TAFE funding announcement to have minimal impact on NMIT

The government announcement of $200 million to support innovation and structural reform within TAFE sector is unlikely to impact significantly on NMIT.

“The Victorian Government’s pledge of $200m ($100m for transition costs and $100m for asset management) over the next four years is welcome but will not redress NMITs funding shortfall this year,” said NMIT CEO Dr Andy Giddy.

“In yesterday’s presentation to TAFE CEOs and Board Chairs it was clear that what was being offered was ‘$200 million in contestable funding over four years for structural adjustment and business transformation for institutes without sufficient financial reserves’.”

“NMIT is unlikely to qualify for any of this funding to support the transformation of our core business as it has been responsibly managed over the past two decades and is currently in surplus.”

Dr Giddy also noted that this new initiative does not replace any funding that NMIT lost since the May budget cuts – including the $14m of wage supplementation that ceased in December 2012.

“The removal of concession fee categories at higher levels and the withdrawal of funding for community service obligations have had an impact on NMIT,” added Dr Giddy.

“We have always strived to meet the community expectations of large ‘full service’ providers like NMIT, offering services and facilities such as study skills support, counselling, disability support and library services. We will continue to offer these services and will continue to lobby for support for these services,” said Dr Giddy.

However the Government’s response to the recommendations of the Independent TAFE Review Panel does include some changes that will assist NMIT in the long term with the implementation of its business transition strategy.

These include the provision to allow TAFE institutes greater control over their assets by transferring property titles and allowing TAFEs to re-invest the proceeds from sales. “This will allow us to self-fund our transformation to a more competitive business model,” said Dr Giddy.

The NMIT Board will consider the Government’s response to the reform panel recommendations at its next meeting.

“Despite the challenges ahead, NMIT remains committed to delivering a quality education, focussing on Teaching and Learning and providing an excellent student experience,” said Dr Giddy.