 2011 Annual Reports.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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