TAFE is a good investment

By Phil Bradley

A report released by the Allen Consulting Group on August 16 found that over the next 20 years, TAFE NSW's contribution to the NSW economy will be worth $196 billion.

The report calculates that every dollar invested now in TAFE NSW will generate benefits worth $6.40 in today's dollar terms. That is, a 640 per cent return on government investment. The benefits flow to students (mostly as future employees), employers, industry and communities. The report's finding overwhelmingly vindicates the statement in the Federation's 2005 corflute sign "TAFE -- Worth the investment". We could also look at this finding in another way. Federation estimates that allowing for inflation and growth in student hours since 1998, TAFE NSW is now under funded by about $250 million per year, because of NSW and Federal Government cuts of about $110 million and $140 million respectively. So, how much is this funding shortfall going to cost our NSW economy? Based on the report's finding and an average yearly shortfall of say $125 million per year over eight years, the foregone return is about $6400 million. Is it any wonder given these funding cuts to TAFE, that we are now suffering a severe skills shortage crisis?

The findings referred to above can be found in an independent research report called The Complete Package: The Value of TAFE NSW. On releasing this report, NSW Education and Training Minister Carmel Tebbutt said: "TAFE NSW is trusted as a training provider with a strong track record."

"TAFE NSW plays a key role in tackling skills shortages by providing extra trade classes and training more apprentices," she also said.

Federation would also like to have it acknowledged that this fantastic effort of TAFE NSW is largely due to the incredible dedication and commitment of its top quality teachers, despite their being increasingly expected to carry the burden of funding cuts.

Between 2001 and 2005, the total effective full time (EFT) TAFE teacher numbers have fallen from 10,922 to 10,443 or by 4.4 per cent. During this same period, EFT student numbers have increased by about 6.8 per cent. This highlights the urgent need to employ more permanent TAFE teachers to address student needs and excessive teacher workload.

Phil Bradley is the Assistant General Secretary (Post School Education).

New advice for TAFE teachers

Seaforth proposal diminishes education facilities

For further information

September 2006 contents