THE NSW Teachers Federation has concerns about further deregulation of TAFE, but Parkes MP Mark Coulton says it is time to talk about it.
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A leaked Turnbull government document proposes a deregulated national training market place, with TAFEs and private colleges getting similar levels of funding to increase competition in the sector.
The Federation fears the contestable funding model would hurt an institution already reeling from state government deregulation and enrolment losses in the tens of thousands.
"In rural areas we rely on TAFE colleges to be available and the only way TAFE is available is because the government provides additional funding," Federation assistant secretary for the post-school section and former organiser for Western Maxine Sharkey said.
"The regional areas will be hit first so any new funding model... they have to get it right before it's introduced."
NSW skills minister John Barilaro doubted the federal government's ability to tailor TAFE to regional needs.
"What we are trying to do is put the funding where there is need," Mr Barilaro said.
"If you have a broader, national [scheme]... I can't think of a way they could do that."
Mr Coulton said the discussion was necessary.
"It appears that various state governments over a long time have probably let TAFE slide a bit and I think it's appropriate that we have a discussion on how were going to manage it," Mr Coulton said.
"Having a trade skill is for many people is a pathway to a career. IT, building trades, mechanics... there's a whole range of skills that we actually struggle to fill positions in and we need to have that avenue."
In a statement, federal Vocational Education and Skills Minister Luke Hartsuyker said it was important students had access to quality education no matter where they lived, and COAG ministers were yet to discuss the options for reform in the VET sector.