Liberal Cuts Hurt TAFEs, Reports Reveal

Liberal cuts left our TAFE and training system in turmoil, annual reports tabled in the Parliament today have revealed.

The overall financial position of Victoria’s public TAFE institutes dramatically worsened last year, with TAFEs expected to run up a $52.5 million operating deficit during 2014 compared to the $8.9 million deficit in 2013.

When the $44.4 million write-down of the Student Management System is added, the net result is a staggering $96.6 million deficit.

Minister for Training and Skills, Steve Herbert, outlined the expected loss while tabling the annual reports for 10 institutes in Parliament today. Federation Training and Melbourne Polytechnic will table their annual reports at a later date.

Mr. Herbert said TAFE institute’s finances had deteriorated during 2014, with total annual state government contributions to standalone public TAFE institutes decreasing by more than a third, from $733 million in 2011 to $468 million in 2014.

The overall performance of TAFE institutes in 2014 was $161.5 million worse than 2011, when TAFEs recorded an overall operating surplus of $109 million. The market share of TAFEs has plummeted to 25 per cent of the total training market.

The Andrews Labor Government is saving TAFE, with $20 million fast-tracked from the $320 million TAFE Rescue Fund to shore up the financial situation at seven of the most vulnerable institutes.

The $50 million TAFE Back to Work Fund will help TAFEs strengthen their financial position by further partnering with employers and industry to deliver more training that will drive productivity and create jobs.

The Labor Government is determined to strengthen TAFE institutes for the long-term, with the independent VET Funding Review advising the government on a more stable and sustainable funding model.

Quotes attributable to Minister for Training and Skills, Steve Herbert

“By ripping more than a third of government funding from our public TAFEs, the Liberals left our TAFE and training system in turmoil.”

“While there’s no quick fix, we’re repairing the Liberals damage. Our $320 million TAFE Rescue Fund will make sure the system survives next year and the VET Funding Review will make sure it survives next decade.”

“TAFEs mean skills and skills mean jobs. By saving TAFEs and working with businesses, we’re getting Victoria back to work and giving our kids the skills they need for the jobs they want.”

Key Facts and Figures

 Expected total operating deficit 2014:     $52.5 million

Audited total operating deficit 2013:       $8.9 million

Total Liberal Government funding for TAFEs in 2014: $458 million
Total Liberal Government funding for TAFEs in 2011: $682 million

Operating results by institute:

Public TAFE Institute 2013 Result 2014 Result
Bendigo Kangan Institute $4,662,000 -$10,396,000
Box Hill Institute -$63,000 -$12,829,000
Chisholm Institute $30,009,000 $30,600,000
GOTAFE $12,961,000 -$10,931,000
The Gordon $354,000 -$292,000
Holmesglen -$5,080,000 -$13,761,000
South West TAFE -$3,423,000 -$3,550,000
SuniTAFE $2,080,000 -$7,687,000
William Angliss Institute -$6,122,000 -$1,041,000
Wodonga TAFE $1,112,000 $1,295,000