Researchers: Vivienne Blanksby
Manager, Flexible Learning Group

and Peter Bruhn
Manager, Curriculum Development Unit
Royal Melbourne Institute of Technology, Australia

Asia-Pacific Centre of Educational Innovation for Development
UNESCO PRINCIPAL REGIONAL OFFICE FOR ASIA AND THE PACIFIC, BANGKOK, 1996

Acknowledgments

The authors would like to express their appreciation to the UNESCO-UNEVOC Steering Committee for their input into the development of the Australian Case Study:

·	Professor Tony Adams
	Dean International Programs
	RMIT
	Melbourne, Victoria.
·	Mr John Bartram
	Manager International Education
	Adelaide Institute of TAFE
	South Australia.
·	Ms Evelyn Cheah
	Director Strategic Planning and Development Branch
	Vocational Education and Training Division
	Commonwealth Department of Employment, Education and Training
	Canberra, Australian Capital Territory.
·	Ms Natalie Conyer
	Assistant to the Managing Director
	NSW TAFE Commission
	New South Wales.
·	Mr Tom Malcolm
	Office of Training and Further Education
	Melbourne, Victoria.
·	Mr Brian Watt
	Director Europe, Africa and International Organisations Section
	Commonwealth Department of Employment, Education and Training
	Canberra, Australian Capital Territory.

The authors would like to express a special note of thanks to Dr Adrian Haas, Associate Director, International Programs, RMIT. As a member of the Steering Committee and as Project Manager, we have greatly appreciated his support and guidance throughout the project.

We would also like to acknowledge the following people for their contribution or support in the development of the Australian Case Study:

· Mr Robert Bangay, Director TAFE and Mr Ian Sapwell, Deputy Director & Head School of Design, RMIT.

· Ms Jenny Peck, Ms Helen Reid, Ms Melinda Biddle and Mr Kenney Lin, Vocational Education and Training Division, Commonwealth Department of Employment, Education and Training.

· RMIT-TAFE Library.

· Ms Jill Jamieson, Deakin Australia, Burwood Campus, Deakin University.

· Ms Maree Bentley, Head, International Affairs, Canberra Institute of Technology.

· Tourism Training Australia

Key Facts

Area:	7,682,300 sq km
Population:	17.5 million (1993), growth rate 1.5 per cent per annum. Some 20 per cent of the population were born outside Australia creating a multicultural society. About 1.5 percent of the population are indigenous people (Aboriginals and Torres Strait Islanders).
Official title:	Commonwealth of Australia.
Climate and Geography:	The climate ranges from tropical in the north to temperate in the south. Some 70 per cent of the country is arid with very low annual rainfall in the centre of the continent. Most of the agricultural and manufacturing centres are located in fertile zones on the east, south, south-east and south-west of the continent
Official Languages:	English.
Ruling Party:	Australian Labor Party (ALP).
Head of Government:	Prime Minister, Mr Paul Keating.
Currency:	Australian Dollar ($AUS = 100 cents).
Political System:	Australia, a parliamentary democracy, is a federation of six States and two Territories in which legislative powers are divided between the Australian Federal Parliament with a 148-member House of Representatives and a 76-member Senate and the State and Territory parliaments. A cabinet of senior ministers, headed by a prime minister, holds day-to-day executive responsibility and is formed by the party with a majority in the House of Representatives The major political parties are the Australian Labor Party, Liberal-National Coalition and Democrats.
Education:	Three-tiered structure with primary, secondary and tertiary sectors. In 1992 there were over 2 million children enrolled in government primary and secondary schools and 850, 000 attending private schools. School attendance is compulsory throughout Australia between the ages of 6 and 15 years (16 in Tasmania). The tertiary sector, comprising universities, TAFE, community and adult and further education colleges/institutes and private providers accounts for about 2 million full and part-time students.
Social welfare:	Australia provides old-age, invalid and widow's pensions, unemployment, sickness and supporting parents' benefits, family allowances and other welfare benefits and allowances. Australia has a universal health insurance system known as Medicare which is financed in part by a 1.25 per cent levy on taxable incomes above a certain level.
Economy:	Australia is the world's largest exporter of alumina, wool, beef and veal, mineral sands, coal, live sheep and steel and among the top suppliers of wheat, sugar, iron ore, bauxite and nickel. However, the services sector accounts for about 70 per cent of employment and about 60 per cent of Gross Domestic Product (GDP).
		% of GDP	% of labour force
	Agriculture (incl. forestry, fishing)	3	5
	Industry (manufacturing, construction)	32	24
	Mining	5	1.5
	Service industries (Australian Bureau of Statistics data)	60	70

Executive Summary



Australia's vocational education and training system is currently in a state of transition while major, far-reaching reform processes are being implemented. A national Training Reform Agenda has been established which has brought together Commonwealth, State and Territory Governments, employers and unions in collaborative action to improve the performance and the status of vocational education. The realisation of the need for reform stems largely from changing economic circumstances and a changing industrial relations environment.

In the 1980s the Australian economy was affected by deteriorating trade conditions and the decline of certain industries which have traditionally been strong contributors to the economy. Moves to increase the productivity and flexibility of industry to counter these trends have brought about major changes in workplace organisation. A 1988 National Wage Case decision linked salary increases to the promotion of structural efficiency in industrial settings, thereby stimulating an extensive award restructuring process which provided for skill-based career paths. Increased participation and improved outcomes in vocational education and training are being seen as vital for promoting future economic development and facilitating industry restructuring.

The newly emerging training system is focused at the national level and has resulted in the development of national infrastructure to provide co-ordination for training arrangements across the country. Commencing with an important agreement between the Commonwealth, State and Territory ministers responsible for vocational education and training in 1989, the features of a national system have progressively taken shape over the last five years.

While the major providers of recognised vocational education and training have been the government-funded Technical and Further Education (TAFE) colleges, the new system encourages private providers, TAFE/industry collaborative arrangements and a stronger vocational orientation in the secondary schools. It is recognised that both initial training and retraining are of importance - young people entering the workforce for the first time need basic training and an understanding of the requirements of employment; workers currently in employment need to upgrade their range of skills or move to new broader work roles; experienced workers who are unemployed may need to move in new career directions.

The reforms are intended to provide national coherence in training arrangements and outcomes, improved quality and more widespread provision, greater flexibility in training delivery, a stronger focus on the needs of industry, participation by disadvantaged groups and increased public recognition of the value of training.

A central aspect of the reforms is the establishment of a competency-based training system. National competency standards are being devised for each occupational group by representatives of the industries concerned. Training is to be directed to the achievement of competency standards and to focus on the ability to perform in the workplace. This system allows industry to establish the required outcomes of training and provides for national consistency.

A National Framework for Recognition of Training complements this system by defining the requirements for accreditation of courses and opening up the training market to allow registration of training providers other than the government-funded institutions. It supports flexible pathways to achievement of competency by articulation arrangements between courses and the recognition for learning whether formally or informally acquired.

A strong commitment to the involvement of young people in vocational education and training has been made. The general education sector is expected to play its part in preparation for employment by including in its programs a focus on “Key Competencies” which are broadly based attributes necessary for creative and effective participation in the workplace.

In addition, the new Australian Vocational Training System, which is currently at pilot stage, provides for a complete reform of entry-level training. Within this program young people may obtain entry-level vocational certificates by choosing from a range of learning arrangements combining structured work experience with study in school, TAFE college or equivalent.

Another key aspect of the system is the development of strategies to improve participation and outcomes for disadvantaged groups in the community. Many initiatives are in place to support increased participation of women, and strategies have been developed to support Aboriginals and Torres Strait Islander people and disabled people. Special programs for people of non-English speaking background and a large range of labour market programs provide training opportunities for the unemployed.

The directions for future development of vocational education and training in Australia have been established by the Training Reform Agenda. Many of the features of the new system are at trial stage with some issues still being resolved. While it is possible to point to a range of successful outcomes of the reforms to date, ultimately the process is long-term and may take several more years to reach stability.

This paper describes the context for the reform process, and the issues identified leading up to the reforms. The latter part of the paper is an account of the key features of the Training Reform Agenda with illustrative best practice examples showing the new system in action.

1. The Context for Reform of Australian Vocational Education and Training

1.1 Economic conditions

Australia has experienced a number of significant changes to its economy in the past decade, the major trends being:

· a major structural shift in employment away from manufacturing and agriculture to employment in service industries such as community services, personal services, hospitality and tourism, and finance. There are increasing employment opportunities in the leisure/entertainment industries;

· the development of 'new' industries in areas such as telecommunications, information, biomedical and materials technologies; and

· a significant trend away from mass production approaches in industry towards 'flexible manufacturing'.

At the same time, Australia's economy has been affected by a more highly competitive global market place, reforms to Australia's currency regulations and financial markets, and the lowering of tariff barriers. A weakening trade situation has led to a deterioration in the current account balance and a large and growing foreign debt. In particular, Australia's balance of payments problem has forced the Australian Government to recognise that Australia is living 'beyond its means'.

The consequences have been the decline of certain manufacturing sectors, such as the clothing, textile and footwear and vehicle manufacturing industries with a progressively increasing unemployment rate (national average 10.8 per cent, January 1994), although the continued upward trend in unemployment now appears to be on the decrease (9.5 per cent July 1994).

However, there is no doubt that internal factors have also contributed to Australia's difficulties. Some analysts have argued that Australia's economic ills are the legacy of too much protection, which has resulted in an inefficient industry unable to effectively compete in the international arena and unwilling to invest in new technology and training. Other commentators believe that Australia's economic difficulty is, in part, the result of a lack of research and innovation by industry. Management groups have pointed to wage costs, demarcation problems and the difficulties of dealing with a multiplicity of unions.

Although exports of some manufactured goods have increased substantially in recent years, most Australian manufacturers concentrate on the domestic market. Australia has a comparatively small population which does not allow for the economies of scale that have enabled cheaper production in the economic giants such as America, thereby limiting profit and growth opportunities.

However there is the capacity within Australian industries to ensure that workplaces operate as efficiently as possible and are adaptable and flexible enough to compete locally and in overseas markets.

In the last decade Australian industries have realised that they needed to move away from rigid, low-skill, low-variety working arrangements which resulted in poor productivity and poor quality goods. Innovative work practices were needed, supported by a skilled workforce and built around greater quality control of industrial processes and improvement in customer service activities.

During the late 1980s, employer groups, unions and government joined forces in tripartite missions to study our overseas competitors' production methods, management systems and working arrangements.

1.2 Industry and award1 restructuring

¹ Awards are legally enforceable documents which define terms and conditions of employment for individuals in Australian workplaces. They contain sets of job classifications, pay rates and general conditions applying to a particular occupation, industry or enterprise.

The push for industry and award restructuring was a significant step in a work-led recovery which had been gaining momentum since the mid-1980s.

In Australia industry restructuring became a process designed to achieve significantly higher levels of productivity, quality and flexibility in enterprises. The process involved the introduction of new forms of work organisation within individual enterprises and across whole industries. It also involves some or all of the following:

· new technology;
· job redesign; and
· restructuring of industrial awards.

To assist and encourage this recovery at the national level, the Federal Government has pursued a range of macro-economic reforms aimed at supporting industrial growth and innovation. These initiatives included:

· the Prices and Incomes Accord, which re-established a centralised wage-fixing policy to ensure wage justice and industrial relations stability; and

· the prevention of excessive wage increases giving stimulus to inflation and unemployment.

The 1987 National Wage Case decision, determined by the Australian Conciliation and Arbitration Commission, introduced a wages package which provided for industry and enterprise level negotiations and a co-operative approach between employers and unions to achieve better results. Implementing the process exposed a number of problems. It became clear that efforts to improve productivity were being hampered by structural inadequacies in many awards. The awards were outmoded and often imposed artificial constraints on the way in which work could be performed. They also made it difficult to reduce rigid and outdated demarcations and to overcome constraints on increasing the skills and career development paths of employees.

Recognising these problems, the 1988 National Wage Case decision established new guidelines, the central element of which was the Structural Efficiency Principle (SEP). It promoted new approaches to industrial relations practices, and in particular, directed attention to change at the workplace level. It acknowledged that issues of skills, careers, job satisfaction and equity had significant effects on productivity.

The Structural Efficiency Principle, supported by all government, employer and union stakeholders, stimulated an award restructuring process focused on the simplification of awards and reclassification of jobs, flexible work organisation, relativities between and within awards, payment systems and training for new skills.

In the new Metal and Engineering Industry Award, for example, the former 300 job classifications and 1800 different wage rates were 'broadbanded' and restructured around 14 broadly defined occupational groups ranging from a relatively unskilled level to professional level. Thirty industry divisions have been reduced to three broad trade streams, electrical and electronic, mechanical and fabrication. Employees in that industry can pursue a career, moving within and between these trade streams by undertaking appropriate training courses. Qualifications must complement new skill levels. Award restructuring provided the opportunity to:

· introduce more modern and flexible forms of work organisation and work patterns which allow companies to make the best use of new technology consistent with occupational health and safety standards;

· consider more flexible working patterns and arrangements of mutual benefit to employers, employees and the community;

· remove restrictive work and management practices which inhibit flexibility and efficiency, and which exist for reasons other than the safe and efficient performance of tasks; and

· remove discriminatory provisions from awards and encourage equal employment opportunity.

Underpinning the successful implementation of award restructuring, was the recognition that it should be supported by a nationally consistent and co-ordinated training effort. The commencement of an extensive process of training reform was formalised by an agreement between Commonwealth, State and Territory ministers in 1989, setting in train a process known as the 'National Training Reform Agenda', which will be examined in later sections.

2. Human Resource Development

2.1 Australia's three-tier education system

Prior to discussing specific human resource development initiatives within vocational education and training it is necessary to outline the current three-tier education framework which presently exits in Australia.

Education and training in Australia can be divided into three broad sectors.

The Schools sector is divided into government (or public) and non-government (or private) schools and further divided into primary (Preparatory to Year 6) and secondary (Years 7-12) sectors. Approximately two-thirds of young people are educated in government or public schools administered by State and Territory Governments, a further quarter are educated in religious schools and the remainder are educated in non-government independent schools. Some vocational education and training is offered in government and private secondary colleges.

The Technical and Further Education (TAFE) sector provides the majority of the government-funded vocational education and training in Australia. The TAFE system has, since its establishment in the 1970s, been comprised of government-funded colleges and institutes. A growing number of private sector training providers now offer accredited training to the public.

In addition, less formal adult and community education providers have a role in the Vocational Education and Training (VET) system.

The Higher Education (HE) sector, comprises predominantly government-funded universities offering degrees, post-graduate certificates and diplomas and higher qualifications (for example, Masters and PhDs) in a range of academic, professional and vocational fields.

In Australia education has been synonymous with schooling and subsequent formal pathways of learning. Training has been considered complementary, but separate to education because it involves the development of work-related skills. In the past decade the boundaries between education and training have become increasingly blurred. Education and training are now perceived as inter-related components of a individual's lifelong learning process. In Australia, compulsory education (in most instances from Preparatory to Year 10) is provided by government and non-government funded primary and secondary schools. It is the responsibility of these schools to implement individual State/Territory education policies and procedures, as determined by State Ministers for Education, and overseen by the various Ministries of Education and government agencies.

Post-compulsory education, of which vocational education and training is a part, is the responsibility of secondary schools/colleges (for Years 11 and 12), higher education institutions and institutes/colleges of Technical and Further Education (TAFE). Industries or enterprises conducting 'on-the-job' and 'in-house' training and commercial (private) providers offering training programs also contribute to this sector.

The outcomes of the process of education and training in Australia are the skills and credentials/qualifications achieved by the participants. The economic benefits of education and training are both personal and societal. Within the workforce the development and maintenance of an employee's skills has direct benefits to the individual, the employer and to society through increased productivity, flexibility and capacity for specialisation of the labour force.

2.2 An overview of vocational education and training structures


The TAFE system is the major public provider of vocational education and training in Australia. The main constitutional responsibility and regulation of vocational education and training, including TAFE, resides with the State and Territory Governments.

There are currently approximately 270 major TAFE institutions in Australia. Some consolidation has occurred in the past 12-18 months with some small mono-purpose TAFE colleges being amalgamated with larger multi-discipline colleges with the purpose of streamlining administrative procedures, resource usage (staff, facilities, equipment and materials) and better utilisation of recurrent grant funding.

TAFE institutions provide a full range of training encompassing preparatory, operator, trade, post-trade, technician, paraprofessional and, in some fields, professional levels. Each year, around one and half million people undertake some form of training in TAFE institutions. TAFE institutions are the major providers of the off-the-job component of entry-level training under Australia's system of apprenticeships and traineeships.

A range of private providers operate in Australia, including business colleges and computer training companies. Increasingly, these providers are offering formally accredited training. The supply of quality training is expanding due to the efforts by both governments and providers to establish accreditation and professional standards.

Structured workplace learning in Australia is undertaken through 'Skill or Training Centres', apprenticeships and traineeships, group training and in-house training.

Some industry based training centres are recognised as skills centres, and are operated on an industry-wide basis or by individual enterprises which are industry owned and operated, and managed by a separately incorporated tripartite company. Training provided is expected to complement the training available off-the-job through TAFE and other training providers. Some centres are located in-plant, some are stand-alone and others closely linked to a TAFE college. Many skills centres have the capacity to provide training in advanced technology to enable Australian workers to be trained in, and kept abreast of, the latest Australian and international trends and developments in their industry.

The Australian Government has encouraged industry to develop skills centres by providing catalytic funding to assist with the initial building and equipment costs. The ongoing operating costs are the responsibility of the industry or enterprise management group.

Apprenticeships, Traineeships and the new Australian Vocational Training System (AVTS) provide an entry point for young people into trade careers and into non-trade occupations respectively. They involve a combination of structured on-the-job training at the workplace and off-the-job technical education at a TAFE college or other approved training centre.

Group Training arrangements aim to increase structured training opportunities for apprentices and trainees. They achieve this primarily through rotation with a range of host employers; many of these are small companies that do not have the capacity to recruit and train apprentices and trainees in their own right.

In-house Training is conducted by most organisations in addition to the more structured training schemes outlined above in the form of induction programs and ongoing enterprise-specific skill training for their employees.

2.3 The “informal” education and training sector


As well as the system of TAFE institutions, Australia also has a large variety of less formal Adult and Community Education (A&CE) providers. These include publicly funded, community based and private sector providers. There are now moves by Governments to encourage a more co-ordinated national approach to ACE and to encourage greater linkages with the formal education system.

Traditionally, A&CE has been regarded as primarily concerned with recreation/leisure or personal enrichment activities. However, there is an increasing recognition that A&CE includes significant provision of explicitly vocationally-oriented training. For example, A&CE provides training for the unemployed and other disadvantaged people to assist them back into the workforce. A&CE also promotes training in basic skills (for example, literacy and numeracy) which can serve as a stepping stone to participation in the formal VET system. A&CE programs tend to be based on local community initiatives and use a variety of readily accessible facilities such as schools and community centres. Most of the organisations are non-government, non-profit organisations and the programs offered are normally low cost, often funded on a fee-for-service basis with some additional subsidies from government.

Recognising the significant work done by this sector in providing flexible programs to meet local needs, a government commissioned National policy on Adult and Community Education was drafted in 1993. The goals of the policy include pathways into formal education and training and increased recognition by other providers of its education and training outcomes.

The Skillshare Program is a significant example of a community-based strategy in vocational education. This program was designed to assist long-term unemployed and other disadvantaged persons into the workforce or further education and training. Skillshare provides structured skills training programs, assistance in job searching and enterprise activities to help unemployed people into self-employment.

Skillshare projects operate as a partnership between the government and a community sponsor. The government provides funding and support services and the sponsor is required to generate community contributions to the project operations. Each Skillshare project develops a three-year business plan defining goals for labour market training based on the needs of local employers.

2.4 Key bodies in the vocational education and training system at the national level


The following diagrams present an overview of the major national agencies and organisations which develop policies and guidelines, and administer the vocational and education system within Australia. Agencies, such as the Commonwealth Department of Employment, Education and Training (DEET), the National Board of Employment, Education and Training (NBEET) and the National Centre for Vocational Education Research (NCVER) provide a valuable function in the delivery of vocational education and training. Newer agencies and bodies such as the recently established Australian National Training Authority (ANTA), the National Training Board (NTB) and the Australian Committee for Training Curriculum (ACTRAC) provide a focus for national VET policy development, development and registration of national competency standards and national curriculum and materials development. Descriptions of the bodies presented in the following two diagrams are located in the glossary (APPENDIX I).

Figure 2. NATIONAL SYSTEM OF VOCATIONAL EDUCATION AND TRAINING

(Source: Commonwealth Department of Employment, Education and Training, 1994)

2.5 State vocational education and training systems


Each State and Territory has advisory and administrative bodies who have responsibility to the State or Territory Minister of Vocational Education and Training. Each State and Territory has developed its own distinctive system, with unique characteristics of scale and operation, degrees of autonomy, relevance to a local industrial base, geographic spread of population, relationships with other State educational sectors and controlled by specific State Acts of Parliament, for example, the Victorian Vocational Education and Training Act 1990.

An illustrative example of a state vocational education and training system, in this instance the State of Victoria, is presented below.

Figure 3. STRUCTURE OF A STATE VOCATIONAL EDUCATION AND TRAINING SYSTEM - VICTORIA

(Source: Office of Training and Further Education, Victoria, 1994)

2.6 The funding of vocational education and training

Australia's approach to financing education and training aims to achieve a balance between public and private funding of education and training, and to develop a culture where spending on education and training is seen by individuals and enterprises as an investment not a cost.

While the major financial responsibility for TAFE belongs to the States and Territories, increased Federal Government support since 1991 has enabled more Australians, particularly young people, to undertake vocational education and training.

Stream 2000:	Courses for entry to employment or further education
Stream 3000:	Initial vocational courses covering operatives, skilled trades, trade technician/trade supervisory, paraprofessional technician/higher technician and professional.
Stream 4000:	Courses subsequent to an initial vocational course

(Source: National Centre for Vocational Education Research, Selected TAFE Statistics, p8, 1992.)

In 1993, Federal Government grants for TAFE increased to A$565 million from A$432 million in 1992, an increase of 23 per cent over the year.

Under the new vocational education and training system, from 1 January 1994, funding arrangements were more assured with State and Territory Governments undertaking to maintain their support for vocational education and training in return for the Federal Government's commitment to growth in the level of recurrent funding of TAFE. The new Australian National Training Authority will receive Federal and State/Territory funds for vocational education and training and allocate funding to state training agencies on the basis of agreed goals and priorities.

Income support is offered by the Federal Government as a means of improving access to educational opportunities for students who are financially disadvantaged.

A summary compiled by the National Centre for Vocational Education Research providing statistical data comparing enrolments, staffing and expenditure for TAFE for 1990, 1991 and 1992 is included as APPENDIX II.

2.7 The establishment of an 'open' training market


Currently vocational education and training is complex and includes a number of players. These include TAFE colleges, industry, enterprise and community based providers, commercial private providers and increasingly, secondary schools. The private sector is one of these players and is making a significant contribution to the Australia's total training effort. It has been estimated that in addition to the government contribution of $2.6 billion to vocational education and training, industry matches that amount in its own training.

Until recently the training market was dominated by the TAFE colleges. The need for training currently exceeds TAFE's capacity to service the demand and therefore a number of other training providers have been encouraged by government to enter the training arena. The government's aim is to improve the training market by introducing competition between all training providers with the aim of improving quality and the associated cost and service benefits.

The result of this open training market will be three key outcomes:

1. A framework for qualifications, standards and assessment within which diverse training providers may operate flexibly, focussing on their client's needs and to delineate the lines of responsibility and accountability. It will allow government authorities to know who is accountable for each part of the vocational education and training system, where the funds are used, where public funds for training goes and ultimately, that the funding is being spent in the best possible manner.

2. An opportunity for the broader range of quality formal education and training to be recognised, wherever it may be provided. This involves recognising the wide range of formal training providers through both public and private expenditure on the total vocational and training effort.

3. The introduction of competition will provide a mechanism to enhance program quality within the entire training market and encourage efficiency gains within the TAFE sector.

The Government, in providing a climate for competition, will still have the responsibility for ensuring which industries and private providers have access to public funds and that all training providers meet stringent standards and government regulations for the delivery of training programs.

The government's open training market strategy aims to balance co-operation and competition between providers of training with the intended outcome of increased benefits for all clients of vocational education and training.

An important strategy in the creation of an open training market was the implementation of the Federal Government's Training Guarantee (Administration) Act 1990 on 1 July 1990. It was introduced as a mechanism to stimulate industry's commitment and investment in training. In the past, expenditure by some sectors of industry had been comparatively low, by international standards.

The Training Guarantee Levy imposed a minimum training requirement on employers with an annual payroll of $226,000 or more (indexed annually to changes in Average Weekly Earnings) to spend 1.5 per cent of the salary on 'eligible training' of their staff. Employers who spent less than the minimum training requirement on eligible training activities in any financial year become liable to pay a Training Guarantee charge equal to the shortfall.

The recently released (May 1994) Federal Government White Paper 'Working Nation,' which details a $AUS 6.5 billion four-year plan to boost growth and tackle unemployment, has suspended the training guarantee levy for 1994-95 and 1995-96 while new employer incentive schemes are implemented which are designed to create extra jobs and training places. It will be abolished if industry/business meets the training targets as outlined in the White paper.

3. Future Directions in Vocational Education and Training in Australia

In 1989, Australia embarked on a massive program of training reform which has come to be known as the National Training Reform Agenda.

The impetus for the reform process was the recognition by key stakeholders in the Australian economic system that Australia needed new directions in training to improve its economic performance. Businesses, workers and governments had all acknowledged the need for Australia to improve its competitiveness through training.

It is significant that the Australian trade union movement was a key player in establishing the ground work for the reform process, acknowledging that the best interests of the workers depended upon a strong and healthy economy. Their support along with the support of employers' organisations, has been a crucial factor in enabling these reforms to take place.

The Australian Council of Trade Unions (ACTU) and Trade Development Council (TDC) fact-finding mission to Europe in 1986 made recommendations about, macro-economic policies, wages, prices and incomes, trade and industrial policy, the labour market and industrial democracy. The section of the report Australia Reconstructed on 'Labour Market and Training Policies' was of particular importance to education and training.

In essence it stated that Australia's future international competitiveness was largely dependent on how successful it was in its ability to exploit up-to-date knowledge and skills-intensive products and processes. The report stressed that success in a world of rapidly changing technologies would require a constant effort to acquire and develop state-of-the-art skills. This view formed the basic tenet of current Federal Government policies and programs.

This influential document brought forward a flow of responses from government, employers and other groups and ultimately laid the ground work for the far-reaching reforms of the Training Reform Agenda.

In April 1989, the Federal Government issued a paper, Improving Australia's Training System which identified priorities for a new national approach to training and a landmark Special Ministerial conference involving Federal, State and Territory Ministers responsible for vocational education and training made agreements establishing the foundation of the new system. This conference of Ministers was significant in that it set in place the directions and priorities for vocational education and training for the 1990s.

Specifically commitment was made to:

· introduce a competency-based training system;

· establish a National Training Board; and

· implement a new method of recognising migrant skills through the establishment of the National Office of Overseas Skills Recognition (NOOSR).

Since 1989 the reform process has gathered momentum. Its guiding principles have been refined through the work of a large number of working parties under the auspices of the Vocational Education, Employment and Training Advisory Committee (VEETAC) which, as of 1 January 1994, has now been replaced by the Australian National Training Authority (ANTA). Many changes have taken place which have altered the structures, processes and responsibilities involved in vocational education and training. Other features of the system are still in development or at trial stage.

In 1992 the following set of national goals for Vocational Education and Training in Australia was endorsed by the responsible Australian ministers and forms the framework which ANTA has adopted.

Goal 1. A national training system Develop a national vocational education and training system in which publicly funded, private and industry providers can operate efficiently and collaboratively and which meets the needs of industry and individuals. Goal 2. Quality Improve the quality of the outcomes of vocational education and training. Goal 3. Outcomes and opportunities for individuals Improve vocational education and training opportunities and outcomes for individuals. Goal 4. The needs of industry Improve the ability of the vocational education and training system to respond to current and future needs of industry. Goal 5. Equity Improve the access to and outcomes from vocational education and training for disadvantaged groups. Goal 6. Training as an investment Increase public recognition of the value of vocational education and training as an investment for both industry and individuals.

These goals identify the expected achievements of the reform process now underway. The following sections will discuss in more detail the problems the new system is designed to address, the specific policies and mechanisms established to support the reform effort, and provide illustrative 'best practice' examples of the new system in action.

4. Issues in the Australian Vocational Education and Training System



4.1 The need for national coherence in training arrangements and qualifications


Under the Australian constitution the responsibility for education and training (apart from Higher Education) is held by the States rather than the Federal Government. Prior to the reform process, each State and Territory developed its own structures, procedures and qualifications systems making nationally uniform policies difficult to pursue. Other inefficiencies inherent in this system included the lack of portability of qualifications between States and Territories, a range of anomalies concerning eligibility to practice in particular occupations, and lack of clarity concerning the ability level of the holders of particular qualifications.

The national program of reform was enabled by agreements made at two Special Ministerial Conferences of Commonwealth, State and Territory ministers responsible for employment, education and training in April 1989 and November 1990. These established new national structures and approved the development of frameworks to implement a consistent Vocational Education and Training system across the nation. Since these in principle agreements were first achieved, rapid progress has been made in establishing national goals and policies, and removing the barriers and anomalies which previously existed between the States.

4.2 The need to ensure that training leads to competence


Structured training has been available for many years in occupations classified as “trades”, via the apprenticeship system. For apprentices, the requirements for employment, the length of time in training, age at entry and wage rates were all embodied in legislation. The conditions included specified periods of time working for an employer and specified attendance at off-the-job training institutions (such as TAFE colleges/institutes). In times of prosperity, apprenticeship provided a secure entry to the workforce for a largely male cohort of young people.

However this system provided insufficient guarantee that an apprentice had been exposed to practical training in all relevant aspects of a trade. In addition, serving the required length of time often took precedence over the achievement of competence and there was no provision for recognising competence gained in a shorter period of time than that specified in the legislation.

This issue was addressed by the establishment of a competency-based system of training. In this system the standards of performance expected of a competent worker are specified by representatives of the relevant industry. These standards are recognised as the required outcomes of training. Training programs and courses must aim to develop the specified competencies, and assessment must be directed at showing that such competency has been achieved.

This provides for greater certainty in the outcomes of training, while at the same time allowing for more flexibility in the ways in which training can be undertaken, individual variations in length of time required and the possibility of recognising competency achieved outside the formal training system.

4.3 The need to extend access to structured training arrangements


The apprenticeship system covered only a narrow range of occupations. Many parts of the workforce had until recently no access to structured training arrangements. These included process workers in many industries, and areas traditionally dominated by women such as clerical and retail occupations.

Other groups were prevented by distance from training institutions or by work and family responsibilities from taking up training opportunities.

In 1985 following the Kirby Inquiry, the Australian Traineeship System was introduced which commenced the process of providing structured entry level training in areas not covered by apprenticeships. This process is being expanded under the National Training Reform Agenda. Competency standards and training arrangements are being formalised for a much larger range of occupations. The new Australian Vocational Training System aims to ensure that all young people become involved in vocational education and training.

In addition flexible methods of delivering training are being encouraged to ensure that training is available in a variety of forms and can be accessed in a wide range of environments by individuals or groups according to their circumstances.

4.4 The need to improve access to training for disadvantaged groups


Reforms were also needed to ensure that vocational education and training was available to a wider section of the community.

Early school leavers who had not attained apprenticeships were frequently destined for unskilled, poorly paid work or unemployment with little opportunity for training. In addition there was no opportunity to undertake trade training as an adult. The apprenticeship system was geared to entry for teenagers.

Women were often disadvantaged in terms of access to training and their employment opportunities were frequently restricted to poorly paid, low status work. Other groups in the community such as Aboriginals and Torres Strait Islanders, the disabled and people from non-English speaking backgrounds were similarly disadvantaged.

There are now major strategies in place to provide appropriate training opportunities for each of these disadvantaged groups.

4.5 The need to recognise skills acquired outside the formal education and training system


This issue has two main elements:

a) In some enterprises, particularly large companies, in-house training of employees is quite advanced and rigorously pursued with the purpose of gaining a competitive edge. Employees may attain significant competence via company training programs. However until the recent reforms were introduced, such competence was not recognised by any form of portable credential.
Training courses provided by any “private” provider, such as commercial training organisations were also not officially recognised. Many short courses in areas such as computer skills and general business skills come into this category.

b) Many individuals also become competent in work-related skills by forms of learning that would not be recognised as “training” at all. Mastery of a job task by long experience in the workforce or self-taught processes related to life experience, may enable a person to perform competently. Without entering formal training such skills were previously unrecognised.

This lack of recognition was seen as having two adverse effects. Either the individual concerned remained uncredentialled with possible loss of job mobility, promotion prospects or entry to work, or the individual entered formal training and wasted their own time and public resources on duplicating training for which they had no need.

As part of the reform process, the National Framework for Recognition of Training establishes the principles for extending recognition of training providers to those outside the government-funded system, and for recognition of the learning of individuals to skills gained outside formal training.

4.6 The need to provide closer integration between work and learning


Efforts to form closer links between education and training, and the world of work are an essential part of the reform process. This issue is multi-faceted:

a) Secondary education has in the past been inadequately linked into the vocational education and training system. While many secondary schools put much effort into preparing academically oriented students for higher education, most had very few links with TAFE colleges and frequently allowed students to leave school early with little preparation for the world of work or knowledge of how to obtain training.
The preparation of young people for employment has been given significant attention in the past five years. School curricula are now being re-designed to incorporate employment-related key competencies. At the same time the Australian Vocational Training System is proposing a range of new pathways for vocational learning linking work experience with off-the-job education, along with measures to ensure that all young people are involved.

b) There was a need to break down the view of some employers that training was the responsibility of the public education system or indeed that no training at all was required. This often resulted in an inflexible workforce with little capacity to extend into new areas.

Many of the current policies are designed to encourage employers to recognise training as an important investment, committing resources to the identification of training needs and to the provision of training for their staff.

c) The degree of influence by industry over vocational curricula taught in the TAFE system has been variable in the past. It was possible for courses to become out of touch with workplace realities or to fall behind current technologies and work practices.

In the new competency-based system, the process of competency standards development is firmly in the hands of industry personnel. To be accredited, all training curricula must now be clearly directed at the development of the specified competencies.

Developing the ability to perform competently under workplace conditions is the desired outcome of training. The work environment (sometimes in simulated form) is increasingly important in the training and assessment process.

5. National Policies and Strategies to Promote the Development of Vocational Education and Training

5.1 Competency-based training

"Competency-based training (CBT) is a way of approaching vocational training that places primary emphasis on what a person can actually do as a result of training (the outcome), and as such represents a significant shift way from an emphasis on the processes involved in training (the inputs). It is concerned with training to industry specific standards rather than with an individual's achievement relative to that of others within a group." (COSTAC, November 1990)

This is the definition of competency-based training provided in November 1990 by the Commonwealth/State Training Advisory Committee in a policy document setting out the framework for the new national system.

The aim of competency-based training is to improve the standard of workplace performance. Competency is expressed in statements of standards. When the standards required of a competent worker have been defined, a trainee's achievements can be judged against those standards, irrespective of the time spent in training and without comparisons with the achievement of others. In competency-based training the outcomes are predictable and directly related to tasks performed in the workplace.

The processes involved in this new training system are designed to significantly enhance the involvement of industry in both the design and delivery of training, creating a more collaborative relationship with the traditional providers of training.

The following diagram indicates the processes involved in competency-based training. Industry needs are the starting point for competency standards development. Ultimately the national qualification awarded at the end of the training process certifies an individual as 'competent' according to identified standards and needs of industry.

(Source: NTB, Annual Report 1992/93)

5.2 The development of National Competency Standards

National competency standards are defined for a particular industry by Competency Standards Bodies which consist of nominated representatives from employers, employees and government agencies.

A policy and accompanying guidelines for the development of national competency standards has been set down by the National Training Board (NTB, 1991, 1992). The National Training Board, as well as assisting Competency Standards Bodies (CSBs) develop industry-defined competencies, also has the responsibility for endorsing and maintaining a register of competency standards developed by the CSBs.

Competency standards are defined as "the specification of the knowledge and skill and the application of that knowledge and skill to the standard of performance required in employment." (NTB, 1992, p7)

To ensure that competency standards are not limited to the more trivial tasks, the Australian competency-based training system stresses the importance of the ability to transfer and apply skills and knowledge to new situations and environments. Competency must therefore encompass:

· the requirement to perform individual tasks (task skills);

· the requirement to manage a number of different tasks within the job (task management skills);

· the requirement to respond to irregularities and breakdowns in routine (contingency management skills); and

· the requirement to deal with the responsibilities and expectations of the work environment (job/role environment skills) including working with others

At the time of writing national competency standards had been developed covering over half of the Australian workforce.

5.2.1 Format of National Competency Standards

National competency standards are expressed in a common format to ensure consistency and comprehension:

Unit of competency:	a discrete component within a standard
Element of competency:	basic building blocks of the unit of competency
Performance criteria:	evaluative statements which specify required level of performance
Range of variables:	context/boundaries for a given unit of competency
Evidence guide:	context within which a trainee would need to be assessed.

Figure 6. National Competency Standards Format

Unit INT6 Participate in Effective Working Relationships
Range of variables:
	This unit applies to all food and beverage operations, including the following establishments:
	· Restaurants
	· Clubs
	· Convention centres
	· Commercial catering operations
	· Hotels
	· Pubs
	· Function facilities
	This unit is designed as an introductory unit and is primarily concerned with essential knowledge and understanding which underpins effective performance in the workplace. As such, although some exposure to the workplace is recommended, performance of competencies in an actual workplace is not required at this level.
Element 1 Communicate in the workplace		Performance criteria
		· Communication with staff and customers is effective and to industry standards, with regards to:
			· speaking
			· listening
			· using the telephone
			· writing
			· analysing and interpreting information
			· non-verbal communication
		· Personal communication and interpersonal skills are monitored and developed in the workplace to enhance performance and address problem areas.
		· Empathy and understanding is shown to co-workers in the work team, with regards to cultural differences.
Element 2 Present a positive image of the industry		Performance criteria
		· Industry and enterprise standards of personal presentation are met, with regards to:
			· personal hygiene
			· poise and deportment
			· etiquette
			· body language
			· grooming
			· speech
			· dress or uniform
		· Behaviour is appropriate to the industry and involves diplomacy, courtesy and tact.
		· Attitudes, including positive motivation and self confidence, are displayed in work and communication with staff and customers.
Element 3 Participate in teamwork		Performance criteria
		· Tolerance, honesty, commitment and co-operation are shown to team members.
		· Work in the team reflects:
			· trust and support for the team members
			· recognition of team goals and effort
			· cooperation with team members
			· readiness to meet needs of team members.
Evidence Guide
· These units are designed as introductory units and indicate essential knowledge and understanding which underpins effective performance within the industry. Assessment of this knowledge and understanding could often be on the basis of simulation rather than actual workplace performance, for example:
	· role plays
	· verbal or written tests
	· projects
	· case studies
· Competency may be demonstrated through:
	· workplace performance of tasks in all units
	· role play situations
	· verbal assessment
· Competency may be assessed in conjunction with other service units.
· This unit is a pre-requisite to or co-requisite of other service units.
Food and Beverage - National Standards Copyright: Tourism Training, Australia

5.3 Australian Standards Framework (ASF)

The Australian Standards Framework (set down in the National Training Board's Policy and Guidelines) defines a set of eight competency levels to provide consistent benchmarks across industries and sectors for differentiation between higher and lower skilled workers. This enables training and education programs to be constructed to allow workers to progress to higher levels at appropriate times in their working lives, and for assessment of experienced workers to identify their current competency level.

The Australian Standards Framework uses competency level descriptors to describe characteristics which differentiate the various levels. The main discriminating factors in the progression from lower to higher levels of competency are:

· the level of autonomy and discretion increases and is related to a wider span of activity;
· the range of contingencies to be dealt with and the complexity of work increases;
· responsibility and accountability expands;
· the complexity of the knowledge base required increases; and
· competencies may be related to management and specialist functions.

5.4 Australian Qualifications Framework (AQF)

The first six levels of competency are now aligned to the new Australian Qualifications Framework for vocational education and training which will be operational from the beginning of 1995. (Levels 7 and 8 of the ASF are higher managerial and professional competencies for which it is more difficult to specify the education requirements).

The Australian Qualifications Framework replaces the names and descriptions of qualifications which were formerly devised by the individual States and Territories. The qualifications framework is intended to:

· provide nationally consistent awards in post-compulsory education;

· clarify the relationships between qualifications;

· encourage individuals to progress through education and training levels;

· allow for flexible pathways between the education and training sectors;

· contribute to the provision of more and higher quality vocational education and training;

· allow for input from industry, the community and professional organisations as well as education and training authorities and providers in determining the requirements for qualifications; and

· promote national and international recognition of Australian qualifications.

The table below shows the relationship of the first six levels of the Australian Standards Framework to the vocational qualifications in the Australian Qualifications Framework.

Australian Standards Framework	Australian Qualifications Framework
ASF level 1	Certificate I
ASF level 2	Certificate II
ASF level 3	Certificate III
ASF level 4	Certificate IV
ASF level 5	Diploma
ASF level 6	Advanced Diploma

5.5 National Framework for Recognition of Training (NFROT)


5.5.1 Accreditation of courses

Most notable among the accreditation principles are:

· the emphasis on the involvement of industry in identifying the competency standards required;

· the emphasis on flexible learning procedures which ensure multiple entry and exit points, recognition of a range of training environments and learning modes, and customisation to meet client needs (while preserving the integrity of the course);

· articulation between course levels and sectors of education; and

· quality assurance measures requiring monitoring and review.

5.5.2 Credit transfer between training programs and accredited courses


The credit transfer principles allow for trainees to gain credit in an accredited course for competence gained from a structured training program which does not itself have accreditation, such as an in-house training program conducted by a company. The principles assure that the credit is only given for genuine parity of training outcomes.

5.5.3 Registration of providers


The principles for registration of providers allow for accredited training to be delivered by bodies outside the public institutional system ie “private providers”. The requirements and safeguards to ensure ethical, quality provision are built into these principles.

5.5.4 Recognition of Prior Learning (RPL)


The inclusion of Recognition of Prior Learning principles in the framework now ensures the recognition of competence as a result of any form of learning whether by formal or informal means. The principles are couched to promote commitment by training systems to provide access to competency assessment for all who believe they have relevant prior learning.

5.5.5 Assessment


The principles of assessment point to the importance of ensuring that competency standards are the benchmarks by which achievement will be measured. Flexible assessment methods are encouraged allowing for different settings and requirements.

A major component of the NFROT principles is the concept of Recognition of Prior Learning (RPL). An illustrative example of this process is described below.

Best Practice Example: Recognition of Prior Learning

Ford Motor Company of Australia Recognition of Prior Learning (RPL) is a key component of the National Framework for the Recognition of Training. It is the acceptance that an individual may acquire competency from a variety of sources some of which are outside the formal training system. The process of RPL provides an individual with the opportunity to demonstrate this competency, and have it certified. RPL processes are currently being implemented within educational institutions, other skills recognition bodies and within companies themselves. The advantages for companies in adopting an RPL process are that it provides an incentive for employees to undertake additional training leading to an accredited qualification and genuine career progression. It also provides a clear basis for award classification decisions. Ford Motor Company of Australia Ltd, in association with Broadmeadows College of TAFE, was one of the first companies to initiate enterprise-based RPL. This stemmed from an approach to the TAFE College in 1988/9 by Ford to seek accreditation for its in-house training programs. A pilot study followed in which a group of Ford employees were assessed to identify the skills and knowledge gained through both formal and informal training within the company, and the relationship of these to existing accredited programs. Following the development of the Vehicle Industry Certificate, an accredited course designed for the vehicle manufacturing industry, the process was then offered on a large-scale basis to Ford employees during 1991/2. This arrangement was formalised in an Industrial Relations agreement. Information about RPL was distributed by letter to the 8,500 members of the non-trade workforce at Ford and the Vehicle Industry Certificate was widely promoted, with the result that 2,500 employees had applied for RPL, received appropriate credits and entered further training by the end of 1992. The assessments were carried out by three-person Review Panels of company staff, who had undertaken a two-day training program with the Broadmeadows College of TAFE. To promote fairness in the process, panels were balanced in terms of the interests represented and consisted of the employee's supervisor, a training officer and a union representative. A range of evidence was considered during assessment including detailed statements made on an application form, a candidate's breadth of experience, documentary evidence, interview responses and practical demonstration of skills. Successful applicants were advised of credits and further training opportunities, while unsuccessful applicants had access to an appeals mechanism. Documentation of the processes used at Ford which has now been supplemented by experiences in a range of other settings and contexts, have provided a body of knowledge on what constitutes best practice in RPL. These are detailed in a range of publications from Broadmeadows College of TAFE and in a national report Arrangements for the Recognition of Prior Learning in Australia VEETAC January 1993. The latter document points out the need for supportive, fair and efficient services at each of six stages in the process: the information stage, the initial support and counselling stage, the application stage, the assessment stage, the post-assessment guidance stage and the certification stage. While there is an obviously significant commitment of resources involved in these processes, the Ford experience shows the expense to be justified by the benefits in terms of increased staff morale, greater commitment to skills upgrade and improved relationships between workers and management.

5.6 Development of training curriculum



The guidelines for the development of accredited training curriculum have been produced by the Australian Committee for Training Curriculum (ACTRAC) Sept 1992 using the principles specified in NFROT.

Achievement of the relevant industry defined competency standards should form the end point of training. However the specification of competency standards is not a curriculum in its own right. The learning outcomes of training curricula must be devised to optimise learning and will frequently specify stages of progression and the linking of knowledge or skill requirements in combinations that differ from those in the standards specification. However there must be continual cross-referencing between training curriculum and the competency statements, identifying the relationships.

Modular curriculum structures are preferred to enable a more flexible organisation of learning to meet the needs of individual learners. A module is a specific learning segment, complete in itself and capable of being separately assessed. The precise duration of a learning module is not stated, although nominal durations may be specified to assist scheduling. It is however understood that rates of progress will differ between learners.

The module descriptors define performance in terms of learning outcomes, assessment criteria, conditions and assessment methods. While each learning outcome must be specified in demonstrable terms, the underpinning knowledge required for successful performance must be identified. Criterion-referenced assessment should be used rather than norm-referenced assessment to ensure that all graduates may achieve the required standard.

Accreditation of training curriculum is now open to private providers of training as well as the public training sector, provided that training programs are designed to lead to the achievement of competency standards.

Best Practice Example: Competency-Based Curriculum Development and Assessment

The National Laboratory Science Technician Curriculum Project (SCITECH Project)

The National Laboratory Science Technician Curriculum Project commenced in April 1992. This project, funded by the Australian Committee for Training Curriculum (ACTRAC), ultimately aims to produce a national competency-based curriculum and assessment framework for science technicians, in the fields of animal technology, biological sciences, chemical laboratory technology, food science, geoscience, environmental science and medical laboratory technology, for implementation in 1995.

The project team includes representatives from employer, union and TAFE organisations. The project is managed from the Canberra Institute of Technology, ACT.