TAFE funding crisis

Between 1997 and 2007, the NSW government cut its funding to TAFE so much that there was an annual shortfall of $550 million, representing a 35 percent cut.

The Commonwealth has also cut its funding by about $155 million (27.2 percent) since 1997.

These figures have caused Professor Peter Kell, who led the 2006 TAFE Futures Inquiry, to warn in an article on the front page of today's Sydney Morning Herald that 'Australia's under-investment in vocational education has undermined its international reputation and taken its toll on an ageing workforce and infrastructure, forcing increases in student fees.'

Figures from the National Centre for Vocational Education and Research Ltd show that NSW has fallen well behind the rest of Australia in the funding of public vocational education and training. In the decade to 2007, NSW increased its funding by only 13.6 percent, while Australia overall increased by 60.5 percent.

The 2009-10 NSW Budget papers show that TAFE NSW increased its fees, charges and commercial revenue by $53 million (17.7%) above that of 2007-08.

In addition, Productivity Commission statistics show that TAFE NSW was the second most efficient of the states and territories in terms of being second lowest in the cost per student hour taught. When she was Minister for Education and Training, Carmel Tebbutt commissioned a private consulting firm to report on TAFE. It found that for every dollar invested in TAFE, $6.40 was returned in productivity.

These figures and analysis have been presented to the Industrial Relations Commission in the current TAFE Award arbitration.

Despite this, the Government, Department of Education and Training, and Director-General still continue to argue for a 10.4 percent increase in teaching loads of permanent and temporary TAFE teachers, as well as other serious working conditions changes, for an average 1.5 percent per year salary increase.