Chapter 1 - Introduction
Referral of the National Vocational
Education and Training Regulator Bills
1.1
On 10 February 2011, the Senate jointly referred the National Vocational
Education and Training Regulator Bill 2010 [2011], the National Vocational Education
and Training Regulator (Transitional Provisions) Bill 2010 [2011] and the
National Vocational Education and Training Regulator (Consequential Amendments)
Bill 2011 to the Senate Legislation Committee on Education, Employment and
Workplace Relations for inquiry and report by 21 March 2011.
Conduct of inquiry
1.2
The committee advertised in The Australian on 16 February 2011. Details
of the inquiry, the bills and associated documents were placed on the
committee's website.
1.3
The committee wrote to 87 organisations and individuals inviting
submissions by 1 March 2011. Submissions were received from 22
individuals and organisations, as listed in Appendix 1.
1.4
Public hearings were held on 7 March 2011 and 9 March 2011.
The witness lists for the hearings are at Appendix 2.
Acknowledgement
1.5
The committee thanks those organisations and individuals who made
submissions to the inquiry, and those who gave evidence at the public hearing.
1.6
The committee also thanks Dr Andrew Lynch, Director, Gilbert + Tobin
Centre of Public Law, and the Commonwealth Parliamentary Library, for their
assistance.
Notes on references
1.7
Submission references in this report are to the individual submissions
as received by the committee, not to a bound volume. References to the Committee
Hansard are to the proof Hansard. Page numbers may vary between the
proof and the official Hansard transcripts.
Background
1.8
In December 2008, the review of higher education, lead by
Professor Denise Bradley AC, recommended the creation of a
national regulatory body responsible for accreditation and quality standards of
all providers of higher education in Australia. The review also recommended the
Australian Government explore with the States and Territories the option of
expanding the regulator's role to include accreditation and quality standards
for vocational education.[1]
1.9
On 20 November 2009, the Ministerial Council for Tertiary Education and
Employment (MCTEE) reached a majority agreement for referral of powers to the
Commonwealth for the establishment of an independent national regulator for the
vocational education and training (VET) sector. Victoria and Western Australia
did not support the proposal, instead recommending 'consideration of other
models to achieve national regulation and the retention of the principles of
State accountability'.[2]
1.10
On 7 December 2009, the Council of Australian Governments (COAG) agreed to
establish a national regulator for the VET sector to 'drive better quality
standards and regulation and to strengthen Australia's international education
sector'.[3]
The agreement envisages that the regulator will be established under
Commonwealth legislation and will be responsible for registration and audit of
registered training organisations (RTOs) and the accreditation of courses. With
the exception of Victoria and Western Australia, on 13 February 2011 COAG
reaffirmed its commitment to a national VET regulator agreeing in principle to
the 'Intergovernmental Agreement for Regulatory Reform of Vocational Education
and Training' (the IGA).[4]
While agreed in principle, the terms of the IGA are yet to be finalised.
Accordingly, at the time of this report the IGA had not been publicly released.
1.11
Victoria and Western Australia elected to retain responsibility for
regulating RTOs in their jurisdiction. While retaining this responsibility, the
states have agreed to enact mirror legislation to ensure the same standards of
operation and accountability across Australia's VET sector.[5]
1.12
The COAG agreement provides for the national regulator to operate in
non-referring jurisdictions. As noted by Victoria and Western Australia, COAG
determined that providers 'wishing to operate in more than one jurisdiction or
enrol international students in post-secondary education institutions will be
registered through the national regulator'.[6]
In its submission to the inquiry, the Government of Victoria advised that Victoria
and Western Australia noted but did not agree to this decision.[7]
1.13
COAG also agreed to establish a Standards Council, to provide advice to
the MCTEE for the development of national standards for VET regulation,
including 'registration, quality assurance, performance monitoring, reporting,
risk, audit, review and renewal of providers, and accreditation of VET
qualifications'.[8]
1.14
The establishment of the National VET Regulator was included as a key
initiative in the 'Skills for Sustainable Growth' package announced in the
2010-11 Federal Budget,[9]
with the budget providing $105.5 million over four years for the new national
VET system. The Government anticipates that the National VET Regulator will
operate on a full cost recovery basis by 2014-15.[10]
The Explanatory Memorandum to the National Vocational Education and Training
Regulator Bill 2010 [2011] (the NVR Bill) further advises that it is
anticipated that cost recovery activities will recover $39.9 million over
January 2011 and June 2014.[11]
1.15
On 6 July 2010, the then Minister for Education, the Hon Simon Crean MP,
announced the appointment of Ms Kaye Schofield as interim Chair, and Mr John
Smyth as interim Chief Executive Officer, of the National VET Regulator.[12]
1.16
The Senate Standing Committee for the Scrutiny of Bills has considered
the National Vocational Education and Training Regulator Bill 2010.[13]
The Scrutiny committee raised concerns with the following matters.
- Setting fees by legislative instrument (clauses 17 and 232).
- Removing natural justice considerations for the imposition of
administrative sanctions (clauses 26 and 37).
- The broad discretionary administrative power to amend course
accreditation (clause 51).
- The level of civil penalties (clauses 60 and 61).
- The regulator's investigative powers, including entry, search and
seizure powers. In particular, the committee drew attention to the absence of a
requirement that the powers be used during reasonable hours and on reasonable
notice, and the lack of clarity about the qualifications for persons who may
exercise the powers (clauses 62, 68, 70, 71, 89).
- The abrogation of the privilege against self-incrimination
(clause 65).
- The use of monitoring warrants (clause 85).
- The broad delegation of the regulator's functions (clauses 224,225
and 226).
1.17
The Scrutiny committee also considered the National Vocational Education
and Training Regulator (Transitional Provisions) Bill 2010.[14]
The Scrutiny committee raised concern with the head of power to enact regulations
(clause 30), as it authorises the regulations to have retrospective effect and
to take precedence over the Act.
1.18
The Scrutiny committee sought the Minister's advice regarding these
matters. Senator Chris Evans, Minister for Tertiary Education, Skills, Jobs and
Workplace Relations, responded to the committee's concerns, by letter dated
1 March 2011. Despite the Minister's response, the Scrutiny committee
remains concerned with several aspects of the Bills.[15]
This committee understands that the Scrutiny committee continues to correspond
with the Minister in relation to these matters.
Purpose of the Bills
1.19
Collectively, the bills provide for the establishment of a national
regulator for the VET sector and a regulatory framework within which the
National Vocational Education and Training Regulator (the National VET
Regulator) will operate.
1.20
The NVR Bill will establish the National VET Regulator and provide the National
VET Regulator with administrative and enforcement powers. The Bill also creates
offences and civil penalties relating to the conduct of RTOs and others
involved with the VET sector. The Bill also allows the use of infringement
notices and enforceable undertakings as an alternative to criminal offences and
civil penalties.
1.21
The National Vocation Educational and Training Regulator (Transitional
Provisions) Bill 2010 [2011] (the Transitional Bill) aims to minimise
disruption for RTOs by providing for the transfer of existing regulations,
applications and other matters from state regulators to the National VET
Regulator.[16]
1.22
The National Vocational Education and Training Regulation (Consequential
Amendments) Bill contains consequential amendments to the Education Services
for Overseas Students Act 2000, Higher Education Support Act 2003
and the Indigenous Education (Targeted Assistance) Act 2000 to ensure
that the National VET Regulator framework properly interacts with other
regulatory frameworks and funding programs.[17]
1.23
The bills are intended to address inconsistencies in VET regulation
across jurisdictions. As stated in the Explanatory Memorandum for the National VET
Regulator Bill, national regulation has the following objective:
[to] build on the current quality and consistency in the VET
sector and support the labour market and national productivity agendas by:
- building confidence in the quality and consistency of assessment
and training outcomes of VET qualifications which in turn supports the
confidence in the abilities of VET graduates
- maximising consistency in application of national standards and
regulatory activity in all jurisdictions
- maximising consistency in the application of sanctions and the
treatment of low quality registered training organisations
- providing clear lines of accountability and responsibility for
quality of VET
- ensuring a coordinated response to emerging quality issues in the
sector.[18]
Constitutional basis for the NVR
Bills
1.24
The Department of Education, Employment and Workplace Relations (DEEWR)
advised that the COAG agreement relies on a text based referral from the
referring states.[19]
1.25
Two days prior to the introduction of the National VET Regulator Bill in
the Commonwealth Parliament, on 24 November 2010 the Vocational Education and
Training (Commonwealth Powers) Bill 2010 was introduced in the New South Wales Legislative
Assembly. The Bill was passed by the NSW Parliament on 30 November 2010. The Vocational
Education and Training (Commonwealth Powers) Act 2010 (the NSW Act) received
Royal Assent on 7 December 2010, however the NSW Act had not commenced as at
the date of this report.[20]
No other jurisdiction has passed legislation referring the required power to
the Commonwealth at this time.
1.26
The referral of power to the Commonwealth in the NSW Act is in two
parts; an initial reference and a continuing reference.[21]
Section 6 states that ‘The initial VET matters are referred to the Parliament
of the Commonwealth, but only to the extent of the making of laws with respect
to those matters by enacting Acts in the terms, or substantially the terms, of
the tabled text’. ‘Initial VET matters’ is defined in section 4 as
‘matters to which the provisions of the tabled text relate to the extent that
those matters are included in the legislative powers of the Parliament of the
State’. The ‘tabled text’ is defined in section 3 as ‘the text of the following
proposed Bills for Commonwealth Acts: National VET Regulator Bill 2010,
National VET Regulator (Transitional Provisions) Bill 2010 as tabled in the
Legislative Assembly of New South Wales on 24 November 2010...’.
1.27
Constitutional lawyer Andrew Lynch has explained that text-based
referral, such as that undertaken by New South Wales for the VET Regulator
bills, is the commonest way in which powers are now referred to the
Commonwealth. Examples of such text-based referral include the corporations law
and anti-terrorism legislation. Such referrals generally include an initial
referral of matters based on an agreed text of a bill, with a separate referral
of the power to amend that text.[22]
This is the model that has been used for the current bills.
1.28
By letter dated 1 March 2011 to the Senate Standing Committee for the
Scrutiny of Bills, Senator Chris Evans, advised that for the NSW referral to
stand the NVR Bill and the Transitional Bill must be passed by the Commonwealth
Parliament in substantially the same form as was introduced to the NSW
Parliament on 24 November 2010:
The main Bill and Transitional Bill rely on a text based
referral of powers from New South Wales. If there is amendment of the
Commonwealth Bill, then the NSW referral will not support the enactment of that
amended Bill. This will be the case even if only a small number of amendments
are made. Any amendments to the text of the main Bill, other than purely
editorial changes, will therefore delay or prevent the establishment of the
NVR.[23]
1.29
DEEWR provided the same advice to the Senate Legislation Committee on
Education, Employment and Workplace Relations at a hearing for the committee’s
inquiry into the Commonwealth VET Bills on 7 March 2011.
1.30
The committee notes that a similar issue arose when Parliament
considered the Corporations Bill 2001. The issue of amendment was addressed in
the Parliamentary Library's Bills Digest, which concluded:
Despite this technical capacity to amend, the prudent course
of action would be to enact the Bills in their existing form, given that the
intent of the new scheme is to bring certainty to the corporate regulation. It
would be unwise to open up another avenue of constitutional challenge about
whether an amendment to the tabled text represented a ‘substantial’ change and therefore
was not supported by section 51(xxxvii).[24]
1.31
The committee accepts the conclusion reached by all the sources who have
considered this issue. As the next chapter demonstrates, there is widespread
and strong support for the creation of a National VET Regulator. Accordingly,
the committee considers that the introduction of a national system of VET
regulation should not be delayed or undermined through amendment of the bills
at this stage.
Recommendation 1
1.32
The committee recommends that the bills be passed in their current form.
1.33
Nevertheless, as later chapters will demonstrate, there is capacity for
improvement to the bills. It may have helped the drafting process, and the Parliament,
had the bills been given earlier consideration by parliamentary committees,
prior to their adoption by the New South Wales Parliament.
Recommendation 2
1.34
That in future, exposure drafts of legislation be made available for
examination by parliamentary committees prior to their adoption as text-based
referrals of power by state legislatures, thereby assisting committees to
recommend amendments to bills, if necessary, without threatening the viability
of the referral of powers.
Navigation: Previous Page | Contents | Next Page