The Federal Government has announced the commencement of a new Vocational Education and Training (VET) Student Loans program, to replace the troubled VET FEE-HELP program from January 2017, subject to legislative passage.

Minister for Education and Training, Simon Birmingham’s reforms to strengthen the VET sector include:

• Course eligibility to be based on industry needs where students completing courses have a high likelihood of gaining employment.
• Student enrolment requirements to prove active and legitimate engagement.
• Setting of higher standards for education providers including the assessing of an institution’s track record of relationships with industry, student completion rates and subsequent employment outcomes.
• Stronger legislative, compliance and payment arrangements with the capping of student numbers and provider loans to limit course scope, and greater powers to stamp out or cancel the payments and operations of poorly performing providers.
• Prohibiting the use of brokers to solicit students with offers of free loans and laptops.

The Minister, has argued that the new program, will “return integrity to the VET sector and deliver a win-win for students and taxpayers through stronger protections.”

National Electrical and Communications Association (NECA) Chief Executive Officer, Mr Suresh Manickam, praised the announcement and has called on the Senate to support the reforms.

“The VET sector’s reputation has been damaged by the behaviour of rogue operators, operating within a poorly thought through loan fee program.”

“NECA has been a long-term advocate for VET sector reform, and we welcome changes that assist to deliver more rigorous standards and accountability for providers with a stronger focus on industry needs and future employment outcomes. These changes, support our calls to assist with the rebuilding and enhancement of the sector, and we look forward to working with the Minister to ensure these reforms come to fruition.”

“I call upon the Senate to ratify the new legislation, given the critical need to restore confidence and long-term credibility across the VET sector.”  

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Media enquiries and interviews

Barry Jackson – National Marketing and Communications

E barry.jackson@neca.asn.au

D 02 9962 6904

M 0457 767 328

Policy enquiries

Andrew Jefferies – Policy and Projects

E andrew.jefferies@neca.asn.au

D 02 9439 8523

Notes for editors

1. NECA is the peak industry body representing the interests of electrical and communications contractors Australia-wide.
2. NECA is run by electrical contractors, for electrical contractors.
3. We have 5,000 contracting companies as members – and they in turn employ over 50,000 people Australia-wide.
4. NECA employs almost 350 people across its seven chapters (Queensland, New South Wales, ACT, Victoria, Tasmania, South Australia and Western Australia).
5. The chapters provide NECA members with a range of services including: Industrial Relations, Health & Safety, Legal, Technical, Training, business-support services, product discounts and advocacy representation in Canberra with Government, Industry bodies and Training bodies.
6. NECA wholly-owns its RTOs and GTOs in NSW, VIC & WA, the EcoSmart Electricians initiative and ACRS – one of the national cabling registrars, and has a joint venture with a superannuation company in NSW (NESS Super).
7. NECA also employ around 2,000 apprentice electricians and provides training to a further 2,000.
8. For further information go to www.neca.asn.au.