Introduction

I'm pleased to be here today to launch the consultation document 'Building Futures'.

It is a well titled document, because that it what happens in a place like this, and that is what the suite of programme known as 'foundation education' programmes, and Training Opportunities and Youth Training in particular, is all about. I appreciate the efforts all of you have made to be here for this launch in the busy pre-Christmas period, and particularly look forward to meeting with those of you who are directly involved with these programmes on a day to day basis.

This document - an options paper that I am releasing today for a period of public consultation - has been prepared by the team tasked with reviewing the Training Opportunities and Youth Training programmes.

Government set up this review as part of its broader commitment to a more inclusive knowledge-based economy and society.

Modern working life requires people to have the ability to keep learning and adapt to rapid changes in technologies and services. Foundation skills are essential for all workers, with virtually all jobs now requiring literacy, numeracy, technological competency, communications skills and self-confidence.

Higher level generic skills - such as critical thinking, creativity, adaptability, problem-solving skills - are also being identified as core competencies for continuing employability in the labour market.

A mismatch between skills required and those possessed by prospective and current workers can be a barrier to individuals participating in paid work and in their communities. The skills of both new entrants and of the existing labour force are vital to our future prosperity.

And foundation education, as the name suggests, isn't just about assisting people to make the transition to a sustainable job, it also about assisting people to move into further education or training (and that could be in a job, because increasingly the workplace is a learning place).

The number of new young entrants to the labour force will shrink from 2001, with over 80 percent of the people who will be in the labour force in 10 years time already working.

Therefore we need to continue to ensure that those entering the workforce have the skills they need to maintain work over their lives. We also have to invest in the people currently in work. Our education and training system needs to be diverse enough to meet the variety of learning needs for our modern economy. We also need to make sure that everyone, including those that face difficulty getting a job, has the opportunity to access the support they need to participate fully in society.

Addressing these challenges has been a priority for the Government over the past two years.

The Tertiary Education Advisory Commission was established to advise on the future of tertiary education. The Commission has made far-reaching recommendations on ways to achieve the integration of all parts of the tertiary education system from foundation skills training to post graduate research. Over the course of the four impressive reports that the TEAC presented to the Government they made a number of recommendations about foundation education, recommendations which have been considered by the Ministerial Review Team in their preparation of this options paper.

Later this week I will be releasing a draft Tertiary Education Strategy setting out strategies and priorities for the tertiary education system for the next five years. Government is releasing a draft version of the Strategy to encourage debate and feedback on the proposed strategies and priorities before the final Strategy is approved in early April 2002.

Changes have been made in the area of industry training, including amendments to the Industry Training Act, following a review of industry training. These reflect the government's commitment to investing in the skills of the workforce.

As part of Government's Employment Strategy a central focus has been on finding ways to better assist job seekers find and maintain sustainable employment.

And the Government is committed to a social development framework for policy and delivery that puts greater emphasis on improved pathways to help people develop their skills and participate fully in society.

The current situation and the challenge

Training Opportunities and Youth Training programmes provide those with low or no qualifications, and those who have histories of unemployment with pathways on to further education and training, and a job. They represent Government's major investment to lifting the foundation skills of those who have not acquired those skills whilst at school.

Training Opportunities and Youth Training presently account for approximately $188 million of government expenditure. In the eight years since the Training Opportunities programme was established there have been many developments both within the community and government that have affected the way in which services are provided to such people.

It is timely therefore to consider the effect of these changes on these programmes. It is important to ensure, given our current understanding, that these programmes are best meeting the needs of this group, and to establish their future role within the vision for the wider tertiary education and employment assistance systems.

I initiated this 'first principles' review to establish the future objectives for these programmes, and to ensure that they will continue to meet the educational and employment needs of those people with significant histories of unemployment and/or no or low qualifications. The review is a chance to consider how well the programmes are meeting current needs, and how we might be able to improve their responsiveness and effectiveness.

Progress so far

The review team I have appointed comprises experts from the education and training sectors, and representatives of key Government agencies. During August and September 2001 the team travelled around the country talking to stakeholders including providers, employers and students about these programmes. They have also considered the lessons from New Zealand and international experience in identifying a number of issues for further discussion and debate.

'Building Futures' presents some ideas about the future shape of these programmes, their funding, delivery, and priorities. It is crucial that a broad range of views are considered before any decisions are made about the future of these programmes. I want to hear your views and suggestions about the issues raised and any ideas that you may have to improve the outcomes, access, delivery and future administration of the programmes. Accordingly I encourage you to make your views known to the review team over the next month or so.

I have asked the review team to make final recommendations to me by the end of February 2002. Government will then make its decisions during the first half of 2002.

Thank you for the opportunity to speak here today. I look forward to continuing to work with you, and encourage your comments and feedback on the consultation document.