As Victoria grapples with a critical skills shortage, shocking new data reveals the state Labor government's systematic dismantling of the private education sector, with more than half of Registered Training Organisations (RTOs) forced to close their doors. This investigation exposes how government policies are actively undermining the very institutions needed to address the state's workforce crisis while officials celebrate the collapse of private education providers.
In what can only be described as a disturbing celebration of educational destruction, Victorian Minister for Skills and TAFE, Gayle Tierney, has proudly confirmed what many in the education sector have long feared - the deliberate decimation of private education providers under Labor's watch. The numbers are staggering: a catastrophic 52 per cent reduction in Registered Training Organisations, plummeting from 504 to 242 in 2024.
This dramatic collapse of private education providers comes at a time when Victoria desperately needs more, not fewer, training options. The state faces severe skills shortages across critical sectors, including aged care, early childhood education, and construction. Yet rather than supporting and nurturing the private education sector that could help address these shortages, the government appears to be actively working to dismantle it.
The irony of this situation becomes even more apparent when examining the government's own flagship program. The much-touted 'Free TAFE' initiative, presented as the solution to Victoria's skills crisis, is failing spectacularly. Recent data from the Public Accounts and Estimates Committee inquiry reveals a shocking completion rate of just 53.7 per cent over the four-year completion period. This means nearly half of all students entering these programs fail to complete their qualifications, yet the government continues to champion this failing approach while systematically destroying alternative education pathways.
What makes this situation particularly concerning is the apparent ideological drive behind these policies. Rather than adopting a pragmatic approach to addressing Victoria's skills shortage, the government seems intent on pursuing an ideologically-driven agenda that favours public institutions while actively undermining private providers. This approach ignores the vital role that private RTOs play in creating a diverse and responsive education sector.
The government's treatment of private education providers through the Skills First contract system has been particularly devastating. These contracts, which provide crucial funding for training delivery, have been systematically reduced or eliminated for private providers, effectively strangling many institutions that have served their communities for years. This approach appears designed to force private providers out of the market, regardless of their track record or the quality of their educational offerings.
The human cost of this policy cannot be understated. Each RTO closure represents not just the loss of a business but the destruction of educational opportunities for countless students. These closures also result in job losses for experienced educators and support staff, many of whom have dedicated their careers to vocational education and training. The ripple effects extend throughout local communities, affecting businesses that relied on these institutions and the students they attracted.
Perhaps most troubling is the government's apparent satisfaction with this outcome. While private education providers struggle to survive, government ministers seem to view their demise as a victory rather than the crisis it truly represents. This attitude reveals a concerning disconnect between government ideology and the practical needs of Victoria's workforce and economy.
The impact on Victoria's skills training capacity is particularly severe in regional areas, where private RTOs often provide specialised training tailored to local industry needs. As these providers disappear, many communities are left with limited or no access to crucial vocational training opportunities. This affects individual career prospects and hampers regional economic development and industry growth.
The government's approach appears particularly short-sighted, given the evolving needs of Victoria's workforce. Private RTOs have traditionally been more agile in responding to changing industry requirements, often developing and implementing new courses more quickly than their public counterparts. By forcing these providers out of the market, Victoria loses this valuable flexibility and responsiveness in its training sector.
The contrast between Victoria's approach and successful international models is stark. Many countries actively encourage a mixed education sector, recognising that private providers complement public institutions and help create a more robust and responsive training system. Victoria's ideologically driven destruction of private providers puts the state at a competitive disadvantage in developing the skilled workforce needed for future economic growth.
Looking ahead, the implications of this policy direction are deeply concerning. Without a vibrant private education sector, Victoria's ability to address its skills shortages will be severely compromised. The reduction in training options and capacity comes at a time when technological change and industry evolution demand more, not less, flexibility in skills training.
The opposition's critique of this situation, voiced by Shadow Minister for Skills and Training Bridget Vallence, highlights the fundamental flaws in the government's approach. Rather than working collaboratively with private providers to address skills shortages, the government appears determined to pursue an ideological agenda regardless of the consequences for Victoria's workforce development.
As Victoria faces increasing competition for skilled workers both nationally and internationally, the deliberate weakening of its training capacity through the destruction of private providers represents a significant strategic error. The celebration of this decline by government officials adds insult to injury, suggesting a concerning disconnect from the real-world implications of their policies.
For Victoria to maintain its economic competitiveness and address its skills shortages, a dramatic change in approach is needed. This must include recognising and supporting the vital role of private education providers in creating a diverse, responsive, and effective training sector. Without such a change, the state risks compromising its future workforce capability and economic prosperity.
