Labor announces crackdown on dodgy training providers

by L&D06 May 2016
In his budget reply speech on Thursday night, Bill Shorten declared “the pendulum has swung too far to private providers”.

The Labor leader announced a plan to limit loans for people who take on vocational education courses at private institutions to $8000 per student.

Labor has claimed the loan cap would save $6bn over the next ten years.

Shorten added that Labor will be backing public TAFE and will restore integrity to the training system by “cleaning out the dodgy private colleges who have been ripping Australians off for too long”.

“In 2014, the ten largest private training colleges in Australia received $900 million in government funding. Yet less than 5% of their students graduated,” said Shorten.

“Tens of thousands of Aussies are being loaded up with massive new debt – but not the qualification they need to find a job. And for the past three years, the Liberals' only response has been to blame someone else.”

Shorten was critical of Prime Minister Malcolm Turnbull for only coming up with the idea of a discussion paper during the Coalition’s three years in government.

The paper features ideas such as banning brokers promoting courses to students, appointing an ombudsman for the sector and enforcing minimum student completion rates.

“The Prime Minister may not be capable of making a decision – but I am. While Mr Turnbull dithers – Labor will deliver,” said Shorten.

“A Labor government will cap Vocational Education loans at $8,000 per student. We will cut this wasteful spending, saving an estimated $6 billion over the decade.
 
“Tonight I have outlined $71 billion of additional budget improvements over the decade. These are the decisions our nation needs. This is what a responsible budget looks like.”

Related stories:

Turnbull prepares for radical shake up to training sector

Bob Katter slams private training providers, calls for inquiry
 

COMMENTS

  • by Pauline Gallagher 17/05/2016 7:02:51 AM

    Mr Shorten Not all private training providers are dodgy. I work for a small but professional training provider and feel offended by your comments. I would appreciate some respect for the great work we do.

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