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The paper examines the role of government policy in encouraging employers to invest in training development. Some of the pitfalls of comparative analysis are considered to emphasise that international experience must be evaluated carefully before it can be applied to another system. An outline of the main features of the Australian and British VET systems is provided, emphasising the development of training markets and the role of employers rather than formal training. The potential for Australia from Britain's experience are assessed. The conclusion is reached that comparison provides a guide of what to avoid and, in addition, is useful in reviewing policies, monitoring performance and identifying future trends.