TAFE organiser for the Teachers Federation Kathy Nicholson said a report by the Boston Consulting Group was precursor to plans to amalgamate TAFE Western with other institutes, slash courses and cut teachers.

"As a teacher, if that report was submitted to me, I wouldn't have passed it," she said.

There is no bibliography, they only named two private providers TAFE was compared to, and one of those was raided by the federal police last week.

"The government leaked that report and the next day walked out of an enterprise bargaining meeting. They wanted the media to splash TAFE is unviable as a regional provider to push the case for private providers."

The private providers named in the report were NAVITAS and the Australian Careers Network. ACN was raided by the Australian Federal Police last week after it went into administration, leaving hundreds of people unemployed and 16,000 students without courses or qualifications.

Ms Nicholson said it was illogical to compare TAFE to a provider like Australian Careers Network, which the report claimed was 224 per cent more efficient than TAFE in using physical assets.

Ms Nicholson said the government used parts of the report that showed TAFE teachers had high salaries and low teaching hours in a bid to push an unfavourable enterprise agreement onto teachers.

"They are attempting to blackmail teachers and send TAFE to the bottom, where some of these private providers reside," he said.

TAFE enrolments plunged by 30,000 last year after the NSW government introduced fee increases and Ms Nicholson said it was part of a plan to privatise vocational education.

Minister for Skills John Barilaro said when the report was released on Wednesday TAFE NSW was unsustainable in its current form.

"TAFE NSW has become an expensive, high-cost system where 40 to 60 cents in each dollar spent on TAFE is going towards administration costs, not on frontline teaching," he said.

Greens MP David Shoebridge said he feared for TAFE Western and the other two institutes in New England and the Riverina, that were found to be too subscale to be competitive.

"Losing these three TAFE institutes could see public VET training cease in regional cities like Wagga Wagga, Dubbo, Broken Hill, Armidale and Tamworth as well as many smaller country towns," he said.

"There is no doubt that if TAFE followed ACN and threw its ethical standards out the window it could reduce teaching costs, but it is almost impossible to believe that the Baird government seriously thinks this is a positive plan.

"The report has effectively proposed that in order to compete with unscrupulous providers like ACN, Western Institute will have to close and merge campuses, cut the pay and conditions of its teachers and pour money into 'marketing and branding'. That's a terrible outcome for the region."