A recently released report conducted by the University of Sydney has found that dodgy private colleges are making massive profits from our, the taxpayers, money as a direct result of education reforms that have been implemented across the country.
There is a typical unconscionable process that literally injects profit into these companies: a vulnerable student drops out, is left with a hefty loan and the provider rakes in the government subsidies .
Since 2009 when Victoria commenced government funding to the private sector these companies have been slowly but surely lining their pockets. In 2013 they made $230 million in profit.
Not only have they burgeoned but they have done so at the expense of our traditional cornerstone of vocational education and training, TAFE. With 1000 jobs stripped and $800 million removed from NSW education budget it is easy to see why it has lost a lot of its market share.
Clearly more needs to be done in the overseeing and regulation of these private educators. It is often reported here of the discussions from ministers and TAFE represenatatives of what can be done. It is time for these discussions to cease and for action.
TAFE spokeswoman Pat Forward says the private sector is “almost unregulatable.” NSW Education Minister Adrian Piccoli argues that his government’s reforms are designed to protect TAFE’s viability and Federal Assistant Minister for education and training Simon Birmingham declares he is prepared to crack down on “dodgy providers”.
When every major player/ representative can agree that there are flaws that require major action then and only then will these dodgy providers will get nervous.