Regulation of VET Services for Overseas Students in South Australia (McCann Report)
Warren McCann
Government of South Australia (Training and Skills Commission)
The market for the provision of VET services to overseas students in Australia is undergoing a period of transition. This is driven partly by changes to migration policy but also by global events, changing source country perceptions of the Australian market and rapid growth of Australia's overseas competitors. South Australia is perhaps less impacted than the rest of the country but is not immune from these events. Although the sector is expected to continue to make an important contribution to the Australian economy, the future of the industry is not assured as we have seen from the consequences of the dramatic events elsewhere in the country involving Indian students.
A key ingredient for the future growth of the industry in South Australia is a modern regulatory system which has the support of all of the players and which is attuned to the post transitional world rather than the past. This report recommends a shift in emphasis to a much stronger compliance based model of regulation as opposed to a process which encourages continuous improvement. It recommends new powers for the regulator, new criminal and civil offences and the acquisition of new skills to support compliance based regulation. Because of a lack of clarity around timing and the speed at which the market and policy environment is changing, the report argues strongly that South Australia should adopt this model now rather than wait for the national system of regulation to emerge.
The report recognises that risk is the principal driver of decisions about the allocation of regulatory resources. It proposes that the conventional risk matrix be strengthened by a more sophisticated treatment of market intelligence acquired through new forms of cooperation between the regulator and other key players in the industry. The report makes a number of practical suggestions for improving the audit process and proposes the creation of a new multi-skilled regulatory team to make it all work.
A substantial part of the report draws on research and analysis undertaken by the Allen Consulting Group, the National Centre for Vocational Education and Research and the Office of the South Australian Crown Solicitor. However, the central themes and recommendations are the sole responsibility of the author.
