From July, 2014 all TAFE campuses will be in competition with other Registered Training Organisations (RTOs) and vie for government funding to stay afloat. To be fully enacted by next July, these reforms come as TAFE is undergoing a series of NSW government budget cuts, stressing an already faltering institution.

The groundwork for the change comes from the National Partnership Agreement (NPA) on Skills Reform, with the Council of Australian Governments, signed in April of 2012. 

Called the ‘Smart and Skilled’ reforms in NSW, they are structured to provide a sustainable funding balance and flexible training system for the nations’ providers of vocational and educational training. The reforms pledge to support TAFE as a public provider, promote a drive to improve quality and transparency for students and employers.   

Already in place in other states, NSW is one of the last to implement the COAG reforms.

Acting Institute Director of TAFE New England Alison Wood explained that implementation of Smart and Skilled on July 1 next year will see the introduction of student entitlement based VET training in NSW.  

“The new funding will provide an open training market with the opportunity for both TAFE New England and private providers, either local or from elsewhere, to deliver training from an approved course list,” Ms Wood said.

The Department of Education and Communities states: “The NSW Skills List will define which courses will be subsidised under Smart and Skilled. The Skills List will be based on extensive labour market research, employment forecasting and consultation” and “work with industry to develop a skills list of funded places that matches industry need, and the funded price for a course will be the same for all providers.” 

The Skills List will be apply to set courses up to and including certificate three levels at this stage. The ‘Smart and Skilled’ reforms will offer students a voucher system per certification, allowing them a choice of any RTO offering that Skills List. The provider will then be subsidised by the state government to deliver the training.

This puts TAFE on an equal footing with every other training provider with equivalent accreditation, a place they haven’t been before.

The Inverell TAFE is one of eleven campuses in the region under the regional TAFE New England management. There are about 140 TAFE NSW campuses and all campuses are registered with the Australian Skills Quality Authority (ASQA). In contrast, there are nearly 2,600 non-TAFE RTOs registered with ASQA state-wide, many delivering on-line qualifications. However, a student is not limited to an RTO in NSW. The options are nationwide; the numbers higher.

Competition will be the order of the day, which Northern Tablelands MP Adam Marshall said would be challenging for TAFE, but he said it would also present enormous opportunities for TAFE to do things they’ve never done before. 

“This will force TAFE and all RTOs to be completely responsive to business and industry. So if there is a need in Inverell…then obviously TAFE will be responsive to that because that’s part of their business.” 

Kathy Nicholson, NSW Teacher’s Federation TAFE representative is concerned by the reforms.

“TAFE as a public institution has been accessible to everyone in the Inverell community. The proposed changes will jeopardise access of any kind to many in Inverell because the changes limit study to those who can pay or those who do not already have a qualification.

“I know from my many years as a TAFE teacher in Inverell that many students who come to study for the first time or return to study take some time to gain the confidence and skills to enable them to return to employment.”

The proposed restricted system allows students to access only one course up to a Certificate III only.

“So this means that if you want to learn to weld and are a farmer, maybe with an existing qualification in Agriculture, you will have to pay thousands of dollars to do so.  

“Because of what are called ‘thin markets’ in the bush student numbers are likely to be low, making it not cost effective to run programs, so teachers will leave Inverell because they have to make a living for their families,” she said.

TAFE New England Institute Director, Alison Wood said one of her main goals was ensuring TAFE New England was in the best position possible to compete under the new model. 

Wood said she has no doubt TAFE New England would evolve to compete in this new market and it was more important than ever to show the local community just what TAFE had to offer.

"We have fantastic facilities and there's been a steady investment in these over the years. Students are being trained by incredibly skilled and talented teachers, teachers who are highly skilled in their vocational area.

“We've got incredible wrap-around services in TAFE New England to improve the outcomes for students on their learning journey. 

“These services include access to educational, personal, vocational and career counselling, fantastic libraries and extra support for Aboriginal students, students with disabilities, people with literacy needs and those needing help with their coursework.”

Spokesperson of Inverell TAFE, head teacher Josephine Kelly, agreed that the institute has some hurdles ahead. 

“TAFE can compete in a competitive market, however, TAFE has always had the student’s best interest at heart. 

“Competitors will be operating on making a profit and will need to cut whatever corners they can to achieve that.

“TAFE does need to operate efficiently and in a fiscally responsible way, however, it also needs to remain as a support in the community providing opportunities for education and employment at Inverell.”