A reported $17.8 million deficit at Federation Training was largely due to the downward revaluation of assets, according to a TAFE spokesperson.
The Federation Training 2017 Annual Report was released on Tuesday, the same day as the state budget, in a move the Nationals Party spokesperson for training, skills and apprenticeships Steph Ryan said indicated the state government was “embarrassed” about the reported deficit.
However, member for Eastern Victoria Harriet Shing hit back, saying it was “a pity [the Nationals] don’t understand the write-down process”.
Ms Ryan said the figures in the report showed the state government had “failed” to rescue TAFE as it had promised.
“The government tabled the TAFE annual reports on budget day, in what I think is a very clear sign that they are embarrassed about the story they tell,” she said.
“I think the state government has completely ignored the financial difficulties [of Federation Training] over the last three years.
“It is a shame it has taken an election year for them to take some action around Federation Training.”
Ms Shing said the National Party “can’t and won’t ever deliver anything for TAFE in government” because of its ties to the Liberal Party.
“They also have no regard whatsoever for the importance of education and skill in regional communities,” she said.
“Their talk is cheap and it is a pity that they don’t understand the asset write-down process and instead go looking for a basic and unhelpful line of attack.”
It comes after the state government pre-announced it would fund a $35.5 million redevelopment of Federation Training at Morwell and $6 million for the Traralgon Education Regeneration Project as part of the budget.
The budget also revealed the state government would spend $172 million to provide free TAFE and pre-apprenticeship courses, $304 million for training, $44 million to modernise the apprenticeship system,almost $50 million for head start apprenticeships and traineeships and $25.9 million to improve secondary school vocational pathways.
A Federation Training spokesperson said the annual report showed the TAFE made an operating surplus in 2017 of about $5.8 million and the deficit could be largely attributed to asset revaluations.
“Asset revaluations of all Victorian TAFE institutions took place in 2017 and Federation Training assets (plant, equipment and buildings) were written down by $ 23.6 million,” he said.
“What the annual report results show is that Federation Training’s performance in 2017 contributed to a positive operating surplus.
“Asset write-downs of ageing infrastructure were the sole reason for the result referred to by Ms Ryan.
“The result also underlines the reason why Federation Training, with the assistance of the state government, is now investing significantly in new campus infrastructure in the Gippsland region.”
