The newly elected conservative government in Australia in December 2004 decommissioned the Australian National Training Authority (ANTA) and announced the creation of 24 national 'technical colleges' to be responsive to meeting local skill needs. This recent initiative parallels an increasing emphasis on regional development. In common with many western countries, Australia faces an increasingly aging population and skill shortages. In 'Australia's National Strategy for vocational education and training 2004 - 2010' ANTA set national objectives for VET: that industry will have a highly skilled workforce to support strong performance in the global economy; employers and individuals will be at the centre of vocational education and training; communities and regions will be strengthened economically and socially through learning and employment; and that indigenous Australians will have skills for jobs and that their learning culture will be shared. (2004). Such a policy direction is similar to that of the UK with the '21st Century Skills Realising Our Potential' the national skills strategy (2003) and to European initiatives for skill development in the knowledge society. (Aalst, 2001)Vocational education and training over the past two decades in Australia was strongly influenced by competency based training. National training packages had been developed and heralded as providing for a skilled workforce with portable qualifications. Vocational education was 'reintroduced' into post compulsory secondary education programs. This paper reports on research undertaken into the 'use and value of vocational education qualifications to employers' funded by the National Centre for Vocational Education Research, and speculates on the findings from this research in relation to the recent national policy shifts. The research project was conducted at a time of evaluations of the national training packages. Ten case studies were conducted of a cross section of 'old' and 'new' economy industries in Australia. The case study organisations are drawn from motor vehicle manufacturing, mining, baking, seafood processing, horticulture, process manufacturing, hospitality and information technology. There is a surfboard manufacturing company, a power station, a wine producer and a major automotive producer amongst the studies. The case study organisations are small, medium and large companies located in urban and rural areas in different states. The interviews carried out emphasised the importance of the perceptions held by the case study organisations and the related industry bodies.The key research questions explored the importance to employers of vocational qualifications, how they utilized these in their organisations, and explored links with productivity.The key people interviewed were management/employer representatives, middle managers and union representatives. The views of employer and industry associations were also included in the study. The qualitative research is complemented by the collection of quantitative demographic data gathered through the use of a company profile administered during the site visit.The research reviews the impact of national training policies and programs for vocational education and training as seen by the ten case study organisations. Is there a return on the investment in human capital? The project studies the perceptions, understandings and expectations of employers in relation to vocational education and training. These are important particularly as views of employers have been cited by the government as important in contributing to VET policy development. It is through this lens, and through reference to the reviews of the national training package model (Schofield and McDonald, 2004), that the recent shift in policy for vocational education and training is critiqued.