SOLAS Corporate Plan

Transcription

1 SOLAS Corporate Plan

2 Published By SOLAS, Strategy Unit, Upper Baggot Street, Dublin 4, Ireland. Ph.:

3 List of Acronyms AEGI AONTAS BTEI CAO CPD CSCS DSP DES DPER EGF EGFSN EI ESF ESRI ETB ETBI EU FÁS FET FETAC FESS FIT GDP HEA HEI HET HETAC IBEC ICT IDA INOU IoT ISME IUQB IVEA LTU NALA NCGE NESC NFQ NSS NQAI STEM OECD PIAAC PLC PLSS Adult Education Guidance Initiative The National Adult Learning Organisation Back to Education Initiative Central Applications Office Continuous Professional Development Construction Skills Certification Scheme Department of Social Protection Department of Education and Skills Department of Public Expenditure and Reform European Globalisation Fund Expert Group on Future Skills Needs Enterprise Ireland European Social Fund Economic and Social Research Institute Education and Training Board Education and Training Boards Ireland European Union Training and Employment Authority Further Education and Training Further Education and Training Awards Council Further Education Support Service Fastrack to IT Gross Domestic Product Higher Education Authority Higher Education Institute Higher Education and Training Higher Education and Training Awards Council Irish Business and Employers Confederation Information and Communications Technology Industrial Development Agency Irish National Organisation of the Unemployed Institute of Technology Irish Small and Medium Enterprises Association Irish University Quality Board Irish Vocational Education Association Long-term Unemployed Person National Adult Literacy Agency National Centre for Guidance in Education National Economic and Social Council National Framework of Qualifications National Skills Strategy National Qualifications Authority of Ireland Science, Technology, Engineering and Maths Organisation for Economic Co-operation and Development Programme for the International Assessment of Adult Competencies Post Leaving Certificate Course Programme and Learner Support System 3

4 PMDS Performance Management and Development System QA Quality Assurance QSCS Quarrying Skills Certification Scheme QQI Quality and Qualifications Ireland RPL Recognition of Prior Learning SAP Systems Applications and Products (in data processing ) SIG SOLAS Implementation Plan SME Small Medium-sized Enterprises SOLAS An tseirbhís Oideachais Leanúnaigh Agus Scileanna SST Specific Skills Training VEC Vocational Education Committee VET Vocational Education and Training VTOS Vocational Training Opportunities Scheme 4

5 Table of Contents Part Section Description Page List of Acronyms 3 Foreword 7 Executive Summary 10 1 Background: FET Reform, the Economy and Labour Market, Corporate 15 Plan Development 1.1 Introduction FET Reform and the Establishment of SOLAS The policy context for FET reform Implementing the FET reform agenda The Economic and Labour Market Context for SOLAS Action The Strategic Framework for the SOLAS Corporate Plan The Programme and Funding Context Funding for FET: A diverse landscape SOLAS funding Developing the SOLAS Corporate Plan 21 2 Overview of the Corporate Plan Introduction SOLAS Vision SOLAS Mission SOLAS Core Principles The SOLAS High-Level Goals Connecting the Main Elements of the SOLAS Corporate Plan 26 3 The SOLAS Work Programme and Measures of Success Enabling Delivery of Skills for the Economy Agreed FET outcomes New funding model Integrated planning Data infrastructure Supporting Active Inclusion Targeting provision for priority groups Barriers to participation in FET Literacy and numeracy provision Embedding basic skills Accreditation Empowering learners and employers Making informed choices Flexible and high-quality FET Supporting progression The learner and employer voice Influencing FET Policy and practice by Generating Intelligence and Supporting Innovation 36 5

6 Part Section Description Page Research Stimulating innovation and entrepreneurship Evaluation Evaluation/Promoting the benefits of FET Building Sector Capacity and Responsiveness Integrating former FÁS training into further education Continuing Professional Development (CPD) Sector advocacy Building SOLAS capability and organisational effectiveness An effective SOLAS structure Improving SOLAS capability Communications and branding strategy What will success look like for SOLAS? Measuring Success 43 4 Overarching Implementation Plan Implementation Context and purpose Implementation timelines Implementation challenges Implementation oversight Implementation monitoring Targets Implementation Costs Overarching Implementation Plan 48 Figures 1 Overview of the Corporate Plan 26 2 The relationship between the six high-level Goals 28 Tables 1 Supporting economic recovery: opportunities for FET 18 2 List of strategic objectives to achieve the SOLAS Goals 27 3 Possible measures and indicators for each of the high-level SOLAS Goals 43 4 Key actions where additional funding may be required 47 Appendices 1 Government Reforms 61 2 Employment Projections

7 Foreword The Challenge The country is emerging from the deepest economic crisis in its history. The economy and the labour market are now recovering. The Government s ambition, as set out in its Medium-Term Economic Strategy, 1 is for Ireland to survive and thrive in an increasingly globalised international economy. The further education and training (FET) sector is an important pillar of this economic strategy. It will play its part by ensuring that individuals are equipped with the skills to compete for work and can benefit from the improving economic conditions. For its part, SOLAS has been tasked with building the identity and values of a world-class, integrated FET system. 2 People must have confidence that the FET system can deliver the right opportunities for them. SOLAS, together with the new network of Education and Training Boards delivering quality further education and training programmes, will generate that confidence. This is a huge challenge. Meeting it will require SOLAS and the FET sector as a whole to be ambitious and rise to the challenge of transforming the sector in Ireland. The SOLAS ambition is to be: The leading voice for further education and training in Ireland The leading hub of labour market intelligence in Ireland Known for best practice in corporate governance and excellence in everything it does Demonstrably having a positive impact on individuals, communities and businesses Outward facing and client-centred Being vigorous, flexible and responsive. What will SOLAS do? The functions of SOLAS will be: to manage, co-ordinate and support the delivery of integrated further education and training by the Education and Training Boards (ETBs); to monitor delivery and provide funding based on reliable, good quality data and positive outcomes; and, to promote further education and training provision that is relevant to individual learner needs and national skills needs. This includes the needs of business and future skills needs. 3 SOLAS funding will clearly demonstrate a commitment to creating a FET sector that will secure the right skills for learners and employers to succeed, at a cost that delivers value for money for the taxpayer. Employers play a key role in identifying the FET skills needed for business to thrive. SOLAS will collaborate more-intensely with employers at national level, building on existing links such as the EGFSN. It will also support ETBs at local level to get closer to employers and build capacity to 1 Government of Ireland, (2013), A STRATEGY FOR GROWTH: Medium Term Economic Strategy Department of Education and Skills (2012), An Action Plan for SOLAS (An Seirbhísí Oideachais Leanúnaigh Agus Scileanna) The new Further Education and Training (FET) Authority 3 Ibid. 7

8 innovate and respond more rapidly to local employer needs and the changing contours of the labour market. Leading Change in FET As recognised in the Further Education and Training Strategy, a combined effort is required from many state institutions in order to improve the FET role in equipping people with the entry level and intermediate skills that enterprises require and which will help them compete for employment. The FET Strategy is inclusive and recognises that all citizens have a potential to develop their skill sets if afforded the opportunity and support to do so. This Corporate Plan sets out what SOLAS will do over the next three years to lead change in the FET sector from the perspective of ensuring relevant, high-quality, FET programmes which are delivered to a very high standard. In order to lead this change, SOLAS will be a trusted guardian of FET, will develop its knowledge base and will use this to advance the FET contribution to citizens, the economy and society. Funding will be applied judiciously, firmly and equitably in pursuit of the agreed objectives for the FET sector. Over the lifetime of the Corporate Plan, SOLAS expects significant strides to be made in the following areas: FET relevance, quality and delivery The availability of FET provision that is aimed at the entry and intermediate level skills required by employees to meet current and future needs of employers Better experiences and outcomes for learners linked to their level of readiness to compete for jobs in an open labour market The contribution of FET to economic and social development. The approach to how these will be achieved is set out in an Overarching Implementation in Part 4 of this document and will be further amplified in a detailed Operating Plan to be developed when SOLAS is fully structured and which will include appropriate benchmarks, milestones and targets. How will SOLAS do this? We have described above what SOLAS will do, how it will make a difference, and what it will ensure will take place. The following six high-level Goals set out, in a broad sense, how all of this will happen over the next three years. The first two goals ensure that FET resources are targeted to where the need is greatest and that the new FET planning and funding model, as well as the new data infrastructure facilitates and supports this: Goal 1: Enabling delivery of skills for the economy Goal 2: Supporting active inclusion 8

9 Goals 3 and 4 focus on ensuring that there is a new relationship with employers and that FET provision is more responsive to the needs of learners and employers, as well as to inculcate a spirit of innovation, entrepreneurship and self-employment: Goal 3: Empowering learners and employers Goal 4: Influencing FET policy and practice through generating intelligence and supporting innovation and entrepreneurship Goals 5 and 6 focus on ensuring that the FET sector has the capacity to be responsive and that it targets its resources at what works best; and, that SOLAS becomes and remains fit for purpose, has access to the necessary expertise and the SOLAS brand becomes trusted and well regarded for the quality of its leadership and support. Goal 5: Building sector capacity and responsiveness Goal 6: Building SOLAS capability, organisational effectiveness and brand The remainder of this document sets out the Corporate Plan itself, including the policy and labour market context underpinning the Plan, the work programme relating to each of the Goals and an over-arching Implementation Plan. It is based on extensive research and the gratefully-received contributions of many FET sector stakeholders. 9

10 Executive Summary Background and Context Reform in the further education and training (FET) sector is part of the Government s wider reform of public services. This wider reform agenda emphasises the need for efficiency, effectiveness ad value in the deployment of public funding. FET reform involves structural change as well as changes to planning, prioritising, funding and provision of a diverse range of FET programmes and services. The absence of strategic co-ordination and co-operation at central level has been a feature of the development of FET and was an obstacle to providing a better service to all who engaged with the sector. A number of other reforms outside of FET are also impacting on the sector and these include: the launch and roll-out of Intreo ; the planned launch of Jobpath ; the Government s Pathways to Work and Action Plan for Jobs initiatives and the review of the apprenticeship system. Government has streamlined the 33 former VECs into 16 Education and Training Boards (ETBs) and is completing the planned transfer of the training function of FÁS into the ETBs by June 2014 with the aim of bringing local and regional coherence to FET. The Government has created a new authority, SOLAS, the Further Education and Training Authority, under the aegis of the Department of Education and Skills. SOLAS is responsible for the strategic co-ordination and funding of the further education and training sector. One of the first major tasks undertaken by SOLAS was the development of a proposal for a five-year Strategy for Further Education and Training and the development of a three-year SOLAS Corporate Plan. Both have been completed on schedule. With regard to the establishment of SOLAS, a SOLAS Implementation Group (SIG) was setup. It focused on the key actions to be taken to establish SOLAS as part of the reform of the FET sector, as well as a requirement to maintain continuity of provision, while at the same time pursuing a path towards transformation. In parallel to the SIG, substantive legislative changes were also enacted to meet the FET reform agenda. The Education and Training Boards Act 2013 provided for the dissolution of the VECs and the establishment of 16 ETBs. The Further Education and Training Act 2013 provided for the dissolution of FÁS, the establishment of SOLAS and the detailing of the functions of the new organisation. In addition, the Act specifies the requirement of SOLAS to submit a three-year Corporate Plan to the Minister of Education and Skills within six months of the establishment of SOLAS. This SOLAS Corporate Plan forms part of an integrated FET strategic framework that includes the five-year FET Strategy and a companion ESRI study Further Education and Training in Ireland: Past, Present and Future, the first ever integrated Annual Services Plan relating to FET and individual five-year Strategy Statements and the Annual Service Plans relating to each of the sixteen ETBs. The SOLAS Corporate Plan has been developed at a time when the most recent data suggests that the Irish economy has begun to recover somewhat. 4 The ESRI and other commentators forecast that around 4 A Strategy for Growth: Medium Term Economic Strategy (December 2013). Also the ESRI Quarterly Economic Commentary, Winter, Also, Central Bank of Ireland Quarterly Bulletin

11 60,000 new jobs will be created in 2014, with unemployment set to fall to around 10% in The Government is optimistic and the OECD 5 agrees that all of the jobs lost in the recession can be replaced by The labour market also continues to recover slowly. Employment in all occupations is expected to increase in the period In the broadest sense, overall employment will increase by less than 100,000 in the weak growth scenario by approximately 160,000 in the modest growth scenario and by approximately 270,000 in the strong growth scenario. In relative terms, the strongest employment growth is projected for both higher education and further education and training qualification holders, while the employment growth for the higher secondary and below higher secondary education categories is projected to be below the average employment growth. Funding In 2014, the Department of Education and Skills will provide 826m to support Further Education and Training provision. Of this total, 640m will be funded through SOLAS, primarily to fund FET provision by the ETBs. This includes FET provision provided by both the former VEC and the FÁS training centre networks. The balance of 186m of the 826m overall budget will be utilised to provide for teacher salaries in the context of PLC courses and co-operation hours. While SOLAS will not have responsibility for payment of teacher salaries, it will have responsibility for approval of PLC provision and co-operation hours. 5 OECD (2014), IRELAND S ACTION PLAN FOR JOBS: A PRELIMINARY REVIEW, APRIL SOLAS (2014), Occupational Employment Forecasts A proportion of the 640m budget funded through SOLAS will be allocated to support CPD and professional associations for example, the Adult Literacy Organisers Association (ALOA), to support FET Agencies and Bodies for example, Aontas, NALA and the Irish National Organisation of the Unemployed (INOU). A proportion of this budget will also be allocated to 12 non-etb schools/colleges that provide opportunities relating to PLC and BTEI. In addition, SOLAS will also co-ordinate funding for specific organisations within the education and training sector, such as FIT. Current FET provision funded by SOLAS is also offered through the not for profit sector as well as through private trainers using the contracted training system 7 and through public, not for profit and private education and training providers using Momentum. 8 It is envisaged that funding for flexible delivery models, such as contracted training and Momentum will be continued as part of any new funding arrangements. Developing the SOLAS Corporate Plan Clear markers for the SOLAS Corporate Plan are outlined in the FET Strategy and the companion ESRI study commissioned by SOLAS, FET in Ireland: Past, Present and Future, the new FET legislation, Government education and activation policy, the Pathways 7 A procurement system supported by SOLAS and operated by the ETBs for the outsourcing and management of training provision where a rapid response is required - such as company closures or startups, new course development and testing, or where extended geographic reach is required or where additional volumes of training are required or where specialist expertise is required such as specialist training provision for persons with a disability. 8 Part of the Government s Jobs Initiative, aimed at long term unemployed persons referred to Momentum by DSP. Public, Not for Profit bodies and private education and training providers propose education and training solutions to maximise employment outcomes for participants. A payment by results funding model applies to Momentum. 11

12 to Work and Action Plan for Jobs initiatives, the Government s Medium Term Economic Strategy as well as priorities relating to the Human Capital Investment Operational Programme supported by the ESF 9, and the NESC Strategic Review of Further Education and Training and the Unemployed. There is now a need to elaborate these within a clear programme of work for SOLAS. This is set out in Part 3 of this document. Clear messages were also identified through further analysis of the 2012 DES-led consultation on SOLAS functions and priorities. Additional consultation was undertaken in 2014 to elicit the views of the CEOs of the newly established ETBs and of SOLAS staff. These provided further insights into the role of SOLAS as the new FET landscape continues to take shape. Following these consultations, SOLAS distinguished a number of key issues associated with different respondent constituencies and captured the ideas and suggestions for how SOLAS should operate with a view to building consensus around the SOLAS role. Firstly, almost all stakeholders agreed that SOLAS needs to be very clear in what it sees as its vision and mission. This was crucial to informing the SOLAS Corporate Plan. Widely-mentioned themes from the consultations include that SOLAS and/or the ETBs should continue to encourage and facilitate the delivery of community education through community groups; SOLAS should consult with employers and other relevant stakeholders about the needs of the labour market; SOLAS should use the ETBs and local 9 The Programme places education and training in a central role to support people to get jobs; to help young people enter the labour market; to help people in difficulty and those from disadvantaged groups to get skills and jobs and have the same opportunities as others do; to ensure young people complete their education and get the skills that make them more competitive in the job market. centres as a network for accessing information on the needs of learners; and, SOLAS should measure outcomes that relate to personal development as well as employment outcomes. The SOLAS Corporate Plan The Corporate Plan for SOLAS sets out its vision, mission, core principles and high level goals. The six high level goals are linked to a programme of priority actions identified through policy, research and consultation. SOLAS believes that the high level goals are necessary, credible, and achievable and reflect a realistic assessment of the evidence and the current and projected FET environment in which SOLAS will operate. Goals 1 and 2 are included to ensure that FET resources are targeted to where the need is greatest and that the new FET planning, new funding model and new data infrastructure facilitate and support this: Goal 1: Enabling delivery of skills for the economy. Goal 2: Supporting active inclusion Goals 3 and 4 are focused on ensuring that there is a new relationship with employers and that FET provision is more responsive to the needs of learners and employers and to inculcate a spirit of innovation, entrepreneurship and self-employment: Goal 3: Empowering learners and employers. Goal 4: Influencing FET policy and practice by generating intelligence and supporting innovation and entrepreneurship Goals 5 and 6 are focused on ensuring that the FET sector has the capacity to be responsive and that it targets its resources to what works best; and, that SOLAS becomes and remains fit for purpose, has access to the necessary expertise and the SOLAS brand 12

13 becomes trusted and well regarded for the quality of its leadership and support. Goal 5: Building sector capacity and responsiveness Goal 6: Building SOLAS capability, and organisational effectiveness and brand While each Goal is listed separately in this document, they are all of equal value and it should be stressed that developments in any one area must be informed by, and will be integrated with, developments in the other five areas. An Overarching Implementation Plan in part 4 of this document sets out the high level Goals, the strategic objectives linked to each, the priority actions and key considerations around delivery. A more detailed Operational Plan will be developed when the organisation is fully structured and will set out specific tasks, performance indicators, ownership and timelines to drive the implementation of the Corporate Plan as well as to assist with planning and monitoring progress in that regard. Implementation Costs A cost proposal will be prepared separately relating to the areas where additional costs associated with implementing the SOLAS Corporate Plan are envisaged. 13

14 Main elements of the SOLAS Corporate Plan, Vision A well-recognised FET sector, valued for its quality and for delivery of education, training and skills that enables learners to succeed in the labour market and thrive in society Mission Fund, co-ordinate and monitor a range of FET provision to ensure economic and social wellbeing, play our part in influencing and supporting the development of an FET sector that is more responsive to the needs of learners and employers, is innovative, flexible and demand-led Core Principles Evidence-based, Responsive and flexible, Outward-looking and learner-centred, Collaborative, Focused on excellence Goal 1 Goal 2 Goal 3 Goal 4 Goal 5 Goal 6 Enabling delivery of skills for the economy Supporting active inclusion Empowering learners & employers Influencing FET policy & practice by generating intelligence & supporting innovation & entrepreneurship Building sector capacity & responsiveness Building SOLAS capability & organisational effectiveness Strategic Objectives and Work Programme OVERARCHING IMPLEMENTATION PLAN 14

15 1.1 Introduction Part 1 Background: FET Reform, the Economy and Labour Market, Corporate Plan Development The SOLAS Corporate Plan is part of an overall process of FET reform that embraces policy, a strategic planning framework and a renewed focus on implementation. These reforms reflect the changing national economic and labour market situation which indicates that, in the context of economic recovery and employment growth, FET provision and qualifications will be increasingly in demand within the labour market. The main aspects of the FET reform agenda and economic context underpinning the SOLAS Corporate Plan are elaborated in this section. 1.2 FET Reform and the Establishment of SOLAS The policy context for FET reform In July 2011, the Government approved a re-structuring of the further education and training (FET) sector. This re-structuring is part of the Government s wider public service reforms, including education, which emphasise the need for efficiency, effectiveness and value in the deployment of public funding. Reform in primary and secondary education is broadly focussed on improving quality, accountability and supporting inclusion and diversity in schools. Reform in higher education and in further education and training, is focused on creating the right opportunities for Irish adults. The education reforms include early education/the framework for early learning, the national literacy and numeracy strategy, junior-cycle reform, as well as higher education reform. Reform relating to FET involves structural-level change, as well as changes affecting planning, prioritising, funding and the provision of FET programmes and services. They are based on an identified need for a more coherent and effective system of provision. 10 A number of other reforms outside of education are also impacting on FET, including: 11 The launch of Intreo, (2012) The planned launch of Jobpath, (2014) The establishment of Quality and Qualifications Ireland, (2012) The Government s Pathways to Work Initiative, (2012), (2013) The Government s Action Plan for Jobs, (2012), (2013), (2014) The Review of Apprenticeships in Ireland, (2013) The introduction of the Government s Youth Guarantee, (2014). 10 National Economic and Social Council (2013), A Strategic Review of Further Education and Training and the Unemployed 11 A summary of these initiatives is provided in Appendix 1 15

16 The reform of FET aimed to provide increased focus on the needs of learners, especially jobseekers. This involves ensuring that further education and training programmes are modern, flexible and relevant to labour market skills needs. Two key structural changes were envisaged: The first was the establishment of a new authority called SOLAS, responsible for the coordination and funding of further education and training. The second was that the former network of thirty three VECs would be amalgamated into sixteen newly established Education and Training Boards (ETBs). ETBs would deliver most further education and training programmes funded through the Department of Education and Skills (DES). FÁS was to be disbanded Implementing the FET reform agenda A SOLAS Implementation Group (SIG) was established to implement these changes in the FET sector. The group was chaired by the Minister for State with responsibility for Training and Skills, and its membership included the Department of Education and Skills, FÁS and the Irish Vocational Education Association. The Government tasked the SOLAS Implementation Group to draft an Action Plan for the establishment of SOLAS. The Implementation Group focused on the key actions that should be taken to establish SOLAS as part of the reform of the FET sector. It also focused on the requirement to maintain continuity of provision, while at the same time pursuing a path towards transformation. Its Implementation Plan set out a roadmap in that regard. 12 In parallel to the SOLAS Implementation Plan, substantive legislative change was also required to meet the FET reform agenda outlined above. Consequently, two pieces of legislation were enacted in They provided the statutory basis for the dissolution of the VECs, the dissolution of FÁS and the establishment of SOLAS. With regard to the ETBs, the Education and Training Boards Act was signed into law in May 2013, replacing nine existing Vocational Training Acts with one piece of legislation. The new Act provided for the dissolution of the VECs and, through a process involving a merger of most of the existing 33 VECs, for the establishment of 16 ETBs. The key aim of this legislation is to modernise governance provisions and to more accurately reflect the current mission of ETBs. The functions of the ETBs were published in the Education and Training Board Act The Further Education and Training Act 2013 was signed into law in July It provided for the dissolution of FÁS and the establishment of SOLAS. It enabled the phased transfer of the existing FÁS training centre network (and associated staff and training provision) to the relevant ETBs. The legislation also strengthened consultation between SOLAS, DSP, DJEI and employers to improve FET provision for the activation of unemployed persons on the Live Register and for employers. The Further Education and Training Act 2013 details the functions of SOLAS. 14 In that regard, Section 31:1(a) of the Act specifies the requirement of SOLAS to submit a three year corporate plan to the Minister within six months of the establishment of SOLAS

17 The reform of FET is taking shape. FÁS has been dissolved, SOLAS has been established and a network of 16 Education and Training Boards (ETBs) has also been set up. A new landscape in-andaround FET has emerged. This includes a priority focus on labour market activation and the establishment and on-going roll out of Intreo and JobPath by the Department of Social Protection (DSP) to provide employment services and associated supports for unemployed people. Former qualifications bodies FETAC and HETAC as well as IUQB and NQAI have been amalgamated to form Quality & Qualifications Ireland (QQI). The Government is also progressing with its Action Plan for Jobs and a recent review of the apprenticeship system has identified sectors for the expansion of apprenticeship and other work-based learning. 1.3 The Economic and Labour Market Context for SOLAS Action The changing economic and labour market situation has significant implications for both the supply of and demand for FET. These were highlighted in the FET Strategy 15 and have influenced the shape and focus of the SOLAS Corporate Plan. The international financial collapse had a severe effect on Ireland, partly due to the existence of a property price bubble and excessive bank lending into the property sector. The economic collapse at home led to a severe contraction in tax revenues, partly due to an over-reliance on taxes arising from property development. When combined with the banking-related liabilities that the state accrued as a result of the banking guarantee, a public finance crisis emerged and led to the EU/IMF bailout in The most recent data suggests that the Irish economy has begun to recover somewhat. 16 Real GDP forecasts for 2014 range from %. The ESRI forecasts that around 60,000 new jobs will be created in 2014 with unemployment set to fall to around 10% in The Government is optimistic that all of the jobs lost in recession can be replaced by This view is supported by the OECD. SOLAS 17 is also forecasting significant employment growth in the period The labour market also continues to recover slowly. There has been a slight increase in the number of people in employment from 2011 to Between Q and Q2 2013, unemployment fell back from 15.0% to 13.9% and subsequently to 12% in January Approximately 61,000 more individuals were at work in 2013, bringing total employment to 1,909, During and beyond, there are specific opportunities for the FET sector to support the recovery. These are set out in Table 1 below. 15 Proposal for FET Strategy and Implementation Plan, Section For example, A Strategy for Growth: Medium Term Economic Strategy (December 2013). Also the ESRI Quarterly Economic Commentary, Winter, Also, Central Bank of Ireland Quarterly Bulletin 4, SOLAS (2014), Skills and Labour Market Research Unit, Employment Projections CSO, (2014) Quarterly National Household Survey, Quarter 4,

18 Table 1 - Supporting economic recovery: Opportunities for FET Employment growth will increase demand for skills Strongest relative employment growth is expected for HE and FET qualifications holders Need for an expanded range of FET-related skills in specific sectors Higher participation rates of older workers in FET The labour market is expected to grow substantially. Employment growth scenarios, based on growth paths outlined in the ESRI Medium Term Review 2020, have been generated by the SOLAS occupational forecasting model. 19 These show a lower limit of 100,000 in the weaker scenario to 270,000 in the strong growth scenario. The number of people employed in the economy with a higher education qualification has risen since the recession struck. Employment levels for those without a Leaving Certificate are down by over 40% and, for those with a Leaving Certificate but without a FET or HE qualification, are also down by around 25%. The educational distribution of occupational employment is projected to improve further. The share of higher education graduates will increase in all occupations. The share of FET qualifications holders will increase in all occupations except for the professional, associate professional and administrative groups. The share of persons with less than higher secondary education will decline in all occupations. In relative terms, the strongest employment growth is projected for both HE and FET qualifications holders, while the employment growth for the higher secondary and below higher secondary education categories is projected to be below average employment growth. The employer skill needs based on future projections that are most relevant to the FET sector have been identified in a series of Forfás/EGFSN reports. 20 An expanding range of FET related skill needs are emerging such as the greening of operatives, skilled workers and skilled trades in construction; 21 4,500 immediate vacancies at levels NFQ 5/6 in ICT companies in Ireland; 22 heritage and conservation skills; 23 special skills relating to industrial heritage; 24 growth potential of over 3,000 full time equivalent jobs by 2020 in the sea fisheries and aquaculture (farm fish and shell fish) industries; 25 Tourism/Hospitality sector culinary, operative, administrative and marketing skills. 26 A number of policy measures are encouraging an increasing employment rate for older workers (from 55 to 64 years) in the future. 27 More individuals can therefore be expected to dip into education and training more frequently, to learn new skills or refresh or upgrade their skillsets so that they can access employment, sustain their employability, change career direction, become more productive, or to insulate themselves against unemployment. 19 See Appendix For example, Guidelines for VECs in aligning further education provision with the skills needs of enterprise Update Guidelines for VECs. Also Forfás, Future Skills Requirements of the Manufacturing Sector to Also Forfás, Future Skills Requirements of the Wholesale and Retail Sector. Also Forfás, Ireland s Construction Sector: Outlook and Strategic Plan to Build Up-Skills Ireland (BUSI), a joint IoT, CIF, ICTU initiative and is part of an EU wide initiative. 22 FIT, (2013), ICT Skills Audit Report. 23 International Council of Monuments and Sites, (2009) Sustaining our Built Environment, Review of the State of Conservation Education and Training in Ireland. 24 The Industrial Heritage Association of Ireland. 25 Department of Agriculture, Fisheries and Food, (2010), Food Harvest 2020 A Vision for Irish Agri-Food and Fisheries. 26 Irish Hotels Federation, Irish Restaurants Association and Fáilte Ireland in individual discussions with SOLAS. 27 To a target of 50%. 18

19 Effective access to skills upgrading for low-skilled adults A need to raise literacy and numeracy standards A need for continuous development of labour market intelligence and updating of occupational forecasting Increasing the acquisition rate for major awards Responding to FET skill needs of IDAand EI-supported companies Improvements in intermediate skills are estimated to generate average annual net benefits of 0.4% and 0.45% of GDP respectively, primarily due to enhanced levels of productivity. 28 There is a similar return from investing in low-skilled workers, but they are less likely to be offered, seek or avail of training. 29 There is a greater need, therefore, for positive intervention by the FET sector to develop the human capital of low-skilled adults. Analysis of the most recent PIAAC data has also shown Ireland to score below average in adult literacy and numeracy. In addition, around a quarter (26%) of adults in Ireland score at or below Level 1 on the numeracy scale; compared to just 20% on average across participating countries. Ireland is around the average in problem solving in technology-rich environments. 30 The performance of young Irish adults (16-24 years) is below par in literacy and numeracy. Securing the best returns on investment in skills requires the ability to assess the quality and quantity of the skills available in the population, determine and anticipate the skills required in the labour market, and develop and use those skills effectively in better jobs that lead to better lives. 31 Co-existence of skills shortages with high unemployment, and/or persistent evidence of mismatch between employees skills and job requirements, indicates that a population s skills base (and workforce) and the investment made to develop those skills may be partly wasted. Building effective systems of labour market/skill intelligence, planning and funding can mitigate this problem. While Ireland continues to make progress towards achieving top line targets in the National Skills Strategy (NSS), the ESRI research indicates that, in terms of accreditation, a relatively low proportion of FET graduates/leavers in 2012 gained a major award (24%), with just over 2,000 (or 5% of total number of major award holders) gaining major awards at levels 1-3 combined. This indicates the challenge for the FET sector to increase the number of individuals who achieve major awards, and particularly awards at the lower levels. IDA and EI have a clear understanding of the skill needs (relevant to both FET and HE) required to attract and sustain the companies supported by them. These companies have specific skill needs and are located throughout the country. The ETBs have a presence in every county in Ireland and have a comparative advantage in that regard over other providers. It is essential that the relevant FET skill needs of IDA and EI supported companies (existing and new) are identified to the relevant ETB and DSP and addressed by them locally in the most appropriate and timely manner. 28 For example: Expert Group on Future Skills Needs (2007) Tomorrow s Skills: Towards a National Skills Strategy, 5 th Report, Dublin: Forfás. See also Leitch, L. (2006) Prosperity for All in a Global Economy world class skills, Final Report, London: HM Treasury. See also Brown, P., Green, A., Lauder, H. (2001) High Skills: Globalisation, Competitiveness and Skill Formation, Oxford: Oxford University Press. 29 O Connell, P.J. (2007) Who generally trains? The effects of personal and workplace characteristics on training at work, Apeldoom: Het Spinhuis and Dublin ESRI. 30 OECD, (2013), Skills Outlook 2013: Results from the Survey of Adult Skills (PIAAC). 31 OECD Skills Strategy; Developing the right skills and turning them into better jobs and better lives. 19

20 1.4 The Strategic Framework for the SOLAS Corporate Plan The SOLAS Corporate Plan is part of a four-stranded strategic framework for FET: 1) The first strand is the five year FET Strategy , now agreed and adopted by Government, along with a companion ESRI study, Further Education and Training in Ireland: Past, Present and Future, commissioned by SOLAS as part of the FET Strategy development process. An overarching FET Strategy Implementation Plan and a more detailed Operational Plan sets out the specific tasks, performance indicators, ownership and timelines relating to the main FET Stakeholders including SOLAS, to drive the implementation of the FET Strategy, as well as to assist with planning and monitoring progress in that regard. 2) The second strand includes the first ever integrated Annual Services Plan relating to FET. The Plan sets out for the first time, base-line details around the type, mix and volume of programmes and services to be delivered by the FET sector in 2014, as well as the associated funding and estimated outcomes relating to programmes and services. The integrated FET Services Plan consists largely of sixteen ETB Plans for 2014 rolled up into one national Services Plan. 3) The third strand is this SOLAS Corporate Plan. While the FET Strategy outlines the way forward for key actors in the sector, including SOLAS, the SOLAS Corporate Plan outlines the specific contribution that SOLAS will make to progress the FET Strategy and provide clarity on how SOLAS will deliver its mandate as set out in the Further Education and Training Act 2013, including the management of strategic FET programmes such as Momentum and e-college. 4) The fourth strand includes individual five-year Strategy Statements and the Annual Service Plans relating to each of the sixteen ETBs. The former outlines the way in which the ETBs propose to develop and deliver their programmes and services over a five year period, while the latter sets out the type and volume of programmes and services that will be provided each year. Again, both will be informed, inter alia, by the FET Strategy, Government priorities as well as learner and local employer needs. 1.5 The Programme and Funding Context Funding for FET: A diverse landscape The full extent of FET provision in the State is very broad-ranging and includes many actors in addition to the former VECs and FÁS. The FET Strategy has identified the diversity and tradition of FET provision, as well as its accessibility to a very diverse profile of learners as key strengths. Targeting programmes at National Framework of Qualifications (NFQ) levels 1-6, including both accredited and unaccredited provision, FET supports individuals to achieve career and employment as well as personal, developmental and social aspirations, tackling skills shortages and boosting the future growth and competitiveness of the Irish economy. FET also plays an important role in helping people to lead fulfilling lives, supporting individuals of all abilities to achieve their potential. In excess of 200,000 people will enrol in DES-funded FET in In terms of the annual budget of the FET sector, excluding allowances in lieu of eligible DSP income supports, in 2012 the Department for Education and Skills (DES) spent 309.5m on a range of programmes primarily delivered through the former VECs. In the region of 117.0m million was spent on training formerly provided by FÁS, while 50m was spent on a range of adult literacy and community development programmes (including the Adult Literacy and Community Education Scheme) with a further 50m of funding 20

21 provided to Pobal. 32 In 2014, the Department of Education and Skills will provide 826m to support Further Education and Training provision of which 640m will be funded directly through SOLAS SOLAS funding SOLAS is funded through the Department of Education and Skills. Expenditure during the 2014 transition phase will include training centre costs run by SOLAS in the first half of the year and contracted out costs and the grant aid of those costs in the second half of the year after the transfer to the Education and Training Boards (ETBs) is completed. It will also include the grant aid of ETBs and non ETBs for further education. From 2015, SOLAS will fund places for FET through ETBs, excluding the teacher pay element of the PLC programme. This includes FET provision provided by the former VEC and the former FÁS training centre networks. Funding will consist primarily of grant aid for further education and training, with direct expenditure arising on some programmes being managed by SOLAS together with the administration costs of SOLAS. The FET sector will require a dedicated capital budget to maintain and progress FET over the life-time of the FET Strategy and to ensure improvements to (or construction of) facilities or to purchase new (or improve existing) campus and training centre equipment and infrastructures, including networks, other information technology investments and for capital maintenance to keep facilities/estates in good repair. A proportion of the 640m budget will be allocated by SOLAS to support CPD and professional associations, for example the Adult Literacy Organisers Association (ALOA) to FET Agencies and Bodies for example, Aontas, NALA and the Irish National Organisation for the Unemployed (INOU). A proportion of the budget will also be allocated to 12 non-etb school/colleges that provide opportunities relating to PLC and BTEI. In addition, SOLAS will also co-ordinate funding for specific organisations within the education and training sector. Current FET provision funded by SOLAS is also offered through the not for profit sector as well as through private trainers using the contracted training system 33 and through public, not for profit and private education and training providers using Momentum. 34 It is envisaged that funding for flexible delivery models, such as contracted training and Momentum will be continued as part of any new funding arrangements. Finally, a total of 186m of the 826m overall budget will be utilised to provide for teacher salaries in the context of PLC courses and co-operation hours. While SOLAS will not have responsibility for payment of teacher salaries, it will have responsibility for approval of PLC provision and co-operation hours. 1.6 Developing the SOLAS Corporate Plan The process of developing the SOLAS Corporate Plan has drawn on the extensive contributions and views of a wide range of stakeholders, available research and intelligence about the economic and 32 It should be noted that expenditures to private providers could not be separated out in this data. 33 A procurement system supported by SOLAS and operated by the ETBs for the outsourcing and management of training provision where a rapid response is required - such as company closures or start-ups, new course development and testing, or where extended geographic reach is required or where additional volumes of training are required or where specialist expertise is required such as specialist training provision for persons with a disability. 34 Part of the Government s Jobs Initiative, aimed at long term unemployed persons referred to Momentum by DSP. Public, Not for Profit bodies and private education and training providers propose education and training solutions to maximise employment outcomes for participants. A payment by results funding model applies to Momentum. 21

22 labour market context for FET provision and future skills demand; and the evolving policy and programme priorities in Ireland. As well as the FET Strategy and the companion ESRI study commissioned by SOLAS, FET in Ireland: Past, Present and Future, a number of additional initiatives and reports have been used to provide clear markers for this Corporate Plan. These include: the SOLAS Implementation Group (SIG) Action Plan; the new legislative framework around FET and, in particular, the Education and Training Act 2013 setting out the functions of SOLAS; the Pathways to Work and the Action Plan for Jobs initiatives; the Government s Medium Term Economic Strategy; priorities relating to the Human Capital Investment Operational Programme supported by the ESF 35 ; and the NESC Strategic Review of Further Education and Training and the Unemployed. In terms of the views of stakeholders, further analysis was undertaken of the results of the 2012 consultation on SOLAS roles and functions. The Corporate Plan also incorporates observation and reflection on the results of the 2014 wider consultations on the FET Strategy. This was augmented by further follow-up consultation to elicit the views of the CEOs of the newly-established ETBs and SOLAS staff. These provided further insights into the role of SOLAS. From these contributions, SOLAS was able to identify clear ideas and suggestions on how SOLAS should operate with a view to building a consensus around the SOLAS role and agenda for action. Key messages to emerge from the development process and review of research were that, while it is acknowledged that there are many examples of high-quality provision within the richly-diverse FET sector today, there are difficulties in systematically understanding how and how effectively the FET sector as a whole is contributing to economic success, as well as social inclusion and mobility. This raises fundamental questions: Is the balance of FET provision right to ensure the best deal for learners and employers? How should the trade-offs between competing priorities for funding be managed and based on what evidence? What support does the FET sector need to provide relevant and appropriate skills that will make a tangible difference to learners? SOLAS, working in partnership with the sector, will strive to tackle these and other questions within the context of the reform of FET and the four-strand strategic framework outlined above. The SOLAS starting point will be the outcomes of FET what it achieves for learners, employers and communities. The potential gains from FET provision are substantial. The SOLAS Corporate Plan is based on harnessing this potential to maximum effect. In addition, while the new infrastructure of ETBs covering local areas underpins FET integration, it creates, for SOLAS, a short- to medium-term need to support and take account of the substantial transition for the sector as a whole. 35 The Programme places education and training in a central role to support people to get jobs; to help young people enter the labour market; to help people in difficulty and those from disadvantaged groups to get skills and jobs and have the same opportunities as others do; to ensure young people complete their education and get the skills that make them more competitive in the job market. 22