TAFE reform will undermine sector: NSW ALP

NSW government moves to cut funding from TAFE courses not included on a skills list and to introduce competition with private colleges will undermine the sector, the opposition says.

TAFE courses that don't fill skills shortages and directly lead to jobs will no longer receive state funding, under the Smart and Skilled reforms announced by NSW Education Minister Adrian Piccoli on Tuesday.

From 2014, students will be able to chose a subsidised place in a skills list course at TAFE or a private college, a move Mr Piccoli says will increase competition and choice.

But opposition education spokeswoman Carmel Tebbutt said with TAFE already having to bear the loss of 800 staff the reforms would make it hard for it to compete with private colleges.

"It is not a level playing field," Ms Tebbutt told reporters on Tuesday.

She said TAFE provided essential training for many industries and was particularly important in rural and regional NSW.

"I think those roles will be undermined by the government's announcement," she said.

Remodelling the TAFE funding system in Victoria led to a blowout in student fees and TAFE in NSW could suffer the same fate, Greens NSW MP John Kaye warned.

"The losers will be the students who will end up with less education and fewer skills," Dr Kaye said in a statement.

The Community and Public Sector Union (CPSU) said forced competition would not improve educational standards.

"New guidelines for course funding will not increase vocational training for all, it will create 'winners' and 'losers' among students and reduce high-quality education options," CPSU NSW secretary John Cahill said.

The NSW Business Chamber, a strong supporter of greater competition, welcomed the reforms.

"A competitive and fairer playing field between TAFE and private education providers is a framework for better training and qualification outcomes," NSW Business Chamber chief Stephen Cartwright said in a statement.

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