Standing Committee on Employment, Education and Workplace Relations

Inquiry into the Role of Institutes of TAFE
Submissions

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Submission 54

MELBOURNE INSTITUTE OF TEXTILES

SUBMISSION

TO THE INQUIRY INTO THE APPROPRIATE ROLES OF INSTITUTES OF TECHNICAL AND FURTHER EDUICATION THE HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON EMPLOYMENT, EDUCATION AND TRAINING.

Contact Persons:

• Ms Chris Cookson, Director and Chief Executive Officer, Melbourne Institute of Textiles, 25 Dawson St., Brunswick, Victoria 3056 - Phone 03 9389 9128, Email: cookson@mitext.vic.edu.au
• Mr Mark Madden, Manager, Strategic Planning & Marketing, Melbourne Institute of Textiles, 25 Dawson Street, Brunswick, Victoria 3056 - Phone 03 9389 9486, Email: maddenm@mitext.vic.edu.au

Submission in response to the Draft Report of the Industry Commission Inquiry into TCF

PREAMBLE

This submission is made by Melbourne Institute of Textiles to the House of Representatives Standing Committee on Employment, Education and Training's Inquiry into:

• the appropriate roles of institutes of technical and further education; and
• the extent to which those roles should overlap with universities.

This submission supports the submission by the Association of TAFE Institutes (Victoria). However, rather than repeating the detail provided by the ATI, this submission seek to outline what it believes to be and has demonstrated to be a successful model for the delivery of vocation education and training. It is a complementary model, one which relies on partnerships with a range of providers; partnerships developed with a strong focus on the delivery quality training to the customer.

The submission goes on to raise some important additional issues which if addressed will further enhance the national delivery of quality education and training. The Institute's two submissions to the TCF Inquiry are also attached.

EXECUTIVE SUMMARY

A successful model

Melbourne Institute of Textiles is an industry-specialist TAFE institute. It is the only TAFE in Australia specialising in training for the Textiles, Clothing, Footwear, Retail and Allied Industries. The Institute has a range of alliances with regional, national and international providers of education and training --- other TAFE Colleges, universities, private providers and schools. While it 'stands-alone' as an Institute, it works in partnership with a range of organisations to deliver its services to industry around Australia and the world.

It is a successful model for a number of reasons.

The model places industry groups in a strong position to direct the Institute's resources and activities. The Institute's Council is dominated by industry representatives. It is a model which is recognised around the world (eg China Textile University, Scottish College of Textiles, Fashion Institute of Technology, New York School of Drycleaning). Our size and location allows us to deliver quality training to industry in a cost-effective way. M.I.Text. meets the performance indicators of the Victorian State Training system, and exceeds the average system returns on revenue and equity.

Differences Between Higher Education and TAFE

Whilst the Institute values its alliances with many universities, it also appreciates the important differences between the higher education and TAFE/VET sectors. These are well summarised in the recent ANTA submission to the Review Higher Education Financing and Policy and in the Association of TAFE Institutes submission to this inquiry (In particular, refer to the Executive Summary). These importance differences include:

• the diversity of student backgrounds, target customer groups, provider types and the skills of the educators;
• the character of the end products and services offered (TAFE's role is to deliver public access, customer focused, applied vocational courses with the aim of enhancing the work and employment skills of its students and improve the skills base of the industries it serves);
• government policy objectives, the structure and governance of the sectors, and the basis and method of government financial support.

In recent times, these differences have been further reinforced, in particular the strengthening of industry links and market-based resource allocation mechanisms in the VET sector, the growth in post-graduate programs in the higher education sector and the higher flow of students from university to TAFE than from TAFE to university. The Institute supports the continued separate identity of the TAFE sector on the basis of its vocational focus and industry links.

Under Review

The outcome of three reviews in 1997 will have significant implications for the Institute. These are:

• the Industry Commission's Inquiry into the TCF industries and the Federal Government's response. As part of its package of positive reforms, the Federal Government has supported the development of a national centre of TCF excellence in TCF education and training.
• the report to Premier Kennett of the Natural Fibres Institute Task Force, December, 1996. As a consequence of this report, the Victorian Government is supporting a proposal to establish the Australian Fibre & Textiles Education Centre (AFTEC), with a manufacturing facility in Geelong and one at M.I.Text.'s Brunswick Campus.
• The recommendations of the Victorian Minister for Tertiary Education and Training, Mr Phil Honeywood's Review of Melbourne's metropolitan TAFE Institutes (known as the Ramler Review). An options paper issued by the Review has recommended M.I.Text. be combined with RMIT University. The final report is due mid-November.

The Institute has developed submissions and established a set of principles governing its consideration of any proposals about its future:

• any changes must strengthen, not weaken, industry involvement;
• the industry-specialist focus should not be dissipated;
• the coverage from "soil to sale" is important for the TCF industries;
• there is value in close relationships with a university (or universities) with strengths in manufacturing, design, engineering, science, business and management, and flexible delivery;
• the name "Melbourne Institute of Textiles" is a successful brand name. Its value should be recognised and protected.

The Institute is committed to seeking a model which provides maximum freedom for it to respond to the needs of its clients.

Important additional issues

The TCF industries, and the Institute, are frustrated with the complexity and burden of regulations, reports, and reviews in the VET system. Bureaucratic processes have resulted in inadequate curriculum and poor allocation of resources, and reduced the effectiveness of relationships between industry and providers. In two submissions to the Industry Commission's Inquiry into TCF, the Institute said that the current and future challenge is to 'increase investment in training by and for TCF industries and increase the effectiveness of that training investment' and that this could be achieved by:

• greater understanding of industry's needs;
• greater control by industry over training priorities and investment, curriculum design and delivery;
• improved coordination and reduced duplication of the training system, and
• a move to higher, university level courses in technology, engineering and management which are integrated with and build on the TAFE/VET courses.

In addition, greater coordination and streamlining of Federal and State Government education and training processes and assistance could also see a greater proportion of existing and future funds used for the delivery of training. The same principles apply to research and development.

The Institute believes that these issues can be best addressed, not by becoming part of or being swallowed by the university sector, but by being separate and distinct from it and working in partnership with universities and other providers.

1. An Industry-Specialist TAFE Institute

1.1 Created by Industry

In 1943 the Australian Textile industries successfully lobbied the Australian Government to establish a textile industry specialist college in Melbourne. The first principal was recruited from the UK and classes commenced in 1949.

1.2 Course Profile

The Institute delivers courses in nine of the sixteen industry fields:

• Light Manufacturing
• Primary Industries
• Arts & Entertainment
• Further Education
• Business Services
• Wholesale, Retail
• Transport & Distribution
• Allied Industries
• Social & Community Services.

The primary focus of activities is on "the soil to sale" of the Australian Fibre, Textile, Clothing, Footwear industries, from the farmers of sheep and cotton, through to the retailers, drycleaners and carpet layers. The Institute attempts to maintain a balance between technology, design, and business/management skills.

1.3 Services

The Institute offers a range of services which are unique in the TAFE system. These include:

• NATA Accredited Commercial Testing Laboratories (Textiles, Carpets, Wool & Fibre, Footwear, Drycleaning)
• Research Laboratories
• Commissioned and sample production
• Technical services
• Expert witnesses.

The Institute is also involved in the activities of the industry and in related industry policy and trade areas, eg:

• member of Minister Moore's TCF Advisory Board
• participant in APEC TCF Business Forum
• patron member, International Textile Institute
• patron member, Textile Institute, Southern Australia Chapter
• submitter and presenter, Productivity Commission Inquiry into the TCF Industries
• associate member, Textile Fashion Industry of Australia (TFIA).

In addition, the Institute provides a range of services similar to those offered by most TAFE Institutes, eg consultancy, customised training. The Institute is active in international education, both in off-shore projects, and overseas students studying at the Institute.

1.4 Plant

The Institute will complete a six stage, 10 year capital plan at the beginning of 1999. The completion of this final building will enable the closure of the Pascoe Vale Campus and will bring about further significant improvements in utilisation of facilities and return on capital.

The Brunswick Campus is ideally located at the geographic centre of Australia's TCF industries, and with excellent public transport access.

The Institute has supervised the construction of the Hamilton Campus for the WRIST (Wool and Rural Skills Training Centre) and administers this on behalf of the Minister. This campus was officially opened on 4th July, 1997.

A review of the Brunswick capital plan is underway, in the light of two opportunities:

• the AFTEC proposal to provide complete cotton and non-woven lines and dyeing and finishing for Brunswick;
• the possible relocation of RMIT's textile design degree program to Brunswick, replacing the current school of printing.

A critical, but costly component of the Institute's effectiveness is its manufacturing and design plant.

1.5 Council and Committees

The Council is appropriately dominated by industry leaders. Current composition is:

• Mr Alan Bowman, Wool Grower & VFF nominee (Council President)
• Mr Tim Todhunter, Group Manager - Corporate Services, JGL Investments P/L (immediate past-President of Textile Fashion Industries of Australia)
• Mr Trevor Dawson, Managing Director, Rocklea Spinning Mills
• Mr Bruce Watson, Finance Director, Hilton Hosiery
• Mr Graham Burgen, Director, Oxford Chemicals
• Hon Bill Hartigan, Member of Parliament, Geelong Province
• Mr Michael Catlow, Business Manager - Textiles, Opie & Gough P/L
• Ms Janine Kirk, Executive Director, Committee for Melbourne
• Mr Frank Kisvarda, General Manager, Sportsgirl/Sportscraft Group
• Ms Chris Cookson, Director & CEO, Melbourne Institute of Textiles
• Ms Undra Ndreu, Staff Member, Melbourne Institute of Textiles
• Ms Rosie Morris, Student Member, Melbourne Institute of Textiles.

The Institute works closely with the TexSkill Board on the delivery of textile courses. Current membership of that Board is:

• Mr John Trimble, Australian Country Spinners
• Mr John Lewis, Macquarie Textile Group
• Mr Bob Galmes, Bonds Spinning Mills
• Mr Trevor Dawson, Rocklea Spinning Mills
• Mr Roger Hayhurst, Norton Corporate Services
• Mr John Blood, Consultant
• Mr John Van Doldren
• Mr Michael Oakley, Victoria Carpets
• Mr Eddie Gul
• Mr Michael Catlow, Opie & Gough (observer)

A range of industry associations (eg the Drycleaning Institute of Australia) and industry committees/forums assist Council in directing their specific training requirements. They also assist on Council Committees such as Finance and Facilities, HRM, Marketing, and Audit.

The Institute advertises Council and Committee vacancies in the Australasian Textiles & Fashion Journal, and consults the TFIA regarding vacancies.

1.6 Strategic Directions

For the period 1998-2000 a new set of Strategic Directions have been drafted and are in the final stages of discussion and approval. They focus the efforts of the Institute on:

1. The training/learning needs of clients

• Improve the quality and relevance of programs required by industry (as it continues to adjust to international competition and ongoing restructuring.);
• Improve the delivery of programs required industry;
• Provide seamless delivery of programs from schools to university;
• Meet the education and training demands of people seeking skills, knowledge and career opportunities in TCF industries.

2. Internationalisation

• Strengthen links with overseas education and training organisations.
• Expand international education and training services

3. Financial Security

• Improve the Institute's financial and commercial performance.

4. Developing the Institute and its staff

• Increase staff productivity and accountability
• Maximise the use of physical/capital resources
• Realise the potential of information technologies
• Assertively market Institute programs locally, nationally and internationally

The Institute is working with industry to maximise the benefits of it work with TexSkill Ltd., and the proposal for the Australian Fibre and Textiles Education Centre.

The Institute is committed to fostering a culture of highly skilled and involved staff. Staff are required to participate in programs and develop their skills to the changing needs of the Institute's customers. The broad strategic directions for staff development in 1997 were:

• customer service;
• computer and information technology;
• key issues impacting on the Fibre and TCF industries, and the Vocational Education and Training system;
• return to industry placements, benchmarking visits;
• flexible delivery;
• self-management and team skills;
• financial delegations and skills.

2. Key reports

2.1 The Prime Minister's proposal for a national centre of excellence for training in TCF.

One of the key elements of the Federal Government's positive assistance package for TCF industries is the proposal for the development of a national centre of excellence for TCF training. Funding of $10 million has been identified for this task. The need for greater commitment to and delivery of training in TCF industries was highlighted in the Industry Commission's Final Report on its Inquiry into TCF and in the Federal Government's response to that report (see Chapter 3). The Melbourne Institute of Textiles is already a centre of excellence in TCF training, capable of delivering its programs around Australia. Council believes it provides the foundation to deliver the vision outlined by the Federal Government.

2.2 The Proposal for an Australian Fibre & Textile Education Centre (AFTEC)

M.I.Text. Director, Chris Cookson, was a member of the Victorian Premier's Task Force which developed the proposal for AFTEC. The vision provided for a manufacturing facility (wool textiles) at Geelong (location to be determined) and the manufacturing facility at M.I.Text. Brunswick to be expanded in cotton and non-woven. There was strong support for new curriculum, for integrated approaches between TAFE and higher education, and for industry to be in the driving seat.

Current developments include:

• the May purchase by Minister Honeywood of the Ilkley (UK) wool textile plant, for relocation to Geelong and Brunswick.
• the announcement of an interim AFTEC Board;
• the commissioning of a business plan and national workshops;
• the commissioning of a report to complete the cotton, non-woven, dyeing and finishing lines at Brunswick, to be operative by mid 1998.

These developments have involved both the State and Federal Governments.

2.3 Review into Metropolitan TAFEs

The Victorian Minister for Tertiary Education and Training, Mr Phil Honeywood, has instigated a Review of Melbourne's metropolitan TAFE Institutes (known as the Ramler Review). An options paper issued by the Review has recommended M.I.Text. be combined with RMIT University.

The Institute has developed submissions and established a set of principles governing its consideration of any proposals about its future:

• any changes must strengthen, not weaken, industry involvement;
• the industry-specialist focus should not be dissipated;
• the coverage from "soil to sale" is important for the TCF industries;
• there is value in close relationships with a university (or universities) with strengths in manufacturing, design, engineering, science, business and management, and flexible delivery;
• the name "Melbourne Institute of Textiles" is a successful brand name. Its value should be recognised and protected.

The Institute's preferred position is to remain a stand-alone industry specialist TAFE Institute, working in partnership with other providers to delivery high quality and relevant training for the TCF 'Pipeline' (from soil to sale).

3. Strategic Alliances

3.1 TexSkill Ltd

TexSkill Ltd is a registered private provider, located at the Brunswick Campus of M.I.Text. TexSkill is a public company limited by guarantee, operating under the direction of a Board of Directors. There is cross-membership between the Institute Council and the TexSkill Board.

TexSkill Ltd and Melbourne Institute of Textiles have worked closely together to ensure streamlined, integrated approaches to the delivery of training which avoid duplication and waste.

The form of any future relationship between the two is now being negotiated in the light of competition policy.

The two organisations enjoy a range of alliances with TAFE Institutes in regional locations of the TCF industries. This regional network provides a co-operative approach to the needs of the local TCF companies.

3.2 RMIT University

In 1995, the Institute and RMIT entered into an agreement to jointly develop and deliver a textile technology degree, building on the TAFE diploma. The integrated diploma and degree program is being offered for the first time this year. This agreement involves the sharing of resources.

The two parties are exploring further co-operation in the textile design area, and in off-shore delivery.

A site agreement is in place in respect of the shared campus in Brunswick. This covers library, student services, cleaning, security, cafeteria, reception and room bookings.

3.3 Wool and Rural Industries Skill Training Centre (WRIST) Hamilton

M.I.Text. works with WRIST Centre in Hamilton to maximise use of resources and to better meet the needs of the wool and wool processing industries.

3.4 Co-operative Research Centres (CRCs)

The Institute maintains good relationships and undertakes occasional projects with the CRC - Composite Structures, and the CRC - Quality Premium Wool (which is relocating to the Institute's Brunswick Campus in July 1997).

3.5 Schools

The Institute is implementing a major strategy to strengthen information and support to, and co-operation with Victorian Schools.

This involves presentation and displays to schools, school group visits and open weeks.

In addition, the Institute has alliances with a number of overseas schools to act as "feeders" to Institute courses.

3.6 Community Agencies

The Moreland University of the 3rd Age is located at the Institute's Brunswick Campus. Local community and adult education organisations make use of the Institute's facilities as needed.

3.7 International Alliances

Alliances are maintained across the world, to underpin commercial activities and to foster the internationalisation of the Institute. Example of these alliances include:

• Ministry of Industry and its network of eleven TCF Colleges, Vietnam;
• Malaysian Apparel & Textiles Association's Training Centre (MATAC);
• Pearl Fashion Academy (Delhi);
• Fashion Institute of Technology (New York);
• New York School of Drycleaning
• Shandong College of Textiles (China);
• China Textile University;
• National Institute of Fashion Technology (India);
• Beijing Leather Industry School;
• Scottish College of Textiles;
• North Carolina State University College of Textiles;
• Leeds University Faculty of Textiles;
• Wool Research Organisation of New Zealand (WRONZ);
• Bandung Institute of Textiles (Indonesia).

The Institute expects to sign a memorandum of understanding with Leeds University in November this year which will strengthen the relationship between the two organisations and enhance the delivery of textiles education in Australia.

4. Performance

4.1 Funded Operating Surplus

The Institute's funded operating result in 1994/1995 and 1996 was superior to the average TAFE system returns on income and equity.

The OTFE Draft Report of the 1996 TAFE Institutes Key Performance Indicators described this as "more than satisfactory".

4.2 Working Capital

The working capital position of the Institute has continued to strengthen. Our position surpasses that of the system as a whole.

1996 Working Capital (Ration & $)

M.I.Text. 2.73:1 $2,739,000

Group Average 2.66:1 $2,157,800

System Average 2.27:1 $3,455,240

4.3 Income Generation

In terms of generating other than government funds, the Institute performs well above its group average and slightly below the system's average.

4.4 Staff Profile and Productivity

According to a recent OTFE Report, "the Institute enjoys a lower proportion of permanent teaching staff than the average for its group and for the system. Its average for contract staff is higher. Given that higher proportions of casual and contract staff usually indicate an Institute with greater flexibility the situation must be considered satisfactory:.

"The Institute ranks in the top half in terms of output per teacher and per employee. The major factors impacting on these measures are usually teacher loads, class sizes and non-teaching staffing levels."

4.5 ISO Certification/Quality

The Institute has ISO Certification for the provision of curriculum development, educational and training services. The provision of natural fibre testing services as well as the preparation and supply of greasy wool to regional training service providers.

In addition, the Institute is committed to self-assessment processes utilising the Australian Quality Criteria, and is involved in benchmarking projects with TexSkill, Pearl Fashion Academy, and Nottingham Trent University's Department of Textiles.

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