The Teachers Federation claimed 101 positions will be made redundant across the 24 campuses in the Western Region, which include Dubbo, Orange and Bathurst.

Mr Piccoli said the Western Institute had been reduced by 30 positions over the last two years after reviews were conducted into the backroom running of the organisation. However he strenuously denied any positions that were cut were teaching positions.

The minister declined to comment on how much had been moved from TAFEs budget for next year and given to private operators but defended the government's reforms.

"The Smart and Skilled reforms mean 46,000 more students will be trained than if the changes were not made. We have funded courses that have the best prospect of getting students a job," Mr Piccoli said.

"TAFE NSW will remain the largest training provider in Australia, with a budget of $1.86 billion. It will compete with private training providers - as it has done for more than 20 years - for government-subsidised training places. It is a relatively small proportion of the overall VET budget that is contestable."

He said the Coalition had recognised when it first came to power in 2011 that budget cuts would be necessary to ensure TAFE remained viable and costs didn't spiral out of control.

"That subsidised part of the training market is worth $440 million next year in NSW and TAFE has done very well in the selection process because it is a fantastic training provider.

"But TAFE won't survive if it is a cumbersome training provider. By reducing its costs we are ensuring its viability in the future.

"The best guarantee we can give TAFE is ensuring that it remains an efficient, viable training provider."

The Teachers Federation is claiming the TAFE cuts will be an election issue next March. NSW Teachers Federation local TAFE organiser Terry Keeley said extensive polling though a respected polling agent showed how important the issue is to voters.

"What we found was that the Baird Government's cuts to TAFE made 50 per cent of voters less likely to vote for the Coalition," Mr Keeley said.

"Voters don't support the cuts, 93 per cent said a strong TAFE sector was important for NSW. We also found 75 per cent opposed cutbacks in public funding of TAFE and a further 59 per cent opposed increasing government funding to private training providers."

TAFE Western and Dubbo MP Troy Grant were approached for comment but declined to comment on the situation.

Mr Piccoli and TAFE Western both declined to answer questions on how the cuts would affect the quality of education provided although a spokesperson for TAFE Western said the organisation was still committed to the central west.