AT LEAST one local training agency has described it as an “absolute disaster” but others have been left reeling as they contemplate job losses across the sector and even basic survival.
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Regional training providers are still in disbelief since news in late October of the size of the government contracts awarded under the new Smart and Skilled regime.
“It came as a shock,” said Shaun O’Sullivan, general manager of Tamworth’s Australian Training and Consulting (ATAC).
“We didn’t imagine in our wildest dreams it would be like this.”
Mr O’Sullivan said ATAC’s new contract was less than 10 per cent of the last and many other local providers were in a similar position.
ATAC is not solely reliant on the contract for its survival, but Mr O’Sullivan said it meant some hard decisions had to be made and some jobs had been shed.
ATAC’s community sponsorship program would also have to be reviewed, he said.
Training, Education and Management Services director in Glen Innes Kerry Derrington described the whole process as an “absolute disaster.”
Mrs Derrington said it would force their business to restructure because some contracts would only accommodate one trainee and were completely unviable.
Mr O’Sullivan said he had heard similar stories, one provider awarded a contract for just $900, which didn’t even cover the course cost.
Agencies have declared that of the 138 training organisations awarded contracts in New England, just seven of those are considered local, including TAFE New England.
Mr O’Sullivan said many had no staff or infrastructure in the region, so those dollars would not be spent locally.
“We’re certainly not afraid of competition – we’ll back ourselves every time – but in this case we’ve been completely shut out of the market,” he said.
The tender process, too, has come under fire, both Mr O’Sullivan and Ms Derrington saying the “tick and flick” process provided no opportunity for an organisation to demonstrate its experience and competencies.
“There is no way the question-and-answer format that was used could have determined who were the quality providers,” Mr O’Sullivan said, adding a “proven track record” seemed to have no bearing on the process.
While greater access was highlighted as one of the benefits under Smart and Skilled, Mr O’Sullivan said the reality was individuals and businesses would have a lot less under the new contracts.
Once the likes of ATAC exhausts its allocation of funding, it will have to turn people away and businesses will have to find other training avenues, not necessarily an easy task in smallers areas.
Mr O’Sullivan said ATAC trainers frequently travelled to small communities in the region to deliver courses, but that may now no longer be possible under the restricted contracts.
He doubted organisations from outside the region would offer that level of service.
Mr O’Sullivan said many local providers had made representations to state government representatives and were awaiting a response.
