Page 3844 - Week 12 - Thursday, 30 October 2014
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Except as provided in the bill, the provisions of the Financial Management Act 1996 will regulate the operations of the governing board, including the appointments, functions, meetings of the board and any prescribed requirements and obligations on it as a territory authority.
In terms of effectiveness, there is a need for the governing board to have a balance of public service and non-public service membership to meet CIT’s objectives of operating as a public provider with the absolute imperative of a flexible business organisation. Consequently, the bill provides for two nominees from government directorates to be members from those directorates with responsibility for education and training and economic development.
As we commit to the introduction of a new governing board, I would like to take this opportunity to thank the advisory council for its contribution over many years. As already mentioned, the advisory council has set the groundwork for the future governance arrangements set out in the bill I am presenting today.
The bill will also abolish the role of director of CIT, the most senior position, and replace it with a CEO who will assist the governing board in the running of CIT. The CEO will be a member of the governing board, as required by the FMA. The position of CEO is integral to the operations of CIT as a territory authority. Consequently, a transitional amendment ensures continuity of the senior-most position in CIT by prescribing that the director, on the day before the legislation commences, becomes the CEO until the governing board appoints a CEO, within a 12-month period from the commencement day.
The bill amends the provision for fees to enable the minister to make guidelines about the fees CIT may charge for government subsidised training products and services. It is appropriate as part of the broader changes in the bill to enable the governing board to charge fees for educational products and services it delivers. This provision allows for the minister to issue guidelines on fee setting for government subsidised services with which the governing board must comply.
This approach strikes a balance between enabling the governing board to have the capacity to set fees in a competitive and contestable market whilst ensuring that the minister is able to give appropriate guidance about fee setting in particular circumstances. For example, the minister may consider that exemptions or concessions should apply to a person or group of people because they are experiencing some disadvantage. As mentioned earlier, we are in a time of much change, and, as such, it is important government does what it can to ensure CIT is positioned for success. Whilst owned by government, greater autonomy for CIT will aid in further establishing the view of CIT as an education and training institute of fundamental importance for the ACT with its own distinctive business approach
The combined effect of the provisions in the bill is to create a more agile CIT, able to effectively respond to rapidly changing circumstances and ensuring a future governance arrangement whereby CIT can operate as a public provider and also operate with a greater commercial focus. This will go a long way towards promoting the role of quality vocational education and training and providing a skilled workforce that meets the current and future needs of the ACT economy.
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