Standing Committee on Employment, Education 
        and Workplace Relations 
      
      This document has been scanned from the original printed submission. 
        It may contain some errors 
      
Submission 20
      Association of TAFE Institutes
      HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON EMPLOYMENT, EDUCATION 
        AND TRAINING
      INQUIRY INTO THE APPROPRIATE ROLES OF INSTITUTES OF TECHNICAL AND FURTHER 
        EDUCATION
      22 October 1997
      PREAMBLE
      This submission is made by the Association of TAFE Institutes to the 
        House of Representatives Standing Committee on Employment, Education and 
        Training, in response to the national inquiry into the appropriate roles 
        of Institutes of Technical and Further Education (TAFE). In particular, 
        consideration will be given to:
      
        - the appropriate roles of institutes of technical and further education; 
          and
- the extent to which those roles should overlap with universities.
The Association is well placed to comment on these issues from the TAFE 
        perspective. By way of introduction, this Association is the peak employer 
        body for the TAFE industry in Victoria and we have as our members all 
        of Victoria's TAFE Institutes and the three Multisector Universities. 
        Our Mission is to facilitate an environment in which our Members can deliver 
        world class vocational education and training (VET) and the extent to 
        which this has been achieved is reflected by the standing of Victoria's 
        TAFE Institutes as being the most efficient and cost effective in the 
        country. The Association also takes an active liaison role on behalf of 
        its Members with Government departments and Ministers on key issues.
      We have represented Victorian TAFE in a number of recent inquiries and 
        initiatives, at both state and Federal level including the West Review 
        into Higher Education Financing and Policy, the Victorian Ministerial 
        Review into the Provision of TAFE in the Melbourne Metropolitan Area and 
        the Victorian State Training Board's 'Vision for the State Training System'. 
        The Association's Executive Committee has undertaken considerable work 
        in developing its own Vision for the Delivery of VET in Victoria, which 
        includes consideration of the key objectives for the efficient and equitable 
        delivery of vocational education and training, and a proposed model for 
        the delivery of VET in Victoria.
      Throughout all of these inquiries/reviews, the Association has stressed 
        that the nature and needs of the system must be the driving force for 
        change, and not an arbitrarily decided factor which has been deemed necessary 
        to meet the fiscal demands of Government.
      We see ourselves not as critics of reform, but as partners in reform, 
        and the Association would welcome the opportunity to work with governments, 
        both State and Federal, in pursuit of the continuous improvement of the 
        public provision of VET.
      ExEcUTIVE SUMMARY
      The appropriate roles of Institutes of TAFE
      
        - TAFE Institutes Australia-wide (and particularly in Victoria) are 
          delivering their products in an increasingly competitive environment. 
          They continue to meet the challenge of competition by responsively and 
          flexibly meeting their customers' needs. 
        
- TAFE's key role is to deliver public access, customer focussed, applied 
          vocational courses, with the aim of enhancing the employment skills 
          of all TAFE students. 
        
- TAFE has a role in contributing to the economic prosperity of Australia 
          by creating a responsive and contemporary training system designed to 
          ensure Australian industry has access to the skills needed to enhance 
          its competitiveness. 
        
- TAFE fulfils an important 'socialequity' role by providing affordable 
          learning opportunities and employment opportunities to countless ordinary 
          Australians, many of whom may not have completed their secondary schooling. 
        
- TAFE, and more broadly VET, possess intrinsic characteristics, valued 
          by its customers, and which distinguish it from other learning mediums. 
          It is imperative that these fine qualities of TAFE are preserved. 
        
- TAFE has an integral role in supporting the educational and training 
          needs of regional communities and industries. TAFE Institutes must exercise 
          their functions with the necessary degree of commercial independence 
          to permit them to carry out their roles in an autonomous fashion, free 
          of direct government influence or restrictions on their business activities. 
          Victoria has a comparatively devolved network TAFE Institutes in relation 
          to other Australian states, but we believe that this autonomy should 
          now be taken to the next level. 
        
- The roles of the TAFE sector and traditional universities should be 
          structured so as to complement one another in a manner which best meets 
          their respective client needs. 
        
- The diversity in the student profile of TAFE demands a diversity in 
          delivery. There is a valid place in the training market for different 
          'models' of provider to meet the totality of customer need, as exemplified 
          by the existing multi-sector institutions in Victoria, by discrete TAFE 
          Institutes, by private providers and by industry specialist providers. 
        
- An effective interface between VET and higher education is vitally 
          important for both sectors to meet the needs of the Australian and global 
          education market. It is our view that in Victoria, effective articulation 
          arrangements and alliances between VET and higher education should continue 
          to be fostered and developed. 
        
- TAFE's role is not that of a 'junior partner' to universities, and 
          it is by no means 'inferior'. Research shows that student articulation 
          from universities to TAFE far exceeds articulation from TAFE to university. 
          While pathways are important in meeting some client needs, they do not 
          constitute TAFE's core business, and in fact, only a very smart proportion 
          of the total TAFE student population subsequently transfer to university. 
        
- There are clear differences between TAFE Institutes and traditional 
          universities, including differences in the end products, the manner 
          and cost of delivery, the target customer groups and the skills required 
          of the educators. 
        
- It is recommended that caution be exercised when contemplating TAFE 
          vocational associate degrees. There is a compelling argument for TAFE 
          to focus on, and continue to excel in the areas in which they have traditionally 
          done wel.l. The needs of Australian industry should be the prime concern 
          for TAFE. 
      
PART 1: THE APPROPRIATE ROLES OF INSTITUTES OF TECHNICAL AND FURTHER 
        EDUCATION
      BACKGROUND
      The Standing Committee's inquiry centres on the role of Institutes of 
        Technical and Further Education (TAFE) and that role vis a vis universities. 
        Expressly excluded are other providers in the vocational education and 
        training (VET) market, including for example, private providers. In all 
        states, private providers are playing an increasingly significant role 
        in the provision of VET services. In Victoria, the Government has set 
        a target of 20% of training priorities to be allocated through competitive 
        tender by the year 2000. This goal is well on the way to being realised, 
        with the Government recently announcing that in 1998, 17.3% of total state 
        training effort will be open to competitive tender. TAFE Institutes Australia 
        wide (and in particular in Victoria) are meeting the challenge of competition 
        by structuring the delivery of their services in a way which best meets 
        the needs of the customers, while striving to achieve the operations objectives 
        of their stakeholders/owners. We do not believe that the role of TAFE 
        ought be examined in isolation of these factors.
      THE ROLE OF TAFE
      TAFE is primarily concerned with the public provision of vocational education 
        and training. It is that part of the education sector which is most often 
        called upon to respond to the economic rise and fall and the subsequent 
        shifts in demands of the labour market in Australia.
      TAFE's key role is to deliver through public access, customer focussed, 
        applied vocational courses. The emphasis by TAFE is on skilling, and enhancing 
        the employability of its graduates.
      TAFE programs are often seen as the realm of young trade apprentices, 
        yet in actual fact more than 48% of TAFE graduates are aged 25 or over,1 
        and on1y 5.8% are students undertaking apprenticeships in the recognised 
        trades.2 TAFE has progressed far beyond the 'traditional trades' 
        and now offers a wide variety of courses, across a broad range of industries.
      TAFE's INDusTRY Focus
      TAFE's role, and its importance to the prosperity of Australia and its 
        citizens, is necessarily broad.
      TAFE makes a vital contribution to the economic prosperity of Australia 
        by guaranteeing a responsive and contemporary training system which ensures 
        Australian industry has access to the skills needed to equip it to compete 
        globally.
      TAFE has always enjoyed a close relationship with industry. In Victoria, 
        industry participation on TAFE institute Councils, the State Training 
        Board and Industry Training Advisory Boards has contributed to a TAFE 
        sector which is responsive to industry needs and to the labour market. 
        Notwithstanding this nexus, the Association's recent paper 'A Vision 
        for the Delivery of VET in Victoria' advocates a new industry/VET 
        provider interface which we have named the 'VET Business Forum'. One of 
        the key thrusts behind the forum is to create an environment in which 
        the 'captains of industry' (represented by small to medium enterprises 
        as well as big business) talk directly and with knowledge and authority 
        on the training needs of the State, with training providers. Generally 
        speaking, we believe that the Forum will facilitate a freer and clearer 
        exchange of information between all of the parties who have an interest 
        in training, with the express objective to achieve a flexible and responsive 
        training system.
      TAFE's Social EQuity ROLE
      A far greater role for TAFE is the part a publicly funded discrete TAFE 
        sector has played in opening the doors of opportunity to many Australians 
        who, without TAFE, would have been captive to a menial existence shrouded 
        with educational poverty. TAFE has provided the life chance for whole 
        generations of Australians, many of whom may not have completed their 
        secondary schooling, much less aspired to a university education. NCVER 
        statistics show that 54% of VET clients in Victoria in 1996 had not completed 
        their secondary school education.3 Yet through TAFE they have 
        discovered their capabilities and come to know the reward of personal 
        educational success. Through access to public education, they have been 
        able to throw off the shackles of servitude, illiteracy and ignorance, 
        and continue to aspire to even greater heights through lifelong learning.
      With the labour market moving decisively in favour of highly skilled 
        workers, affordable access to education must be provided for those without 
        skills, to provide them with a range of adaptable skills and a commitment 
        to lifelong learning. We must ensure that any deficiency in educational 
        provision does not add to the growing social malaise of the community.
      The social threats of a de-funded or poor quality TAFE sector should 
        also be considered. A recent UNICEF report, 'The Progress of Nations 
        1997' shows that of participating industrialised nations, Australia 
        has the ninth highest level of unemployment amongst 15-24 year olds at 
        16%, ranking below countries such as the United Kingdom, the United States, 
        New Zealand and Germany.4 The seriousness of Australia's youth 
        unemployment problem, and its connection with youth suicide and other 
        social crises remain of paramount importance for all Governments.
      THE INTRINSIC CHARACTERISTICS OF TAFE
      The Association has long held the view that there are many fine, inherent 
        qualities which TAFE, and more broadly, VET, offers the community. There 
        are undoubtedly features of the VET sector which have played a significant 
        role in the development of Australia's skill base and there can be no 
        argument that VET does not have an equally significant role to play in 
        the future.
      The Association recently commissioned the National Centre for Vocational 
        Education Research (NCVER) to undertake a research project to identify 
        naturally occurring qualities present in TAFE and vocational education 
        and training generally, which are of value to our clients. The project 
        involved interviews with representatives from urban and non-urban Victoria, 
        from a range of public and private providers, enterprises within industry, 
        policy makers, unions, and employer and industry groups.
      The report has identified some of the key characteristics of TAFE/VEI 
        in Victoria which we believe are useful to articulate the future role 
        for TAFE in Australia.
      - VET/TAFE is flexible
      VET is regarded as being flexible in terms of delivery mode, content 
        and structure. For example, a TAFE Institute as part of its standard package 
        of products might structure a course based on a combination of correspondence 
        programs with short on-campus intensive sessions. Alternatively, it could 
        deliver on-site training to industry on very short notice at a time which 
        minimises any disruption to the client's production schedules. Victoria's 
        TAFE institutes operate 51 weeks of the year and several operate seven 
        days a week, all coupled with the fact that VET providers will go to the 
        client, rather than requiring the client to come to them.
      - VET/TAFE is applied and practical
      This feature is especially appreciated by those already in the workplace. 
        VET is perceived as placing a greater emphasis on the practical and less 
        on the historical perspectives which lie behind the development of applied 
        thought. There is a danger that some of the practical nature of VET programs 
        may be lost if VET provision is integrated into other discrete sectors 
        of education.
      It was also raised by interviewees that VET providers provide targeted 
        programs at the level required by the client, rather than relying upon 
        off the shelf prepackaged programmes at an 'intermediate' or 'advanced' 
        level. VET is responsive to industry, rather than being curriculum outcome 
        driven.
      . VET/TAFE is competitive
      The VET sector in Victoria is actively competing intemally within Victoria, 
        as well as externally interstate stare and internationally. In recent 
        years, changes in government policy have resulted in competitive tendering 
        between public and private providers for public funds. Because of its 
        history of autonomous institutes and their increasing commercial independence, 
        Victoria's TAFE system is well placed to respond to the introduction of 
        principles of User Choice where public funds are allocated to the chosen 
        provider of the employer or trainee. As such it stands as a credible benchmark 
        for other state systems.
      - VET/TAFE is capable of reacting to local needs
      The research found that an important strength of the VET system is the 
        opendoor policy, which means it is receptive to suggestions or requests 
        from companies both small and large. This characteristic is closely related 
        to the flexibility feature described above.
      - VET/TAFE is less institutionalized and bureaucratic than other parts 
        of the education system.
      This is an important distinction. Possibly because of the size and complexity 
        of higher education, universities tend necessarily to be more rigid in 
        their structure and operations. Conversely, because of the nature of VET 
        provision, TAFE is afforded an environment which is more compatible to 
        creative tailoring of its products.
      It is imperative for the future of quality vocational education and training 
        in Australia that these characteristics of VET which are valued by its 
        clients are preserved, and that the effects of any proposed changes to 
        the way in which VET is delivered are taken into account, particularly 
        where such change may adversely affect the intrinsic characteristics of 
        VET.
      TAFE IN REGIONAL AREAS
      TAFE is vitally important to rural and remote areas. The benefits to 
        the community of a vibrant and relevant vocational education and training 
        institute cannot be overstated. In regional areas, centres which are able 
        to attract students from beyond their immediate catchment area add significantly 
        to the economic welfare of their region. Local communities and governments, 
        both State and Federal, actively encourage industry to decentralise. The 
        inclusion of educational centres of excellence in this strategy is as 
        critical to the development of the State and the social well being of 
        society as any other industry, perhaps arguably more so.
      TAFE has a clear role in industry/business development in a region, as 
        well as regional community development. This is sound justification for 
        continued government support.
      TAFE INSTITUE AUTONOMY
      It is essential to the effectiveness of TAFE that Institutes are able 
        to carry out their roles with autonomy. Victoria leads the other Australian 
        states in this regard. Since 1993, the role of TAFE Institute Councils 
        has changed from being advisory boards with limited statutory responsibility 
        to governing bodies with legal and administrative responsibilities akin 
        to company boards. Institute Councils are now empowered with a level of 
        operational independence consistent with the Government's demand of all 
        statutory authorities, for public accountability and fiscal responsibility.
      Victoria operates the most devolved network of TAFE Institutes in Australia 
        and this is seen by many as the most significant contributor to the outcome 
        of 'value for money' training in Victoria.
      However, TAFE Institutes must be able to maximise their business opportunities 
        and to manage their day to day activities in an efficient manner, free 
        of direct government influence. Private providers are able to operate 
        in this market against the same imperatives of quality and purpose as 
        public providers with less government intervention.
      Institutes are faced with an inability to offset the decline of public 
        funding of vocational education and training against the corresponding 
        influence of open competition, in part because of the operational constraints 
        imposed through government policy, particularly in matters such as fees 
        and charges, but also because of government policy relating to the acceptance 
        of full fee paying students and the numerous audit and reporting requirements. 
        Institutes must have the managerial latitude to be innovative and responsive 
        to their clients' needs and to have the flexibility to make the necessary 
        short to medium term business decisions.
      It is hoped that TAFE Institutes Australia wide will enjoy a level of 
        organisational autonomy in their business operations.
      PART 2: THE EXTENT TO WHICH THE ROLES OF TAFE SHOULD OVERLAP WITH UNIVERSITIES
      INTRODUCTION
      Each sector has different core business objectives, and caters to different 
        student types, and therefore, it is the Association's view that the roles 
        of the TAFE sector and traditional universities should not overlap, but 
        should complement one another in such a way to best meet the needs of 
        their clients. Complementary arrangements between the sectors already 
        include articulation arrangements and joint business ventures. By acknowledging 
        that the market place in which the core business of each sector is different 
        yet compatible, both sectors will be better placed to focus on excellence 
        when discharging their public obligations.
      TAFE STUDENT PROFILE
      The diversity of the student profile in TAFE is one of TAFE's intrinsic 
        characteristics. This diversity is manifested in such criteria as age, 
        prior education, nationality and the reasons for students undertaking 
        courses.
      1995 Graduate Destination data for Victoria compiled by the Australian 
        Bureau of Statistics shows -
      
        - 21% of TAFE graduates are aged between 25 and 34; 18% are aged between 
          35 and 44; and 8% are aged between 45 and 54.
        - 23% of TAFE graduates undertook TAFE studies as part of current job 
          requirements, or to gain extra skills for the job, 36% in order to obtain 
          a job (or for own business), 11% to try for a different career and 10% 
          for interest or personal development.
        - 5% of TAFE graduates had a prior bachelor degree qualification, while 
          33% had some other post-school qualification and 62% had no post school 
          qualifications.5
      
It is this diversity in student profile which demands a diversity 
        in delivery, and therefore makes a homogenised system for VET delivery 
        all the more inappropriate. In Victoria's case for example, while there 
        is a valid place in the training market for existing multisector institutions 
        such as Swinburne University of Technology, RMIT University and Victoria 
        University, there is an equally valid place for discrete TAFE Institutes, 
        private providers and industry specialist providers. When endeavouring 
        to strike a balance between integrated universities such as the three 
        mentioned above andTAFE Institutes, we must be cognisant that this will 
        not be a static outcome. This is because of the continual need 
        to respond to a diverse and changing market profile.
      ARTICULATED BETWEEN TAFE AND UNIVERSITIES
      The Association strongly supports the notion of an effective interface 
        between VET and higher education, and has long maintained that TAFE Institutes 
        should continue to foster co-operative alliances and partnerships with 
        any number of players in the training market, including universities, 
        schools and other VET providers, so that they can maximise their business 
        opportunities as well as meet student articulation needs. We could cite 
        many fine examples in Victoria of effective and co-operative relationships 
        between TAFE Institutes and universities.
      Discussion of articulation between higher education and VET has traditionally 
        focussed on students moving from TAFE to universities. It is incorrect 
        to assume that this practice is the norm, as the data shows that the movement 
        between sectors is concentrated in the reverse direction. TAFE's role 
        is not that of a 'junior partner' to universities and it is by no means 
        'inferior'. Recent research has shown that student articulation into TAFE 
        from previous higher education backgrounds is more common than assumed, 
        and in fact, pathways analyses have shown that levels of articulation 
        out of universities into TAFE far exceeds articulation into universities 
        from TAFE.6
      Data shows between 1990 and 1992, approximately one in five (or approximately 
        35,000) new TAFE students in Victoria enrolling at Associate Diploma and 
        Advanced Certificate level had previously studied in a university, half 
        of those as graduates.7 Another source estimates that in 1995, 
        some 45,000 students with bachelor or postgraduate degrees were undertaking 
        a TAFE vocational program, while at the same time, 20,000 students with 
        a TAFE award enrolled in university.8 These statistics make 
        the description of the higher education to VET pathway as some sort of 
        'reverse articulation' even more questionable.
      It should also be pointed out that while pathways are important in meeting 
        client needs, there is a view that they do not constitute TAFE's core 
        business. TAFE's core business clearly relates to training for industry 
        and meeting industry's express training requirements. It is a fallacy 
        to assume that TAFE provides some sort of 'second best' option. Very few 
        students use TAFE as a vehicle for university entrance, and it has been 
        suggested that in Victoria in 1996, only 1.6% of the total TAFE student 
        population subsequently transferred to university.9
      Finally, there is also the question of how far the 'benefits' of multi-sectorial 
        provision can be extended in an open and increasingly competitive training 
        market. For example, how will a student at one of the 700 registered private 
        providers in Victoria benefit from the existence of multi-sector Institutes?
      The answer surely lies in the approach adopted by the Australian Vice 
        Chancellors'Committee (AVCC) to address this very issue.10 
        In addition to examining articulation arrangements between universities 
        and TAFE Institutes, the AVCC has established a reference group to examine 
        articulation arrangements between universities and private providers. 
        The Association agrees that this is the best way to meet any articulation 
        aspirations of students, rather than a formal amalgamation of the sectors.
      TAFE vs UNIVERSITY ROLES
      While we believe there is a valid place in the training market for a 
        small number of multisector institutions, it is the Association's view 
        that a diversity of structural models in the market is the best means 
        to meet the totality of customer needs. just as the TAFE sector has its 
        own intrinsic characteristics which are equally valid for its own goals, 
        purpose and culture, so too does the higher education sector.
      When comparing a traditional university with a TAFE Institute, it is 
        apparent that there are differences in their end products, differences 
        in the manner and cost of delivery, differences in the target customer 
        groups, and differences in the skiffs required of the educators. Plainly 
        speaking, they do things differently to satisfy different market needs. 
        Vocational education and training is certainly compatible with higher 
        education, however the emphasis in VET is on providing practical skills 
        to graduates to enhance their employmentprospects. lt promotes a practical 
        education more so than an accademic grounding.
      TAFE (and VET generally) prides itself on its flexibility and responsiveness 
        - a result in part due to a well developed system of multiple entry and 
        exit points for students. Students in TAFE obtain recognition and credit 
        for completion of modules as opposed to completion of an entire course. 
        Students can undertake the specific parts of a course that are relevant 
        to them, receive appropriate recognition and credit transfer to other 
        institutes thereby enabling them to return to further studies and undertake 
        other modules at a later time.
      THE ROLE OF TAFE IN OFFERING DEGREE COURSES
      The issue of whether TAFE Institutes should confer Associate Degrees 
        in vocational subjects has enjoyed recent media attention and debate, 
        and views on the subject are mixed. The Association recommends caution 
        be exercised where contemplating TAFE vocational associate degrees. There 
        is a compelling argument for TAFE to focus on, and continue to excel in 
        the areas in which they have traditionally done well.
      The clear message coming from many sectors of industry within Australia 
        is that they want the workforce to be competent in the skills required 
        for production. This is not the same scenario as that of, for example, 
        overseas students who indicate a preference for courses which confer a 
        degree. The needs of Australian industry should be the primary concern 
        for TAFE, for the long term economic benefits of the country.
      BIBLIOGRAPHY
      Australian Bureau of Statistics, 1995 Graduate Outcomes: Technical 
        and Further Education Australia, AGPS, 1995
      Australian Bureau of Statistics, Education and Training in Australia, 
        AGPS, 1996
      Australian Vice Chancellors Committee, Media Release, 'Universities Agree 
        to Examine Articulation Arrangements with Private Sector Providers of 
        Vocational Courses, 22 July 1997
      Golding, B 'Intersectional Articulation and Quality Assurance' Journal 
        of Tertiary Education Administration, Vol 17 No 1, May 1995
      Maslen, G'TAFE Given Hard Sell in Bid to Woo Students Who've Missed 
        Out on Uni', Campus Review, Jan 15-21 1997
      Ministerial Review Committee, 'Options Pager', Ministerial Review 
        on the Provision of TAFE in the Melbourne Metrot)olitan Area', August 
        1997
      National Centre for Vocational Education Research, Australian Vocational 
        Education and Training Statistics, NCVER, 1996
      UNICEF, The Progress of Nations, 1997
      1Australian Bureau of Statistics, 1995 Graduate Outcomes: 
		Technical and Further Education Australia, 1995, p I4
      2Australian Bureau of Statistics, Educationand Training 
        in Australia, 1996, p162
      3 National Centre for Vocational Education Research, Australian 
        Vocational Education and Training Statistics 199-6, p2O
      4 UNICEF, The Progress of Nations, 1997
      5 Australian Bureau of Statistics, 1995 Graduate Outcomes, 
        Technical and Further Education, Australia, 1995
      6 Golding, B 'Intersectional Articulation and Quality Assurance' 
        Journal of Terti!QLEdU01:= AdministratLQU, Vol 17, No 1, May 1995, 
        p29
      7 Goldina, B 'Intersectional Articulation and Quality Assurance' 
        Journal of Tertia[y Education Administration, Vol 17, No 1, May 
        1995, p29
      8 Maslen, G 'TAFE Given Hard Sell in Bid to Woo Students Who've 
        Missed Out on Uni', Campus Review, Jan 15-21-1997.
      9 Ministerial ReviewCommittee,'OptionsPaper',Ministerial Review 
        on the Provision of TAFE in the Melbourne Metropolitan Area, August 1997
      10 AVCC, Media Release 'Universities Agree to Examine Articulation 
        with Private Sector Providers of Vocational Courses' 22 July 1997
      
      
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