State governments should give TAFEs autonomy over industrial relations to get better value for the $6.4 billion in taxpayers' money that pours into the training sector, which remains so divided and unco-ordinated that one former managing director of NSW TAFE described conditions as "archaic".
The recommendation is part of the final report of the Productivity Commission on a new national agreement between the states and Canberra to revamp the Vocational Education and Training (VET) sector.