Skills Minister John Barilaro unveiled the details of the restructure on Wednesday, describing it as “once-in-a-generation reform”, but critics fear more job losses, campus closures and a further decline in enrolments.

Under the changes, the 10 institutes, which include TAFE New England, will be merged into a single, multi-campus entity, and a series of new flexible learning centres will be opened from next year to provide students with access to TAFE training and teaching across the network.

Mr Barilaro also announced the creation of a new digital education headquarters, to be based in regional NSW, which it’s understood will be responsible for developing and delivering all TAFE’s digital learning programs and courses, and will employ up to 60 people.

Northern Tablelands MP Adam Marshall said on Wednesday Armidale would be the “ideal location” for the digital hub and he’d already spoken to Mr Barilaro and acting premier Troy Grant about the proposal, highlighting the city’s NBN attributes and its reputation as a centre for education excellence.

Tamworth MP Kevin Anderson confirmed he, too, would be lobbying for Tamworth to host the headquarters, with the local campus a “pioneer when it comes to engaging with industry to develop and enhance the way training is delivered right across NSW”.

Wednesday's restructure comes 18 months after the introduction of the Smart and Skilled reforms, under which TAFE, for the first time, was forced to compete with private training providers for funding. Mr Barilaro said after a period of so much change, the reforms would finally offer a “vision” for the future.

“Today, I’ve given them that commitment: we’re not privatising TAFE, we’re backing the public provider and investing in the resources, the assets and the people.”

Mr Barilaro confirmed that jobs would go – although has not put a figure on it – as they slashed administrative costs, and underutilised assets would be sold off.

Kathy Nicholson, the locally based TAFE organiser for the NSW Teachers Federation, said the announcement was disappointing but not unexpected, given the release of a consultant’s report in April that argued there was too much duplication in TAFE administration between the 10 NSW institutes.

“This is yet another major disruption and you have to wonder, will we survive it?” she said. “It won’t be a seamless process; it will have an impact ... (and) our capacity to work with students to grow the skills and development for the good of this state is placed in jeopardy yet again.”

She said the teachers federation feared the scale of job losses and the prospect of campus closures, particularly in smaller areas.

In the New England, Ms Nicholson said, the Quirindi campus had been closed in favour of a shopfront, and she had real concerns for the likes of Tenterfield and Boggabilla.

Ms Nicholson said the growing emphasis on the online delivery of courses disadvantaged students with lower literacy, confidence levels and computer proficiency, and that Smart and Skilled was responsible for falling student enrolments due to rising course costs.

“The real problem facing NSW ... is this contestable funding model that has been a complete failure,” she said, calling for the urgent return of recurrent funding for TAFE.