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This paper contends that between 1987 and 1990 the then Commonwealth Minister for Employment, Education and Training, John Dawkins, engaged in a systematic process of setting a policy agenda derived from a new value system of corporatist and managerialist approaches to government. A clear policy trail of documents and policy initiatives illuminates his attempt to mobilise support through rhetoric which stresses the urgency of adopting an economic and instrumentalist view of education and training and cast the existing public TAFE system as maladaptive and non-responsive. The paper analyses and comments on this process and its outcome.