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In July 2005, the Victorian Minister for Education and Training announced an inquiry into vocational education and training (VET) in response to evidence that the Victorian VET system could play a greater role in helping the Victorian economy to meet current and emerging economic and social challenges. The terms of reference for this inquiry were: (1) Consider the appropriateness of current apprenticeships and traineeships, including an examination of levels of regulation, wage structures and the opportunity to increase outcomes eg. flexible entry and exit points; (2) Investigate the effectiveness of vocational education in schools (including VET in the VCE, school-based new apprenticeships and the Victorian Certificate of Applied Learning) for individuals and industry, including an examination of the recognition of student achievements, industry participation and perceptions, and student outcomes; (3) Investigate training models and associated resources required to meet the needs of the full range of VET students, with a focus on new entrants, mature-age workers and those people seeking to re-enter the workforce; (4) Consider future resourcing requirements in the context of no growth funding from the Australian Government, a changing student profile and pressure to meet increasing productivity and participation demands; (5) Examine the role of vocational education and training in overcoming skill shortages, increasing workforce participation and increasing industry productivity; and (6) Investigate strategies to improve access to information on training providers by the VET system's clients. This inquiry report identifies future skill needs and makes a set of 63 recommendations that will help raise Victoria's skill and qualifications profile. These are presented under the following headings: Skill shortages; Information for potential and current clients for the VET system; Quality assurance; VET in schools; VET in schools: addressing quality issues; VET in schools: improving resourcing; VET in schools: improving vocational pathways; Apprenticeships and traineeships; Future directions for traineeships; Improving completion rates and the quality and effectiveness of apprenticeships and traineeships; Apprenticeships & traineeships: other issues; Training models for particular client groups; and Resourcing VET. The contents are: Executive Summary; Introduction; Addressing Victoria's skill challenges; Reducing skill shortages and increasing participation and productivity; Quality assurance and information for clients; VET in schools; Apprenticeships and traineeships; VET training models; Resourcing VET. Included as appendices are: Inquiry terms of reference; Submissions to the inquiry; Inquiry consultations.