Standing Committee on Employment, Education 
        and Workplace Relations 
      
      This document has been scanned from the original printed submission. 
        It may contain some errors. 
       Submission 98
      House of Representatives Standing Committee on Employment Education 
        and Training
      Inquiry into the Appropriate Role of Institutes of Technical and Further 
        Education
      EXECUTIVE SUMMARY
      
1	INTRODUCTION
      
  2	TERM OF REFERENCE 1: THE APPROPRIATE ROLES OF INSTITUTES OF 
        TECHNICAL AND FURTHER EDUCATION
      The structural arrangements through which TAFE NSW fulfils its roles
        
        
System-wide services supporting the roles of the TAFE institutes
        Key issues in the current role of TAFE and its institutes
        
        Changes in the TAFE vocational education profile
          
          
Further education in TAFE
          General education in TAFE
          Commercial activities in TAFE
          Training for employment
          Efficiency and funding
          TAFE NSW and the training market
          TAFE and vocational education in schools
          TAFE regional co-operation with other providers
        
        
        
The future role of TAFE Institutes
        
        Meeting the needs of industry in a changing world
          
          
Customer satisfaction with TAFE institutes
        
      
      3	TERM OF REFERENCE 2: THE EXTENT TO WHICH THOSE ROLES SHOULD OVERLAP 
        WITH UNIVERSITIES	
       The interface between the sectors
        
        
Co-operative arrangements
        
        Sharing resources
          
          
Research
        
        
The benefits of strategic co-operation
        Pathways
        
        Recognition and credit transfer
          
          
The Australian Qualifications Framework and TAFE delivery of higher 
            education 
          
University admissions criteria
        
      
      4	CONCLUSION 
      
      5	ATTACHMENT A - The New South Wales Marketing Commitment 
      
 EXECUTIVE SUMMARY
      
New South Wales is committed to playing a major role in ensuring that 
        all Australians have fair and equitable access to training programs of 
        the highest quality, to create not only their own future but that of the 
        nation. We are working in partnership with industry to ensure the training 
        system is relevant, flexible and innovative, to position NSW at the leading 
        edge of social and economic development.
      To that end, we are promoting the growth of a vigorous training market, 
        in which the demands of industry, employers and individuals are fully 
        satisfied. Training organisations are working actively with their clients 
        to ensure the skill needs of industry are met. We are at the forefront 
        of implementation of the National Training Framework, as participants 
        in a national training market not limited by State and Territory boundaries.
      The maintenance of a strong public provision in vocational education 
        and training is regarded by the NSW Government as vital to the growth 
        and vigour of this market. It is also vital to achieving NSW regional 
        development priorities by assuring support for economic development in 
        the State, fostering the growth of vocational skills and knowledge in 
        the community and meeting community service obligations. 
      TAFE NSW institutes deliver quality, customer focused vocational education 
        and training services, that are both efficient and responsive to regional 
        development needs. This is achieved in an environment of strategic co-operation 
        with the University and school sectors. 
      The focus for discussion of the role of TAFE NSW institutes is therefore 
        provided by the imperatives of national vocational education and training 
        policy, specifically
      
        - responsiveness to industry and customer needs
          
         
- the need for growth in training
      
and the key elements of vocational education and training policy which 
        are particular to New South Wales: 
      
        - a commitment to strengthening and maintaining public provision of 
          vocational education and training 
        
- the achievement of effective resource management to improve education 
          and training outcomes 
        
- social justice 
        
- strategic co-operation and productive competition 
        
- educational quality 
        
- ensuring that vocational education and training supports the needs 
          of the State's distinctive regions.
          
           The future of TAFE institutes in NSW is envisaged as quasi-independent 
            institutes, carrying a specified level of delegation and accountable 
            for performing against clearly specified outcomes, and competing vigorously 
            with other providers in the training market. Shared curriculum development 
            and curriculum resources will guarantee consistency of quality across 
            the State, thus assuring the integrity and standard of the TAFE testamurs 
            each institute will award. This submission responds to the first term of reference on the role 
            of TAFE by exploring a number of issues that are relevant to any consideration 
            of the appropriateness of the current TAFE role. These include far 
            reaching changes in the workplace, the development of new industries, 
            the strengthening of vocational education in the schools, the operation 
            of TAFE in a competitive environment, regional issues such as cross 
            border cooperation and the continuing responsibility of TAFE to meet 
            some non vocational community educational needs. It concludes that there will continue to be an important role for 
            TAFE as we move into a period of strongly expanding demand for vocational 
            education and training driven by the knowledge economy, changing technology, 
            the link between education and training and income and the increasing 
            outsourcing by firms of their training.  The precise role that TAFE will play in this era will be determined 
            by strategic and commercial decisions driven by developments in the 
            economy, continuing change in the workplace and a variety of other 
            factors including changes in public policy.  In making decisions in this environment, TAFE will continue to be 
            guided by government commitments to community service obligations, 
            including the continuing provision of opportunities for those members 
            of the community who are at risk; particularly, those at risk through 
            their lack of a sound general education or the lack of the specific 
            knowledge and skills that will make them employable.  In this new era, TAFE flexibility and responsiveness will be more 
            important than ever, as will TAFE efficiency; however, responsiveness 
            and efficiency while necessary will not be sufficient. TAFE will need 
            quality curricula and quality teaching if it is to satisfy the aspirations 
            of the community and maintain its leadership in vocational education 
            and training. There are important questions about the relationship between TAFE 
            and higher education, as set out in the Inquiry's second term of reference. 
            This has been given added relevance by the release of the final report 
            of the Review of Higher Education Financing and Policy, chaired by 
            Roderick West. The NSW submission to the "West Review" discussion paper 
            "Learning for Life" stated that NSW believes there is merit 
            in TAFE NSW, through its network of institutes exploring the provision 
            of innovative awards, which may include appropriate degrees either 
            in conjunction with Universities or separately. This important issue 
            is currently being examined within the NSW education and training 
            portfolio. The submission cites a range of examples of excellent cooperation, 
            between NSW TAFE and the Universities of this state in the sharing 
            of resources. Such arrangements give the community a wider access 
            to programs than would otherwise be possible; in addition, the community 
            benefits from the savings that flow from these agreements. The current selection policies and processes of Universities disadvantage 
            TAFE graduates. The need for further improvements in credit transfer 
            is raised also as another factor in the easier movement of TAFE graduates 
            into Universities. TAFE will need to adjust its offerings to take more account of the 
            increasing number of University graduates entering its programs, so 
            that these students gain the maximum credit for the skills and knowledge 
            they bring with them. Within the context of the terms of reference of the Committee, this 
            submission raises questions about the national policy framework for 
            vocational education and training, that could affect the ways in which 
            TAFE can fulfill its role. The decision of the Commonwealth Government in 1997 not to fund further 
            expansion of the vocational education and training system is raised 
            in the submission as it will inhibit the capacity of TAFE and private 
            providers to respond to the vocational education and training needs 
            of an increasingly sophisticated New South Wales economy; in particular, 
            at a time when this state is increasingly emerging as the preferred 
            regional centre for new areas of industry and commerce.  There is a brief explanation, in the submission, of the recent changes 
            to the management of education in New South Wales, changes that the 
            Government has introduced in order to strengthen co-operation among 
            the sectors and to increase efficiency. It is believed that these 
            changes will provide a powerful stimulus for further improvements 
            in New South Wales TAFE. 1	INTRODUCTION 
           New South Wales welcomes this inquiry. It notes that the inquiry 
            is timely, given the recent review of higher education. It notes also 
            that this is the first national review of the role of TAFE since the 
            Kangan Inquiry of 1973. Since its inception as a formal system in 1889, the TAFE system in 
            New South Wales has played a significant role in the welfare and prosperity 
            of this state. It has succeeded in this, not by standing still but 
            by growing and developing in response to the changes in the community 
            and in industry.  Since Kangan, not only has TAFE grown substantially but also it has 
            undergone major changes in its funding, organisational structures, 
            educational policies and educational programs. These changes have 
            come about through the implementation of national reforms in vocational 
            education and training, continuing reforms in public sector management 
            and TAFE's responses to the changing needs of the community and industry. Inquiries into TAFE have occurred regularly at the state level over 
            the more than 100 years of its history. Most of these inquiries have 
            wrestled with the questions of determining an appropriate role for 
            TAFE and developing an approach to vocational curriculum that would 
            meet the needs of a changing workplace and industry development.  In responding to the terms of reference of the Inquiry, this submission 
            will provide a perspective on these and other issues in the light 
            of the demands that will be placed on public vocational education 
            as we move beyond this century. 2	TERM OF REFERENCE 1: THE APPROPRIATE ROLES OF INSTITUTES 
            OF TECHNICAL AND FURTHER EDUCATION 
           2.1	The structural arrangements through which TAFE NSW fulfils 
            its roles 
           The role of TAFE NSW and its structures have been subject to two 
            reviews during the term of the present Government. The 1995 review 
            included an examination of the levels of authority and autonomy of 
            institutes and their functional relationships to TAFE's corporate 
            services area. This review involved the development of models, consultation 
            with stakeholders within the New South Wales vocational education 
            and training sector and the consideration of approaches to managing 
            the delivery of publicly funded vocational education and training 
            in other states and territories. The decision taken as a consequence of this review was for institutes 
            to have a high level of delegated authority with system coherence 
            in order to achieve economies of scale on the one hand and responsiveness 
            to local customers and regional development needs on the other.  In December 1997, the Government created the Department of Education 
            and Training, which brought school and vocational education and training 
            together under a single organisation. TAFE institutes retain their 
            high level of delegated authority, and TAFE system coherence is sustained 
            by state-wide policy frameworks and support services in such areas 
            as curriculum, equity and student services The integration of strategic and support services for all sectors 
            of education and training at the State Office level has reduced duplication, 
            increased efficiency and enhanced system coherence and student pathways 
            between the sectors.  The Minister for Education and Training is advised by the TAFE Commission 
            Board established under the Technical and Further Education Commission 
            Act, 1990. The function of the Board is to review and make recommendations 
            to the Minister on a range of policy and planning issues relating 
            to services, the efficiency and effectiveness of operations and management 
            of services, commercial activities and the relationship of TAFE with 
            other education sectors. Each TAFE institute in New South Wales is led by a Director, who 
            is supported by a senior management team. TAFE NSW institutes have 
            advisory councils drawn from industry and the community whose role 
            is to focus and enhance the planning and delivery of courses and services, 
            to ensure that they meet the requirements of their local industry, 
            students and communities.  The institutes operate in a co-operative framework in accordance 
            with state-wide policies and procedures.  2.2	System-wide services supporting the roles of the TAFE institutes 
            
           A range of state-wide services is provided to institute staff and 
            students to achieve more customer focused, responsive delivery. Some 
            of these services are aimed at helping students during their time 
            of study in TAFE, others are about ensuring consistent, high quality 
            courses and teaching programs to TAFE students in colleges, enterprises 
            or overseas locations. The state-wide services ensure economies of 
            scale in the application of resources. 2.3	Key issues in the current role of TAFE and its institutes 
            
           In 1997, 424,450 students enrolled in TAFE courses, compared with 
            about 1 million students in NSW schools and 198,000 in higher education. At a national level, TAFE NSW is the largest provider of workforce 
            training in Australia as well as a substantial provider of other educational 
            programs. Though the priorities for TAFE are set by the State, TAFE operates 
            within national policies and practices that flow from the implementation 
            of the ANTA Agreement to which all states are signatories. The TAFE system in NSW is also governed by a charter which requires 
            it to "provide technical, further, basic and pre-vocational education". 
            In responding to this charter, it must: 
            - meet the needs of individuals and the skill needs of the workforce 
              
            
- recognise the changing nature of the working environment and 
              the need for new skills and retraining
              
             
- provide programs that are relevant to the needs of industry, 
              business, students and other groups
              
             
- promote effective and efficient use of resources through co-operation 
              with other providers.
          
 
2.3.1	 Changes in the TAFE vocational education profile 
          
The responsiveness of the TAFE system to community demand for vocational 
            education opportunities is demonstrated by the growth in mixture of 
            its programs over its history and in the continuous introduction of 
            new courses into the TAFE portfolio. This in recent years has seen 
            in New South Wales the introduction of courses in areas such as aquaculture, 
            environmental practice in the building industry, multi media and telecommunications.
          Some of the more dramatic increases in enrolments in the period 1994 
            to 1997 have occurred in information technology, an increase of 18.5%; 
            personal and community services, an increase of 16.3%; arts and media, 
            an increase of 25.5%.
          The increase in student numbers in full fee courses has been dramatically 
            increasing by 136.6 % in the same period.
          This was not simply additional effort as can be seen in the decline 
            of a variety 
          of traditional vocational programs and in the reconfiguration of 
            the further education aspect of some TAFE activities eg. by repositioning 
            such programs as home fashion classes to be more aligned with industry 
            as garment production.
          2.3.2	Further education in TAFE 
          
In 1991 this part of TAFE's operations in NSW was transferred to 
            the Adult and Community Education sector which has taken over all 
            of the further education programs from TAFE. 
          2.3.3	General education in TAFE 
          
Though further education is no longer a priority, NSW TAFE has maintained 
            a strong presence in the delivery of general education for those seeking 
            "second chance" education through its Outreach and similar 
            provision. It has done so because of the great success of this program 
            over many years in providing the opportunity for a wide variety of 
            adults to renew their education and move into vocational courses enabling 
            them to re-establish themselves in employment.
          2.3.4	Commercial activities in TAFE 
          
An area in which TAFE institutes have clearly changed their role 
            over recent years is in their commercial activities. These have enabled 
            institutes to offer a range of tailor made programs and services that 
            could not be provided for within their resources. This has had the 
            benefit of opening up opportunities for TAFE staff to acquire up-to-date 
            knowledge of developments in industry and exposure to new production 
            processes, equipment and new products.
          The hundreds of full fee courses, paid consultancy services and materials 
            development programs demonstrate the willingness of individuals and 
            companies to pay for TAFE services even when there are alternative 
            suppliers.
          The provision of custom made programs designed to meet very specific 
            needs has resulted in different forms of delivery e.g. the delivery 
            by satellite of training for State Rail, the provision of training 
            by internet for the fire services and the provision of training on 
            the Olympic site. 
          This specialised training has been provided by individual institutes 
            for a range of customers as diverse as McDonalds, Kent Brewery, ICI, 
            Nortel, AMP, NRMA, Toyota, Alcatel, MM Cables, Coca Cola Amatil and 
            so on.
          TAFE NSW has won major national training contracts in competition 
            with other TAFE providers and with private providers. These include 
            programs for the armed services and for Telstra.
          Recently, in the face of fierce competition from the private sector 
            as well as the public sector, TAFE NSW gained the right of being the 
            official supplier of training services to employees and volunteers 
            of the 2000 Olympic Games.
          TAFE NSW has established itself in the overseas market with its success 
            in winning a variety of contracts in vocational education and training 
            in the Middle East, Asia, South-East Asia, the Pacific and Central 
            America. 
          These contracts have been won against competition from other Australian 
            providers and the Germans, British, Canadians and Americans; in addition, 
            to these programs, that require on site delivery, there has been a 
            steady growth in the number of overseas students enrolling in TAFE 
            institutes in New South Wales.
          2.3.5	Training for employment 
          
NSW recognises students as central to the business of vocational 
            education and training. Training is especially important for those 
            for who are seeking employment, and those who are employed but seek 
            part time places to learn new skills so that they can change their 
            jobs. These are the majority of TAFE students.
          Full time pre-employment programs do not produce graduates who are 
            instantly workplace competent. What has always been well understood 
            is that such graduates can within a reasonable time in the workplace 
            be brought up to workplace speed. These programs would provide an 
            important source of labour for employers and supplement on the job 
            training as well as providing opportunities for some young people 
            that otherwise would have difficulty gaining employment.
          The demand for full time programs over many years is clear evidence 
            of the public perception of these programs. The success, over many 
            years, of private and public providers placing graduates from such 
            programs into employment is evidence of the recognition by employers 
            of the effectiveness of this form of education. 
          2.3.6	Efficiency and funding 
          
A commitment to efficiency in the public sector is part of the policy 
            platform of the NSW Government. Through public sector reform and improved 
            management practice the Government has sought to increase both the 
            quality and quantum of services delivered through agencies such as 
            TAFE NSW. This process is ongoing.
          There are significant differences, however, between the State and 
            the Commonwealth on how the future development of an efficient vocational 
            education and training system is to be managed.
          In recent times, the Commonwealth has made significant funding reductions 
            in the sector nationally, through reductions to the Australian National 
            Training Authority, cuts to labour market programs, and the decision 
            to require States and Territories to fund further growth in the system 
            out of efficiencies. Such reductions obviously have significant implications 
            for TAFE institutes and are a source of concern to the State. 
          New South Wales considers that value for money and effectiveness 
            are at least as important a consideration as price in determining 
            efficiency. Further, training offered through both public and private 
            providers must be appropriate to the State's demographic and industry 
            profiles (which in New South Wales are both very diverse), its culture 
            and the cost structures of the State. 
          The notion that achieving extra efficiencies will automatically make 
            available resources to fund growth is questioned. While some growth 
            will be funded through the creation of efficiencies, there are areas 
            for growth which cannot be funded through efficiencies. 
          This may be because of the scale of the growth required as in the 
            need, for example, to provide institutionally based pathways to an 
            AQF qualification for young people out of work. It may also be because 
            of the magnitude of capital expenditure required to meet particular 
            industry needs, as in some new technology areas. In some cases operational 
            effectiveness will generate savings to the system by producing better 
            customer service; eg the placement by TAFE NSW of its course information 
            handbook on the internet.
          2.3.7	TAFE NSW and the training market 
          
On 20 May 1998, the NSW Minister for Education and Training announced 
            the NSW Training Market Commitment (see Attachment A). The commitment 
            describes the role NSW proposes to play in supporting a vocational 
            training market by meeting the needs of industry, employers and those 
            undertaking technical and further education. It springs from consultations 
            with stakeholders in vocational education and training and will fuel 
            TAFE NSW's services to the public, employers, apprentices, trainees 
            and the community.
          In brief, the commitment states that NSW will not be beaten on value, 
            relevance or quality of training; that we will meet, or better the 
            contestable market mechanisms which have been set up elsewhere; that 
            we will ensure training delivered in NSW is tailored to meet the needs 
            of the client and is designed to develop the skills that industry 
            needs; and that we will provide comprehensive, accurate and timely 
            information about training options to all clients.
          The principles of service quality and education and training for 
            all underpin the NSW efforts to be more effective, to deliver tangible 
            benefits and to provide a world class service to the consumers of 
            training.
          2.3.8 TAFE and vocational education in the schools 
          
There were 38,000 school students enrolled in accredited vocational 
            education courses in NSW in 1997, of whom 18,000 were being taught 
            by TAFE staff. TAFE has provided this service to the school system, 
            both government and non-government, since 1985.
          While much has been achieved, the current provision of vocational 
            education and training (VET) in schools is less than perfect. This 
            is the case in all States, not just NSW. There is criticism by industry 
            of the quality and experience of teachers and of the standard and 
            relevance of school facilities for vocational training. School courses 
            do not clearly link with the new regulation and training package regimes. 
            Few progress much beyond AQF Level 1. Drop out rates are high, and 
            in general those students who include vocational education in their 
            Higher School Certificates perform below the norm. Throughout Australia, 
            VET in schools has often been driven by well intentioned supply siders; 
            it has not been industry driven or had the resources to be particularly 
            market responsive.
          Further, there is Australia's long history, inherited from the UK, 
            of demarcation between education and training, with technical training 
            as a second class option. VET programs have low status for University 
            entrance requirement purposes. Few school teachers understand vocational 
            education and training or have a substantial commitment to it. General 
            education leading to University has been a potent vehicle for sustaining 
            the Australian dream of occupational and class mobility.
          The notion of two vocational destinies is supported by deep prejudices 
            and misconceptions conferring arbitrary and different values on the 
            ways human beings learn and understand.
          We believe there is no respectable case to be made in learning or 
            educational theory for separate general education and VET packages 
            at school level, nor are there other valid arguments for such a division. 
            Comprehensive education enhances both.
          The new NSW Department of Education and Training (DET), which provides 
            a single management structure for both schools and TAFE, now has the 
            opportunity to work across the board with TAFE, Group Training Companies, 
            employers, regions, schools, parents and communities to provide a 
            world class vocational education and training spring board for young 
            people across NSW.
          School and TAFE facilities, staff, curriculum resources and expertise 
            are now part of an integrated education and training agency. The potential 
            flexibility in administration and resource allocation, the concentration 
            of expertise and the streamlining of professional services and support 
            made possible by this single organisation have the capacity to greatly 
            improve outcomes for students and other clients, including industry. 
            There is an exciting opportunity for the introduction of industry 
            driven vocational education for all schools, if the various stakeholders 
            in education and training are courageous and far sighted enough to 
            grasp it.
          The New South Wales Government's white paper - Securing their 
            future: Recommendations for the Reform of the Higher School Certificate 
            - released in 1997, repositions vocational education and training 
            courses in the HSC. Completion of the HSC and the first year of a 
            traineeship is now probably within the reach of all.
          The reforms to the Higher School Certificate support the policy that 
            public provision of vocational education and training for NSW school 
            students is appropriate for all students in the Higher School 
            Certificate and should be accessible to all, including those who move 
            from secondary to higher education. It is not designed only for students 
            who are defined as 'non-academic'. The development of broader skills 
            is an integral part of vocational courses.
          The establishment of DET allows us to reposition government schools 
            and TAFE, in partnership, to have a central role in the vocational 
            education and training system in New South Wales, without compromising 
            general education in public schools. We will focus the Department's 
            infrastructure for vocational education and training (recognition; 
            programs; planning; funding) on establishing real pathways for students 
            in government schools, without preventing access to programs for non-government 
            schools and private providers where appropriate. We will phase out 
            both the current school delivered and Joint Secondary School TAFE 
            courses, and replace them with new programs drawn from appropriate 
            industry areas, based on AQF outcomes and training packages as available. 
            Drawing on an integrated properties portfolio and a single staffing 
            resource, we propose to provide access for students to specialist 
            vocational education and training expertise and facilities across 
            the state, including through the Open Training and Education Network 
            (OTEN).
          2.3.9	TAFE regional co-operation with other providers 
          
In the second part of this submission, there is a detailed discussion 
            of the co-operative arrangements between TAFE in New South Wales and 
            the Universities. 
          Apart from this co-operation, there are other situations in which 
            it is in the public interest that TAFE co-operate closely with other 
            educational providers. Two good examples of this are the State border 
            areas of Albury-Wodonga and Tweed Heads-Coolangatta.
          In 1994 ANTA funded a cross border planning project to examine the 
            needs for vocational education and training in the north east of Victoria 
            and the adjacent southern region of New South Wales.
          The subsequent report recommended that a memorandum of understanding 
            be created between the then Wangaratta Institute of TAFE, Wodonga 
            Institute of TAFE and the Albury campus of the Riverina Institute 
            of TAFE. Subsequently, Wangaratta declined to proceed with the negotiations.
          The agreement that covered the border operations of the other two 
            institutes was signed in 1996 by the two State ministers. It called 
            for co-operation between the two TAFE bodies in planning and delivery, 
            resource use and the tendering for contracts of training.
          This agreement has led to a wide range of co-operative activities 
            and resource sharing e.g. in promotion, staff exchanges, curriculum 
            and materials development, planning of physical resources and course 
            provision.
          As proof of its commitment to the spirit of the agreement, the NSW 
            government has placed no restrictions on interstate providers tendering 
            for NSW traineeship funding.
          Though there has been cross border movement of students between New 
            South Wales and Queensland for a long time, it was ANTA special funding 
            in 1994 that saw a more formal move towards cross border co-operation 
            in the Tweed Heads-Coolangatta.
          This led to a range of initiatives, including joint operations at 
            Coolangatta, joint staff development programs, joint curriculum development 
            and planning.
          As part of the co-operative arrangements, NSW has established relationships 
            with Griffith University to supplement those with Southern Cross and 
            New England.
          There will always be parochial tensions over cross border operations. 
            Despite these occasional flurries, New South Wales is convinced that 
            with goodwill the interests of the communities on both sides of any 
            border can be advanced through sensible co-operation.
          2.4	The future role of TAFE institutes 
          
It is envisaged that the eleven NSW TAFE institutes (excluding OTEN) 
            would each become a Quality Endorsed Training Organisation under the 
            Australian Recognition Framework. They would carry a level of delegated 
            responsibilities and would be accountable for clearly specified performance 
            outcomes to be reported on annually.
          Over their long history, TAFE institutes have been the most accessible 
            and most flexible of the education and training providers. They have 
            played a critical role in anticipating and responding to a broad range 
            of industry and community needs, with quality assured educational 
            programs ranging from basic vocational and general education skills 
            to higher education programs for technician, managerial and professional 
            level employment. 
          In their envisaged future role as Quality Endorsed Training Organisations, 
            the institutes would function in an environment of collaborative independence. 
            They would share in the co-operative development of curriculum and 
            curriculum materials through the Educational Services Divisions, thus 
            ensuring maintenance of the consistent high quality of curriculum 
            and curriculum support across institutes which has played such an 
            important part in TAFE's success. They would also market themselves 
            under the TAFE brand and logo and offer awards in the form of TAFE 
            testamurs.
          2.4.1	Meeting the needs of industry in a changing world 
          
The development of industry competency standards is a great step 
            forward for those providing vocational education and training. Despite 
            this positive development, there still remain problems in determining 
            and verifying the standards that are appropriate to today's industry 
            practice. An issue that remains is how appropriate these standards 
            will be in meeting the emerging needs of a particular industry. 
          A related issue is the training problem that arises for emerging 
            industries when they find that public training resources are not available 
            to them as readily as they would want. This problem is a significant 
            cause of the negative remarks that are heard from industry about TAFE's 
            lack of responsiveness.
          In recent times, TAFE has tried a variety of approaches to respond 
            to these problems. As an example, New South Wales, with Commonwealth 
            support, has made an innovative attempt to respond to training needs 
            in the rapidly developing and expanding telecommunications industry.
          This has led to the development on a TAFE campus of the Optus Communications 
            Training Centre. The presence of the Centre on a TAFE campus makes 
            available to TAFE teachers and students $14 million of state of the 
            art equipment as well as the expertise of Optus staff. Optus benefits 
            from having the college facilities and services available to its trainees.
          The increasing training presence of TAFE staff in workplaces is a 
            further sign of the attempts by TAFE to come to grips with emerging 
            technologies and their skill requirements.
          2.4.2	Customer satisfaction with TAFE institutes 
          
This evidence emerges through the national studies of student satisfaction 
            on the one hand and employer satisfaction on the other. Both of these 
            present a very positive view of TAFE. They support the results of 
            similar studies that have been carried out over the years that have 
            concentrated on TAFE within the boundaries of the state concerned.
          A recent development in such studies has been the use of independent 
            consultants to produce results that can be bench-marked nationally 
            by institute. A number of independent studies have been carried out 
            by Service Management of Australia and have looked at a range of institutes 
            in TAFE NSW.
          The overall rating achieved by Western Institute of TAFE NSW was 
            95.4% with New England Institute of TAFE achieving a rating of 94.5% 
            satisfaction by students. Other institutes which have been surveyed 
            and achieved high ratings are South Western Sydney with 87.1%, OTEN 
            with 74% and Northern Sydney Institute which has raised its satisfaction 
            index over the 1995 to 1997 period.
          Both the New England and South Western Sydney Institutes of TAFE 
            recorded high level of satisfaction by business clients - 85.2% and 
            79.6% respectively.
          The overall ratings received by these institutes are the highest 
            rating obtained among the twenty-six institutes in which the survey 
            has been conducted. Perhaps of even more interest is the fact that 
            the institutes were rated by their students as the best service provider 
            when asked to choose among TAFE, banks, fast food providers, supermarkets, 
            high schools and Universities.
          The most important point to emerge from these studies is the consistent 
            high regard in which TAFE students across Australia hold the education 
            they receive at TAFE and the staff and institutions that deliver it. 
            The profiles of the students e.g. their maturity and employment, add 
            force to the value of these results.
          3 	TERM OF REFERENCE 2	:THE EXTENT TO WHICH THOSE 
            ROLES SHOULD OVERLAP WITH UNIVERSITIES 
          
3.1	The interface between the sectors 
          
The relationship between the higher education and vocational education 
            and training sectors in New South Wales has been strategic and dynamic. 
            It has historical links given that both the University of New South 
            Wales and the University of Technology, Sydney grew out of the technical 
            education system.
          Not only did technical education in New South Wales give birth to 
            these Universities; the technical education system provided professional 
            level vocational education for major sections of Australian commerce 
            and industry up until the creation of the Colleges of Advanced Education. 
            In some fields, such as Podiatry, it was providing that level of education 
            until very recently.
          When considering therefore any possible role for TAFE in higher education, 
            it needs to be emphasised that TAFE was producing professionally trained 
            workers for some fifty years before most of the Universities in Australia 
            came into existence. These graduates demonstrated the quality of their 
            education in TAFE by their successful performance at the highest levels 
            in our community. 
          There are currently three major issues relating to the interface 
            of the sectors: the first relates to pathways and credit transfer 
            between the sectors, the second to the provision of higher level vocational 
            education, (it is in this area that overlaps are most likely to occur) 
            and the third is in the area of the sharing and joint use of resources.
          It is our view that the most useful way to address these issues is 
            from the perspective of strategic co-operation which allows for the 
            most efficient use of scarce resources. This includes building a flexible 
            system of lifelong learning, characterised by flexible pathways between 
            the sectors. 
          By implementing the principle of strategic co-operation between Universities 
            and TAFE institutes, sectoral boundaries and "overlaps" 
            fade in significance. This does not mean however that there are and 
            there should continue to be significant differences between the sectors. 
          
          The prime difference relates to their core roles, with Universities 
            responsible for generating and transferring knowledge which impacts 
            in the economic, intellectual, social and cultural spheres, while 
            TAFE institutes focus on vocational education and training for operative, 
            trade and technician level occupations and "second chance" 
            basic and general education. The areas of overlap are peripheral to 
            the core business of the sectors, and in general the sectors operate 
            in a complementary rather than competitive mode. 
          Differences exist with respect to funding sources and arrangements 
            and legislative frameworks. The vocational education and training 
            sector, for example, operates within the framework of the ANTA Agreement 
            and the VET Funding Act, while the higher education sector 
            operates within the Higher Education Funding Act and related 
            Commonwealth legislation. In addition, each University is established 
            under its own State legislation and has significant control over its 
            assets and estates.
          The differences between the sectors can create barriers to strategic 
            co-operation. Despite this, it has been possible through goodwill 
            on all sides to create quite complex multi-sector arrangements such 
            as those at Coffs Harbour, Ourimbah and Nirimba.
          3.2	Co-operative Arrangements 
          
Strategic collaboration and joint activity between TAFE institutes 
            and Universities is illustrated by the following examples.
          3.2.1	Sharing Resources 
          
TAFE NSW institutes have established a range of links with Universities 
            where each shares the same geographical or catchment areas. Formal 
            agreements and co-operative mechanisms have been established to guide 
            the sharing of resources now in use as well as facilities under construction. 
            Some examples of this are:
          
            - joint developments, such as the Central Coast Campus at Ourimbah 
              (a joint development between the University of Newcastle, the Hunter 
              Institute of Technology, the Central Coast Community College and 
              the Central Coast Music Conservatorium) and the Coffs Harbour Education 
              Campus, (a joint development between North Coast Institute of TAFE, 
              Southern Cross University and the schools sector).
              
             
- the Sydney Institute of Technology has established a precinct 
              Committee with the University of Technology, Sydney under the sponsorship 
              of the NSW Premier; its role is to co-ordinate joint use of facilities 
              and articulation pathways between the sectors.
              
             
- Illawarra Institute of Technology and the University of Wollongong 
              have established a joint Master Planning Committee to develop the 
              South East Education Network which will result in shared infrastructure 
              and course structures at Nowra, Bateman's Bay and Bega. Both institutions 
              have processes in place to investigate and put into action the joint 
              use of facilities at Wollongong and credit transfer arrangements.
              
             
- TAFE delivery of subjects in University degree programs, including 
              Southern Sydney Institute delivering subjects in degree programs 
              such as practical mechanical air frame structures classes for the 
              Universities of NSW and Sydney in the Bachelor of Aeronautical Engineering, 
              and practical engineering modules for the University of NSW Mechanical 
              Engineering degree.
              
             
- the Nirimba Education Precinct, in which the University of Western 
              Sydney, the Western Sydney Institute of TAFE, the former Department 
              of School Education and the Catholic Education Office are partners. 
              The shared campus arrangements will provide access to formal University 
              and TAFE programs for HSC students on a single, integrated site.
              
             
- the South Western Sydney Institute and the University of Western 
              Sydney, Macarthur, are co-operating in the establishment of a Commercial 
              Education and Training Centre in Liverpool.
              
           
3.2.2	Research
          The National Centre for Vocational Education Research operates from 
            sites at the University of Melbourne and at the Northern Sydney Institute 
            of TAFE. The Centre concentrates on research into the nature of competency 
            assessment, workplace assessment, assessor skills and knowledge.
          The success of this arrangement demonstrates the value of co-operation. 
            While TAFE would be prepared to enter into similar arrangements with 
            other Universities where it saw that this would result in tangible 
            benefits for TAFE and its students, TAFE has no desire to undertake 
            a major program of research in its own right.
          TAFE staff in NSW however are clearly interested in the benefits 
            of research that might flow to their own areas and have therefore 
            formed a TAFE Research Association.
          3.3	The 
            benefits of strategic co-operation
          There is great value in strategic co-operation between the sectors. 
            Joint educational initiatives of the kind described can produce significant 
            benefits for students in that they:
          
            - enhance education and training opportunities in regional areas, 
              through dual qualifications, innovative jointly developed curriculum, 
              and collaborative teaching, professional development and research;
              
             
- provide opportunities for virtual cross-sectoral campuses across 
              the State, which will raise the participation rate in higher education 
              in areas which currently do not have access to higher education 
              facilities;
              
             
- enable secondary students to undertake studies at a tertiary level; 
              and
              
             
- improve transition and pathways between the sectors.
          
3.4	Pathways
          The opening up of pathways between the TAFE institutes and Universities 
            is addressing a major area of overlap between the sectors and enabling 
            more cost-effective use of public and individual resources for education 
            and training. 
          There is increasing "traffic" between the sectors. Interestingly, 
            although traditionally movement has been from vocational education 
            and training to higher education, there is now a growing trend in 
            the other direction, which is an acknowledgment that vocational course 
            outcomes enhance employment opportunities. In New South Wales, for 
            example, University to TAFE movement currently outnumbers TAFE to 
            University by 6 to 1.
          Enrolments in Graduate Certificate programs, that is programs that 
            require successful completion of a degree as an entry requirement, 
            increased by 119% between 1996 and 1997. These are not the only programs 
            in which graduates enrol in TAFE. Apart from the 19,324 graduates 
            who enrolled in TAFE in 1997 there were a further 10,705 students 
            enrolled in TAFE who had started a degree course.
          3.4.1	Recognition 
            and credit transfer
          Recognition and credit transfer arrangements are key issues that 
            must be addressed to improve the interface between the sectors within 
            the framework of maintaining quality and standards. 
          TAFE NSW has extensive articulation arrangements in place with Universities, 
            some of which attract substantial credit for TAFE courses. For example, 
            the University of New England grants two years advanced standing in 
            its three year Bachelor of Teaching (Early Childhood) program to graduates 
            of the TAFE Diploma in Child Studies and the University of South Australia 
            grants two years advanced standing in its three year Bachelor of Business 
            Degree to graduates of the TAFE Advanced Diploma in Hospitality Management. 
          
          A pilot program is being held during Semester 1, 1998 for credit 
            transfer from Universities into TAFE NSW. In the pilot, advanced standing 
            for up to 75% of a TAFE NSW course is offered to University graduates 
            in strongly correlated discipline areas. The pilot will be reviewed 
            subject to student demand and identification of further opportunities 
            for University graduates seeking to study at TAFE.
          A further way of improving opportunities for University graduates 
            is through the availability of Graduate Certificates. These qualifications 
            are part of the higher education section of the Australian Qualifications 
            Framework but they are increasingly being provided by TAFE. 
          There are a number of practical and conceptual difficulties in the 
            way of negotiating credit transfer arrangements. For example, there 
            is a lingering perception among some University staff that competency-based 
            curriculum is necessarily educationally narrow. This is despite considerable 
            investment by TAFE to ensure that its curriculum is educationally 
            sound in terms of developing conceptual and problem-solving skills 
            and meeting needs of Universities to distinguish between applicants 
            for the purposes of admission and credit transfer. 
          he actual process of negotiating credit transfer - subject by subject, 
            institution by institution is extremely resource intensive. The New 
            South Wales submission to the recent Commonwealth Review of Higher 
            Education Financing and Policy recommended "that a streamlined 
            national system of credit transfer between the vocational education 
            and training and higher education sectors be investigated and developed."
          A more streamlined approach building on the work of the AVCC Credit 
            Transfer project would reduce the cost of the current arrangements 
            and have a major impact on the ease with which students move between 
            the sectors. Recognition arrangements should also include readily 
            available, transparent and consistent recognition of prior learning 
            (RPL) policies and procedures.
          3.4.2	The 
            Australian Qualifications Framework and TAFE delivery of higher education
          It is important to ensure that the AQF is adhered to by all sectors 
            to ensure consistency in the nomenclature and standards of awards 
            across the education and training sectors in New South Wales. 
          For some time, TAFE NSW has successfully delivered high quality awards 
            at diploma and other levels that equate to a number of awards in the 
            higher education sector.
          Though it is important to balance the levels of provision in TAFE, 
            it has to be done in the knowledge of the high credibility of these 
            higher awards with students and employers and the substantial level 
            of advanced standing granted to graduates of such TAFE NSW programs 
            by Universities. 
          A number of Universities offer awards, industry degrees, in areas 
            that duplicate or relate to vocational education and training. As 
            noted in the Review of Higher Education Finance and Policy - "Learning 
            for Life" - there are major questions about the relationship 
            between vocational education and training and higher education sectors.
          In this context, NSW will explore the merits of TAFE NSW offering 
            innovative awards, including degrees, either in conjunction with Universities 
            or separately. The NSW education and training portfolio is currently 
            examining this issue, with a view to developing further advice to 
            the NSW Government on this important matter.
          3.4.3 
            	University admissions criteria
          The emphasis in University admissions on secondary school performance 
            can work to reduce the impact of other factors such as work and life 
            experience and post-school study in non-University sectors. This can 
            disadvantage students with a vocational education and training qualification. 
          
          During the period 1991-1994, for example, TAFE NSW graduates represented 
            the fastest growing group of applicants for University entry, yet 
            their offer rate declined to 50 per cent compared to school leavers 
            whose offer rate rose to 70 per cent. While some Universities are 
            beginning to address this problem on an institution basis through 
            more flexible admission procedures, a more systematic approach would 
            assist, particularly if it could address local needs.
          Recent studies (eg. Lewis, University of Wollongong), indicate that 
            TAFE students perform at University on average as well as, if not 
            better than, students from other backgrounds. Professor Don Lewis' 
            studies for TAFE NSW focus on 1991-1996 Universities' admissions data 
            for New South Wales and the ACT.
          4.0 
            	CONCLUSION
          The goal of the NSW Government is for the State to have an efficient, 
            effective and internally competitive vocational and education and 
            training system, that can respond creatively to the needs of the people 
            of New South Wales.
          The NSW TAFE institutes, operating as registered and quality endorsed 
            training organisations, contributing towards curriculum development, 
            sharing curriculum resources and awarding TAFE NSW Testamurs, are 
            key contributors to the substantial progress being made towards the 
            realisation of this goal.
          It is envisaged that there will be a continuing need for a strong 
            public sector presence in vocational education and training, though 
            there will be a continued growth in the private provision of these 
            services.
          In an era of continuous social, economic and technological change, 
            there will be a greater need than ever for the courses that TAFE institutes 
            deliver to be based not only on real workplace competencies but also 
            on the social and intellectual development needs of students. This 
            approach must emphasise the development of the key competencies and 
            generic skills development as essential ingredients in life long learning.
          These needs will increasingly be met by a variety of delivery methods 
            that where possible enable the students to access their programs at 
            home or at work. These flexible arrangements will have to be supported 
            by TAFE's network of facilities, which provide the necessary equipment 
            and support services for programs.
          TAFE institutes will need to continue to meet a range of education 
            and training needs of the disadvantaged in the community e.g. in basic 
            education and literacy. These community service program obligations 
            will need to be supported where appropriate by the provision of special 
            facilities for the disabled and child care for parents of small children.
          If TAFE institutes are to continue to make a significant contribution 
            to the community, they will need to provide quality programs that 
            open up immediate opportunities to students but at the same time provide 
            a sound base for continuing growth and development.
          In regional Australia particularly, there is potential for co-operation 
            between TAFE institutes and Universities. This co-operation can and 
            does take many forms including the establishment of joint facilities 
            and cross-sectoral delivery of courses. Such co-operation occurs on 
            the basis of maintaining the different identities of the two sectors, 
            reflecting their different governance and funding arrangements and 
            also more importantly their different aims, purposes and student populations.
          Existing linkages between the sectors can be strengthened through 
            a range of initiatives, such as improved recognition and admissions 
            arrangements and joint educational developments. There is also a need 
            for effective joint strategic planning mechanisms that would also 
            provide advice on cross-sectoral matters.
          TAFE can strengthen the relationship by developing more programs 
            that enable University graduates to obtain specific vocational skills 
            thus enhancing their employment potential. These programs should be 
            designed in such a way as to recognise fully the skills and knowledge 
            already gained by these graduates so that they waste no time and effort 
            in completing their TAFE programs.
          Strengthening co-operation between TAFE institutes and the Universities 
            will contribute to the development of a flexible system of education 
            and training which recognises and sustains the core strengths and 
            roles of the individual sectors but which also facilitates student 
            pathways, student access and the most effective and equitable use 
            of publicly funded resources. 
      
      
        
      
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