Calling the Tune. Market Responsive Vocational Education: A Discussion Paper.

Overview & Synopsis

An analysis of Australia's vocational education market reveals that the Technical and Further Education (TAFE) system is still the dominant provider of postcompulsory off-the-job vocational education and training in Australia. In the education and training (E&T) services market, TAFE is in competition with other public and private schools, universities, adult community education, industry skill centers, and commercial and enterprise training providers. The Australian market for E&T services is not, however, an open competitive market with full and fair competition among the providers of postcompulsory E&T. The desirability of formulating and implementing policies making vocational education more market responsive were considered in light of the following factors/issues: inherent conflicts between policies encouraging competition and those encouraging cooperation; limits of markets as instruments of social choice; the need to balance educational and labor markets; access and equity; quality; the benefits/drawbacks of fee-for-service, joint venture, tendering, and voucher arrangements and incorporating TAFE; and distortions. It was concluded that the general concept of developing a more competitive market is a good one provided it is understood in terms of a regulated rather than laissez-faire market. (Contains 83 references.) (MN)