In a bid to restore confidence in the state's training system, the Victorian government has terminated the contracts of 18 "low-quality" training providers under its quality blitz.
During the past one year, under the $9 million training quality blitz, 62 registered Training Organisations (RTOs) were investigated.
According to the state government, more than $41 million in government funding is earmarked for recovery and $9 million funding is currently being withheld while investigations are underway.
"The blitz has had a huge impact. It has led to us removing dodgy training providers from the system and has helped restore confidence in VET training," said Minister for Training and Skills Steve Herbert.
The blitz was started last year after the government’s Review of Quality Assurance in Victoria’s VET system.
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As part of the blitz, the Department of Education and Training now names providers who have had their contract terminated on its website, so students can have confidence in the providers they choose.
In addition to the blitz, the state government is investing $30 million over three years to boost quality assurance, including closer scrutiny of high-risk providers and greater control and oversight in the use of third party training providers.
It means investigators can get out and speak to more students and undertake more on-site audits.
"We are leading the country in stamping out rogue training providers. We are working to restore confidence to the training system prior to the introduction of a new funding system in 2017," said the minister.
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The Government has introduced new, tougher contracts for training providers which came into effect in January this year. The new contracts mean that anyone involved in the management of a training organisation that has their contract cancelled by the Department or the regulator reasons will not be able to be involved in another training company that receives Victorian Government funding.
As well as cracking down on poor quality training, the Government has invested in TAFE through the $320 million TAFE Rescue Fund. Last year, the Government commissioned an independent Review of VET Funding, with a new model for the sector to be announced soon.
