VET-FEE HELP loans for TAFE proposed

VICTORIA'S proposals for a HECS-like loan system for TAFE and its plan for a shake-up of the sector could be a model for a national system, state Skills and Workforce Participation Minister Jacinta Allan has told the HES.
With the Bradley higher education review putting greater convergence between TAFE colleges and universities on the national agenda, Ms Allan has voiced support for TAFE to increasingly offer university-type courses.

"If the outcome of that process is that we are providing more choices to more people in more places, then that is a good thing," she said.

"Access to training and access to different forms of training is a critical element of increasing participation."

The TAFE changes are aimed at boosting participation by widening access to government-supported places, adopting a more market-driven system and promoting greater competition from private providers.

The state Government is promising to back the changes with additional public money.

But, controversially, student fees are also likely to be hiked to help boost funding, heightening the case for a HECS system in TAFE.

Ms Allan said the proposals were in line with the federal Government's productivity agenda. "Victoria can make a very constructive contribution to the next wave of reform with our training system."

Education unions and some TAFE colleges have attacked the proposed changes, warning fee increases and a HECS system would be shunned by students. "Those who are more comfortably off feel more comfortable about going into debt, but most (TAFE students) will see it as a dark shadow over them," said Gillian Robertson, vice-president of the Australian Education Union.

But Ms Allan said it was unfair that university students could access loans while TAFE students had to pay up-front, albeit with lower fees.

Bruce Chapman, architect of the HECS system, said applying it to TAFE made sense.

"Up-front fees are poor economic policy, there is no reason why you couldn't use the HECS system," he said.

Professor Chapman said the effect of fees and HECS on TAFE enrolments would ultimately depend on where TAFE fees were set, but he noted that the university experience showed that HECS hadn't been a barrier to entry.

"My view is that there would be little affect" on TAFE enrolments, he said.

Critics claimed the looming skills shortages could simply be solved by boosting government funding.

But Ms Allan said just boosting government funding was too simplistic and that Victoria had an efficient system.

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