Urgent private sector intervention required to halt crisis in Govt. skills development and vocational training
Urgent private sector intervention is required to halt the unfolding crisis in government skills development and vocational training.
The Cape Chamber calls on the national government to phase in industry-led skills training rather than squander further resources on misguided state programmes.
The failure of government’s post-school education and training system is laid bare in a new report containing damning findings about underperforming colleges (TVETs) and sector education and training authorities (SETAs). SETA courses cost more per student than university enrolment and have a higher non-completion rate despite being shorter and less onerous, according to a report conducted by economist Peter Courtney.
While SETAs themselves fail to achieve the expected return on investment, their chief executives receive average annual salaries of between R2million and R3million. Given that there are 21 SETAs, the salary bill is therefore a significant and questionable expense.
The Courtney report also highlights the quality and adequacy of the country’s 50 TVETs, which consume a significant chunk of the annual higher education budget – R14 billion.
Meanwhile SETAs and the National Skills Fund cost taxpayers a whopping R26 billion.
This is a significant sum of money within a context of constrained public finances.
Squandering resources on underperforming SETAs and TVETs is akin to sabotaging not only the job prospects of future generations, but also the broader economy. Government insists it is trying its best to create jobs; instead, it is creating a legacy of missed job opportunities.
The Cape Chamber believes there is still time to address the skills crisis. But what is needed is market-led training guided by industry stakeholders. Business leaders, who can identify the skills required to create jobs, should guide SETAs with a view to absorbing as many suitably-qualified jobseekers as possible. In this way our training institutions can fulfil their mandate and help drive economic growth.
In their presentation to parliament in June the DHET conceded it faces critical challenges. What officials didn’t say is exactly how they will address these challenges.
Treasury has allocated an additional R2,5-billion for construction of 13 new TVET campuses over the next five years. In that same period government intends increasing TVET graduates from the current level of around 15400 to 25 000. Meanwhile the SETA strategic plan envisages alignment between SETA programmes and industry skill deficits.
What is clearly lacking from these plans is private sector leadership to inform and guide the process. More campuses and more students will not address the core problems unless there is first a comprehensive system redesign to incorporate private sector participation.
In the same way that private sector stakeholders are helping government address our energy and logistics crises, the skills crisis can be overcome.
Jacques Moolman
President of the Cape Chamber of Commerce and Industry