I encountered this in 1968. This was at Clarinda State School, in grade 1. The 1A class used ITA, and 1B used proper latin alphabet. My best friend, Steve Irwin (yes, _that_ Steve Irwin. Everyone had to go to school somewhere) was in 1A. Every afternoon after school he'd come to my place and we'd go through our readers for the day. I'd read the English one to him, and he'd memorise it to recite (pretending to read) to his teacher the next day. I assume he was taught properly when he moved to Queensland in 1969.
I can't imagine how hard it was for people less bright than Steve. No wonder the scheme trained illiterates.