Critical review uncovers failings of TAFE system laid bare

A critical review has found TAFEs are prioritising “short-term profit” and running courses that don’t guarantee their students a good job.

TAFEs are failing to create long term benefits for students and the economy by churning out courses that prioritise “short-term profit”.

A critical review of the skills sector has found that one in three Victorian adults have a Vocational Education and Training (VET) qualification as their highest level of learning.

But those learners were paying “widely different fees for courses that don’t always guarantee a good job today, or a ticket into the transformed labour market of tomorrow”.

The report — Skills for Victoria’s Growing Economy — called on the Victorian Government to make student payments for VET courses “more standardised, transparent and fair” by bringing in full-fee regulation for all courses which were not in the Free TAFE scheme.

As part of that regulation, there would be a cap on fees to stop providers from maximising profits, and a floor put in place on a base price to stop the undercutting of fees and reduction of quality.

TAFEs are failing to create long term benefits for students, according to the report.

Eligibility restrictions should be lifted “as a matter of urgency” on government subsidised training for those whose jobs were hit in the COVID-19 crisis.

The review found that in its current form, VET “may struggle to meet the new demands it will face”.

It also revealed that the pandemic had heightened the pressures on the sector, as unemployed people sought training to be ready for new jobs, “potentially overloading a strained system”.

A model of competition between training providers had pitted them against each other “to deliver courses that generate short-term profit without the long-term benefit for learners or the economy”.

Among recommendations was a new independent body, called FutureSkill Victoria, which would drive reform and forge collaboration in the sector.

The report revealed the pandemic and unemployment levels had heightened the pressures on the sector.

This group would publish a skills plan every year from 2022 that outlines Victoria’s skills needs for the next 12 months.

Modelling found the government could support the creation of more than 415,000 jobs by 2030 through TAFE policy and targeting skills shortages.

The State Government intends to “consider the findings of the review and respond within the coming months”.

Higher Education Minister Gayle Tierney said the report would “play a critical role shaping our efforts to ensure the education and training system delivers the skills Victoria needs”.

More than 300 Victorian stakeholders participated in the review.