New training 'system' could spark college exodus

THOUSANDS of colleges could lose their registration under a new training system proposed by Keating era Treasurer John Dawkins.

John Dawkins

THOUSANDS of colleges could lose their registration under a new training system proposed by Keating era Treasurer John Dawkins.

The National Skills Standards Council, which Mr Dawkins chairs, says a new "Australian Vocational Qualifications System" is needed to protect the economy from a "failure in confidence" in qualifications.

The proposal follows the collapse of dozens of colleges which ran out of money or were closed down by regulators, often leaving students and staff stranded. Some were found to have taught diplomas in as little as four days after attracting enrolments with promises of cash, iPads or overseas accommodation.

The NSSC says the right to issue vocational qualifications should be considered a "privilege". It proposes replacing the current approach of registering colleges with a new licensing system, starting with 18-month provisional licences.

Mr Dawkins said it was more than a semantic change. "This is not about trying to reduce the number of training providers. It's about strengthening the requirements for the training providers which issue the qualifications."

He said "underperforming" colleges could destabilise the training system and labour market by undermining the integrity of qualifications and "providing unfair competition to better providers".

"Because of inadequate data, we don't know the proportion of qualifications coming out of what you would call high-quality training organisations. I think we can assume an employer looking at qualifications from a TAFE or some of the better private providers would not have a question about the quality of that qualification. The question is, what about the others?"

Under the proposal, new and established colleges would need to meet the same standards. Provisionally licensed colleges would face restrictions on the number of courses they could offer, particularly "high risk" courses, and the number of staff without full teaching qualifications.

Licensed colleges, apart from those operated by universities or governments, would need to be incorporated in Australia. Most would face financial viability tests and be required to take out trust accounts, bank guarantees or "tuition protection scheme" membership to protect pre-paid fees over $1500.

Every licensed college would have to appoint an "accountable education officer" to take responsibility for its training and assessment activities. "What you'll have is someone's feet being nailed to the floor, saying I'm not going to sign off on this training or assessment process in a way which is going to risk my registration and livelihood," Mr Dawkins said.

Providers unwilling to embrace the new requirements would have the option of becoming "mini-campuses" of partner colleges which would issue qualifications on their behalf and be accountable for their training delivery.

Australia has almost 4900 registered training organisations, ranging from TAFEs and large private colleges to companies which issue qualifications to their own staff. Mr Dawkins said it was impossible to predict how many would choose to pursue licences. "We suspect some – especially more specialised niche operators – may prefer to work under a partnering agreement."

The proposal is recommended in a discussion paper released today. The NSSC has requested responses by mid-April.