Dodgy private colleges facing Senate inquiry

VOCATIONAL training organisations and private colleges are facing a Senate inquiry amid allegations of dodgy practice and poor standards.

VOCATIONAL training organisations and private training colleges are facing a Senate inquiry into the regulation and funding of the sector, amid allegations of dodgy practices, rorting and poor standards.

The Australianreported that the Greens and Labor were nearing agreement on the terms of reference for the inquiry. Greens Senator Lee Rhiannon told news.com.au she was hoping to get the inquiry approved as early as tomorrow.

The draft terms of reference relate to, among other issues, access to government funding, the cost of courses, the quality of the education provided, as well as the marketing and promotional techniques employed by training providers.

“The problem we’re seeing with vocational education and training, particularly in Victoria, is a number of companies are ripping off the public purse,” Senator Rhiannon said.

“The issue of the quality of education has also been raised with us.”

She said the targeting of vulnerable people was particularly concerning.

“Our office has been receiving complaints that people who may be disadvantaged through disability or their circumstances in life are being taken advantage of.”

Greens Senator Lee Rhiannon is pushing for an inquiry into the industry.

Earlier this month, news.com.au reported that the industry regulator, the Australian Skills Quality Authority, had received complaints about Acquire Learning, a vocational education marketing organisation headed by former AFL boss Andrew Demetriou.

Other recent controversies include listed training organisation Vocation, which shed more than $350 million in market capitalisation after failing to disclose to the market that it was losing nearly $20 million in government funding and would have to restructure its Victorian business.

That restructure has just completed with 87 redundancies, but the company is now facing two class action lawsuits from investors.

The Minister for Industry, Ian Macfarlane, said the government was already taking action to strengthen the VET system independent of any motion the Greens and Labor put to the Senate.

“The Australian Government has undertaken extensive consultation through the VET Reform Taskforce and is already putting in place a range of measures to create an industry-focused, flexible and responsive national training sector to meet Australia’s future skills needs,” he said in a statement.

“The Government takes very seriously any suggestion that training providers, or brokers acting on their behalf, may have acted inappropriately. Where there is evidence of wrongdoing, the Government has taken and will continue to take appropriate action.”

He added that the government had already provided an extra $68 million in funding to bolster ASQA, and that work was underway to establish a National VET Complaints Hotline for students and the public to raise any concerns about training practices.

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Originally published as Dodgy private colleges facing Senate inquiry