Our Universities: Backing Australia's Future - Varieties of Learning: the Interface between Higher Education and Vocational Education and Training

6 The higher education and VET sectors have distinct but complementary roles; their futures are inextricably linked and dependent on their capacity to adapt and respond to changing demand for the educational products of both sectors. For higher education the primary focus is on the pursuit, preservation and transmission of knowledge. While employment-oriented learning outcomes are a legitimate concern of higher education, these tend to be more generic and generalist in nature, equipping graduates for a range of economic and social contributions. The Australian National Training Authority (ANTA) website describes VET as “education and training for work. It exists to develop and recognise the competencies or skills of learners”. While VET was originally focused on apprenticeship training, it has evolved as a form of broad non university, competency-based training, focussed on meeting the needs of industry. However, just as higher education concerns itself with employment-oriented learning outcomes of a generic and generalist nature, equipping graduates for a range of economic and social contributions, VET has responded to social and economic pressures to provide more generic skills within its traditionally vocationally oriented courses.

7 VET programmes range from basic adult education to New Apprenticeships, and advanced technical and business diplomas. About 65 per cent of all VET clients are enrolled in programmes of training leading to qualifications under the Australian Qualifications Framework.

8 TAFE Institutes have had a dominant role in providing the bulk of VET for people who may be disadvantaged as a result of economic or locational factors.

9 Recent work in Western Australia on market segmentation in VET (which is being considered for national application) highlights the variety of educational and personal outcomes sought by VET clients. The VET market caters to school leavers seeking education and training for labour market entry, enterprises whose existing workforces require specific skill improvement, individuals seeking retraining for career transitions and changes, self employed entrepreneurs and those seeking further education for personal enhancement or community participation.

10 The sectors have distinctive profiles, in part reflecting these historically different and evolving roles (Table 1).

Table 1: Key features of the Australian higher education and vocational education and training sectors, 2001 (a)

	Higher education	Vocational education and training
Students	726 418 (b) (c)	1.76 million students (i) (j)
	64% full-time (c)	10% full-time (i)
	27% aged less than 20 years (c)	24% aged less than 20 years (i)
	47% aged between 20 and 29 years (c)	26% aged between 20 and 29 years (i)
	26% aged 30 years and over (c)	46% aged 30 years and over (i)
	45% males (c)	51% males (i)
	1.2% Indigenous (d)	3.3% Indigenous (i)
	14.6% low SES (d)	26% low SES (k)
	19% rural/isolated (d)	34% rural/remote (i)
	15% overseas students (c)	1.2% overseas students (l)
		74% students with TAFE and other government providers (l)
	171 089 award course completions(2000) (b) (c)	427,500 people who completed a qualification (2001) (m)
Providers	39 universities (e)	87 registered public providers in 1322 locations (i)
	156 campuses (1996) (f)	85% of public providers are TAFE colleges
	4 other self accrediting HE providers (e)	4 432 registered private providers (i)
	80+ other private providers (g)
Funding	$6.0 billion of government funding (2000) (h)	$3.5 billion of government funding (2000) (n)
	2.4% from States/Territories	64% from States/Territories
	28% from HECS	36% from Commonwealth
	70% from Commonwealth
	$3.3 billion non-government funding (2000) (h)	$732 million from non-government sources (2000) (n)
		including $171 million from student fees and charges

Notes:
(a) All data are for 2001 except where the most recent data available are for an earlier as indicated (year).
(b) Includes only those students who fall within scope of the Higher Education Statistics Collection.
(j) Includes only those students who fall within scope of the NCVER collection.

Sources:
(c) DEST 2002: Students 2000 - Selected Higher Education Statistics.
(d) DEST 2002: Higher Education Report for the 2002 to 2004 Triennium.
(e) Australian Qualifications Framework Register (www.aqf.edu.au/accred.htm).
(f) Unpublished DEST data.
(g) see NOOSR 2000: Country Education Profiles, Australia (3rd ed) and Watson 1999: Survey of Private Providers in Australian Higher Education 1999, EIP 00/4, DETYA.
(h) DEST 2002:Finance 2000 - Selected Higher Education Statistics.
(i) NCVER 2002: Australian Vocational Education and Training Statistics 2001 in detail.
(k) TAFE Directors Australia (submission 322), proportion derived from unpublished NCVER data.
(l) NCVER 2002: Australian Vocational Education and Training Statistics 2001: at a glance.
(m) NCVER – unpublished data.
(n) NCVER Statistics 2000 Financial Data

11 The VET sector has grown considerably in recent years, from around 990 000 students in 1991 to 1.76 million in 2001, representing 13.1 per cent of Australia's working age population. Over the same period, the number of students participating in higher education increased from 534 500 students in 1991 to 726 400 students in 2001. Unmet demand for VET declined from 54 300 in 2000 to 46 600 in 2001. The overall level of unmet demand for higher education is estimated by the Australian Vice-Chancellors’ Committee (AVCC) to be between 10 600 and 17 450 (AVCC, 2002).

12 Higher education and VET vary considerably in their funding, governance and administrative regimes. Universities are autonomous self-accrediting institutions established in most cases under State or Territory legislation, but funded principally by the Commonwealth. VET is increasingly a national system with a high degree of co operation between the Commonwealth and States and Territories under the auspices of the ANTA Ministerial Council. The VET system receives government funding primarily from the States and Territories. States and Territories have regulatory responsibility for both the public TAFE institutes and for private provision of VET. They also have regulatory responsibility for private provision of higher education.

b. factors shaping the interface

13 While the two sectors remain differentiated by mission, structure and funding, the interface between them is growing. There is increasing, albeit still relatively limited, movement of students between the sectors. There has also been a trend for universities to cultivate a broader range of external links, including links with industry, and most universities now have a relationship of some form with the VET sector (Sommerlad, 1998; Shoemaker et al., 2000). A number of factors are driving this increased interface.

14 First, rapid technological change, globalisation and the growth in knowledge-intensive industries are generating demand for different sets of skills. The changing nature of work is requiring individuals to increase their level of skills and become multi-skilled. To meet these demands, many students are looking for an education that provides a combination of elements of traditional higher education and vocational education. As a result, higher education and VET institutions are looking to offer a range of similar education services and/or to work together to address these needs.

15 Secondly, the growing trend to lifelong learning is likely to see the growth of a more diverse student body with a range of needs straddling the higher education and vocational education and training sectors. Australia is a world leader in lifelong learning, with very high levels of mature age Australians gaining entry both to vocational education and training and higher education. Five times more Australians over the age of 40 participate in education than the OECD average and Australia ranks first in the world for this age group.

16 Thirdly, there are national and several State-based strategies for secondary schooling that could see a significant increase in the number of young people seeking post-school education and training. For example, Queensland is considering reforms by which all young people under 16 or 17 years would be involved in school, training or employment. Such strategies will lead to a more diverse range of young people seeking entry to VET and higher education, with an equally diverse range of educational requirements and demands.

17 Fourthly, there are efficiencies in cooperation and collaboration. The South Australian Government’s submission to this Review cited the SA Business Vision 2010 Strategic Review of the South Australia Higher Education Sector, which identified greater collaboration between universities and VET institutions as vital to the future viability of higher education, especially in regional areas or smaller States and Territories (Submission 334).

18 Schofield also notes the importance of cooperation in regional Australia but argues that the imperative to cooperate goes much further:

19 In addition, collaboration often confers market advantage on both higher education and VET institutions. As Sommerlad et al. (1998) pointed out, activities such as franchising or licensing of courses to other providers, joint consultancies to industry and provision of training across the sectoral boundaries can generate substantial income for both partners. Provision of student pathways also allows institutions a competitive advantage in the tertiary education market.

Higher Education Review Process

Varieties of Learning: the Interface between Higher Education and Vocational Education and Training

2. setting the scene

a. distinct missions and profiles

b. factors shaping the interface