Standing Committee on Employment, Education 
        and Workplace Relations 
      
      This document has been scanned from the original printed submission. 
        It may contain some errors 
      
Submission 87
      The Victorian Employers' Chamber of Commerce and Industry
        PO Box 21
        Hawthorn VIC 3122
        Robyn Helms
        Principal Adviser
        Training and Education
      INQUIRY INTO THE APPROPRIATE ROLES OF INSTITUTES OF TECHNICAL AND
      FURTHER EDUCATION
      1. INTRODUCTION
      The Victorian Employers' Chamber of Commerce and Industry 
        (VECCI) was formed in 1991 as a result of a merger between the former 
        Victorian Employers' Federation, and the State Chamber of Commerce and 
        Industry. It is Victoria's leading business Organisation with 7500 members.
      VECCI draws its membership from almost every sector 
        of industry and commerce including manufacturing, retail, tourism, leisure 
        and hospitality, health, business services, local government, building 
        and construction, road transport and related industries, and the trade 
        sector. The bulk of its members are in the small business sector.
      Membership is in the form of direct corporate membership, 
        or through industry groups of associations. In addition to corporate membership, 
        more than 20 affiliated groups and associations through which many thousands 
        of individual businesses are represented, draw service support from VECCI.
      In addition to its 7500 members VECCI works closely with 
        most other employer associations in Australia. Through its membership 
        of the Australian Chamber of Commerce and Industry (ACCI), VECCI has also 
        established links with State Chambers' of Commerce and Industry in all 
        other States and Territories, and nationally, with an extensive network 
        of local Chambers' of Commerce and Industry.
      VECCI works pro-actively with governments and government agencies at 
        both the State and National level, to ensure the demands and expectations 
        of business are taken into account in the development and delivery of 
        training.
      2. VECCI AND THE INSTITUTES OF TECHNICAL AND FURTHER EDUCATION (TAFE)
      VECCI has been a key player in the development of the 
        Victorian training system, and contributed significantly of issues associated 
        with the development of vocational training. This influence covers such 
        areas as legislation changes, industrial relations, regulations, industry 
        advisory arrangements, training delivery, accreditation, and strategic 
        planning.
      VECCI, along with a large number of employer and industry 
        associations , has a very close involvement in the governance and delivery 
        of training across the state. For example, VECCI's Chief Executive Officer, 
        Mr David Edwards, is Deputy Chair of the State Training Board, and industry 
        organisations, as well as enterprise based industry representatives, are 
        members of TAFE Institute Councils and state and national Industry Training 
        Advisory Boards.
      The Victorian TAFE system is a largely autonomous one 
        with Institutes having a high degree of responsibility for their operation, 
        with their annual program profile and recurrent funding arrangements negotiated 
        with the state training authority. Victorian TAFE Institutes also have 
        a high degree of flexibility to generate fee for service activity locally, 
        nationally and internationally.
      Institute Councils have a substantial level of industry representation 
        which facilitates the Institutes ability to respond effectively to industry 
        and enterprise demands for specific training products and services.
      These arrangements promote a high level of employer satisfaction 
        which is critical to the on-going success of TAFE. Therefore, the structural 
        arrangements which determine the governance of TAFE in Australia would 
        benefit from a decentralised model which includes strong industry involvement 
        in the governance of the Institutes at the local level as is the case 
        in Victoria.
      3. SUBMISSION
      VECCI is of the view that that the key role for TAFE 
        Institutes should be the design and delivery of high quality, cost effective, 
        efficient and responsive training for industry. To support this view VECCI 
        wishes to present a series of principles it considers should be taken 
        into account when determining the appropriate roles of Institutes of TAFE 
        nationally.
      PRINCIPLE I
      The focus of Institutes of TAFE should be determined by a high level 
        of industry involvement and be responsive to industry needs.
         
      
          
        - that the focus of training be on the development of skills for industry;
- that a high level of industry involvement eg. in Institute Councils, 
          etc., be established, promoted and maintained;
- that individual Institutes be managed along autonomous lines, rather 
          than governed by a central bureaucracy;
PRINCIPLE 2
      The structural arrangements for TAFE must ensure the development and 
        maintenance of a quality, flexible, responsive, client focussed, and cost 
        effective training.
         
      
          
        - the goal should be to improve the quality and delivery of training;
- industry specific training should be located in the geographic areas 
          of identified need;
- efficiency in training delivery must be achieved with maximum usage 
          of all available facilities and resources;
- employment arrangements for teachers/trainers must be flexible to 
          respond effectively to the changing demands of business/industry;
- TAFE Institutes need the flexibility to respond to employer requirements 
          with the introduction of the user-choice concept, and will need to adopt 
          a more client focus orientation to the planning and delivery of training;
- effective and efficient arrangements between TAFE Institutes and schools 
          must be established to facilitate quality vocational education opportunities 
          for senior secondary students.
      
PRINCIPLE 3
      Linkages with universities must not prohibit Institutes of TAFE from 
        operating effectively in the open training market, locally, nationally, 
        or internationally.
      the formal merging of Institutes of TAFE with Universities could potentially 
        inhibit the capacity of TAFE to respond to industry need and to national 
        and international opportunities;a more informal approach is preferred 
        whereby affiliations are established, which maximise the strengths of 
        the various partners for specific purposes; TAFE Institutes are becoming 
        increasingly recognised as world class providers of training to a range 
        of client groups. As universities do not share this recognition, and are 
        not perceived as having a niche' in this market, there is a real risk 
        that clients will turn away from University TAFE, and use private providers 
        to meet their training need; mergers between Institutes of TAFE and Universities 
        must be able to demonstrate the benefits to both students and industry.
      PRINCIPLE 4
      The status of TAFE training within the general community as well as 
        the business community must be raised as an outcome of any inquiry process.
         
      
          
        - the marketing of TAFE studies as a high quality option for young people 
          as a pathway to a future career requires the status of TAFE within the 
          community to be raised considerably;
- there is the potential for TAFE studies to assume a second rate status 
          if TAFE is absorbed by Universities, whose focus is clearly on academic 
          programs;
- there is a perception within the business community that if TAFE activity 
          is to become the responsibility of Universities, industry will have 
          a reduced capacity to influence training development and delivery.
4. CONCLUSION
      The future focus for Institutes of TAFE should be on 
        developing excellence in vocational education and training. The goal should 
        be to improve the quality and delivery of training which effectively meets 
        the needs of the client, but with a focus on achieving the optimal use 
        of available facilities and resources.
      VECCI believes that strong autonomous TAFE Institutes (such as those 
        that currently exist in Victoria) represent the most appropriate arrangement 
        for ensuring the delivery of high quality, efficient and customer focussed 
        training.
      
      
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