30 years on from kangan an analysis of the current policy position of TAFE queensland

KEY WORDS FOR CATALOGUING Australia, policy, vocational education and training, TAFE, social service and economic utility roles, globalisation, economic rationalism, managerialism, human

30 Years on from Kangan: An Analysis of the Current

Policy Position of TAFE Queensland

GREG MCMILLAN

A/Dip Bus (Retail), B Bus (Acc), Grad Dip (FET), MPET

Being a dissertation for the degree of Doctor of Education within the School of Learning and Professional Studies, Faculty of Education,

Queensland University of Technology

August 2007

KEY WORDS FOR CATALOGUING

Australia, policy, vocational education and training, TAFE, social service and economic utility roles, globalisation, economic rationalism, managerialism, human capital theory, case study, content analysis, constant comparative method

30 Years on From Kangan: An analysis of the

current policy position of TAFE Queensland

ABSTRACT

Within Australia, Vocational Education and Training (VET) encompasses the Technical and Further Education (TAFE) sector, private providers, community education and training, and work-based training Additionally, some VET activities are embedded within the secondary school and university sectors As the major provider of Government-funded vocational education and training, TAFE has undergone significant change since its establishment in the 1970’s Historically, TAFE has provided broader education and social opportunities for individuals beyond a narrower focus on the achievement of training outcomes for economic benefits However, shifts in policy direction in 1980’s and 1990’s have seen the delineation between broader education and economic outcomes becoming less distinct While this is perhaps true of all education sectors, it has potentially impacted more on TAFE than any other sector This thesis investigated these impacts within the context of TAFE’s social service and economic utility roles This was undertaken by analysing seven seminal Commonwealth and Queensland documents and by analysing the findings of interviews with six senior executives within Queensland’s Department of Employment and Training and TAFE The key findings of this thesis indicate that TAFE Queensland continues to perform a number

of functions or activities that can be associated with a social service role However, the findings also indicate that, for TAFE Queensland, there has been a shift towards

an economic utility role Since the Kangan Report (1974), TAFE’s role has become more focussed on meeting Queensland’s economic and industry needs within a broad view that Australia needs a flexible workforce, qualified to industry standards of competence and able to compete in a globalised world

TABLE OF CONTENTS:

KEY WORDS FOR CATALOGUING i

ABSTRACT iii

TABLE OF CONTENTS: v

LIST OF TABLES ix

LIST OF FIGURES ix

LIST OF APPENDICES ix

LIST OF ACRONYMS x

STATEMENT OF ORIGINAL AUTHORSHIP xi

CHAPTER ONE: CONTEXT OF THE STUDY 1

1.1 BACKGROUND TO THE RESEARCH 1

1.2 RESEARCH QUESTIONS 3

1.3 JUSTIFICATION FOR THE RESEARCH: 6

1.3.1 Importance of the area 6

1.3.2 Practitioner Research 7

1.3.3 Significant Research and Study Relevant to this Thesis 8

1.3.4 Gaps within Existing Research 10

1.4 POLICY: DEFINITION 11

1.5 CONCEPTUAL FRAMEWORK AND METHODOLOGY 12

1.6 OUTLINE OF THE THESIS 12

1.7 CHAPTER SUMMARY 13

CHAPTER TWO: LITERATURE REVIEW 15

2.1 EDUCATIONAL CONTEXT FOR UNDERSTANDING TAFE IN AUSTRALIA 15

2.1.1 An Overview of the Australian Education System 15

2.1.2 The General Role and Purpose of Education 17

2.1.3 The Role and Purpose of Technical and Further Education 18

2.2 THEORETICAL PERSPECTIVES IMPACTING ON EDUCATION POLICY IN AUSTRALIA 21

2.2.1 Globalisation and the influences of Liberalism 21

2.2.2 Economic Rationalism and Education Policy 22

2.2.3 Human Capital Theory 25

2.2.4 Corporate Managerialism 27

2.2.5 Summary 28

2.3 THE VET MARKET AND THE MARKETISATION OF TAFE 29

2.3.1 The Development of a VET market 29

2.3.2 TAFE and VET 33

2.3.3 VET and TAFE’s Role from a Policy Perspective 34

2.3.4 VET and TAFE’s Role from a Research Perspective 35

2.3.5 Funding of VET and TAFE 37

2.3.6 Summary 37

2.4 KEY REPORTS AND MILESTONESS IMPACTING ON TAFE IN AUSTRALIA 38

2.4.1 The Kangan Era 38

2.4.2 TAFE in the 1980’s and 1990’s 41

2.4.3 TAFE in the Early 21st Century 44

2.4.4 TAFE Queensland 45

2.4.5 Summary 48

2.5 A SOCIAL SERVICE AND ECONOMIC UTILITY ROLE OF TAFE 49

2.5.1 Introduction 49

2.5.2 TAFE’s Role from a Social Service Perspective 51

2.5.3 TAFE’s Role from an Economic Utility Perspective 53

2.5.4 Tensions between a Social Service and Economic Utility Perspective55 2.6 CHAPTER SUMMARY 57

CHAPTER THREE: A CONCEPTUAL FRAMEWORK 61

3.1 JUSTIFICATION OF THE CONCEPTUAL FRAMEWORK 61

3.2 THE CONCEPTUAL FRAMEWORK 63

3.2.1 Key Influences that Impact on the Conceptual Framework 63

3.2.2 A Continuum View of a Social Service and Economic Utility Role 65

3.2.3 The Conceptual Framework 66

3.3 PRESENTING A POLICY POSITION: A MODEL 69

3.4 CHAPTER SUMMARY 72

CHAPTER 4: RESEARCH DESIGN 73

4.1 THEORETICAL PERSPECTIVE FOR THE STUDY 73

4.2 THE RESEARCH STRATEGY – A CASE STUDY 75

4.3 DATA COLLECTION 76

4.3.1 Policy Documents 76

4.3.2 Interview Participants 78

4.4 DATA ANALYSIS 83

4.4.1 Policy Documents 83

4.4.2 Interviews 86

4.4.3 Relationship of Data to the Research Questions 88

4.5 TRUSTWORTHINESS AND CREDIBILITY 90

4.6 THE RESEARCHER AND RESEARCHER BIAS 92

4.7 ETHICAL CONSIDERATIONS 93

4.8 LIMITATIONS 94

4.9 CHAPTER SUMMARY 94

CHAPTER 5: FINDINGS - A Policy Position 95

5.1 INTRODUCTION: 95

5.2 POLICY DOCUMENT ANALYSIS: DETERMINING A POLICY POSITION 96

5.2.1 National Policy Documents 97

5.2.2 State Policy Documents 107

5.2.3 Summary and Discussion on all Policy Documents 119

5.3 INTERVIEW ANALYSIS: DETERMINING A POLICY POSITION 123

5.3.1 Introduction 123

5.3.2 Interview Findings 125

5.3.3 Summary and Discussion of Interviews 135

5.4 CHAPTER SUMMARY 137

CHAPTER 6: FINDINGS - A Policy Emphasis 139

6.1 INTRODUCTION 139

6.2 A LACK OF CLARITY OF TAFE QUEENSLAND POLICY 139

6.2.1 Policy: A Framework or an Explicit Position: 139

6.2.2 Policy Gaps 141

6.2.3 TAFE as a Public Provider 142

6.2.4 Individual Institutes or a TAFE Sector 144

6.2.5 TAFE as a Policy Arm of Government 146

6.2.6 Summary 148

6.3 ROLE OF TAFE QUEENSLAND INSTITUTE DIRECTORS 148

6.3.1 Policy Developers, Influencers or Implementers 149

6.3.2 Institute Director or Senior Bureaucrats 150

6.3.3 Political Influences 151

6.3.4 Summary 152

6.4 FOCUS ON KEY PERFORMANCE MEASURES (KPIs) 153

6.5 CHAPTER SUMMARY 155

CHAPTER 7: DISCUSSION AND ISSUES CHAPTER 157

7.1 INTRODUCTION 157

7.2 THEORETICAL PERSPECTIVES INFLUENCING POLICY: 158

7.2.1 A Social Service Emphasis 158

7.2.2 An Economic Utility Emphasis 161

7.2.3 Balancing Two Apparently Dichotomous views 165

7.3 INFLUENCES ON A SOCIAL OR ECONOMIC EMPHASIS 170

7.3.1 A Lack of Clarity of TAFE Queensland Policy 171

7.3.2 The Role of TAFE Queensland Institute Directors: 174

7.3.3 Focus on Key Performance Measure 176

7.3.4 Summary: 178

7.4 RELATED ISSUES 178

7.4.1 The Politicising of the Australian VET System 179

7.4.2 VET-TAFE Reforms: integrating or disengaging social and economic goals? 182

7.4.3 Is there a Role for a Public Provider TAFE Sector in the Future? 186

7.4.4 The Limitations of VET research 190

7.5 SUMMARY 192

CHAPTER 8: SUMMARY AND CONCLUSIONS 195

8.1 INTRODUCTION 195

8.2 THE STUDY 195

8.2.1 The Purpose and Significance of the Study 195

8.2.2 The Literature Review 196

8.2.3 The Conceptual Framework and Methodology 196

8.2.4 Findings 197

8.2.4 Emerging Issues 198

8.3 IMPLICATIONS FOR THEORY 199

8.4 IMPLICATIONS FOR POLICY 202

8.5 IMPLICATIONS FOR PRACTICE 203

8.6 LIMITATIONS 204

8.7 RECOMMENDATIONS FOR FURTHER RESEARCH 204

8.8 CONCLUSION 205

REFERENCES 224

LIST OF TABLES

Table 1: Features and Access Implications of Two Views of TAFE 50

Table 2: Social Service and Economic Utility Conceptual Framework 68

Table 3: Example of the alignment of ‘intent’ in the Data Collection Table 85

LIST OF FIGURES Figure 1: Key Influences on a Social Service and Economic Utility Role 64

Figure 2: Continuum View of Social Service and Economic Utility 65

Figure 3: A Model for Visually Presenting a Policy Position 71

Figure 4: Relationship between Research Questions, Data Collection and Analysis 89 Figure 5: Data Collection Steps 95

Figure 6: Policy Position - National Policy Documents 105

Figure 7: Policy Position – State Policy Documents 116

Figure 8: Policy Position – Combined Policy Documents 119

Figure 9: Policy Position – Interviews 135

Figure 10: Policy Position - Documents and Interviews 137

Figure 11: Policy Position - Documents and Interviews 157

Figure 12: A TAFE System Model 199

LIST OF APPENDICES Appendix 1: DET Structure 207

Appendix 2: Research Information Pack 208

Appendix 3: Interview Pre-Reading 212

Appendix 4: Data Collection Table 215

Appendix 5: Data Collection Table – Kangan Report (1974) 216

Appendix 6: Data Collection Table – A Bridge to the Future (1998 – 2003) 217

Appendix 7: Data Collection Table – Shaping our Future (2004 – 2010) 218

Appendix 8: Data Collection Table – Skilling Queensland (2001 - 2004) 219

Appendix 9: Data Collection Table – Education and Training Reforms (2002) 220

Appendix 10: Data Collection Table – DET Strategic Plan (2003 – 2007) 221

Appendix 11: Data Collection Table – TAFE Queensland Strategic Plan (2003 - 2006) 222

Appendix 12: Policy Emphasis Table 223

LIST OF ACRONYMS

ACE Adult and Community Education

ACOTAFE Australian Committee on Technical and Further Education

ANTA Australian National Training Authority

AQF Australian Qualification Framework

AVTS Australian Vocational Training System

CAE’s Colleges of Advanced Education

CBT Competency Based Training

CEET Centre for the Economics of Education and Training

DET Department of Employment and Training

DETA Department of Education, Training and the Arts

DEET Department of Employment, Education and Training

DETIR Department of Employment Training and Industrial Relations DEVET Department of Employment

DEVETIR Department of Employment, Vocational Education and Training and

Industrial Relations ETRF Education and Training Reforms for the Future

ITAB’s Industry Training Advisory Boards

MCEETYA Ministerial Council on Education, Employment, Training and Youth

Affairs MINCO ANTA Ministerial Council

NAS New Apprenticeship Schemes

NTF National Training Framework

NTP’s National Training Packages

QEVET Queensland Employment, Vocational Education and Training Board RTO Registered Training Organisation

TAFE Technical and Further Education

TAFE*TEQ TAFE, Training and Employment Queensland

TDQ TAFE Directors Queensland

VET Vocational Education and Training

VOCED Vocational Education and Training Research Database

STATEMENT OF ORIGINAL AUTHORSHIP

The work contained in this thesis has not been previously submitted to meet requirements for an award at this or any other higher education institution To best

of my knowledge and belief, the thesis contains no material previously published or written by another person except where due reference is made

Greg McMillan

ACKNOWLEDGEMENTS

Morgan (1997) cites the allegory of the cave presented in Plato’s The Republic In

this allegory, people are chained inside a cave so they cannot move and the cave dwellers can only see themselves and their shadows The cave dwellers equate the shadows with reality, naming them, talking about them and linking the outside sounds with their movements on the wall As Socrates relates, if one of the inhabitants were allowed to leave, they would realise the shadows are of a more complex reality and the knowledge and perceptions of their fellow dwellers are distorted and flawed If they were to leave and return to the cave, they would never

be able to live in the old ways since for them the world would be a different place

I express my sincere appreciation to the following people who have encouraged and supported me in my journey that has allowed me to move outside my cave so I now view vocational education and training in Australia, and the TAFE sector, in a much more informed way than before

My supervisors have been appropriately demanding, yet incredibly supportive Most significant has been Dr Lisa Ehrich (QUT) who has been with me throughout the entire journey Mere words are inadequate to express my appreciation to Lisa for her support and guidance Dr Neil Cranston (UQ) for his early contributions, particularly on the development of key diagrams and candid discussions; and more recently to Dr Mary O’Keeffe (USQ), for her thoughtful and constructive contributions

To the elite interviewees, who remain unnamed, I express my appreciation for without their willingness to contribute, there is no thesis

Critical friends provided useful and insightful contributions to the development of this thesis My thanks go to Andrew Walker for his support in the early days of researching the key issues and Pat Roche for her guidance and critical thinking

My thanks also go to many work colleagues across several institutes In particular, I thank Nik Babovic, Mary Campbell, Andrea Harris and Kerrie Boyce who were often used to share ideas and concepts I also express sincere appreciation to Bob McAulay as one who supported my endeavours and constantly encouraged me to think beyond the obvious

Personal friends are also important and, whether they realised it or not, they have played a vital role in helping me throughout this journey I give my sincere appreciation to Steve and Ann Murray, Pam and Fred Bol, Mike and Beris Ludwig and Trish and Jes Kirk

A part-time study program of some 26 years can only be achieved with tremendous support from those closest to you To my wife Gillian, I simply say ‘Thank you; with you by my side, anything is possible and everything is achievable’ To our daughters, Georgie, Cass and Alex, I say: “It is an honour and privilege to be your Dad and I wish you all the best for the future Constantly step outside ‘your cave’; always with a desire to learn more so you can enrich your life and the lives of others with whom you come in contact”

CHAPTER ONE: CONTEXT OF THE STUDY

1.1 BACKGROUND TO THE RESEARCH

The Australian education system is a tiered system comprising primary, secondary and post-secondary education Within post-secondary education, there exists a variety of public and private universities and colleges and a system broadly defined

as Vocational Education and Training (VET) that permeates through both the secondary and post-secondary environs, and within the public and private provider domains The Technical and Further Education (TAFE) sector resides within this broader VET system with TAFE Institutes undertaking the role of the major public provider within each State TAFE had a monopoly on technical and further education and training until the early 1990’s, when the concept of a VET market was created to open up this emerging market to greater competition as part of Federal Government policy (Goozee, 2001) In line with greater competition and other economic and corporate shifts, the Australian TAFE sector underwent significant reform in the decades following its inception in 1974 under the auspices of the Kangan Report (1974) Major reform was triggered during the late 1980’s and early 1990’s by the influence of reports such as those by Dawkins and Holding (1987), Dawkins (1988, 1989), Deveson (1990) and the development of the Australian

National Training Authority (ANTA) through the ANTA Act 1992

Political, economic and education policy influences have created an environment whereby the role and purpose of TAFE is less clear than ever before As a result, a number of key questions become important Should the role of TAFE be to provide

a broader social service and education focus, or should it be an economic tool of government established to achieve economic gains? Is it the role of government to invest in education and training on behalf of individuals or should the individual beneficiaries of education and training pay for themselves? Being the public provider, does TAFE have a social service role to play beyond other providers within the VET market? Has the policy influence of economic rationalism swung TAFE’s policy emphasis toward an economic agenda? What combination of social and economic imperatives should be a focus for the public provision of technical and further education?

From a social service perspective, TAFE’s role can be described as one in which ‘the individual is TAFE’s primary focus and equity of access within a broad framework

of social concern is the guiding principle’ (Powles & Anderson, 1996, p.98) This implies that, in addition to teaching specific vocational skills, the additional acquiring of such knowledge and skills as the development of adaptability, social responsibility and the personal development of a student should be supported Further, a social service view advocates the subsidising of the public provision of education and training to support those who need additional assistance to overcome, for example, affordability and accessibility barriers The notion of social service does not negate the focus on assisting a person to gain a job (Ferrier & Anderson, 1998; Kangan, 1974; Lloyd, 1976); rather, a social service view reflects positively on the concepts of recurrent education and lifelong learning

From an economic-utility perspective, TAFE is one channel through which to promote economic development The rationale is that the economy drives enrolments, determines their social distribution and influences the nature of student demand In this way government can minimise ‘frivolous consumption’ through the management of education and training as a commercial transaction rather than as a process of social and cultural formation (Powles & Anderson, 1996) From a human capital paradigm, education becomes skill formation, with the objective of boosting industry productivity and competitiveness rather than contributing to social and personal development (Marginson, 1993; Powles & Anderson, 1996)

The tensions that lie between the social service and economic functions of TAFE have evolved in a globalised world where economic, political and associated influences have developed in an education policy framework since the 1980’s (Anderson, Brown, & Rushbrook, 2004; Marshall & Peters, 1999) These tensions have influenced a paradigm shift expanding the concept of investment in education

to a broader concept of investment in human capital (Gough, 1994; Johnston, 1997; Kenway, 1999; Marginson, 1993, 2000) that more directly relates the development of human capital into an economic benefit These influences also reflect broader tensions between two notions of investment in human capital: a neo-liberal perspective that seeks private investment in education by the education consumer (Korton, 1995; Mander, 1996), and a liberal progressive view which mandates

government intervention as a means of maximising the benefit of investment into human capital (Giddens, 1994; Thurrow, 1996) In the Australian context, reflective

of neo-liberal influences on national education agendas, there has been a proliferation of private provider activities throughout all education sectors

Adding further tension to education policy has been the phenomenon of globalisation (Wells, Carnochan, Slayton, Allen, & Vasudeva, 1998) that, when associated with a pervading international economic rationalist environment, has increasingly linked with economic policy (Anderson et al., 2004; Kenway, 1999; Pusey, 1994; Taylor, 1996) Within this economic rationalist environment, corporate managerialism, that

is the influence of private sector management ideologies and practices on public sector organisations, has impacted particularly on public sector management practices throughout the western world This has moved public sector management toward corporate efficiencies and effectiveness more associated with broader economic agendas than the core public, or social service functions that had arguably been their primary charter (Poulson, 1996; Seddon & Lawrence, 1995; Self, 2000)

These issues become particularly important when identifying the current position of TAFE within the broader global economy Thus, it is timely for a review of current TAFE policy to be undertaken as a basis for developing a future policy position about the renewal, revitalisation and re-conceptualisation of TAFE’s role (Veenker & Cummins 2001)

1.2 RESEARCH QUESTIONS

The thesis uses the report that spearheaded the establishment of TAFE, the Kangan Report (1974), and six other seminal Commonwealth and Queensland State documents, to determine the current policy position of TAFE Queensland The following research questions are addressed:

• What is the current policy position of TAFE Queensland with respect to the emphasis placed on a social service and economic utility role as evidenced by:

o strategic policy documents that impact on TAFE Queensland, and

o the views of senior executives who influence the development and implementation of TAFE Queensland policy?

• What influences are shaping a TAFE Queensland policy emphasis towards either a social service or economic utility role, as evidenced by the views of these senior officers?

The complexity of issues that impact on a social service or economic utility role for TAFE can be understood by considering the trends that have emerged over recent years that have influenced the Vocational Education and Training agenda, and specifically TAFE as a key provider in this market Marginson (1993)has indicated that some of these trends included:

• The linking of education to economic development;

• The introduction of the view that a key priority for the vocationalist/training agenda is that workers need to be multi-skilled, flexible and responsive to labour market changes;

• The implementation of centralised policy making and a decentralisation of administration of policy (devolution);

• A shift to corporate managerialism in education reflecting commercial business practices that focus on outcomes and outputs;

• An introduction of economic rationalism into education that has led to a marginalisation of social justice/equity; and

• The implementation of privatisation and competition policy and practices across government activities including traditional social services domains such as education

These trends can be seen in the way that an economic rationalist and a human capital perspective have influenced Government policy on education (generally) and TAFE (specifically) through the linking of educational activities directly to economic performance measures With these trends, there is the perception that education is now seen as either an investment in the future or consumption of expenditure rather than a social good; and a belief higher qualifications equate to greater economic productivity (Gough, 1994; Johnson, 1997; Kenway, 1999; Marginson, 1993) Furthermore, economic rationalism and corporate managerialism in the public sector have influenced policy and management practices These influences are evident

through the use of cost-efficiency justifications to meet democratically determined ends, emphasising a focus on the ends, not the means; and a focus on outputs not inputs by tying social justice to economic imperatives A consequence of these trends is the growth of the user pays concept, resulting from limited government funding (Seddon & Lawrence, 1995; Self, 2000; Smith, Ferrier, & Burke, 1999) Arguably, both for the VET system and TAFE, the focus now appears to be more on the production of graduates to meet economic needs than on the social and cultural development of individuals who can contribute more broadly to society Other important trends or policy shifts include the acknowledgement that lifelong learning

is an economic as well as a social imperative There is also the issue of globalisation and its impact on individuals, organisations and society, in general, as Australia’s labour, financial and other markets become more influenced by global markets Further, there is a general movement away from the welfare state, shifting social justice responsibilities back to organisations, individuals, families and the community generally (Callaghy, 1993; Carl, 1994; Wells et al., 1998)

There is evidence of intent by Commonwealth and State governments to support a public provider of VET (ANTA, 1998, 2004; Queensland Government, 2001a, 2003a) While there is a TAFE sector, there will be government, industry, community, teacher, management and individual expectations of what TAFE is and should be In addressing the research questions identified earlier in this section, this thesis aims to add to a body of knowledge that informs key stakeholders of the implications of current education and economic policy by understanding:

• The contemporary social service and economic utility influences and issues facing TAFE Queensland;

• The current position of TAFE Queensland in relation to these influences and issues; and

• The gaining of insight into policy directions that could lead the way towards a desired position in the future

1.3 JUSTIFICATION FOR THE RESEARCH:

1.3.1 Importance of the area

While TAFE, in itself, may not be able to directly affect government policy, or the size of public expenditure on the VET system, it does have a significant role to play

in delivering Australia’s broader knowledge requirements TAFE is the major provider of public funding of VET training within Australia (NCVER, 2005) and has been recognised by ANTA as an ongoing participant in the VET market (ANTA,

1998, 2004; Queensland Government, 2001, 2003a) Paradoxically, while ANTA vigorously pursued an open training market to encourage private provider participation, it maintained a commitment to TAFE as an instrument for pursuing government policy, particularly noting that TAFE has a role in providing a safeguard against market failure Small wonder, then, that Goozee (2001) sardonically depicted TAFE as:

Education’s version of the Flying Dutchman instructed to go forth and compete but forever destined to beat against the wings of regulation and directions from which all competitors are exempt (p.9)

The implication of this claim is that, for TAFE, there is not a level playing field TAFE, as the government provider, cannot be as free to compete in the market place

as a private provider However, it seems reasonable to conclude that, unless TAFE is privatised, it has a role to play as the public provider and therefore should not be simplistically treated in the same way as a private provider competing in the same market

There are concerns that the reforms in VET in the 1990’s occurred with incredible swiftness, limiting the opportunities of those actually within the VET system to participate in the current policy debates (Broadbent, 1998) It is against this background that Veenker and Cummins (2001) argue that significant change has occurred in TAFE on two previously identifiable occasions It first occurred when the Kangan Report (1974) gave TAFE its identity, providing a vision for TAFE in which educational and social objectives, and the rights and needs of individuals had precedence over the needs of industry The second occurrence was during the

1980’s, when political and economic thinking diverged from the Kangan philosophy and the national training agenda evolved This second period has been characterised

by increasing dominance of economic policy in the education sector, a shift to demand-driven provision, greater industry ownership and involvement, the creation

of the training market and the implementation of competency based training

Veenker and Cummins (2001) argue that there are compelling, social and educational signs that thinking about the role and purpose of TAFE is needed For example, Seddon (1999) argues for the need to review the balance between the economic drivers that have influenced education policy since the 1970’s and the need to maintain the core social responsibilities of education TAFE is a significant sector of education that supports not only the economic agenda but also broader education issues such as learning for adults, not just children and youth, and lifelong learning not just front-end learning Therefore, a study that focuses on the current policy position of TAFE Queensland, and the key influences that have impacted on that position, is deemed timely

1.3.2 Practitioner Research

A Doctor of Education degree provides an opportunity for the enhancement of professional practice at a higher degree level Research is designed to focus on applied investigation and problem solving in response to the changing patterns in research activity (Pearson, 1999) Further, this degree provides opportunities for practitioners, who seek to engage more deeply within their own fields of learning, to enhance their contribution to policy, management and professional practice in an education setting (McWilliam, 2002)

The researcher undertook a number of management roles in the private sector before commencing a teaching role at TAFE Over recent years, he has performed a number of senior management roles within Queensland’s Department of Employment and Training and within TAFE Institutes As is the nature of practitioner based doctorates, this study emerged from the researcher’s work context and developed in response to his desire to be more informed about TAFE’s role in the Australian education system This desire also stemmed from a view that there are other practitioners who share a similar interest and concern regarding the uncertainty

of the role and purpose of TAFE as the major public provider of vocational education and training in Australia

1.3.3 Significant Research and Study Relevant to this Thesis

This research is premised on the notion that the TAFE sector has a social and an economic role to play and that these roles are an historical characteristic of Australia’s vocational education and training system This research also recognises that there is a relationship between a social and economic role for TAFE and that they are not distinct and irreconcilable The issue of duality and dualism is addressed

in Chapter Three and underpins much of the discussions in Chapters Five, Six and Seven

Ryan’s (2002) research on Australia’s vocational education and training system found that vocational education has oscillated between two poles One pole sees vocational education as primarily an instrument of economic development with a primary concern to meet the labour needs of industry, while the other pole views vocational education as primarily student centred, more aligned to a general education philosophy that encompasses goals of individual self-development and the creation of a more equitable society (Ryan, 2002) Ryan (2002) argues that at one time or another, either one of these views on the role of vocational education will tend to dominate and there will be a cyclical nature to the emphasis of either view Additionally, Ryan’s (2002) research identifies that the value systems that underpin policy and policy administration are also subject to cyclical change Of interest to this study is the extent to which an economic and a social emphasis on vocational education and training are evident in policy The mapping of TAFE Queensland’s current policy position is discussed within a conceptual framework (Chapter Three) that draws on the bi-polar concepts identified by Ryan (2002)

The main findings from a Review of Research: Factors influencing the demand for vocational education and training courses by Kilpatrick and Allen (2001) were:

• Policy has focussed largely on VET and the world of work neglecting notions of learning to improve quality of life and knowledge;

• Industry receives the primary consideration under national policy although it is (usually) individuals or enterprises who demand training;

• Individuals, communities, industries and the nation have a longer-term view of their training needs and are increasingly looking for life-skills;

• Motivation for participating in VET can stem from labour market and/or social or personal development reasons;

• Learning for life requires skills such as literacy, numeracy, personal skills and positive attitudes These skills are transferable into non-work situations; and

• The social rate of return, or the benefits of training have been understated including benefits such as increased social capital and cohesion, improving sense

of personal worth, lower crime rates, increased community service, improved quality of civic life, greater appreciation of diversity and improved ability to use technology and reactive positively to economic shocks

The key findings of Kilpatrick and Allen’s (2001) study suggest the VET system, including TAFE, needs to consider encompassing education outcomes rather than limiting itself to vocational and work related outcomes Their study supports an argument that there is a need for TAFE to fulfil both a social service role and to meet the economic utility function that it performs as the major public provider of

vocational education and training

In Blurring the Boundaries, Anderson (1994) undertook a detailed comparative

examination of three commercial enterprises and three TAFE Institutes, focussing on their structure, operation and approach to training This research identified a key difference between private providers and TAFE: TAFE’s greater capacity for promoting long-term social and economic development In part, this capacity stems from existing infrastructure and commitment to TAFE by governments Additionally, Anderson (1994) argues that the pursuit of access and equity cannot be left to market forces, and intervention by government is necessary to meet the needs

of ‘disadvantaged’ consumers Without ongoing intervention a two-tiered system may develop whereby those identified as ‘in need’ would be marginalised and left for TAFE, while private providers would be free to focus on the rest of the community

In a Review of Fees Issues and Revenue Options in TAFE: a Discussion Paper by

Ryan and Schofield (1990), a number of models for TAFE are discussed They fit broadly within a social service and/or economic utility framework Ryan and Schofield’s (1990) discussion paper recognises that it is “impossible to subdivide perceptions of the role of TAFE into rigidly separate models, however, there are sufficient differences in underlying values to justify setting out a series of approaches which constitute a variety of emphasis” (p10) Ryan and Schofield’s (1990) work is congruent with Ryan’s (2002) bi-polar perspective, and is used in the development of support for the conceptual framework and the model established in Chapter Three

These studies highlight some of the issues around the tensions between the appropriate role and purpose of TAFE The current study aims to contribute to this body of knowledge by exploring TAFE’s policy position within the contemporary education market

1.3.4 Gaps within Existing Research

There have been a number of key reports undertaken on both the VET system and/or TAFE sector They include Bannikoff (1998), Dawkins (1988, 1989), Deveson (1990), Finn, (1991), Fooks, Ryan and Schofield (1997), Hilmer (1993), Kangan (1974) and Schofield, (1999) Reports such as these have focussed primarily on the efficiency and/or effectiveness of the TAFE sector or VET system The implementation of their recommendations has resulted in significant reform to both the VET system and to TAFE, and influenced the emphasis of TAFE toward either a social service and/or economic utility position

A number of authors have expressed concern about the quantity and quality of research in VET when compared to other sectors, and more particularly on the lack

of influence research seems to have had on policy making (Butterworth, 1994, 1996; Hall, 1993; McDonald, Hayton, Gonczi, & Hagar, 1993; McDonald & Hawke, 1996; Ramsey, 1993; Seddon, 1997; Wiltshire, 1994) Yet, the 1990’s have seen the development of a number of research centres that have increasingly contributed to the development and publication of research on VET and TAFE policy and practice Examples of these centres are the:

National Centre for Vocational Education Research (NCVER): a jointly owned commonwealth, state and territory government funded research, evaluation and information centre;

Vocational Education and Training Research Database (VOCED): that provides access to information on VET research, policy and practice in Australia; and Centre for the Economics of Education and Training (CEET)

(Knight & Nestor, 2000)

In seeking to analyse a policy position within a social service and economic utility framework, then, this thesis contributes to a growing, but relatively small, body of knowledge in the VET research field of TAFE Queensland

1.4 POLICY: DEFINITION

Policy can be defined in many ways For example, it can be seen as a label for a field of activity, an expression of general purpose, a desired state of affairs, a specific proposal and/or decision of government, a formal authorisation for action, a theory, model, and programme or desired output or outcome (Hogwood & Gunn, 1984) A commonly encountered usage is in the context of broad government statements about economic or social policy At its most simple level, public policy is viewed as a choice made by government to undertake some course of action, or a statement by a government about its intentions that then provides ‘authority’ to commit resources in support of these actions or intentions (Howlett & Ramesh, 1995) In this study, policy is viewed as a range of government statements (i.e objectives, strategies, recommendations) regarding certain directions for VET and TAFE at both a national and State (i.e Queensland) level

For the purposes of this thesis, seven seminal policy documents were selected that represent past, present and future activities of vocational education and training in Australia Three of these documents are commonwealth government generated policy documents representing a national view of vocational education and training The other four are Queensland Government generated policy documents representing

a state view of vocational education and training This research did not seek to investigate to what extent, or how effectively, these policies have been implemented However, it did seek to understand a number of theoretical perspectives that

influenced the development and implementation of such policy documents in Australia These perspectives have a basis in ideology and are addressed initially in Chapter Two: Literature Review and further discussed in the Findings and Discussions Chapters

1.5 CONCEPTUAL FRAMEWORK AND METHODOLOGY

To address the first research question a conceptual framework and a model to visually present a policy position are presented and explained that assists in identifying:

• The current policy position of TAFE Queensland in a social service and economic framework;

• Whether there is consistency between the documents analysed and the views and/or perceptions of senior executive in DET and TAFE Queensland; and

• The relationship between the current position and that exemplified in Kangan (1974)

The methodology governing this study is a case study approach which draws upon policy documents and interviews with a small group of senior executives of Queensland Department of Employment and Training (DET) and TAFE Queensland

1.6 OUTLINE OF THE THESIS

Chapter Two reviews the relevant literature in five main sections Section one examines the educational context for understanding TAFE in Australia Section two reviews the key theoretical influences of globalisation, economic rationalism, corporate managerialism and human capital theory as they have impacted on education policy in Australia Section three provides insight into the VET market and the marketisation of TAFE Section four presents the key policy initiatives and milestones that have impacted on TAFE in Australia and culminates in a contemporary overview of TAFE Queensland Section five introduces the social service and economic utility paradigm This paradigm contains the foundational attributes of the conceptual framework presented in Chapter Three

Chapter Three presents a justification for a conceptual framework and a model to visually represent a policy position of TAFE Queensland The sections in Chapter Three discuss the key research and other issues that influenced the development of the conceptual framework and the model Chapter Four outlines the case study methodology that was utilised for this study The sections in Chapter Four discuss the research design and identify the two main sources of data collection: policy documents and elite interviews

Chapters Five and Six report on the findings from the study Chapter Five presents the findings for the first research question, ‘What is the current policy position of TAFE Queensland with respect to the emphasis placed on a social service and economic utility role?’ Chapter Six presents the findings for the second research question ‘What influences a TAFE Queensland policy emphasis towards either a social service or economic utility role?’

Chapter Seven presents a discussion of these findings and relates them to the literature Chapter Eight includes a summary and conclusions, along with a tentative TAFE system model that evolved from the findings and discussion chapters

1.7 CHAPTER SUMMARY

Vocational Education and Training (VET) is one mechanism Governments use for meeting National and State economic and social goals At times, these goals can conflict with each other From a social service perspective, demand for VET stems from a desire by individuals to achieve their full potential and contribute to their own social and cultural development while demand motivated by economic goals stems from the income that accrues to individuals, communities, enterprises and nations that possess superior skills and knowledge (Ferrier & Anderson, 1998)

Like many organisations, TAFE is in transition and currently the distinction between commercial and government organisations is less clear than before Public funding is

no longer solely the domain of the public provider and the question can be posed:

‘Do we still need the public provider?’ Given that there are private providers who depend pre-dominantly on government-funded training through user choice and competitive tendered arrangements, one could argue that they are in effect private

TAFE’s, albeit TAFE’s unencumbered by the extent of government policies, processes, systems and awards that bind TAFE Queensland

TAFE itself has evolved from a 1990’s environment of increased private provider activity, limited government funding and a political policy framework focussed on the sale of public utilities For any TAFE organisation, then, it is an appropriate time

to consider the ongoing role of TAFE, as a public service entity, located within what appears to be a competitive, open-market environment (Broadbent, 1998; Goozee, 2001; Veenker & Cummins, 2001) While the TAFE sector can be viewed in a number of ways, this thesis provides an opportunity to investigate the current policy position of TAFE Queensland within a social service and economic utility role

CHAPTER TWO: LITERATURE REVIEW

One of the key purposes of a literature review is to assist in finding a focus for a topic However, it is also an ongoing process that cannot be completed until the data collection and analysis phase has been finalised (Glesne, 1999) Chapter Two of this thesis provides an evolving review of literature from the inception of the initial draft questions to the final presentation of this thesis In response to the research questions, and in preparation for the interviews which follows, it addresses the following key areas:

• The educational context for understanding TAFE in Australia in comparison to other educations sectors;

• A number of theoretical perspectives impacting on education policy in Australia with particular emphasis on those perspectives that have created tensions on education policy;

• The VET market and the marketisation of TAFE;

• Key policy initiatives and milestones impacting on TAFE; and

• TAFE’s role from a social service and economic utility perspective

2.1 EDUCATIONAL CONTEXT FOR UNDERSTANDING TAFE IN AUSTRALIA

2.1.1 An Overview of the Australian Education System

The Australian education system is a tiered system comprising primary and secondary schools, a vocational education and training system (VET) and universities There is a fourth sector described as adult and community education (ACE) ACE activities occur within community colleges, Workers Education Associations (WEA), community adult education centres, schools, TAFE institutes and universities (Knight & Nestor, 2000; NCVER, 2003)

There are both private and public providers operating within Australia’s education system Further, there is considerable overlap between secondary schools, TAFE and universities as indicated below:

• Both private and public secondary schools offer a range of vocational activities traditionally the domain of TAFE and the private VET market;

• Universities enhance pathways from TAFE and private providers by providing credit for studies competed in certificate and diploma programs, subsequently reducing the duration of a number of under-graduate degrees;

• However, universities also offer programs to facilitate easier pathways for secondary students who do not gain direct access to under-graduate degrees, effectively by-passing a Diploma-Degree pathway option at the expense of TAFE and other private providers; and

• Private providers offer both mainstream VET products under the national training packages system and provide associate degree and degree programs in direct competition with TAFE and universities

This overlap is further evidenced within Queensland’s vocational education and training system through estimations that the number of students enrolled in TAFE represents only 48% of total VET students (Queensland Government, 2003c) The balance of VET students are enrolled in universities, secondary schools and private registered training organisations There are arrangements that have been, and continue to be, established between schools, universities, TAFE and private registered training organisations that illustrate common practices and overlap traditionally defined boundaries

In terms of participation across the three education sectors, nearly all school students are full-time; approximately 60% of university students are full-time; however, only about 15% of TAFE students undertake full-time study (Burke, 2000) A further unique characteristic of TAFE is that it derives its student population across all age categories, delivering education and training to more students than universities at every age level, except the age group 20 to 24 years (Burke, 2000) Clearly, this indicates that TAFE has a broader clientele base than either of the other two mainstream sectors as it provides opportunities for youth, second chance education for adults, and opportunities for lifelong and recurrent learning for all age groups

2.1.2 The General Role and Purpose of Education

Marginson (1993) describes the role of education as being subject to conflicting or incompatible interpretations They may be categorised as “the custody and care of students, the academic development of students, the preparation of a democratic citizenry, the construction of a more productive economy and social selection”

(p.16) The tendency is for a claim to be made that one or the other role of education

should be dominant However, Marginson (1993) indicates that “educational policy and professional education practice must strike a balance between these different roles, but there is rarely an equilibrium point and the priorities tend to shift over

time” (p.17) Ferrier and Anderson (1998) describe the role and purpose of

education as tensioned between two predominant and contrasting perspectives:

The primary role of education should be to contribute to the achievement of national economic success by developing the human capital required by industries and enterprises (p.1)

1998, p.23) In a Queensland context, the Education Training Reforms for the Future (Queensland Government, 2002) policy focuses on increasing the ‘school’ leaving age so that youth will be engaged in schooling, vocational education or employment until the age of 17 years The report estimated that at that time there were some 10,000 disengaged youth throughout Queensland, aged 17 and under, not actively participating in school, VET or employment (Queensland Government, 2002)

Notwithstanding the focus on youth, it has been recognised that existing workers also needed increased levels of education and training For example, there was the Training Guarantee Scheme (1990 to 1996) that required employers with payrolls over $200,000 to spend 1.5% of gross wages on training (Dawkins, 1988; Dawkins

& Holding 1987) More recently, Queensland’s Smart Vet strategy (Queensland Government, 2004b) and the Queensland Skills Plan (Queensland Government, 2005) have recognised the importance of training for adults and existing workers as the focus on VET training has shifted from training people so that they can gain ‘a job’, to training people, including existing workers, so that they have the skills required to meet industry skill shortages

Significantly, education has become a highly politicised sector (Marginson, 1993) with policies open to broad public debate and interest Hence this study’s research into the current policy position of TAFE Queensland within these broad interpretations of the role and purpose of education is timely

2.1.3 The Role and Purpose of Technical and Further Education

In 1973 the Whitlam Government established the Australian Committee of Technical and Further Education (ACOTAFE) with Myer Kangan as Chair Committee representation came from businesses, the Australian Council of Trade Unions (ACTU), State technical education systems and higher education The committee was formed to undertake a significant review of technical and further education in Australia For the purposes of the committee, technical and further education was defined as post-school education other than that undertaken under the auspices of the Australian Universities Commission and the Australian Commission on Advanced Education The ACOTAFE committee produced the Kangan Report (1974) that provided the initial definition and purpose of technical and further education under a formalised TAFE banner that included a national structure and funding arrangements The Kangan committee established a mission for TAFE:

The concept central to this [Kangan Committee] report is the provision of unrestricted access to post school education through government maintained

or administered institutions not already assisted through the Australian

Universities Commission or the Australian Commission on Advanced Education (Kangan, 1974, p.xxvi)

In establishing this initial mission for technical education, Kangan did not define an identity for the technical and further education sector However, those recommendations that were focussed on the role of TAFE reflected a student centred approach as described by Beazley (1980):

The report envisages a major shift in emphasis It abandons the narrow rigid

concept that technical colleges exist simply to meet the manpower [sic]

needs of industry, and adopts a broader concept that they exist to meet the needs of people as individuals (p.48)

According to this perspective, TAFE’s role was to be broad and inclusive by reflecting a substantial access and equity strategy for vocational education and training within Australia According to the Kangan Report (1974), a large proportion

of the community would not graduate through either the secondary or university systems The Report indicates that the TAFE sector was positioned to give these individuals an opportunity to engage in education and training that they otherwise might not have Hattam and Smyth (1998) argue that TAFE continues to be the

“only alternative pathway offering publicly valued credentials into the workforce for the majority of Australian students” (p.142) This argument is tempered when considering that, in Queensland, the growth in the private provider market means that

an estimated 36% of total VET training will be undertaken by privately operated RTO’s and 10% by private RTO’s who are publicly funded Notwithstanding, the estimated proportion of all VET activity undertaken through TAFE Queensland is still the largest proportion at 48% (Queensland Government, 2003c)

While Kangan (1974) focussed on developing a structured TAFE sector in the 1970’s

to deliver on a policy strategy, significant education and training reforms of the 1980’s and 1990’s sought to develop a more encompassing VET system that included not only TAFE activities, but those undertaken by secondary schools, universities, private registered training organisations and industry Sheed’s (1999) research on the convergence of general education and vocational education during

this period concludes that, historically, education in Australia had been constructed

as theoretical, while training was considered practical and focussed on vocational specific competencies required by workers Moreover, Sheed (1999) identified four emerging trends that were influencing a growing convergence between general and vocational education These trends encompassed the increased diversity evident in the senior secondary school cohort; employers becoming more influential in requests for school leavers to have basic skills and a broad range of skills and attributes relevant to the world of work; the convergence of work and education that integrated the concept of work with lifelong learning; and the convergence of the needs of individuals with industry, particularly in such areas as computers and information technology and the need for lifelong learning This changing situation implies a need for the VET system to take an integrated approach to meeting education and training needs of individuals and industry However, within this broader VET system,

vocationalism is seen as a:

national education sector [system] whose task is to increase individuals’ skills in order to increase their capacity for action [work] and so enhance

national levels of work skills (Seddon, 1994, p.70)

Seddon (1994) suggests that a conservative vocationalist approach sees a confluence

of economic and education policy that:

privileges commitments to free market principles, primarily services social demands for vocational preparation and service to society and … emphasises the pre-specification of knowledge and standards against which student performance can be assessed (p.145)

Henry and Taylor (1995) have expressed concerns that conservative vocationalism will produce competent workers, but limit their capacity to participate as active and informed citizens in wider social and political affairs Sheed’s (1999) study on the convergence of general and vocational education acknowledges the concern that there is a risk of the focus of vocational training being the dominant influence This influence is perhaps evident in the following discussion on a range of theoretical

influences that have impacted on education policy, and more specifically, policy on vocational education and training

2.2 THEORETICAL PERSPECTIVES IMPACTING ON EDUCATION POLICY IN AUSTRALIA

The discussion which follows provides an overview of relevant literature that identifies key concepts taken from economic, organisational and market theory as they relate to the Australian education sector, with a particular focus on VET and TAFE These theoretical perspectives provide the foundation for identifying some of the major influences that have impacted on the TAFE Queensland system and its capacity to deliver on a social service and economic agenda These influences contribute to the development of a model provided in Chapter Three

2.2.1 Globalisation and the influences of Liberalism

Globalisation refers to the relationship of an individual country’s economy to that of the world economy It reflects the diminishing of economic borders and an increase

in international trade resulting in a greater inter-dependence, or interconnectedness, between nations and individuals (Marginson, 2004; Wells et al., 1998) In other words, countries can no longer remain isolated from the rest of the world, and workforce competitiveness, in an international context, has become a key issue for governments

Globalisation emanates from an ideological base of liberalism Liberalism was formulated in response to the growth of modern nations that “centralise governmental functions and claim sole authority to exercise coercive power within their boundaries” (Audi, 1999, p.502) There are two general orientations of liberalism The first orientation, neo-liberalism, is the promotion of free unregulated markets coupled with aggressive individualism The second orientation is liberal progressivism While not proposing a return to a welfare State, liberal progressives seek to maintain a degree of government intervention in the provision of public

services and of the market in which they participate (Thurrow, 1996; Wells et al.,

1998) The approach to ‘free’ market ideology (Korton, 1995; Mander, 1996) is in contrast to a Fordist economic philosophy based upon the principles of “protected national markets, organised labour unions, mass production of standardised products,

bureaucratic and hierarchical management and labour” (Harvey 1990 cited in Wells

et al., 1998, p.325)

Globally, the emergence of neo-liberal economics has been strengthened by the demise of communism throughout Eastern Europe and the influence of the International Monetary Fund (IMF) and the World Bank over Western countries and more significantly within Latin America and Africa (Wells et al., 1998) The influence of a free market approach, and the neo-liberalist philosophies that underpin

it, can be significantly attributed to a First World financial intervention into Third World economies with the intent of opening up developing countries’ economies so they are more responsive to global markets, encouraging an ongoing shift towards the privatisation of government owned and/or operated services (Wells et al., 1998)

Neo-liberal, or neo conservative ideology, encompasses three main beliefs Firstly, that public institutions are failing to perform satisfactorily; secondly, that an unfettered market is the preferable form for regulating all institutional activities; and thirdly, that the role of government should be reduced (Lam, 2001) The following sections on economic rationalism, human capital theory and managerialism provide insights into how neo-liberal ideology has influenced reform agendas such as those within the Australian vocational education and training system, and TAFE sector over recent decades The reform of Australian VET and TAFE is discussed in sections 2.3 and 2.4 of this chapter

2.2.2 Economic Rationalism and Education Policy

If one acknowledges a neo-liberal belief of a failure by public institutions in the provision of services such as education, then it is reasonable to accept that any consequential education reform is not a random or accidental event; rather, it is deliberate and planned (Lam, 2001) Part of this ‘planned’ reform has consequentially manifested itself in the conceptual framework of economic rationalism Economic rationalism derives its ideological base from classical economics that asserts “the primacy of markets and seek[s] to limit government intervention” (Dalton, Draper, Weeks, & Wiseman, 1996, p.224) Three key ingredients of neo-liberal or neo-classical economic theory are: “rational, self-

interested consumers; rational profit maximising firms; and competitive markets with price taking behaviour” (Richter & Buttery, 2004, p.120)

A neo-liberal ideology would see economic rationalism as supporting a view that

“self interest was assumed to be the driving force behind all social interactions and the role of government was to be limited to the protection of individuals from crime

and violence” (Dalton et al., 1996, p.44) In this context, education should operate

within a free and competitive market unsupported by government, on the premise that the market will deliver better outcomes than governments, bureaucracies and the law (Chubb & Moe, 1990; Pusey, 1994) This approach to economic rationalism was particularly evident during the period of Britain’s Prime Minister Margaret Thatcher’s stewardship in the 1970’s and 1980’s (Hayek, 1979; Nozick, 1974) Dalton et al (1996) maintain that economic rationalism has continued to influence social and economic policy agendas in the United States of America, the United Kingdom and Australia since the 1980’s

Contrasting with this neo-liberal view is a liberal progressive view that argues that a degree of State intervention is required (Dalton et al., 1996; Green, 1941; Hobhouse, 1928) In this view, governments have a role to play in protecting individuals from the excesses or failures of the market Therefore, the rejection of a completely free and open market is critical to a liberal progressive conception of an economy

In recent decades, formal education has been increasingly seen as an extension of economic policy with economic penalties being attached to people with little education, redundant skills and lack of expertise (Burke, 1998; Gough, 1994; Marginson, 1993) This growing impetus of economic policy on education was reflected in the 1980’s in a government commitment to the economic focus of education policy Thus Dawkins & Holding (1987, p.1-2) stressed, “The Commonwealth government says a better educated and more skilled population will

be more flexible in the face of economic change” According to Seddon and Lawrence (1995) and Self (2000), the influence of economic rationalism on the development of education policy over the last two decades has reflected a neo-classical economic and public choice paradigm that relies extensively on the concept that each participant in the market will seek to gain a level of efficiency from the

market beyond which others would take over In essence, a provider of a service would only be an active participant in the market if there were sufficient financial benefits An extension of this argument would be that a public provider, such as TAFE, would only provide those activities that it sees as financially viable rather than those that it is ‘expected’ to provide by industry or the community For example, it could be argued that a smaller, more flexible community service organisation is more suited to delivering literacy and numeracy skills than a larger, less flexible institution, such as a TAFE institute, and that TAFE remains within these areas more because of political or community expectation than for any market

or financial reason

The argument at a macro-level is if resources are efficiently used then they would subsequently be effectively used (fully utilised) at a micro-level Therefore, it is reasonable to assume that a significant factor in the linking of economic and education policy is to drive behavioural changes at the micro-level The focus of such policy would be to encourage organisations and individuals to efficiently access and use available resources Therefore, the role of government policy here is to set

up frameworks that influence behaviour in certain directions

Within Australia, the approach to economic rationalism, as a conceptual source of policy, is guided by the principles of efficiency, productivity and accountability (Lam, 2001) These ideological arguments have manifested themselves within the wider Australian VET system in three ways Firstly, through a focus on rationalism

by limiting or reducing government funding, thus encouraging or forcing (depending upon one’s perspective) TAFE to gain operational efficiencies, in effect, to do more with less; secondly, through the marketisation of VET through the recognition of VET as a training market; and thirdly, through the application of business management principles to education and training management through the corporatisation of government providers (Kenway, 1999) This shift in focus, not only in VET, but also in Universities and, to a lesser extent, secondary schools, has seen a general movement towards private providers of education and training and commercialisation of public sector activities In a TAFE context, this has been seen

as increased competition both through the tendering of traditional TAFE funds on the open market and the shift to a user choice approach with the New Apprenticeship

Scheme Overall, there is an expectation of increased efficiency of the provision of education and training, driven through the management and institutional structural reforms in conjunction with the increased focus on private provider competition activated during the 1990’s (Burke, 1998) Arguably, in many ways, TAFE’s ongoing survival is dependent on its capacity to respond to this new challenge

From a practitioner perspective, anecdotal evidence suggests that economic rationalism is often seen as simply a focus on efficiencies, driving costs down, and productivity up However, within the Australian VET system, economic rationalism

is more evident through the outcomes of centralisation of resource distribution; decentralisation of responsibilities, setting up of standards, outcome based education and the supporting by government of market forces as they relate to competition and

‘client’ choice (Lam, 2001) Arguably one of the fundamental issues that affects the current TAFE sector is concern that the economic benefits of vocational education and training have taken precedence over the social benefits (Smith et al., 1999; Powles & Anderson, 1996) If this premise is reflected in broader government objectives for the VET system, then TAFE, as the major government provider, will

be directly affected Hence, an investigation into what extent, if any, the social value

of education and training has become subservient to this economic agenda is critical

to this thesis

2.2.3 Human Capital Theory

Since the 1960’s, human capital theory has had an influence on the economic theory

of education and the setting of a framework for government education policies (Marginson, 1993) The development of human capital theory as a mathematical science of education emerged with the development of neo-classical economics The purpose of neo-classical economics was the construction of hypotheses about economic behaviour, in the form of mathematical equations Ultimately, hypotheses would be used to predict economic behaviour (Marginson, 1993) Friedman (1962) developed a free market version of human capital theory whereby he drew a direct relationship between the economic benefits gained from vocational and professional schooling and the investment into an individual who received the schooling

Within the perspectives of neo-liberalism and liberal progressivism, there is recognition of the economic value of labour through human capital theory (Marginson, 1993) However, a key question distinguishes these two orientations:

‘Who pays: governments or the individual beneficiaries of the education or training?’ The neo-liberal approach would leave it to Friedman’s (1962) free market approach with individuals paying, while a liberal progressive approach would support a focus

on governments investing in the individual so that individuals can gain increased economic value for their knowledge and skills

Education and training can increase individual cognitive capacity and therefore a person’s capacity to be productive Within Australia, for example, comparison between graduates and income levels shows that the level of education and training influences income rates, based on average income earned relative to education standards Generally, University graduates have a higher likelihood of employment

to earn higher incomes than VET graduates, who in turn have a higher likelihood of employment and higher average incomes than those individuals without formal qualifications and/or training (NCVER 2002) Therefore, it is reasonable to expect that increased productivity may lead to increased individual earnings However, there is a flaw in logically moving from increased productivity to increased earnings, given that an increase in productivity can also lead to individuals doing more for less (i.e reduction in the number of jobs to achieve the same outcome)

In effect there have been three phases in the relationship between human capital theory and government education policy In the 1960’s there was a focus on public investment in human capital supported by claims that linked the benefits of education

to economic growth This initial phase was superseded by a neo-classical argument that minimised the economic gains from human capital investment to more modest levels Finally, in the free market climate that emerged in the early 1990’s there has been a renewed commitment to the value of human capital theory, although this time the focus is on private investment rather than public investment (Marginson, 1993, 2000)

2.2.4 Corporate Managerialism

The dominant administrative culture to support the move towards economic rationalism has been corporate managerialism Yeatman (1991, cited in Marginson 1993), describes corporate managerialism as the replacement of public policy objectives that frame ‘social good’ with ‘economic good’ This ‘new managerialism’ for the public sector is based upon “strict financial controls, the efficient use of resources, the discipline of the market, the extensive use of performance criteria, the assertion of management control and the manager’s right to manage” (Briggs, 2004, p.587)

This move to corporate managerialism reflects the general shifts of VET policy since the early days of reform led by the Minister for Trade, John Dawkins, through such

reports as A Changing Workforce (1988) and Improving Australia’s Training System

(1989) Corporate managerialism advocates a management of government agencies

as if they were part of the private sector (Marginson, 1997; Marginson, 1993) In

essence, the rationale for a managerialist approach is that the public service could be more effectively managed through the adoption of market techniques either through the privatisation of services, through the creation of an open market, or through the management of government agencies as if they were private corporations

Within Australia, the adoption of a managerialist approach to managing the VET sector and TAFE system has been demonstrated by:

• Strong central control of policy;

• Devolved responsibility for operations;

• Separation of policy making from devolved operations; and

• Focus on outputs, market style competition, distribution and exchange

(Marginson, 1993)

As can be seen, this approach shifts education and training away from a learner centred context and frames education activity as a ‘product’ that is marketed, sold and measured under similar processes to those used by the private sector