Martin Ferguson (Batman, Australian Labor Party, Shadow Minister for Transport, Roads and Tourism) Share this | Hansard source

Costs of operation have blown out, and $112.6 million in additional funding was provided in 2006. At the end of March this year, half the 20 Australian technical colleges then operating were significantly below their 2007 enrolment targets. Only two out of 20 actually met or exceeded their targets. The total planned expenditure on ATCs, which is more than $530 million from 2005 to 2011, is very expensive, and the number of young people that will benefit—8,400 students per year once all ATCs are fully operational—is very low compared to state and territory VET systems. By comparison, in 2005 there were approximately 1.2 million publicly funded VET students, and total government revenue to the VET sector from the state and territory and Commonwealth governments was approximately $4 billion. The cost per student at the 21 Australian technical colleges now open averages out at nearly $175,000, according to the government’s own figures. The cost per student at the 21 Australian technical colleges is therefore clearly not money well spent.

In conclusion, this is a program that will be expensive because it is duplicating infrastructure and bureaucracy and because it is being run in isolation from local communities and existing education and business networks.

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