Napthine finds extra $200m to plug gap in TAFE overhaul

VICTORIAN Premier Denis Napthine has tipped $200 million extra into the overhaul of the TAFE sector.

VICTORIAN Premier Denis Napthine has tipped $200 million extra into the overhaul of the TAFE sector in an announcement designed to stem the anti-government backlash in the regions and move on from the political legacy of his predecessor.

Dr Napthine yesterday announced a new wave of reforms for TAFE designed to protect the financial security of the sector but also to drive innovation and plug the gap caused by the $300m in cuts announced by Ted Baillieu.

The reform package, which was announced yesterday, received a mixed reception from the sector amid warnings the cash would not compensate for previous cuts and would lead to asset sales and strife for metropolitan campuses.

Dr Napthine has rejected the integration of governance and management structures for the major rural and regional campuses and will provide contestable structural funding of $200m for the sector over four years. This will include $100m of infrastructure funding to support innovation and business reform to ensure the ongoing viability of TAFE institutes.

The government also will give the sector greater control of their assets by transferring property titles, allowing TAFEs to re-invest the proceeds from sales. The TAFE reforms will hand the institutes more control over workplace relations.

Dr Napthine said financial responsibility was at the centre of his government and he had listened to concerns about previous cuts to the TAFE sector, which senior Liberals believe have impacted on the government's popularity.

"I listen and talk to my community at all times, as do all effective local members of government," Dr Napthine said.

The new TAFE policy is based on an independent TAFE review panel's findings, which were finished last year and due to be released by Mr Baillieu, until he resigned last week.

The government released new figures showing there were now more than 670,000 government-funded TAFE enrolments across Victoria, compared with nearly 427,000 in 2010.

Victorian TAFE Association executive director David Williams said the four-year allocation would not cover the loss of $170m a year in "community service obligation" funding stripped from Victorian TAFEs in last year's state budget.

"Any new money is welcome, but it's not guaranteed money and it comes with strings attached," he said. "The money appears to be very strongly skewed. It'll be welcome in regional Victoria but it doesn't offer anything for metropolitan TAFEs or their students."