La Trobe University vice-chancellor John Dewar concerned free TAFE courses have reduced regional admissions

Professor John Dewar made the comment to a state government inquiry into Victorian universities' investment in skills in direct response to the Victorian government's policy of subsidising 60 courses for eligible TAFE students.

Professor Dewar said the idea was great but had come at the expense of regional university campuses, according to newly published transcripts from an inquiry examining university investments in skills training.

He said it underscored the challenges universities and TAFES faced dealing with a skills shortage when they are funded by two different levels of government.

And it is not the only one.

"When the government recently conducted a review of agriculture education in the state of Victoria it left universities out," Prof Dewar said.

"Now, that does not speak of a world view that sees TAFE and higher ed as integrated."

Wodonga TAFE chief executive Phil Paterson said free TAFE courses played a large part in removing barriers to education for those who normally wouldn't have participated or engaged.

"The initiative has improved access to training for women by 28 per cent, Indigenous Victorians by 12 per cent, culturally and linguistically diverse Victorians by 20 per cent and jobseekers by 22 per cent," he said.

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"It also bolsters our economy and employment market, putting people into industries that are in in-demand or have skill shortages."

Professor Dewar said "enormous scope" remained for Victorian governments to bring TAFEs and universities closer together and Mr Paterson agreed.

"It is not about vocational education versus higher education within a university," Mr Paterson said.

"We need to get to a parity of esteem whereby any historical perceptions or stigma associated with TAFE are removed and we move to a truly student-centred approach to learning.

"We have fantastic working relationships with LaTrobe University and CSU and continue to find ways of working more collaboratively together."

Mr Paterson said Wodonga TAFE encouraged its students to pursue university studies where possible.

"We have articulated pathway programs, whereby there can be guaranteed entry or credits if you go from one course at TAFE to another at university," he said.

"One example is the GROW program we're working on with La Trobe University, incorporating an earn-while-you-learn program, involving Certificate III to degree studies in early childhood education and care.

"This program will include mentoring, career mapping and lifelong learning, embedded in industry, covering an array of skills and learning. This is a program that once developed and instigated, we'd love to roll out into other sectors."

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