A state-of-the-art digital learning space will be constructed at Dubbo and Wellington TAFE campuses to link local students with qualified teachers across the state.
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It will allow teachers to participate in classes, subject to demand, no matter where their teacher is located.
Dubbo MP Dugald Saunders said it was a "major win" for local students.
"This initiative will enhance access to training, allowing more students to live and learn in their own communities, while gaining access to the skills they need to be work ready," Mr Saunders said.
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"The installation of a virtual delivery space at Dubbo's Myall Street TAFE campus will in turn give students across NSW the chance to learn from the amazing industry experts we have right here in western NSW.
"This investment ensures people living in regional communities have access to a greater range of teacher-led, digitally-enabled courses, and allows them to build skills highly valued by employers, such as digital literacy, remote working, problem-solving, and resilience."
Construction will begin in the coming months and is expected to be completed by May 2022.
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