TasTAFE spent almost $3.6 million on termination payments last financial year, wiping out most of its $4.3 million in wage savings, Labor says.
Labor MP Brian Mitchell said TasTAFE’s annual report showed termination payments jumped from $170,000 the year before, an increase of more than 2,000%.
He said more than $3.4 million of the savings from cutting wages and salaries went straight back out in termination payments.
“This is just a rolling cascade of cuts and waste here at TasTAFE,” he said.
Mitchell said 29 people left TasTAFE during the year. He said Labor understood another 118 jobs would go by 2029-30, including 63 teachers.
He said TasTAFE was also paying consultancy KPMG almost $100,000 for a cost review.
“So more cuts are on the way,” he said.
TasTAFE is required to find $45 million in savings, according to documents tabled in parliament in May.
Creative courses including screen and media were cut last year and laboratory technology courses will end this year.
Mitchell said 90% of graduates from the laboratory technology course had found work.
“Only Felix Ellis would make the argument that spending $3.6 million on sacking educators during a skills crisis is money well spent,” Mitchell said.
He pointed to Master Builders estimates that Tasmania needs 11,000 more skilled workers over the next few years.
Mitchell would not say whether Labor would protect TasTAFE from savings, saying the party would release its policies closer to the next election.
Skills Minister Felix Ellis said the government had made substantial investments in TasTAFE, including $7 million student residences in Burnie and a $26 million upgrade to the North West Clean Energy Centre of Excellence.
“We’ll continue to back in TasTAFE,” he said.
“Similarly, though, it’s important for us to make sure that we’re being efficient, that every dollar of taxpayers’ money that comes through TasTAFE, including from our apprentices, is spent wisely.”
Ellis would not say whether the cost review would lead to further cuts.
“I’m not gonna preempt the review, but it’s important for us, like any business, to understand our costs,” he said.
He said finding efficiencies would allow TasTAFE to deliver more frontline teaching services.
