Standing Committee on Employment, Education and Workplace Relations

Inquiry into the Role of Institutes of TAFE
Submissions

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Submission 81

AVCC SUBMISSION INTO THE INQUIRY INTO THE APPROPRIATE ROLES OF INSTITUTES OF TECHNICAL AND FURTHER EDUCATION

1. The appropriate roles of Institutes of Technical and Further Education

Technical and Further Education (TAFE) colleges are the primary providers of publicly funded vocational education and training. Training is also provided by community-based providers and private providers. In 1996 publicly funded vocational programs were delivered by:

• 106 public training institutions (with 1132 training provider locations);
• 514 community-based providers; and
• 397 private providers ( Estimate only derived from experimental data collection).

In 1996, of the 1,354,579 students reported as undertaking vocational programs, 82.5% study through TAFE providers, 15.3% through community-based providers, and 2.2% with private providers. In terms of hourly delivery, of the 285.04 million hours reported for vocational programs, 94.2% are associated with TAFE providers, 3.5% with community based providers and 2.3% with private providers.

The mechanisms by which providers receive public funding to deliver training are also diverse. There are three main funding sources:

• recurrent State and Territory allocations for vocational education and training provision, and growth funding from Australian National Training Authority;
• other specific-purpose State and Territory and Commonwealth allocations (eg Commonwealth labor market programs); and
• fee for service basis by individuals or organisations.

While States vary, there has generally been a shift from historical block funding of institutions to funding approaches which use a mix of mechanisms:

• profile funding - government "buys" a profile of activity (measured in student contact hours);
• user choice, where funding follows client choice - for apprenticeships and traineeships;
• a small element of performance funding;
• competitive tendering. As part of the Training Reform Agenda, providers in all States and Territories (TAFE, private and community-based) can tender on a competitive basis for a proportion of public funding to deliver VET training programs.

The contestability for public funding is consistent with the principles outlined in the National Commission of Audit. By 1998, all structured level training (apprenticeships, traineeships, MAATS) will operate on a "user choice" basis. Under the competitive tendering process, judgements about funding are made by the State Governments or devolved to the State training agencies. ANTA is responsible for allocating Commonwealth funds on a quarterly basis to the State and Territory training authorities.

TAFE is active in the delivery of business studies and preparatory studies. TAFE’s role in preparatory studies or second chance education offers opportunities for basic education, ESL, remedial maths, literacy and the like to over 350,000 students per year. This equity aspect of TAFE’s work is important and, apart from community education sector, it has few potential competitors. It has been through TAFE’s role in equity programs that many mature aged people, especially women, have been able to gain access to higher education.

The AVCC believes that TAFE should remain as a substantial provider of further and technical education in Australia and that funding should be ensured to enable it to meet its community service and equity obligations. TAFE awards are based on the acquisition of certain competencies required by a particular industry, thereby ensuring employers that certificated persons trained to standards defined by that industry. In a small economy, such as Australia’s, TAFE is able to conduct vocational training far more efficiently and at a greater cost effectiveness than would be the case if industry had to conduct the training itself. The industry driven training model is particularly appropriate for just-in-time learning where courses are required to achieve particular skills and knowledge. It reflects a vocationally focussed assignment which is more specific to applied and immediate training rather than university level training. This point is expanded on under the next term of reference.

2. The extent to which the roles of TAFE should overlap with universities

Perspective of the OECD external reviewers

The OECD recently reported that there are major benefits to be gained from closer working relations between universities and TAFE, more sharing of resources, and bridge building especially in course planning and delivery.

Cross Sectoral Activity

Growing cross sectoral activity is evident in the following:

• articulation of higher education and VET programs, including "double" or joint qualifications;
• recruitment of international students;
• collaboration between higher education and VET to improve access and participation in regional areas;
• cross sectoral delivery including parts of higher education programs delivered by VET institutions for higher education institutions and higher education institutions delivering VET type programs on their own behalf;
• the establishment of consortia in which higher education and VET institutions join to deliver a range of consultancy, education and training services to industries or enterprises.

Cross sectoral issues are a central focus of a discussion paper recently released by Peter Baldwin MP, Shadow Minister for Finance. He argues that the modern labour market is seeking a mix of generic and vocationally oriented skills. The modern labour market is more complex, people can expect to have more frequent career changes, there will be a decline in demand for the least well-qualified, life-long learning and continual upgrading of skills is a reality. Martin comments in a recent EIP report that to cater for the demands of life-long learning, universities will inevitably seek partnerships to fulfil their mandates most effectively. The development of new institutional forms seem likely. Hybrid institutional forms which blend elements of public and private education are probable: as are partnerships with industry and the professions whereby university and TAFE programs are offered in the workplace in conjunction with the employer or through the relevant professional education programs.

Benefits of Cross Sectoral Activity

The benefits of interaction between TAFE and universities include:

• diminution or eradication of the need to cover subject content in higher education already learned in VET;
• savings in time and cost in formal study for the student;
• "second chance" opportunities to gain university qualifications, especially for mature-aged students;
• the ability to market joint programs overseas; and
• working together in areas where there is commonality or complementarity of objectives, universities and TAFE can assist each other in meeting their own objectives more effectively and in serving the community better.

A particularly valuable development has been the creation of awards which blend units taught by both universities and TAFE:

• elements are offered in a way which is distinctive to the particular sector: a wider cultural context and reflective approach with more theoretical components being taught by university staff with the relevant scholarship and research experience, while more skills acquisition components are taught at TAFE where the necessary technical equipment and applied facilities may be more readily available;
• examples of the combined approach include requirement for specific technical skills:-
• use of lathes, milling and other machines and welding to be taken in TAFE as part of university engineering courses;
• TAFE wool classing is an accepted component of some agricultural degrees; and
• accounting and human resource management in TAFE may be blended with university arts degree;
• Ramsey comments that TAFE trained computer graduates who combine computing with an arts or a science degree, will be more attractive to employers. A similar case can be made for business studies and laboratory technology.

Blurring of the boundaries

While the boundaries may be blurring, the distinctive missions or heartland of each sector remain. Cooperation comes at the intersects. Because some universities are closer to TAFE than others, there is validity in distinguishing between universities (some will be better suited to a TAFE interface than others) and between TAFE institutions (some will be more in tune to working with a university than others). An institution by institution approach is needed and in some cases a discipline by discipline approach is needed.

Universities:

• discover, preserve, refine, apply and disseminate knowledge;
• have a commitment to free enquiry and accept the role as critic and conscience of society;
• are primarily concerned with more advanced learning, the principal aim being to develop intellectual independence;
• aim to develop a set of cognitive and social capacities which support active participation as a citizen and a professional;
• have staff whose active engagement in scholarship, research or both ensures students learn from those at the front edge of knowledge whether theoretical or applied. Advanced scholarly teaching is enriched through contact with an active research culture;
• have the principal national responsibility for training researchers;
• prepare graduates for a range of economic and social roles by developing an understanding of their society and a capacity for lifelong learning;
• provide a distinctive and creative edge in awarding degrees which are recognised nationally and internationally; and
• aim to meet international standards of teaching, research and scholarship.

TAFE programs:

• place more emphasis on achieving certain defined levels of competencies required by industry and other employers;
• integrate institutional and work-based learning; and
• involve the establishment and endorsement of skills standards which are identified as being among the defining characteristics of the VET sector including TAFE.

In a truly diverse system, institutions should seek to cooperate, collaborate as well as compete. Cooperation on curriculums and subjects is consistent with OECD report and will position the post-compulsory sector to compete for the increasingly contestable pools of funding both nationally and internationally.

Articulation

TAFE graduates who have become interested in what lies behind the "how to" or who wish to develop more theoretical ways of understanding and analysing the subject matter may want to undertake university study. On the other hand, there is also a clear trend of university graduates moving from university to TAFE after graduation to gain end on "know how".

Some universities are in the process of developing a number of articulation arrangements with both TAFE and private providers for the early year or years of degree programs to be offered on contract. This is a different arrangement to the long-standing articulation provisions, whereby certain TAFE awards provided advanced standing into degree programs. The newer development is for the early year or years of the university syllabus to be taught outside the university by either a TAFE institute or a private provider.

The AVCC is undertaking work to improve credit accumulation and transfer to enable easier movement between TAFE and universities. National TAFE-university credit transfer schemes, originally piloted 1993-96, have now been mainstreamed in the following fields of study: Business Studies; Computing Studies; Engineering; Tourism & Hospitality; Library & Information Studies; Building & Construction Management; Teacher Education (Early Childhood Education); Agriculture, Horticulture & Agri-industries; Social Work/Social Welfare; Surveying/Geomatics; Geology/Geoscience.

Qualifications

The Australian Qualifications Framework identifies two levels of awards as being shared by TAFE and universities namely the Diploma and Advanced Diploma. In 1996 universities enrolled 3646 students in Advanced Diplomas (AQF)/Diploma (Pre-AQF) and 10354 in Diplomas (AQF)/Associate Diplomas (Pre-AQF). Enrolments in VET (the bulk of which is TAFE) for 1996 are 28,425 students in Advanced Diplomas and 73,170 in Diplomas. The AVCC sees no reason why both sectors should not continue to be regarded as appropriate locations for these two levels of awards. Each sector will market its own individual strengths and compete on the national scene for students.

TAFE is not permitted to offer Bachelor Degrees under the Australian Qualifications Framework. The AVCC agrees that it is not appropriate for TAFE to offer Bachelor Degrees.

Conclusion

Collaborative activity between universities and TAFE should be allowed to flourish in its own way without pressure from Government. The challenge for public policy lies in finding suitable administrative and funding arrangements which will allow for a diversity of responses from both within universities and within TAFE to provide the flexibility needed to stimulate life-long learning and develop a highly skilled workforce.

28 November, 1997

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