Page 3843 - Week 12 - Thursday, 30 October 2014
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CIT’s governance has been an ongoing subject of discussion and activity between CIT and the government for a number of years, with the implementation of a governance strengthening plan for CIT back in 2011. Internal organisational structure reviews of CIT have been also been undertaken since that time.
More recently, in meeting our commitments under the national partnership, the CIT Advisory Council commissioned a review of its governance and autonomy late last year. The final report provided to me earlier this year highlighted that it is increasingly difficult for CIT to operate as an integrated part of the public service while also responding to the push to be more competitive.
In considering this report, the ACT government has confirmed that we must ensure that the CIT is positioned for success in increasingly competitive vocational education and training and higher education markets. The ACT community expects a lot from CIT as the premier provider of training services, and the ACT government is seeking to ensure it can continue to meet and exceed those expectations.
With this in mind, the purpose of the bill is to prescribe future governance arrangements whereby CIT can meet the twin objectives of operating as a public provider of vocational education and training and operating with greater commercial and entrepreneurial focus in an increasingly contestable training marketplace. The government considers this is best achieved if CIT is a territory authority with a governing board, and this bill provides for that.
In summary, the major amendments contained in the bill propose the establishment of a governing board replacing the existing CIT Advisory Council; the appointment of an independent chair and deputy chair of the governing board with extensive, contemporary expertise and knowledge of industry and business; the establishment of the role of chief executive officer appointed by the governing board, to replace the director of the institute; and that the governing board become responsible for setting fees, with the minister able to issue guidelines on fee setting for government subsidised services, which the governing board must comply with.
Let me expand a little on these proposals. A governing board will be established, replacing the CIT Advisory Council. A governing board will allow streamlining of decisions and the full application of fiduciary responsibility to the conduct of CIT affairs.
There will be a total of up to 11 members on the governing board. Overall, membership of the governing board will include expertise or knowledge of industry or business and knowledge of vocational education, and, in addition, members with social policy expertise, financial expertise and governance, human resources or legal expertise. This will ensure that a broad range of skills and knowledge are represented on the governing board. It is also important for the governing board to have an independent chair and deputy chair with extensive expertise and knowledge of the industry and business. This will ensure strong leadership for the governing board.
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